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April 11, 2005
INJURY INCOME BENEFIT TO INCREASE
SGI is increasing injury income benefits to its most seriously injured
customers.
“As the auto insurer for Saskatchewan, we take great care to ensure
all of our benefits and services are fair for all our customers,” SGI
Minister Maynard Sonntag said. “We’re now in a financial position
to address the inconsistencies in income benefits paid to customers permanently
and seriously injured in traffic crashes.”
SGI customers who suffered catastrophic injuries prior to August 2002 will
receive the same level of benefits as those injured after July 31, 2002,
as soon as legislation is passed. These customers will receive, at a minimum,
an income benefit based on the industrial average wage, which is currently
at $430.56 per week, increasing the benefit by as much as $180 per week
for some customers. These benefits will be indexed annually by the Consumer
Price Index.
The increase in income benefits will affect approximately 200 customers
injured prior to the introduction of No Fault in 1995 or
before improvements were made to benefits in August 2002.
In both cases, some customers are currently receiving an
income benefit less than the industrial average wage.
SGI is increasing the benefits on a go-forward basis and will incur a one-time
cost of $30 million as these benefits are paid out over the lifetime of
these injured customers. This cost will have no impact on rates, which are
the lowest in Canada.
This change is being made to ensure that customers who did not have a choice
in their coverage are all receiving the same level of benefits. Individuals
who have selected Tort Coverage since 2003 will not receive the increase
as they chose the tort package with reduced benefit amounts, but maintained
the right to sue.
Media only contact:
Deanne Cairns
SGI Communications
Regina
(306) 751-1347
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