Manitoba Public Insurance is flush with cash and says it's time to give some of it back to drivers.

More than 700,000 vehicle owners will see a rebate cheque of $115 early next year, if the public regulator approves. MPI detailed the rebate on Friday after it submitted its 2010-11 rate application with the Public Utilities Board.

About two-thirds of Manitoba drivers will also receive a reduction in premiums next year, most for less than $50.

CEO Marilyn McLaren said MPI collected $92 million more than it needed last year as good weather and fewer stolen vehicles meant fewer costly claims.

McLaren also said MPI's rate stabilization fund sits at $240 million. Even though MPI will draw-down $92 million, the fund will remain at a comfortable level.

"There's no business need for us to hang onto more than the maximum," she said. "Manitobans get some of the money back that they paid in that year because we simply didn't need it all to pay claims."

Driving that surplus are several factors, she said.

There were fewer crashes and therefore fewer damage and injury claims paid out, thanks to a short and milder winter. Plus, auto theft is down 75 per cent from its peak in 2004-2006.

"You've got maybe 2,500 to 3,000 thefts a year compared with 10,000 during that time," she said. "The claims costs are down an equivalent amount."

Also, the stock and investment markets have rebounded, which helps MPI's bottom line, she said.

Progressive Conservative MPI critic Mavis Taillieu said Friday she was leery that MPI wants to send out rebate cheques in a provincial election year. The next election is Oct. 4, 2011.

Taillieu also said MPI is not completely open about its financial health as the PUB has had to go to the Manitoba Court of Appeal to rule on whether it can require MPI to disclose overall revenues and costs.

MPI only wants to provide costs and revenues relating to basic Autopac insurance while the PUB wants everything -- including services in which MPI competes with the private sector.

The Tories have accused the Selinger government of wasting tax dollars by allowing the court battle to drag on instead of ordering MPI to be accountable.

Andrew Swan, the minister responsible for MPI, defended the insurer's refusal to disclose information because it would compromise its competitive position.

McLaren said the proposed rebate is also due to the PUB's decision last year that reined in MPI's new Driver Safety Rating program, which when fully in place will see good drivers pay less in insurance and poor drivers pay more.

PUB said it wanted MPI to move slowly because it was unsure how the change in assessing premiums would affect MPI's financial bottom line.

McLaren said part of the rebate is money that would have gone to premium discounts last year had the PUB not intervened. Next year's proposed rate application calls for 650,948 Manitoba drivers to pay less for basic compulsory coverage while 106,434 will pay the same amount. About 206,630 will pay more. Most increases and decreases will be less than $50.

She also said it's tough to predict if there will be another rebate in 2012.

"If we have more than we need for rate-stability purposes in the savings account... we apply for rebates," she said.