MPI study highlights motorcycle risk

Despite rising premiums for motorcyclists in Manitoba, other drivers continue to subsidize this high-risk group, according to a new survey released by that province’s public insurer.Analysis of claims figures shows that for motorcyclists to pay premiums consistent with their share of claims costs, their rates would have to increase by 37%, says Manitoba Public Insurance (MPI). MPI conducted the review at the request of the province’s Public Utilities Board (PUB) in response to backlash from motorcyclists who have received successive rate increases in recent years MPI is proposing a further 15% rate increase for the coming year.Groups representing motorcyclists have argued that they are as safe as other drivers and have proposed a new loss-transfer system which has been rejected by the PUB in each of the last three years. MPI says according to its figures, even the loss-transfer system would result in a 30% rate increase for motorcyclists, due to the high frequency of single vehicle crashes and severity of injury claims experienced by motorcyclists.The MPI study suggests motorcycle claims at an average $14,000 – are almost six-times as costly as passenger vehicle claims, which average $2,500. Also, while 53.4% of motorcycle claims resulted in injury, just 12.3% of passenger vehicle accidents produced injury claims over the past five years.The study also finds over the past three years, frequency is more than double for single-vehicle motorcycle crashes (50.2%) than for passenger vehicles (20%). It also finds that sport bikes are the worst among motorcycles for claims while sport bikes represent just 16% of motorcycles, they account for 47% of claims.And the rising number of motorcyclists on the road suggests these numbers will not be going down, points out MPI vice president of Public Affairs, John Douglas. “There are more motorcycles on the road, and they are getting more powerful and more expensive which is pushing up their claims costs dramatically.” The percentage of motorcycles with large engines (1250 cubic centimeters plus) has doubled since 1996.