Manitoba determines catastrophic limit

Manitoba’s public auto insurer, MPI is looking to define catastrophic impairment after an injury accident. This plan will direct money to the people who are suffering this injury and provide for enhanced benefits and for future care. There is a bill proposed on May 26th to help the people who have paid into the system with insurance premiums with the excess funds sitting in the coffers.

The Personal Injury Protection Plan (PIPP) proposal will give both current and past claimants higher income replacement, personal care payments and permanent impairment payment. To receive this they will need to meet a new definition of catastrophic impairment included in the May 26 bill. All this is to be done without a rate increase.

Some of the benefits will rise dramatically. Maximum permanent impairment benefits will increase to $215,000. The minimum income replacement benefits for those with catastrophic injuries will increase from $18,000 to $37,000 a year. The allowance for personal care will increase by $800 for a maximum benefit of $4,884 per month.

This is an interesting way for the MPI to return premium earned back to the people of Manitoba. This program will tie in with other government programs, such as home care.

In December 2009 it was announced that 100 Manitobans who have suffered catastrophic injuries in automobile crashes over the years were recently paid $14 million in additional benefits because of the new law passed this fall.

These payments come from enhancements to MPI's personal injury protection plan. There is now a clearer definition of what constitutes a catastrophic injury. Bill 36 has been passed and almost all the Manitobans who have suffered irrevocable changes to their lives due to automobile crashes.

The best part of this benefits is that no Autopac rate hikes will be need to cover the cost of the payments! Talk to your broker or agent if you have questions in this regard.