News Release - December 22, 1998
SGI ISSUES $200 REFUND CHEQUES TO SASKATCHEWAN MOTORISTS AFFECTED BY INCREASED DEDUCTIBLE
In fairness to Saskatchewan motorists, SGI President Larry Fogg
announced today that SGI is acting on the recent judgement of the
Court of Queens Bench on the deductible change from $500 to $700 which
took effect Jan. 1, 1998, by refunding the $200 difference to all
While the publicly preferred Auto Fund rate option was clearly to
increase the deductible in order to keep the insurance premium rate
increase as low as possible, this recent judgement calls into question
the process by which SGI introduced the deductible change.
Deductible increases were introduced in 1983 in a similar manner.
Therefore, SGI has some concerns with the judgement and may yet
proceed with an appeal. However, in SGI's view, the major factor is
fairness to Saskatchewan motorists and it simply wouldn't be fair to
individuals to await a lengthy appeal process for an outcome.
The deductible change took effect Jan. 1, 1998 for all vehicle owners
regardless of the term of their insurance coverage. SGI will be
issuing refunds to all parties who incurred a $700 deductible expense
after Jan. 1, 1998, but prior to the expiration of their insurance
term. For example, an individual who paid a $700 deductible in mid-January 1998 but whose insurance did not expire until mid-March 1998,
will receive a refund. Any motorist that meets this criteria, and
whose claim is more than $500 but less than $700, should contact their
Motorists with extension insurance will not receive a
refund as the $200 would have been paid by their extension insurer.
The estimated cost of the refund is $3.5 million. SGI expects
all $200 payments to be processed and mailed to affected
individuals by the end of January 1999. For those individuals
whose 1997 insurance term has not yet expired, their claim will
be subject to a $500 deductible if they are involved in a
collision where they are responsible for the deductible.
If SGI chooses to appeal, and is successful, motorists will not
be required to repay the $200.
For further information contact:
Phone: (306) 751-1674