Canada: rates up 370% Bikers celebrate insurance ruling

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Canada: rates up 370% Bikers celebrate insurance ruling

Postby Micronaut » Mon Jul 04, 2005 5:57 pm

Bikers celebrate insurance ruling ... 28&ref=rss

Last Updated Jun 28 2005 08:34 AM CDT
CBC News
For years, motorcycle enthusiasts have complained loudly about big increases to their insurance rates. Now, relief may be coming in the form of a ruling by the Public Utilities Board.
The PUB has requested Manitoba Public Insurance take into account that motorcycles do not cause all the accidents that injure riders – instead of setting rates based on direct costs to the system.
Under Manitoba's no-fault insurance system, injuries from motorcycle accidents represent a disproportionate share of claims paid out. As a result, motorcycle enthusiasts have seen their insurance rates skyrocket. The new ruling means motorcycle drivers' rates will be subsidized by other drivers.
Motorcyclists around the province applauded the PUB ruling. In recent years, insurance premiums for bikers have jumped dramatically, while other drivers have seen only modest increases, because MPI has attributed claims based on direct costs to the system.
Dick Martinook said rising costs have made riding his 1999 Kawasaki Nomad more of a luxury each year.
"I think it's grossly unfair. I watch how I ride. There's always some bad apples in the barrel, but for the most part, everybody that enjoys bike riding is out there to have a good time, and not to do anything stupid," he said.
Martinook said he is not expecting his rates to drop – he just wants to be treated fairly.
"We're not silly enough to believe the insurance costs are not going to go up. Let's face it, everything else has gone up, and you expect that. But for the majority of us that just enjoy riding, it's just gotten to the point where you've got family costs and everything else coming up – it's hard to justify that insurance premium when it's going up 10 and 15 per cent a year."
An MPI spokesman says the Crown corporation is studying the ruling.
MPI released a report last fall saying bikers are more than twice as likely to get involved in a single-vehicle crash than passenger vehicles, and bikers are more likely to be hurt if they do have an accident. The company said the average motorcycle claim cost $14,000 – nearly six times the cost of the average passenger vehicle claim.
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