Manitoba Public Insurance has decided to give refunds to about 2,000 customers who overpaid on their premiums.

The overpayments were discovered when MPI installed a new computer system. It found about 10 per cent of customers in 2004 were paying higher rates because of incorrect vehicle descriptions on their policies.

Manitoba's Ombudsman said the insurer should give out refunds in the office's 2007 annual report which was released last week.

At the time, MPI said it would not give out the refunds, saying it was not responsible for customers' mistakes.

The average refund is expected to be about $20 to $40.