Manitoba insurance rate news

By John Hopkins



TORONTO, ON -- A proposed 30 per cent rate hike for motorcycle insurance in Manitoba has been cut in half and an increase in sport bike premiums has been declined, according to an item in the December, 2004 Motorcycle & Moped Industry Council newsletter.



The Manitoba Public Insurance program applies for rate changes each year through the Manitoba Public Utilities Board.



"MMIC was again involved in intervening on behalf of the motorcycle component of the rate application," the MMIC said in its newsletter. "Over the past decade, insurance rates for motorcycles have climbed in the order of 300 per cent while autos have increased just 17 per cent."



For 2005, the Manitoba insurance body has recommended a rate increase of 15 per cent for motorcycle insurance. Premiums for sport bikes will remain the same.



The program has also recommended a review of claim cost allocation, which would also have an impact on rates for motorcyclists.



"One issue that was of concern to MMIC was the imbalance of claims cost allocation," the newsletter added. "It was felt that too much of the burden of motorcycle accidents was placed on the rider, and not the other claimant."