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June 17, 2003
SGI TIGHTENS REGISTRATION PROCEDURES AND INSURANCE COVERAGES
FOR IRP CARRIERS
Over the next few months, SGI is taking a series of actions to
tighten up its registration procedures and insurance coverages for
International Registration Plan (IRP) carriers who travel across
North America.
The changes include more on-site audits, a more thorough application
process, discontinuing the sale of excess damage coverage over $15,000
and charging an additional premium to carriers who have less than
three years experience registering in Saskatchewan on or after Aug.
1, 2003.
Taking advantage of Saskatchewan’s low premiums, a few out-of-province
carriers, most with poor safety records, were falsely claiming to
be based in the province. The premiums collected from these IRP
carriers were insufficient to cover their losses. At the end of
2002, for every dollar collected in excess coverage premium, SGI
paid out $1.72 in losses.
To prevent Saskatchewan from becoming a haven for illegally registered
carriers, these changes had to be made.
"To be proactive and keep our rates low, we had to revise
the registration procedures and the insurance coverages we sell
to IRP carriers before it became a problem," said Crown Investments
Corporation Minister Maynard Sonntag. "This is a result of Saskatchewan
having among the lowest insurance rates in the country."
The IRP is a method of registering fleets of vehicles that travel
in two or more member jurisdictions. These changes bring Saskatchewan’s
IRP procedures in line with most other jurisdictions in North America.
Jim Friesen, General Manager of the Saskatchewan Trucking Association,
is in support of the proposed changes.
"We are supportive of any proactive measures that keep the
rates low for Saskatchewan carriers," said Friesen. "I
think these changes are a step in the right direction."
Even with the inexperienced carrier surcharge, the rates for IRP
vehicles continue to be much lower in Saskatchewan compared to other
jurisdictions in Canada. Both the increased premiums for inexperienced
carriers and the removal of the excess value coverage on renewal
come into effect Aug. 1st.
Taken together, SGI is optimistic these changes protect Saskatchewan
truckers from cross-subsidizing the rates of out of province carriers
falsely registering in Saskatchewan. SGI will continue to carefully
monitor the situation and take additional actions if necessary.
Saskatchewan offers among the lowest auto insurance rates in the
country and SGI is dedicated to keep that tradition alive.
For more information:
Julianne Jack
SGI Communications
775-6907
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