THIRD-PARTY RISK.

Auckland Star, Volume LXVI, Issue 121, 24 May 1935, Page 8

THIRD-PARTY RISK.

TRAILER AND ANOTHER CAR

MANAWATU COLLISION.

(By Telegraph.—Press Association.)

PALMERSTON NORTH, Thursday.

The liability of two insurance companies as indemniflers under the Motor Vehicles (Third Party Kisk) Act was tha subject of an interesting case in the Supreme Court. In December last a collision occurred between a motor car with a trailer and another car. As a result occupants of the latter vehicle were injured. The driver of the car with the trailei, against whom a claim was instituted, had borrowed the trailer and the third party insurance on it was held By a different company from that which held the risk on the car. The two companies agreed that the collision was due to the driver of the ear with the trailer, but then the question arose which company was responsible for damages. The comnany holding the risk on the trailer, which wan the real cauee ol thfl accident, soucht a declaration that both companies were liable on an equal bas'fa, but the company holding the cover on the "nr disputed this, saving that if ther'! had been no trailer there would have been no accident and no damages. Mr. Justice Smith reserved his decision.