R.A.G.E. Guide to 26 Questions on Options for Motorcycles

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1 R.A.G.E. Guide to 26 Questions on Options for Motorcycles The purpose of this guide is to clarify the Options Packages and the Impacts of YOUR survey decisions. R.A.G.E. is not recommending you answer any certain way, other than what is right for YOU. When answering the survey questions, please do what is right for YOU, as the Personal Injury and Wage Replacement Insurance you pay for on your vehicle plates is ONLY for the person registering the vehicle YOU! The motorcycle section of SGI s Personal Injury Survey lists potential benefit options and rates options being proposed for Saskatchewan motorcyclists. It is important to understand that the proposed benefit options have the potential to bring Saskatchewan Motorcycle Registration (plate) rates somewhat closer, or more in-line with existing rates and options provided in other jurisdictions. Presently SGI provides everyone who is a resident and valid driver in Saskatchewan what they describe as a Cadillac Benefit Plan regardless of whether they pay for it or not. This Cadillac Benefit Plan is funded solely through vehicle registrations (plates). It is what drives our rates to some the highest in the country. If the proposed Rate Options are accepted and implemented in Saskatchewan, motorcyclists could see significant reduction in their licensing fees! It is important to understand that the Rate and Benefit Options in the Survey reflect situations where YOU are found AT FAULT. So if you are found 50/50 or more than 50% at fault in an accident. It is also important to understand that there are Benefits such as Income Replacement that we pay for on every vehicle we register (plate) in Saskatchewan. This is insurance that MANY OF YOU can never collect. Income Replacement makes up 30% of Personal Injury and Wage Replacement insurance on every vehicle registered in this province. Let s Get Started Demographics Questions 1 5 *are posed only for SGI to understand WHO is interested in changing SGI s policies and benefit plans. Question 6 Asks only which topics YOU would like to review. impact on the results. If you don t want to participate in the whole survey you can pick and choose which area you do want.

2 Options for Motorcycles: Option 1 Lower package of Fault benefits for any rider injured in a motorcycle crash This is a reduced benefit package which might be better described as Fault Light. Potential Rate Savings between $131 - $403 based on 12 month registration. Question 7 Do you support the idea of reducing injury benefits for all motorcycle riders to keep motorcycle insurance rates lower? t sure / opinion Why? Motorcycle riders prefer choices and options with regard to Coverage and Rates

3 Option 2 Offer motorcycle owners the choice of a lower package of Fault benefits or paying the difference to keep the full package of Fault benefits If you choose the Lower Benefit Package with the Lower Cost, you would receive the Lower Benefits Only if YOU ARE AT FAULT! This package would only apply when you are operating your motorcycle. Rate savings for this option would range from $80 - $233 based on a 12 month registration. Question 8 (Package Options) Do you support motorcycle owners being able to choose between a lower Fault Package with a lower cost, and paying the difference if they choose to keep the Full Fault Package?? t sure / opinion Why? Motorcycle riders prefer choices and options with regard to Coverage and Rates There are 3 different ways offered under this Option 2 that Fault benefits could be lowered if YOU are At Fault in an accident. Income Benefit Permanent Impairment Benefit Death Benefit

4 Income Benefit This option reduces the percentage of income SGI would pay out as a benefit. te: According to SGI, this is currently makes up 30% of the cost of Personal Injury and Wage Replacement Insurance. Option 1: Reduce the percentage of your net income SGI pays. Right now it is 90%. SGI does not state what it would be reduced to just depending on how much the income benefit was reduced. Rate savings for this option would range from $31 - $124 based on a 12 month registration. Option 2: Reduce the maximum income covered. Right now the maximum income covered is $90,000. SGI does not state what it would be reduced to just that they could pay up to a lower maximum to reduce plate insurance. Rate savings for this option would range from $6 - $55 based on a 12 month registration. Question 9 (Income Benefit Options) Which option do you prefer for income benefits if you re injured on a motorcycle? Reduce the amount of your income SGI covers (currently 90%), resulting in annual savings of $31 to $124 Reduce the maximum amount of income SGI covers (currently $90,000 per year) resulting in annual savings of $6 to $55 Retain the income benefit as it is today Why? Many people already have income insurance provided by their employer, have retirement income, etc. Many people can never collect this benefit (Full CPP or no Earned Income ) and it makes up 30% of the cost of this insurance!

