MPI reviews merit system

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This article was published 23/09/2008 (6325 days ago), so information in it may no longer be current.

Manitoba Public Insurance (MPI) wants community input on a proposed overhaul of the drivers’ licence merit system that promises to reward good drivers and make bad drivers pay more for insurance.

MPI wants to abandon the five-merit system with a new scale that would range from +15 to -20 — the higher the number, the greater the discount for annual insurance premiums.

“To put it simply, good drivers will pay less and bad drivers will pay more, that’s what Manitobans have told us they want it to be,” MPI spokesman Brian Smiley said.

Smiley said MPI has yet to put the finishing touches on the plan, and is now staging information displays at shopping malls across the province to explain to the public what it’s doing and to evaluate any criticism or other input.

Under the current merit system, drivers without driving violations can earn a maximum of five merit points and a 25 per cent discount on their vehicle insurance premium. One at-fault claim or speeding ticket can wipe out the five merits and the insurance discount.

Smiley said the proposed new system would provide good drivers, who occasionally slip up with a moving violation, more leniency. It would take longer to lose the merits. Consistently bad drivers would be punished severely — once a driver reached negative merit numbers, the amount of surcharges on their premiums would escalate as they accumulate more negative merits.

Smiley said a driver who has a 25 per cent discount now (the maximum under the current system) would receive anywhere between 7 and 10 merits under the new system, depending on the number of years of claims-free driving, and still receive the 25 per cent discount.

Now, drivers earn one merit for every two years of no at-fault collisions or traffic violations. But, under the proposed system, drivers would earn one merit every year for a clean record.

Bringing in a new merit system would require approval from the Public Utilities Board and legislation by the provincial government but Smiley said both are aware of MPI’s initiative.

Smiley said MPI officials would like to have a new merit system in place by the fall of 2009.

The MPI information booth was at the St. Vital Shopping Centre on the weekend. It moved to the Kildonan Place Shopping Centre for Monday and today. It moves to the Garden City Shopping Centre on Wednesday and Thursday and then to Polo Park Shopping Centre on Friday and Saturday. The information booth will be set up at shopping centres in Steinbach, Winkler and Brandon next week.

Details on the proposal can be viewed at the MPI website (www.mpi.mb.ca). The discussion paper is also available by calling 985-7000, toll-free 1-800-665-2410.

aldo.santin@freepress.mb.ca