Public hearings were underway Monday for Manitoba Public Insurance's plan to change their merit system.
The new "Driver Safety Rating" (DSR) system is designed to provide stronger rewards and incentives for safer driving.
Under the new system, Manitoba's safest drivers would get a 25 per cent discount on their vehicle insurance and no longer have to pay $20 for their driver's license premiums.
The province's worst drivers would have to pay more than $1000 for their premium.
The new system was accepted by the provincial government earlier this year.
Now the Public Utilities Board is looking at what rates to charge under the new system.
The proposed system is based on a merit system that ranges from 10 merits to 20 demerits.
The current system ranges from five merits to 20 demerits.
During the transfer between the two systems, drivers would carry over their current merits or demerits, and be awarded additional merits for the years they have driven accident free.
Although MPI has not released the exact transfer formula, a spokesperson says all drivers will pay the same or lower rates when the system switches over.
Under the new plan MPI expects Manitobans would collectively pay almost $11 million less in driver premiums.
The DSR plan will also eventually increase the number of merits drivers can attain to 15.
Starting in 2011, 11 merits will be available; in 2012, 12 merits will be available; and in 2013, 13 credits will be available etc.
Each additional merit will be accompanied by an increased discount for insurance rates.
The new system will also award one merit for each year of safe driving, as opposed to the current system that only provides one merit for every two years of safe driving.
If approved by the Public Utilities Board the plan will come into effect Nov.1, 2009.
Example of merit and demerit values are provided below:
| Conviction Description | Conviction Type | DSR Movement |
|---|---|---|
| Dangerous Driving Causing Death | Extreme | -15 |
| Impaired Driving | Serious | -10 |
| At-Fault Accident | -5 | |
| All Other Convictions | Minor | -2 |
| DSR Level | Driver Premium | Vehicle Discount |
|---|---|---|
| 10 | $0 or $5* | 25% |
| 9 | $0 or $5* | 25% |
| 8 | $0 or $5* | 25% |
| 7 | $20 | 25% |
| 6 | $25 | 25% |
| 5 | $30 | 15% |
| 4 | $30 | 15% |
| 3 | $35 | 10% |
| 2 | $35 | 10% |
| 1 | $40 | 5% |
| 0 | $45 | 0% |
| -1 | $45 | 0% |
| -2 | $45 | 0% |
| -3 | $45 | 0% |
| -4 | $45 | 0% |
| -5 | $45 | 0% |
| -6 | $245 | 0% |
| -7 | $270 | 0% |
| -8 | $295 | 0% |
| -9 | $320 | 0% |
| -10 | $345 | 0% |
| -11 | $395 | 0% |
| -12 | $445 | 0% |
| -13 | $495 | 0% |
| -14 | $545 | 0% |
| -15 | $595 | 0% |
| -16 | $670 | 0% |
| -17 | $745 | 0% |
| -18 | $820 | 0% |
| -19 | $985 | 0% |
| -20 | $1,044 | 0% |
* If a driver owns a vehicle, pays $0.
If a driver doesn't own a vehicle, pays $5.