5 Question 10 (Income Benefit Options) How much do you think the amount of your income coverage should be reduced to? 80% - saving an average of $31 per full year of plate insurance 70% - saving an average of $70 per full year of plate insurance 60% - saving an average of $93 per full year of plate insurance 50% - saving an average of $124 per full year of plate insurance This is up to you! Many people already have income insurance provided by their employer that is between 60% - 80% wage replacement. If you collect full CPP, are on 100% disability, or declare no earned income on your annual Income Tax you cannot collect on this benefit at all. If you are fully self-employed it may take 180 days for this benefit to start. *regardless of fault* If you are unemployed when in an accident this is a complete grey area and will depend on your injuries and when you find employment. *regardless of fault* Question 11 (Income Benefit Options) How much do you think the maximum income coverage should be reduced to? $80,000 - saving an average of $6 per full year of plate insurance $70,000 - saving an average of $22 per full year of plate insurance $60,000 - saving an average of $39 per full year of plate insurance $50,000 - saving an average of $55 per full year of plate insurance This is up to you!

6 Permanent Impairment Benefit This option is only if you never fully recover from some of your injuries (such as brain injury, paraplegia, amputation, scars, etc.) This is to compensate you for that loss and is over and above all the other benefits you receive. This is a one-time payment. Option: NO permanent impairment benefit to motorcyclists injured in a crash. Rate savings for this option would average $74 based on a 12 month registration. Question 12 (Permanent Impairment Benefit) Do you support removing permanent impairment benefits for people injured in motorcycle accidents? t sure / opinion This is up to you! If you have impairment benefits provided by your benefit package, or other insurance, you may want to check if they pay out IN ADDITION TO what SGI pays you. Many insurance companies do not allow double-dipping for the same benefits.

7 Death Benefits Today, if you are killed under Fault, your family MAY (as in might) be eligible for a number of one-time payout benefits (some may be bi-weekly till the maximum amounts are met). 50% of your income 5% of your income for each $45,000 maximum for retraining a Dependent spouse $10,000 to cover funeral expenses te: SGI has worded this differently in the survey from what is in their 2014 Table of Benefits. In Manitoba, if you are killed in a motorcycle crash, your spouse or dependents would receive a one-time payment up to $450,000, depending on your age and income. ***BE CAREFUL with this the older you are or if you are already in retirement, on disability, or are earning a low income the less you survivors receive!*** Rate savings for moving to the Manitoba model would average $19 based on a 12 month registration. Question 13 (Death Benefits) Do you support the idea of paying death benefits for people killed in motorcycle crashes similar to how it is done in Manitoba instead of the current death benefit under Fault Coverage? t sure / option This is up to you! This is a personal choice with limited return, so the licensing $$ advantage is limited.

8 Option 3 Lowering Injury Benefits for Motorcycle Owners who CHOOSE Fault to the Tort levels Lower injury benefits for motorcycle owners who choose Fault to the Tort level and allow them to choose to pay the difference to keep the Fault package of benefits This package is the Fault Light Option with many of the benefits of Fault, but at reduced benefits and costs. Motorcycle owners who choose this option could later choose to add the higher level Fault Option at a cost. te: This option is for Motorcycle Owners only! Passengers and riders operating a motorcycle they don t own would get the full package of Fault benefits. Rate savings for this option would range from $402 - $563 based on a 12 month registration. IMPORTANT: If YOU are At Fault you would receive the benefits you choose If YOU are NOT At Fault you can sue for the difference not covered by your benefit package Question 14 Do you support the idea of reducing injury benefits for all motorcycle owners to the amounts paid under Tort coverage, to keep motorcycle insurance rates lower? t sure / opinion Why? This is a significant rate reduction, with the option to sue for additional benefits. This is also another choice, the more choices and options provided the better.

9 Question 15 If injury benefits were reduced to the Tort level for all motorcycle owners, would you want the option to pay the difference to keep the Fault benefits offered today? t sure / opinion Why? better. This is also another choice, the more choices and options provided the

10 Option 4 Allow Motorcycle Rider to choose the type and amount of Fault Coverage they buy Some motorcycle owners with Fault coverage would prefer to pick and choose the types of benefits and benefit amounts that best meet their needs, in exchange for lower rates. If you are At Fault or in a Single Vehicle collision you would only receive the benefits you choose, there is nobody else At Fault. This option is for Motorcycle owners only for when operating a motorcycle. Question 16 Do you support the idea of allowing motorcycle owners to choose the types and amounts of Fault injury benefits they buy? t sure / opinion Why? Choice Choice Choice Question 17 How comfortable would you be choosing your own coverage and benefits? Very Comfortable (obvious answer) Why? Choice Choice Choice

