REGINA – The Saskatchewan rate review panel has approved a 2.27 per cent average rate increase for SGI.
At the same time, the panel is asking the auto fund to defer the motorcycle rate change.
Overall, rates will increase 1.03 per cent but will be capped to set dollar limits for those with annual premiums below $1,000.
A 15 per cent cap will apply to premiums over $1,000.
A 1.23 per cent surcharge was also approved by the panel, but only for one year.
That money will be used to replenish the auto fund rate stabilization reserve.
The auto fund had asked for a three-year levy but the panel cited volatility in several factors affecting the reserve in the future in holding the surcharge to one year.
The panel also recommended the surcharge be shown as a separate item on renewal notices.
As for motorcycles, the panel is asking SGI to hold off on rebalancing rates until the results of the motorcycle review committee have been released.
Under the original SGI proposal, the average motorcycle rate would have increased 72.6 per cent, or $964 yearly.
In its report, the panel said that proposition touched off the heaviest volume of public comments ever received for a review.
“The panel worked very hard to achieve a balance of fairness during this review,” said panel chair Kathy Weber.
“Fairness includes consideration of the Auto Fund’s customers, the Auto Fund itself and the shareholder, which is ultimately the people of Saskatchewan.”
More than 2,300 emails were received and over 500 people attended public hearings to give input to the panel on the proposed rate increases.
The recommendations now go to the government for approval.
If approved, the changes would become effective on Aug. 31.
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