WAR DAMAGE PREMIUM

Press, Volume LXXX, Issue 24160, 20 January 1944, Page 6

WAR DAMAGE PREMIUM

REMOVAL FROM CARS WANTED

MOTOR UNIONS’ ACTION

Representations for the removal of the premium for war damage insurance on motor vehicles are to be made to the Prime Minister (the Rt. Hon. P. Fraser) by the South Island Motor Union. The executive of the union noted last evening that the premium rate had been reduced from 5s to Is per cent., but expressed the view that the concession should go further. The secretary (Mr P. Harvey) reported that the South Island and North Island Motor Unions had written to the Government saying that, having in mind the present war situation and the fact that the Government had already seen fit to remove certain restrictions, the unions were of the opinion that the premium for war damage insurance, as far as it affected motor vehicles, should be removed entirely.

The president (Mr W. R, Carey) said the reduction in the premium was something, but it was a swindle to call it war damage insurance now that there was no risk. No premium was being collected in Australia this year, although there had been heavy payments from , the Australian fund to meet war damage claims, Mr Carey added that a number of motorists had let the insurance on their cars lapse until the end of the year because they objected to paying the premium at the heavy rate. They were probably unwise, but that showed their opinion of the high premium. Members said it was proposed that the fund should be used as insurance against damage caused by such calamities as earthquake and flood. They doubted whether motorists could expect benefits in that way at all proportionate to the substantial contributions they had made to the fund.