11 The NEXT Questions (18 21) under Option 4 are similar, or appear similar to previous questions BUT they are NOT. Read carefully. Option 4 Allow motorcycle owners to choose the type and amount of Fault Coverage They Buy These Options are about Choosing NO FAULT Options. If Fault were to be offered like a Menu (a-la-carte) where you could pick and choose what benefits and options you would pay for Income Benefit Options Question 18 Which income benefit option do you prefer? Allow motorcycle owners to choose 50% of the current income benefit (saving an average $58 based on a 12 month registration. Allow motorcycle owners to choose income benefits at Tort Coverage level, up to a maximum $20,000 per year (saving an average $104 based on a 12 month registration) Keep the full income benefit in the package today (up to $90,000 per year) Why? Again a choice with decent benefits but reduced financial payback

12 Permanent Impairment Options Again if you are involved in a motorcycle accident and you will never fully recover SGI pays a one-time benefit to compensate you over and above income benefits, medical, rehab, living assistance, etc. This is a financial benefit just for being permanently disabled, not for any out-of-pocket expenses that will already be covered! Question 19 Which permanent impairment option do you prefer? Allow motorcycle owners to choose no permanent impairment benefit (saving an average $74 based on a 12 month registration) Allow motorcycle owners to choose no payments for scarring under the permanent impairment benefit (saving an average $40 based on a 12 month registration) Keep the permanent impairment benefit in the package today *note they do not say what the cost for this is only what the maximum payouts are. Why? Choice Choice Choice

13 Death Benefit Question 20 Which death benefit option for you prefer? Keep the death benefit package in place today Allow motorcycle owners to choose no death benefit (saving an average $127 based on a 12 month registration) Don t like either option? Neither choice in this is a good one and you don t have to answer every question on the survey! Question 21 In summary, which of the five options for motorcycle injury coverage would you prefer? Lower the package of Fault benefits for any rider injured in a motorcycle crash (saving an average $131 - $403 based on a 12 month registration) Allow motorcycle owners to choose between lower package of Fault Coverage and the full package of Fault Benefits they have today (saving an average of $80 to $233 based on a 12 month registration) Reduce injury benefits to Tort levels (saving an average $403 - $563 based on a 12 month registration) Allow motorcycle owners to choose the types and amount of Fault Coverage they buy (saving up to $305 based on a 12 month registration) Keep the Fault injury benefit package in place today Why? This is a 100% personal choice answer. However, if choosing Tort you can always go to court if need be.

14 Question 22 Do you have any ideas to improve injury benefits and reduce costs? Why!!! Implement a Designated Operator for each motorcycle registration. It would reduce the wide risk of having ME designated as the only rider, then you could insure based on my Driving Record. NOT some dreamed up scheme like today. Personal Injury and Wage Replacement Insurance is only for the registered owner of the vehicle. Therefore a person operating any vehicle, yet not registering any vehicle could be kept at Tort level benefits. NOT the Cadillac Fault insurance. If they want Fault Cadillac coverage they should pay for it based on a 12 month registration. As all Personal Injury and Wage Replacement Insurance premiums are pooled and shared in the risk. It would then make sense for all motorcyclists to be discounted for the amount of Personal Injury and Wage Replacement Insurance premiums paid for on another motorcycle or vehicle. Making it so they only pay for this insurance 1x. Instead of on every vehicle. As they can only operate one vehicle at a time and this is personal insurance.

15 Discount for Retirees A retired person on a pension currently pays the same rates as everyone else however there are benefits they can never collect on. Like Income Replacement, which is 30% of our Personal Injury and Wage Replacement insurance costs! This would equate to a savings in the rage of $275 - $354 based on a 12 month registration. Question 23 Do you support the idea of a discount for retirees since they have no income to replace? t sure / opinion Why? Because we are all tired of paying for benefits we can never get! Question 24 Do you support all other vehicle owners paying for to cover the cost of a retiree benefit? t sure / opinion Why? Because these benefits are never paid out they don t qualify! This is terribly misleading as a question. Other vehicle owners should not have to pay more if this benefit isn t being paid out in the first place! A better question would be What is SGI currently doing with the money it receives via premiums from these retirees??

16 Question 25 Which option do you prefer? Allow those 65 and older to choose to receive a discount, and give up their income benefits Allow retirees at any age to choose to receive a discount, and give up their income benefits Automatically give a discount for everyone at age 65 Why? Anybody, at any age, who is not eligible for income replacement should be able to opt out of income replacement. Question 26 Can you explain why you chose that answer? Why! There are actually many people who show no income, because of their business, or financial situation, or they are retired and living on their savings. Those people (anyone not showing earned income ) will never receive an income replacement benefit yet are required to pay for it with every vehicle they register. Over and over and over. This is insane! So, good luck, get this done! It is sooooo very important to motorcycling and rates and fairness!!! Thanks, Don Fuller R.A.G.E. Strategy and Media