SGI To Issue Rebates To Applause From Their Customers
If you are a Saskatchewan resident and you have ever plated a vehicle in your’s or your business’ name in the last three years you are about to receive a nice surprise in the mail sometime this May from SGI.
SGI has announced a rebate based upon the strong financial picture for the Saskatchewan Auto Fund Rate Stabilization Reserve (RSR). The reserve is made up of monies put away by SGI to protect customers against sudden rate fluctuations due to unexpected cost pressures.
The RSR is one of the reasons SGI has the lowest rates for basic auto insurance in Canada and have not experienced significant rate increases, despite the rapidly rising cost of repairing today’s modern vehicles.
The RSR earlier in 2020 suffered some losses as the market tumbled because of the effect of COVID - 19 on the markets but an unexpected bull market - especially in the fourth quarter - resulted in some unexpected gains for the RSR and the provincial government has decided to issue a one-time rebate to all customers who insured vehicles over the past three years with SGI.
SGI’s RSR fund’s increase is based upon the same market forces that recently had the City smiling as their investments earned unexpected millions more than projected.
The one-time rebate will see $350 million added to not just $285 million in rebates for insured vehicles but it will also see funds going to improve the injury benefits of those most injured in automobile accidents. Under SGI’s No Fault Insurance individuals cannot sue for pain and suffering (unless they elected to have tort coverage, the accident was intentional or the other driver was impaired) but they receive benefits directly from SGI.
The average rebate per registered vehicle will be approximately $285 but it will vary based upon how much was paid and over how many months in the previous three years.
Although the details are still being worked out Tyler McMurchy, manager for media relations told MJ Independent even if a vehicle is not presently registered but was registered any time in the past three years there will be a rebate, but it may be lower than the average payout.
“We have people who have two vehicles and because of the economic impact of COVID - 19 they have only registered one vehicle they would receive rebates for both vehicles,” McMurchy said. Although he cautioned the rate is based upon the number of months the vehicle was registered and the amount.
Asked about people with motorcycles who take their plates off during the Winter McMurchy said they would likewise be eligible for a rebate based upon the period they were plated.
For example if a person sold their car and quit driving for any reason during the three years they would receive a rebate which may be lower than the $285 average rebate.
Also with the rebates some vehicle owners will receive more and some less the $285 per vehicle is an average.
The rebates are also not limited to one vehicle but all vehicles which were insured during the past three years.
Rebates will apply for all vehicle classes (e.g. light vehicles like cars, trucks, vans, SUVs, etc.; private passenger vehicles like motorhomes and buses; motorcycles; school buses; farm vehicles; trailers, taxis; commercial vehicles, etc.).
For those who bought permits and did not register the vehicle NO rebate will be available.
“The Saskatchewan Auto Fund Rate Stabilization Reserve is in a very strong financial position due to very strong investment returns and – to a smaller degree – fewer collision claims due to the COVID-19 pandemic,” Minister Responsible for SGI Don Morgan said in a statement. “As a result, SGI will pass on these earnings to the people of Saskatchewan by issuing rebates to all registered vehicle owners and by improving injury benefits.”
Moose Jaw residents MJ Independent spoke to after the announcement applauded the provincial government’s move to issue rebates saying the money was “much needed” this year and also that given they did little driving in the Spring of 2020 because of the pandemic restrictions something they should receive.
At the present time SGI is working the final formula for the rebates but what is known is if a registered vehicle owner has for example earned a 10 percent (or other) safe driving reduction that the final rebate will not be on the reduce registration fee but the total registration fee.
The measure will see good drivers not penalized for receiving reduced rates.
Customers are encouraged to verify that their mailing address is up to date by visiting www.MySGI.ca to confirm or by contacting their local motor licence issuer.
Additionally the payout from SGI will also see those most injured in automobile accidents receive enhanced benefits.
Customers who require assistance with daily tasks (i.e., dressing, bathing, cooking, cleaning and yard care) will see the maximum payments for those services increase to better reflect current market rates. This is expected to benefit more than 1,100 SGI customers.
SGI customers who receive income replacement benefits from SGI and Canada Pension Plan (CPP) will no longer have income benefits from SGI reduced by their CPP payment. It is standard industry practice to reduce insurance benefits by the CPP payment. SGI is leading the industry by eliminating this practice, to the added benefit of our most seriously injured customers. It is estimated that this will benefit approximately 200 people.
Allowing people who receive income replacement benefits not to have their Canada Pension Plan benefits deducted from any insurance claim is almost unheard of in the insurance industry and something injured and disabled workers advocates have been trying for years to have the insurance industry to adopt.
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