sgi

The conversation around why motorcycle insurance appears to be going up is still a hot one, and SGI is feeling that heat.

Hundreds of calls, emails and social media contacts have been made to the Crown insurer by riders who are not pleased about the proposed 73% average increase to insurance.

"This isn't a tax grab," said Don Thompson, SGI's Vice President of Product management. "None of the money we're collecting goes to government. The Auto Fund does not pay any dividends. It's a public fund that collects the premiums that it charges and uses that to pay out claims and expenses. If we collect too much, it stays in our rate stabilization reserve, and if we have a loss, it comes out of the rate stabilization reserve."

Thompson says one of the concerns that they've heard is on the size of the increase and the fact it's being applied in one year.

"'You're capping other groups but you're not capping ours'... that's a legitimate concern," he said. "Why we came to that decision was a difficult one for us. Those vehicles are not the primary source of transportation for people. In Saskatchewan, you cannot drive that vehicle year-round. You have another vehicle that's a primary source of transportation."

He adds SGI appreciates input and informed discussions on the issue, but says those concerns should go to the Saskatchewan Rate Review Panel which decides on the fate of the proposal before it goes to cabinet for the final say.

Those meetings are being organized for this spring and there's talk about a rally being held at the meetings.