MENACE OF THE MOTOR

NZ Truth, Issue 1145, 10 November 1927, Page 7

MENACE OF THE MOTOR

Why Not Third-Party Insurance Compulsory On Owners?

We pray regularly m our Churches "for those m peril on the sea." Yet m any fioe or even ten years fewer" of our Dominion seamen are lost or disabled for life than is the number of "people injured or £///«/ m our countiy by motor accidents m one year.

THIS fearful toll on our men, women and children is .every year growing m numbers and m horror. All seamen (and their dependents) are fully protected up to £1000 each under the "Workers' Compensation and Shipping and Seamen's Acts but there' is no protection within the means of the public to meet the needs, to provide for the necessities of the widows, orphaned children and life-long cripples whose suffering and poverty are caused directly by the motor-car. Before the gladsome Christmas season comes more women »and helpless children will be doomed to lifelong suffering or hopeless poverty (often both) unless' our Members of Parliament at once get to work and pass a short bill requiring compulsory third party motor insurance. In New Zealand already there are about 170,000 motor vehicles, every one m effect a menace to the public. Over one hundred thousand of the motor-owners are m no way insured against third party risk. Very few of them could pay a widow or cripple what is legally due for the injury caused by their negligence or reckless driving. ' If pressed the majority (as so many have already gone) could only be forced into bankruptcy. " , Yet the Common Law gives every such widow, fatherless child or cripple the right to substantial damages m cash. And at present they have very little chance of getting

it and these motor-

ists

(and

their

families) have the

same risks, as the

widows and crippl-

If any motorist suffei'S injury through the negligence of another motorist he generally finds that he cannot enforce his rights -as to clamages'. There are over thirty accident insurance companies seeking strenuously to issue insurance against all risks to motorists. Their charges, however, are so high that many motorists will not pay them; many, many more cannot pay them. Any office m the accident insurance ring will not issue £1000 third party insurance on a 25 hoi-se-power car (£IOOO is much too little to meet many of the claims) for less than from £11 to £22 per year — according to what use the car is put. This price includes £1000 third party risk on passengers or guests and adds from £3 to £6; Third party risk with passengers is most necessary, but it could safely and profitably be given for less than five shillings yearly on all the motor- vehicles m our country. The almost unbelievable rapacity of the accident insurance companies has prohibited the great majority of motorists from getting third party insurance. "N.Z. Truth" has a practical, easy and complete remedy for the present dangerous state of affairs. • For an average annual premium of £2 yearly all third party risks with any motor-vehicle can be fully covered. * This low cost, however, can be secured m one way only, by making THIRD PARTY INSURANCE COMPULSORY oh all motor- owners." It could be done with the State, simultaneously with the annual registration of the car.

"Truth 5 " Remedy

The experience of those "m the know" proves that year m and year out less than twenty per cent, (one fifth) of the third party premiums insurance companies receive is paid m claims. i Frequently money is spent m fighting- claims m the courts and so bad is this practice that one of our ablest judges, Mr. Justice Stringer, lately re-, marked m Auckland that such policies iwere "traps' for the unwary" and he I hoped that legislation would be passed to protect the public. The latest statistics issued by the Government — and these returns are made up from the figures supplied by the accident companies themselves— prove that as high as thirty-five per cent. (7/- m every £1) of all motor and/ other accident premiums is sometimes paid m commission. The payment of commission is unnecessary and will all be saved if insurance is made compulsory. The Government statistics next show us that the fixed or overhead expenses of these accident companies total to a much larger sum than even the huge commissions. Among them they have over one hundred and forty branch offices, everyone of which naturally has a well-paid manager (local, branch or sub), a staff of clerks and many other •heavy expenses. . , In addition, each office has to keep a New Zealand manager, a better paid man than any of his staff.

Twenty-four motor insurance concerns operating m " New Zealand have their headquarters overseas, a few m Australia, one m

Hong Kong and the

rest, on the other side of the world. AH. trie New Zealand managers have to struggle (and they do so very successfully) to send profits or dividends overseas to their shareholders. This, though not the largest, is the worst of all the unnecessary costs the unfortunate motor insurer has to pay. Motor-owners can readily see how easily the Government can give fuli cover against all third party risks for an average premium of £2 per vehicle. Almost all overhead expenses, all commissions, profits, bonuses on profits and the needless expenses can be cut out and then the public and the motorist will both get a square deal, and full value for ttte premiums they pay. Already the numbers killed and disabled by motor's are fully double. the number of those who received the benefits of the Workers' Compensation Act when it first came m over twentyi six years ago. The present session of Parliament will probably rise within a fortnight from the publication, of this article, but "Truth's" readers can still 'have the bill this session. Let every reader who realizes this write or wire to the M.P. for his district urging and insisting on the immediate passing of a bill for. compulsory third party motor insurance. The btll would be a short Vme and every M.P. should support it./ It would be passed more quickly than any bill ever before the House. The men m Parliament are publicspirited and have , a strong sense of their duty to the public. '.. ■ However,- unless- this .urgent- question is insistently pressed on them from all over New Zealand it will be forgotten m the final rush of other business.