Manitobans who are catastrophically injured in motor vehicle crashes would receive improved financial benefits under proposed changes introduced in the legislature, Attorney General Dave Chomiak, minister responsible for Manitoba Public Insurance, announced on May 26.

He said that the proposed enhancements are the result of a comprehensive review of the benefits program by MPI and warned that it’s important to ensure the program continues to meet the needs of Manitobans whose lives are irrevocably changed by a serious crash.

The legislation tabled would strengthen the Personal Injury Protection Plan – or PIPP - and includes a new definition of catastrophic injury.  Depending on their circumstances, people with serious injuries would qualify for a higher income replacement indemnity, permanent impairment payment and personal-care expense reimbursement.

Upon proclamation of the bill, approximately 120 Manitobans would immediately receive a total of $14 million worth of enhanced benefits and an additional $35 million will be set aside to improve their ongoing benefit payments over the course of their lifetimes.

An additional $30 million has been set aside to ensure these enhanced benefits would be provided to all other current claimants whose injuries may meet the new definition of catastrophic injury.

The bill would also clearly establish MPI’s responsibility to help claimants obtain benefits under other provincial programs such as home care or family support.

These new enhancements would also apply to all existing claimants whose injuries meet the new definition.  Normally, improvements to insurance coverage take effect only with new policies, not existing policies, said Marilyn McLaren, CEO of MPI.

She said that this practice of providing enhanced benefits to existing claimants is an advantage of a public insurance system.

The PIPP program was established in 1994 to achieve two specific goals – stabilize compulsory auto insurance rates for all Manitobans and significantly increase the benefits available to those seriously injured in automobile accidents.

The financial impact of the new enhancements would result in an increase in annual claims costs of approximately $7 million.

MPI says given the strength of the basic insurance program, no rate increase would be required to fund these enhancements.