Although there is no definite answer from Manitoba Public Insurance (MPI) stating these PIPP benefits are not taxable, it appears they are a form of "wage loss replacement". When you pay your own premiums for a wage loss replacement plan, any benefits received from it are not taxable.

The fact that they do not issue any tax slips or hold income tax should mean you do not have to report this as income. However, you may want to get further clarification from MPI themselves.