The Public Utilities Board has ordered a 45 per cent rebate be given on MPI basic vehicle premiums paid in the 2009/2010 insurance year.

Last year, MPI announced a 10 per cent rebate. Consumer groups thought that amount should be increased and the PUB agreed, after it received an actuarial report from MPI.

"The new information indicates that MPI's provisions for future claims payments are significantly in excess of requirements," said the PUB in a media release.

The PUB said it expects the total cost of the rebate will be approximately $320 million.

"Even with the rebate direction, PUB anticipates MPI to be in a strong financial position, well able to meet its obligations and provide good service to its policyholders," said the PUB.

MPI said it expects to pay out the rebate later this spring.

"They'll be getting cheques in the mail and we are hoping they will be in their hands late May, early June," said Dan Guimond from MPI.

The Manitoba branch of the Consumers' Association Of Canada said it hopes changes are also made to future auto insurance rates.

"In the future, we're hoping the rates will come closer to meeting the actual cost so we won't be overpaying quite as much," said Gloria Desorcy from the Consumers' Association Of Canada.

The Progressive Conservative party is also questioning the timing of the rebate.

"They over charge during non-election years so they can send out rebates in election years," said Hugh McFadyen, leader of the PC party.

The province, however, disagreed with the suggestion from the PC party.

"They're very envious that that MPI is able to show a positive, positive result. They are upset that Manitobans are getting money back from their public insurer," said Andrew Swan, minister responsible for MPI.

MPI officials said they have better information now to prevent such large surpluses in the future and expect this will be a one-time payout.

- with a report from CTV's Jillian Taylor