Changes In Car Insurance Will Provide Wider Coverage

Press, Volume CI, Issue 29896, 9 August 1962, Page 12

Changes In Car Insurance Will Provide Wider Coverage

Policy holders will have to pay the first £25 of damage to private cars after October 1 if the drivers are younger than 21 This charge has been announced by the Council of Fire and Accident Underwriters’ Association* as a move aimed at encouraging more care on the roads

The charge is part of a new scheme which will be adopted from October 1, and which will widen the coverage of motor vehicles to take in several contingencies which have had to be in-su-ed separate’? in the past The president of the council (Mr C McL Brown’ said from Wellington las* evening that new policies and existing policies renewed after October 1 would automatically carry the extra indemnities There would be a higher premium charged for the wider policy, but he was unable to give an estimate of the increase It would vary according to which, if any, of the additional contingencies were already covered by existing policies _ A major change will be the abolition of the no-claim rebate from the present progressive scale leading to 50 per cent after five years cl"im-fre* insurance From Oetob»r there will be a flat SS 1-3 oer cent rebate of the p-em’um after a y«»- in which no claim is made.

Speaking of the first £25 of damage having to be met by the policy bolder where a private vehicle was driven by anyone under 21, Mr Brown said tt was aimed at encouraging road safety In New Zealand, as elsewhere youngsters at the wheel had contributed to damage, injury and death on the road* out of proportion to their relatively small numbers

From October 1, private and business car policies will provide for:— Damage by frost Theft of accessories. Passenger risk indemnity of £5OOO

Indemnity for an employer in respect of use of an employee's car on the employer's business. Extension of the cover while teaching a learner to drive Use of a caravan or trailer without prior notice Extension of cover while towing a disabled vehicle, other than for hire or reward.

An increase in the property damage limit from £20.000 to £50,000. An extension of the personal accident and medical benefits to business cars insured tn the name of an individual An increase in the age limit for personal accident benefits to 70 Confirmation that transit by see and air between the islands is covered, including

any “general average” liability Full details of the revision of insurance are being advertised by the council at the same time as they are being circulated to member companies.