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Monday, March 30, 2015


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

parties affected.

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

SGI adjuster.

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:

Penny McCune



Phone: (306) 751-1674
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