Consumer and seniors advocacy groups say new legislation governing Manitoba’s auto insurance system would entrench an unfair model that forces safer drivers to subsidize riskier motorists.
The criticism follows the introduction of Bill 49 on Oct. 6, the Manitoba Public Insurance Corporation Amendment Act, which would formalize the province’s registered owner insurance model. Under this system, premiums are based on the driving record of vehicle owners rather than the people who actually drive the vehicles.
Katrine Dilay, a lawyer with the Public Interest Law Centre who represents the Manitoba branch of the Consumers’ Association of Canada and the Manitoba Seniors Equity Action Coalition, said the current system creates unfair outcomes.
“When people are registering vehicles to a person who’s not actually driving the vehicle, we’re seeing distortions in the way that insurance premiums are set,” Dilay said in an interview with CBC News. “The consequence is that our safest drivers – those people who are higher on the driver safety rating scale – are paying more than what their risk is to the system.”
Dilay said the legislation would place the province at odds with the Public Utilities Board, Manitoba’s independent insurance regulator. The board initially instructed MPI, in 2017, to change how it calculates insurance premiums to better reflect risks placed on the public insurance system. The board issued three subsequent orders to prepare a transition toward a driver-based model, but MPI has not made these changes.
Dilay said transitioning to a driver-based model would not increase MPI’s revenue but would shift the financial burden to riskier drivers, potentially reducing long-term claims costs and promoting affordability.
However, Matt Wiebe, the provincial minister responsible for the Crown insurer, defended the bill as an affordability measure Monday at the Manitoba Legislative Building.
“We know here in Manitoba since the beginning of MPI, we’ve had the registered-owner model, and it works well,” Wiebe said. “It allows them to have access to insurance and at an affordable rate.”
Wiebe suggested the model benefits teenagers and newcomers to Canada.
Tara Seel, a spokesperson for MPI, said Manitobans are not interested in changing the registered-owner model, which she described as a “straightforward and user-friendly process for insuring vehicles.” She said changing the insurance model “would be very disruptive for customers, MPI and its partners.”
MPI, which has provided compulsory basic auto insurance in Manitoba since 1971, is a non-profit public insurer covering nearly every driver in the province. In 2025, the Public Utilities Board approved a 5.7% rate increase, amounting to roughly $50 for the average passenger vehicle. MPI’s 2026-27 application proposes a further 3% adjustment.
The proposed legislation would formalize the registered owner insurance model, give regulators more authority over MPI’s financial reserves, and require the Crown corporation to return excess funds to drivers when surpluses exceed established limits.
What are your thoughts on the new legislation? Share your insights in the comments below.
