RELICENSING OF VEHICLES

Press, Volume LXXXVI, Issue 26122, 26 May 1950, Page 8

RELICENSING OF VEHICLES

INSURANCE PREMIUMS INCREASED RISE OF 3/- FOR CARS; 6/- FOR MOTOR CYCLES From Our Own Reporter WELLINGTON, May 25. When motorists re-register their cars next month, they will find that third party insurance premiums have risen. Nearly all classes of vehicles are affected. The new premium for a private car will be raised from 25s to 28s. The Minister of Transport (Mr W. S. Goosman) announced the new premiums to-day. They are as follows: — motor-cycles. 20s to 265; tractors and traction engines, 3s to ss; private motor-cars, 25s to 28s; business cars, 40s to 41s; trade motors and trucks, 45s to 50s; fire engines, 10s (no change); public taxis, £l5 to £l6 ss; private hire taxis, £7 10s to £lO 10s; buses, £l6, and 2s a seat over 20, maximum £lB to £lB, and 2s a seat over 20, maximum £2O; service cars, ss, and 2s a seat over seven, maximum £6 (no change); contract motor vehicles, £3, and 2s a seat over 10. maximum £4 12s to £3 Is. and 2s a seat over 10, maximum £4 13s; contract motor-vehicles (workers and school children), 25s to 28s; trailers, Is to 2s 6d; hearses and ambulances, 20s (no change); rental cars, £4 10s (no change); mobile cranes, 20s (no change). The Minister said the premium rates were reviewed annually by a representative committee of insurance companies, commercial road transport organisations, and motor unions. The committee examined the experience during the year of insurance companies engaged in this business and recommended alterations. In some of the vehicle rates the claims paid substantially exceeded the premiums received and the premiums had been increased. Provision had also been made for an increase in the commission paid to the Post and Telegraph Department from 6d to Is 6d for each transaction, said the Minister. The rate of 6d had not been varied since 1929. but in recent years the cost of the department’s time had well exceeded the commissions received. Where the experience during the last year had indicated that claims for any vehicle class had not substantially exceeded the premium income, insurance companies had agreed to bear the cost of the increased commission. In cases where it had been necessary to increase rates, provision had been made for the new commission rate of Is 6d.