Manitoba is set to close an insurance loophole that forced its public insurer to pay out for accidents involving golf cart and race cars.

The governing NDP is introducing legislation Thursday that, among other things, will spell out Manitoba Public Insurance will not be held liable for accidents involving golf carts, race cars on a closed track or a battery-operated children's vehicles.

Kathy Kalinowski, with MPI, says the changes stem from a court battle a few years ago where the insurer was forced to pay out when a man injured himself on a golf cart.

She says the public insurer has also had to pay out for accidents that occurred when drivers took their sports cars out on race tracks.

Justice Minister Andrew Swan says a catastrophic injury claim can cost up to $5 million.

He says the changes should save the insurer money down the road, but didn't rule out a rate hike for drivers this year.