December 1, 2009
Province Announces Increase In Benefits For Victims Of Catastrophic Auto Crashes
– – –Changes will Provide Total Lifetime Benefit of $40 Million: Swan
Since the beginning of November, 119 out of 120 Manitobans catastrophically injured in vehicle crashes have already received their share of $14 million in additional benefits, Attorney General Andrew Swan, minister responsible for Manitoba Public Insurance (MPI), said today.
“With the passing of Bill 36, most of the eligible Manitobans whose lives have been irrevocably altered by automobile crashes have already seen enhanced benefits,” Swan said. “All catastrophically injured claimants will have enhanced benefits over the course of their lifetimes.”
Bill 36 was introduced in the spring to strengthen the Personal Injury Protection Plan (PIPP) and provide a clear definition of catastrophic injury. The bill also clearly establishes MPI’s responsibility to help claimants obtain benefits under other provincial programs such as home care or family support, Swan said.
“Our public insurance model is designed to be fair, affordable and offer the broad support claimants need,” the minister said. “These enhancements ensure that MPI will continue to offer one of the most comprehensive auto-injury compensation plans in Canada.”
No rate increase will be required to fund these enhancements, said Marilyn McLaren, CEO and president of MPI.
“The improved benefits that came into effect earlier in November are the result of an ongoing, cyclical review of the PIPP benefits program,” McLaren said. “Claimants will see immediate higher-income replacement indemnity, permanent-impairment payment and personal-care expense reimbursement.”
These enhanced benefits will be provided to all other current PIPP claimants whose injuries meet the new definition of catastrophic injury, McLaren said. The total financial impact is estimated to be $90.8 million on a one-time basis for existing claimants plus an annual increase of $7 million for future claims.
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.
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