Benefit enhancements for Manitobans seriously injured as the result of an auto crash will be implemented through amendments to the Reimbursement of Expenses Regulation under the Manitoba Public Insurance Corporation Act. This announcement was made by Attorney General Andrew Swan, minister responsible for Manitoba Public Insurance (MPI).
“Today, many seriously injured people, upon reaching their maximum medical improvement, are able to live fulfilling and active lives,” said Swan. “These enhancements will provide financial assistance to support this. Manitobans expect their public auto insurer and the Personal Injury Protection Plan (PIPP) to support them with these activities.”
The enhancements, expected to cost about $40 million, will extend additional coverage to injured claimants. Highlights of the regulation amendments include:
• Enhanced coverage for extraordinary expenses for leisure and recreational activities.
For example, MPI would pay for a specialized sport wheelchair to allow a paraplegic claimant to continue to be active in sports.
• Travel and accommodation for extraordinary expenses to continue pre-accident activities.
For example, a quadriplegic claimant may want to continue their pre-accident habit of visiting out-of-town relatives. The claimant’s hotel accommodations/expenses will now be covered if where they previously stayed is no longer accessible.
• Enhanced coverage for home adaptation. Property renovations are currently funded for the principal residence of a claimant.
For example, where cottage life was an integral part of a claimant’s pre-accident life, enhancements will now allow for reasonable cottage renovations.
• Motor Vehicle Adaptations. Enhancements will now allow for the purchase of adapted motor vehicles for those catastrophically injured. Other qualifying claimants will now be eligible to modify more than one vehicle.
For example, prior to the accident, if the injured claimant owned two vehicles and now requires hand controls, the enhancements will now allow for both vehicles to be modified. For example, if a child must use a wheelchair after the accident, its divorced parents’ vehicles can both be modified to accommodate the child’s needs.
“Manitobans support the use of their Autopac premium dollar in this manner,” said Swan. “These enhancements to PIPP elevate benefit coverage beyond other insurance programs of this nature.”
Marilyn McLaren, CEO and president of Manitoba Public Insurance, explained these enhancements are the result of ongoing reviews of Manitobans’ ever-changing needs and expectations of what PIPP should provide.
“MPI’s basic Autopac program continues to be in a very strong financial position,” said McLaren. “This $40-million cost of retroactively providing enhancements to existing claimants can be safely absorbed with no negative impact on the program. Recently, a thorough review of historical PIPP claims costs caused the appointed external actuary to adjust downwards the expected future cost of PIPP claims.
“While we have not yet completed our year-end accounting, we expect that the value of outstanding claims liability could be reduced by approximately $250 million or 20 per cent. These enhancements announced today will offset a portion of the reduction in claims costs. The going-forward costs of these enhancements represent less than one-half of one per cent on basic Autopac rates. The corporation expects it will report a significant one-time increase in net income when the Feb. 28, 2011, year end is closed.”
“This strong financial result is more evidence of the benefits of public auto insurance. Whenever the program has more income than it needs, the Public Utilities Board is asked to authorize rebates to ratepayers,” Swan said.
The PIPP program was established in 1994 to stabilize compulsory auto-insurance rates for all Manitobans and significantly increase the benefits available to those seriously injured in automobile accidents.
“PIPP has been incredibly successful in achieving these goals,” said McLaren.
