BIKE RATES FAIR

Re: SGI rates too high (SP, July 5). Rick Dobson writes that the recent rate increases by SGI for motorcycles can be 300 per cent or more than what is currently available from private insurers for the same coverage in Alberta.

This is not true. In comparing Saskatchewan insurance rates to rates in other provinces, one must also compare the amount of coverage provided.

For example, Alberta’s income benefit for an injured motorcyclist is $20,800 annually. In Saskatchewan, coverage is based on 90 per cent of the person’s net income, to a maximum of $82,804 a year. Other medical benefits, such as medical and rehabilitation expenses, also are significantly higher in Saskatchewan. If SGI did not provide this level of coverage, those costs would be shifted ultimately to government ministries such as health or social services.

SGI’s rate rebalancing will result in increases for motorcycles.

Currently, motorcycles aren’t paying sufficient rates to cover their claim costs. Sport bike owners would actually require an overall increase of 152 per cent to cover the costs of the claims SGI pays out on their behalf. As Dobson suggests, SGI’s motorcycle classification system isn’t perfect, but it does not change the fact that motorcycles as a group still require significant increases to cover their claim costs.

Unfortunately, many motorcycle collisions result in severe injuries to the rider. SGI has a responsibility to provide sufficient coverage to those we insure, and to charge fair rates for that coverage. Don Thompson Vice-president, product management, SGI