Earlier in the year the Manitoba Public Utilities Board determined that Manitoba Public Insurance overcharged by 45% in the 2009-2010 insurance year. Forty-five percent is a lot to over-charge.
A couple of years ago I wrote a blog entry about how Manitoba Public Insurance is lazy and wouldn't help me when I was out of province.
Today I received my rebate cheque for my overpaid premium. I'm glad it made it to me but in no way does this improve my personal opinion of MPIC.
The good part is the Public Utility Board told them to give the money back. The bad part is they were not even close to what they figured they were going to need. Since MPIC is a regulated monopoly, competition cannot regulate prices. Ratepayers didn't get any interest for having their money tied up for two years. At least they got it back.
There are some instances that regulated monopolies can work, insurance isn't one of them. There is no high infrastructure costs. there is no motivation to keep prices down. It's easier to pay back years later than come up short.
I'm glad I have my rebate cheque from Manitoba Public Insurance but if I have my choice I will never deal with them again.
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The overcharge was not for just one year. The money paid out had been accumulated over the entire existence of MPI. This was because they overestimated the amounts of payouts that would be needed for those who experienced long term serious injuries. Actual experience showed that they had set aside too much money for this purpose and it was determined that this money should be paid out to policy holders at 45% of basic premiums paid in the 2009-2010 insurance year.
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