INCREASE OF 6/-.

Auckland Star, Volume LXX, Issue 75, 30 March 1939, Page 19

INCREASE OF 6/-.

THIRD PARTY RISK. PRIVATE CAR INSURANCE. TAXIS ALSO TO PAY MORE. (By Telegraph.—r*ress Association.) ELLINGTON, Wednesday. New rates for third party insurance piemiums, \\ r ]l3cli involve increases for several classes of vehicles, were announced this evening by the Minister of 'transport, the Hon. R. Nemple. He said that an increase of 75 per cent over the last live years in the average damages claim awarded to motor accident victims had compelled the Government to agree to certain increases in the third party insurance premiums. The following increases will be made from May Ml:—Taxis, from 150/ to - m VS trade motors, from 30/ to 38/; business cars, from 48/ to 53/; private

cars, from 20/ to 26/; contract motor vehicles, rental cars, etc., from 45/ to 60/ (with a maximum of £4 12/). Mr. Semple said that owing to their excellent safety record, third party rates on omnibuses and service cars would be reduced. Premiums on motor cycles, dealers' vehicles, tractors, fire engines, trailers and ambulances would remain unaltered. In spite of these changes New Zealand still had by far the lowest third party premiums in the world on a mileage or petrol consumption basis, said the Minister. The number of claims last year was lower than the average for the last live years. The Minister said that the claims ratio of taxis for the past four years was exceptionally high, being 161.6 per cent of the premiums paid. Drivers of public hire vehicles were under a special obligation to their passengers and the community to handle their vehicles carefully. Taxi drivers had it in their own power to reduce their high accident rate, and it was unfair to ask other classes of road users to contribute to the cost of accidents for which taxis were held responsible. The current premium had accordingly been raised.

Private hire ears had formerlv been in the same group as taxis, but they

would now be placed in a separate group with their premium rate unaltered. Omnibuses and service cars had an improving accident record, which reflected itself in the reductions. The rate for omnibuses had been reduced from 2/6 per each seat over 10 to °/ for each seat over 10, and the maximum had been reduced from £S to £7 12/. The premium for service cars had been reduced from 7/6 for each «eat over seven to 4/ for each seat over seven, and the maximum had been reduced from £9 7/6 to £7 16/. As further records became available. Mr. Semple said it might be nceessarv in the interests of all road users to introduce tlie principle of penalising the accident-prone driver and rewarding bv reductions in premium those who were accident-free.