MPI slams brakes on $7-M, $10-M third-party liability options ‘Real risk’ for those who drive in U.S., insurance brokers say By: Chris Kitching Posted: 5:32 PM CDT Wednesday, May. 28, 2025

Manitoba Public Insurance is scrapping its third-party liability options of $7 million and $10 million, prompting concerns that some Manitobans involved in out-of-province crashes may not have enough coverage.

The change, which takes effect July 1, will bring the Crown corporation in line with other Canadian auto insurance providers, MPI spokeswoman Tara Seel said.

“That standard is $5 million as the maximum amount of third-party liability coverage,” she said Wednesday. “We were the only public insurer offering coverages greater than $5 million for non-commercial auto policies.”

Seel said customers still have “quite a bit of choice.” MPI’s remaining third-party liability options — above basic coverage of $500,000 — are $1 million, $2 million and $5 million.

Grant Wainikka, chief executive officer of the Insurance Brokers Association of Manitoba, said the change could create “real risk” to some of the tens of thousands of customers who will be affected, especially those who drive in the U.S.

“In general, it’s not ideal for coverage options to be taken out of market. This is especially true here in Manitoba as customers don’t have a lot of options outside of MPI, given their market position,” he said. “We continue to be in dialogue with MPI and we hope they will reconsider this decision.”

Wainikka said some court judgments in the U.S., where the environment is “increasingly litigious,” exceed $5 million, which will soon be the Crown corporation’s limit.

Seel said it’s “fair to say some customers may be exposed to that risk” when travelling out of province.

“But, in our experience and based on the data, and that’s what we base these decisions on, is that the ruling to the extent of the third-party liability is we haven’t reached that limit where customers are actually using that level,” she said. “We’re providing coverage through the $10 million and $7 million that we’re just not seeing used.”

MPI’s personal injury protection plan helps to reduce the number of third-party liability claims, Seel said.

Wainikka said the $7-million and $10-million options were introduced in 2017 in response to the cost of court judgments, particularly in the U.S.

“What’s curious here is those costs have only gone up. The world has been, especially in the last couple of years, subject to a lot of inflation,” he said. “These judgments are going up in price, so consumers actually require increased liability limits, not a reduction in them, given that some of these judgments are landing where they are.”

The cost of Canadian judgments is also rising, Wainikka said.

While she did not have an exact figure, Seel said the change will affect about 12 per cent of MPI’s customers. MPI said more than 1.6 million vehicles were registered by the Crown corporation in 2024.

“We were the only public insurer offering coverages greater than $5 million for non-commercial auto policies.”–MPI spokeswoman Tara Seel

IBAM was informed about two months ago the change was being considered, Wainikka said.

Brokers were told May 20 the change would begin July 1.

MPI recently updated its website with details of the change. The public auto insurer did not issue a news release — it did when the $7-million and $10-million options were added in 2017 — nor did it publicize the update on social media.

Seel said there typically wouldn’t be an announcement regarding a “product update” that would happen at the point of purchase.

Existing customers will be informed via their annual statement.

Wainikka said there could be a “knowledge vacuum,” while brokers inform customers when their renewals are due.

Customers with a $7-million or $10-million option will see their coverage “adjusted” to $5 million when their policy is up for renewal, with the option to make changes when they visit their broker, MPI’s website said.

Renewals occur every five years.

For those in a reassessment year, their coverage will remain in place for the rest of their term unless a change results in the cancellation of their policy.

MPI’s third-party liability is designed to cover a policyholder if they face a claim for damage to another vehicle or property in a collision. It extends to injury-related claims outside Manitoba but within Canada and the U.S.

The insurer’s website recommends those who leave the province, even for one-day or weekend trips, consider increasing their coverage above the basic amount of $500,000.

“We hope they will reconsider this decision.”–Grant Wainikka, Insurance Brokers Association of Manitoba

“There was some communication about the standard product across the country now being at $5 million and that MPI wanted to fall in line with that,” Wainikka said of the insurer’s explanation for the change. “They did give us some information in that regard. However, we know that there are $10-million options out there.”

He said other products, such as umbrella liability insurance, offer added liability protection for some classes of customers, and there are also third-party providers.

IBAM, which represents more than 2,000 property and casualty insurance brokers, is in contact with other insurers.

“There is somewhat of a competitive market for some liability products,” Wainikka said. “For some clients that really do require this $10-million cover, brokers will be working hard to try and find additional coverages on top of the basic product that MPI offers.”

A spokeswoman for Matt Wiebe, the NDP government’s minister responsible for MPI, deferred comment to MPI.

When the $7-million and $10-million options were introduced in 2017, Ron Schuler, then-Tory government minister responsible for MPI, said in a news release that some court judgments in the U.S. and some Canadian provinces can “far exceed” liability limits of up to $5 million.

chris.kitching@freepress.mb.ca