Economical Insurance | GTAMotorcycle.com

Economical Insurance

-Maverick-

-Maverick-

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So one of my brothers pays his annual premium ($1600) and the next day gets a cheque from his insurance company (Economical) for $7200 His friend gets a cheque for $8000 Turns out they went from a mutual company to public IPO and had to share dividends with their customers. Imagine getting a Christmas bonus like that...from an insurance company?

The guy formerly known as Mladin.
 
-Maverick- said:
So one of my brothers pays his annual premium ($1600) and the next day gets a cheque from his insurance company (Economical) for $7200 His friend gets a cheque for $8000 Turns out they went from a mutual company to public IPO and had to share dividends with their customers. Imagine getting a Christmas bonus like that...from an insurance company?

The guy formerly known as Mladin.
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I saw that. Many people thought the cheques were a scam.
 
-Maverick- said:
So one of my brothers pays his annual premium ($1600) and the next day gets a cheque from his insurance company (Economical) for $7200 His friend gets a cheque for $8000 Turns out they went from a mutual company to public IPO and had to share dividends with their customers. Imagine getting a Christmas bonus like that...from an insurance company?

The guy formerly known as Mladin.
Click to expand...
The flipside to the statement is that one of the cheaper insurance companies is no longer a mutual company and now just another ontario insurance company with soon to rise rates.

Cashed my cheque but we'll see how long before they take it all back.
 
Aens said:
The flipside to the statement is that one of the cheaper insurance companies is no longer a mutual company and now just another ontario insurance company with soon to rise rates.

Cashed my cheque but we'll see how long before they take it all back.
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I thought this too...they'll have an algorithm set up to raise rates across the board to get this money back. I didn't say anything to him tho...sometimes it's nice to get a win.

The guy formerly known as Mladin.
 
Railside Performance said:
What's up with these cheques???? All my non black listed vehicles and house is with these guys through the wifes' group insurance plan and I have received nothing. Should I be expecting anything?
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About 2% of canadians got a cheque. Not sure if it was only specific policies (eg life but not auto) nor if group insurance has any impact (eg does the group get the cheque instead of individuals). Good luck.
 
Doing some research and found this on CTV News, but the economical website and FAQ is crap. I have only been with Economical for about 2-3 years so it looks like I am not eligible.

The company has set up a special webpage for frequently asked questions. Part of its explanation of the situation reads as follows:

"There are two types of eligible policyholders: eligible mutual policyholders and eligible non-mutual policyholders.

An eligible mutual policyholder is a person who holds an Economical mutual policy, if he or she held it on Nov. 3, 2015 (the date the Economical Board of Directors decided to proceed with demutualization).

An eligible non-mutual policyholder is a person who holds an Economical non-mutual policy and has done so for the 12-month period ending on Nov. 3, 2015, or meets the special circumstances defined below."
 
I may get shafted. My company insured through Economical but I disolved the company a couple of years ago. I just got a cheque for over $6000 but not in my name. My company no longer exists.

I originally thought it was a fake or come-on cheque like the ones you get from a travel agency, $500 cheque look-a-like cashable but is only good as a deposit on a $10,000 travel package.
 
nobbie48 said:
I may get shafted. My company insured through Economical but I disolved the company a couple of years ago. I just got a cheque for over $6000 but not in my name. My company no longer exists.

I originally thought it was a fake or come-on cheque like the ones you get from a travel agency, $500 cheque look-a-like cashable but is only good as a deposit on a $10,000 travel package.
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That's brutal. How long were you insured with Economical to get that amount?
 
nobbie48 said:
I may get shafted. My company insured through Economical but I disolved the company a couple of years ago. I just got a cheque for over $6000 but not in my name. My company no longer exists.

I originally thought it was a fake or come-on cheque like the ones you get from a travel agency, $500 cheque look-a-like cashable but is only good as a deposit on a $10,000 travel package.
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Advice from a lawyer in the US on this situation. Not sure if applicable in canada, but it is worth paying 15 minute lawyer bill to answer the question.

"If the bank account has already been closed, the next-best option is to endorse the check over to the proper recipient of the funds (creditors, or shareholders if there are no creditors). The indorsement should be written on the back of the check: "Pay to the order of ______ without recourse or warranty", then your signature followed by "President, ABC Corp.""
 
KWDRZ said:
That's brutal. How long were you insured with Economical to get that amount?
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I'd have to dig through a pile of records to find out. It's a windfall and I assume taxable as a dividend. Still it's thousands of dollars in my pocket instead of an insurance company. It would pay for a nice road trip if it wasn't for Covid with no where to go.

My accountant didn't have any answers and recommended that I talk to my bank first. Then the insurance company.

My wife worked for an insurer and refund cheques sometimes got lost. After six months they are stale dated but it wasn't unusual for the company she worked for to replace a ten year old cheque someone found in a pocket or old purse.

To re-issue the cheque I would have to prove I was the owner and only share holder etc. Taxes could be complex.

A friend is a retired lawyer so maybe hit him up for some free advice.
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