INSURANCE RISK FOR MOTORISTS

Press, Volume LXXIII, Issue 22194, 10 September 1937, Page 22

INSURANCE RISK FOR MOTORISTS

POSSIBLE EFFECT OF | CHANGE IN LAW j I PREDICTION OF INCREASED PREMIUMS t PRESS ASSOCIATION 'tSLIOEAM,' INVERCARGILL, September 9. A substantial increase in the rates charged by insurance companies on motor-car third party risks was predicted by an Invercargill solicitor if the Government’s proposal to do away with the need for proving negligence as a basis of damages for injuries caused by motor-cars became law. The law, as it stood at present, he said, was that before anyone could recover damages he must prove negligence on the part of the driver of the car. Under the Workers Compensation Act, however, if a worker was injured in the course of his employment, negligence did not arise, but it was provided under section 15 that no compensation should be payable for any accident attributable to serious and wilful misconduct of the worker unless it resulted in death or serious and permanent disablement. In other words, even if a worker was guilty of culpable and wilful misconduct, he was entitled to compensation if the injuries resulted in death or serious disablement. “The proposed alteration in the law', therefore, where it deals with motorists, provides that every person injured shall be protected,” he said. “At the present time, for instance, before a person can recover damages through a motor accident, he has to prove negligence, and it is always open to the driver to prove contributory negligence. If the person injured proves that the motorist hac a later opportunity of exercising reasonable care in avoiding the accident, that defence will not avail. “Under the proposed legislation, there is the fear that the motorist will not exercise the same care that he has to now and also that the third party may likewise not take care. “From a financial aspect, the proposed legislation will probably result in an enormous burden of taxation on every motorist, as the insurance rates are bound to be increased materially to meet the increased liability.” i