Overall MPI rate hike of 3.7 per cent coming in 2017

Manitoba drivers can expect to see a 3.7 per cent overall general rate increase on basic MPI premiums next year.

On Thursday, the Manitoba Public Utilities Board (PUB) approved the overall general rate increase for basic compulsory motor vehicle premiums to be effective March 1, 2017.

The approved increase is lower than the 4.3 per cent overall increase MPI had asked for earlier this year (two per cent in general rates and another 2.3 per cent to cover poor returns on its investment portfolio).

It's the the third overall rate hike from the public insurer over the past decade.

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The decision comes after several rounds of presentations and public hearings debating the change.

In a Friday press release, the PUB said it denied the higher increase because it found that "the corporation has not met its onus of proving that the applied for rate level change of 4.3 per cent was just and reasonable."

In May, MPI posted a corporate net loss of $31.3 million for the fiscal year.

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Not all drivers will see the same increase on their premiums, the PUB said, depending on vehicle class and driver history.