All registered vehicle owners living in Saskatchewan who have paid premiums in the last three years can soon expect a one-time rebate from SGI.
The provincial government said it has approved a total of $285 million in rebates. The amount each customer receives will vary, and it will be calculated based on a proportion of vehicle premiums paid in the previous three years.
“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,” said Don Morgan, the minister responsible for SGI, in a media release.
“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.”
Early estimates by the province place the rebates at around $285 per vehicle. The rebates will be sent by mail.
The opposition New Democrats promised in last year’s election that they would give a $100 rebate and lower auto insurance premiums by seven per cent.
“With so many families and businesses stretched and struggling to make ends meet, the news of an SGI rebate is welcome news, a statement from NDP MLA Aleana Young said.
“But it is hard to give the Sask. Party government any credit for their cynical U-turn on this issue just months after referring to the Saskatchewan New Democrats' campaign pledge as a ‘vote-buying scheme.’”
The NDP called on the province to reduce SGI rates to make insurance more accessible to Saskatchewan policy holders.
Injury benefits will see two changes.
Customers who require assistance with daily tasks will see the maximum payments for those services increase to better reflect current market rates. The province said they expect that change to benefit more than 1,100 SGI customers.
As well, 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. The province said they expect that change to benefit around 200 people.
The rebate will not affect the Rate Stabilization Reserve within the Saskatchewan Auto Fund, the province said. The reserve protects SGI customers from sudden rate fluctuations due to unexpected costs. After some losses last March at the beginning of the pandemic, the reserves investment portfolio has experienced strong investment earnings over the past fiscal year.
