Tories take issue with temporary MPI pause in long-haul trucking coverage

Hey there, time traveller!
This article was published 12/03/2024 (572 days ago), so information in it may no longer be current.

Long-haul truckers are being told to shop privately for extended insurance coverage after Manitoba Public Insurance temporarily paused new policy applications for drivers operating outside the province.

Opposition transportation critic Konrad Narth said the NDP government has abandoned Manitoba-based for-hire trucking carriers who are currently unable to purchase special risk extension insurance from the Crown corporation.

“These businesses want to serve Manitobans. These are good jobs and necessary for our economy,” the La Verendrye MLA said in question period.

The rookie legislator singled out Justice Minister Matt Wiebe, who is responsible for MPI, for denying coverage Manitoba long-haul truckers need to get on the road, and accused his office of implementing the pause.

“He’s impacting not only these businesses but everyone that relies on those services,” Narth said.

According to MPI, new out-of-province SRE applications were paused in August.

The optional insurance product covers general liability, third party liability and cargo liability, as is available for trucking and commercial vehicles not covered by basic Autopac. It’s a competitive line of business for the corporation that has been costing MPI considerably in recent years.

In 2022-23, claims costs for commercial truckers covered under special risk extension increased substantially, with a year-over-year increase of 37.2 per cent. The massive jump was primarily due to losses in the United States, according to MPI.

In the first three-quarters of the current fiscal year, MPI’s SRE line of business reported an $18.9-million loss.

The pause on new policies followed long-standing, pandemic-related carrier profitability concerns and reduced underwriting capacity owing to the 10-week strike by MPI employees that started on Aug. 28, MPI spokesperson Kristy Rydz said in a statement.

Narth tabled a letter dated last Friday, penned by a Manitoba Justice official, that recommended new trucking businesses interested in immediately operating outside of Manitoba explore “alternative insurance providers with the guidance of their insurance broker.”

It stated other insurance options are available to meet their needs besides those offered by Manitoba Public Insurance.

“Why is this minister undermining our public insurer by forcing businesses to use private insurance from other jurisdictions?” Narth charged.

Wiebe said the PCs tried everything they could to drive MPI into the ground when the party was in government and that NDP believes in publicly owned auto insurance for all Manitobans.

He said his office gave no direction to MPI to temporarily stop offering the insurance.

“The strike had a major impact across MPI and the customer-facing part of MPI has seen some challenges,” he told reporters after question period.

The minister agreed there are comparable products provided in the private market in the interim as MPI gets that part of its business back up and running.

However, he acknowledged the MPI product is very affordable and comprehensive, in comparison.

“They’re very close to being able to bring those specific services back on line,” Wiebe said. “Across MPI, they’re working very hard on the customer-facing side of MPI to work through the backlog caused by the PC strike.”

MPI said it is working with the Insurance Brokers Association of Manitoba and the Manitoba Trucking Association to align on eligibility criteria for long-haul trucking businesses to ensure they meet underwriting and safety criteria to keep its SRE business line sustainable.

MPI expects to resume accepting applications for out-of-province operators next month.

danielle.dasilva@freepress.mb.ca