SASK. RECONSIDERS MOTORCYCLE RATES

Wall says insurance proposal may change

Premier Brad Wall says the Saskatchewan government will revisit motorcycle insurance rate hikes proposed last month by Saskatchewan Government Insurance.

“Our MLAs are reporting a lot of feedback on the issue, not just from those who are riders or have motorcycles, but others in general who note that these increases seem to be very high,” Wall told reporters in a Friday conference call.

“I’ve said that we’re going to try to be the kind of government that recognizes when adjustments are needed, that recognizes when maybe mistakes were made.”

When the legislature reconvenes for its spring session next week, the Saskatchewan Party caucus will discuss its next steps, Wall said. He said he’s not convinced SGI has exhausted all of its options to help eliminate a $9-million deficit between crash injury payouts and fees charged to motorcyclists.

“Obviously, what’s being proposed by SGI for the rate rebalancing means huge increases and immediate increases, if approved, for riders,” Wall said.

SGI’s proposal to the Saskatchewan Rate Review Panel would mean a sudden 70 per cent jump in insurance costs for some motorcycle owners. The move prompted a backlash from bike enthusiasts and business owners.

Wall said the chance is “slim” the proposal will stay as is. He wants the government and SGI to look at other creative options, such as using better price incentives to reward motorcyclists who have taken training courses.

Wall also floated the idea of selling different types of licences, where a consumer might pay a premium to insure lost income from a motorcycle crash injury.

If SGI needs to raise rates to cover a shortfall, it would be better to phase it in, Wall added.

Robb Hertzog, owner of Prairie Harley-Davidson in Regina, is one of several people who initially spoke out against the proposed rate hikes, saying that the corporation shouldn’t impose the whole hike at once and that it would do nothing to prevent motorcycle crashes from happening in the first place.

Hertzog was glad to hear about Wall’s remarks.

“There are so many dealers and people out there who are willing to sit down with them to find the cause (of crashes) and work on it,” Hertzog said. “That’s something else, that the premier said that. That’s awesome.”

Hertzog, who owns two Harley-Davidsons, said it’s problematic no training course is required to get either a learner’s or a full motorcycle licence, he said.

Furthermore, SGI’s proposal didn’t make good business sense, either, Hertzog said. The Crown corporation likely didn’t account for how many people would choose not to plate their bikes because if the increased cost, or riders who might get temporary permits for their bikes instead of plates.

The sudden hikes would also mean a big hit to new and used motorcycles sales, and therefore, an economic hit with some job losses at local businesses such as his, Hertzog said.

“It would be devastation to the motorcycle industry,” he said.

Wall said Hertzog’s suggestions about better training and safety are “exactly the kinds of things we should be looking at.”

SGI’s rate hike proposal to the rate review panel includes an average 73 per cent rate increase for insuring a motorcycle, an overall vehicle insurance rate increase of 1.03 per cent, as well as a 1.23 per cent surcharge on rates. If approved, the rate increases would take effect in August.