MPI slammed over death benefits

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Steve Cancilla with partner, Kendall Wiebe, in undated photo. (SUBMITTED PHOTO)

He's already struggling with losing the love of his life and mother of his youngest child in a freak collision two months ago.

Now, Steve Cancilla says he's discovering Manitoba Public Insurance's payouts to the families of crash victims are insufficient.

His common-law partner, Kendall Wiebe, 27, was working at a Westwood hair salon April 7 when a vehicle crashed through the building and struck and killed her.

The MPI payout to Cancilla will likely be just under $57,000.

Cancilla, who's worked as a financial planner in the past, is highlighting what he says is a precarious financial position for people who depend on insurance after losing a loved one in a crash.

"It's bad insurance with low premiums... it exploits and under-compensates the victims," said Cancilla. "Unfortunately, that's the only system that we have right now."

The crash happened when a 2012 Jeep Liberty -- driving northbound near Rouge Road and Allard Avenue -- went out of control and headed across Portage Avenue at a high speed and into the Crestview Shopping Centre parking lot before smashing through an Ultracuts hair salon.

Another woman working with Wiebe was taken to hospital in critical condition, but was later upgraded to stable and has since been released from hospital.

Cancilla and Wiebe were raising their four-year-old daughter Brynn, and two other kids -- Meagan, 13, and nine-year-old Bryce, from Cancilla's previous relationship.

After Wiebe's death, Cancilla took time off his job in sales to help the family recover.

"People that do not have their own private life insurance would suffer gravely from such a tragedy. The general public is not protected by our current system," he said. "I want to voice my opinion to help protect the victims."

After Wiebe died, he said, he was alarmed to find out the way fatality claims are calculated.

MPI's Personal Protection Injury Plan will pay from $56,888 to $427,500 to a victim's common-law partner or spouse after their death, depending on the victim's income and age.

With her tips and wage, Wiebe earned about $15,000 annually, said Cancilla -- so he'd likely only receive the minimum payout.

"She only qualified for the minimum. The plan is not indexed and does not allow for future income potential (such as a) change of careers... or wage increases," said Cancilla, adding Wiebe had aspirations of becoming a nurse.

Dependants of a victim -- such as a child less than 18 years old -- are also entitled to $27,021 to $49,777, which is held in trust for the child until he or she is an adult.

MPI spokesman Brian Smiley said the Personal Injury Protection Plan is a no-fault system introduced in 1994, and benefits are spelled out in the Manitoba Public Insurance Corporation Act.

The Manitoba Public Insurance Services and Support Guide for Fatality Claims says certain family members can get up to $2,500 each for grief counselling.

There's also a total of up to $7,700 for funeral expenses.

"This payment is not intended to place a value on a deceased victim's life, but rather to simply provide a fixed amount of money to the victim's surviving spouse and children for the loss of their loved one," he said.

"This payment isn't intended to be a life insurance policy, nor is it intended to provide coverage for estate planning purposes."

People cannot sue each other under the no-fault system, said Smiley.

"No amount of money can compensate the loss of a loved one," he said.

People may be eligible for benefits from the Worker's Compensation Board in some fatal vehicle crashes, but hair salons are not included, said WCB spokesman Warren Preece.

No charges have yet been laid against the driver of the Jeep Liberty. Police have said alcohol and drugs weren't a factor.

Sgt. Rob Riffel, of the Winnipeg Police Service Central Traffic Unit, said the matter remains under investigation.

Police are still waiting for information from the vehicle's crash data recorder, he said.

gabrielle.giroday@freepress.mb.ca

Republished from the Winnipeg Free Press print edition June 7, 2012 A4