REGINA – Saskatchewan Government Insurance has submitted a proposal for a rate increase to the auto fund.
SGI is asking the rate review panel to approve a net increase of 1.03 per cent to the auto fund along with a three-year 1.23 per cent surcharge on rates.
Approximately 57 per cent of vehicles would have a rate increase with the remainder either having a decrease or no rate change.
“The auto fund operates on a break-even basis and these changes are required to cover claim costs in the next rating year,” said Andrew Cartmell, president and CEO of SGI.
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“We see increased wages affecting injury claim costs, higher costs for auto parts and declining bond and investment yields, which all contribute to the need for increased revenue.”
SGI says the surcharge is needed to help replenish the rate stabilization reserve and would be applied to the rebalanced rates.
Motorcyclists may feel in the increase more as those rates will not be capped and SGI is proposing those rates be fully corrected to end the subsidization of their claim costs by other vehicle owners.
“In Saskatchewan, motorcycles are a recreational vehicle, not a primary vehicle for year-round use, and their injury claim costs are excessive,” said Cartmell.
“In the end we simply felt it wasn’t fair for other vehicle owners to continue to pay more than they should in order to subsidize the rates for this vehicle group.”
If approved, the new rates would take effect on Aug. 31.
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