Some Not Adopting Car Insurance Plan

Press, Volume CVII, Issue 31501, 16 October 1967, Page 24

Some Not Adopting Car Insurance Plan

(N.Z. Press Association) t WELLINGTON, Oct 15. A grading system which will vary a motorist’s insurance premiui i rates according to type of car and personal driving history is to be introduced by member companies of the Insurance Council of New Zealand. Details were advised in newspaper advertisements on Saturday. The changes will affect all drivers insured with the tariff group of 30 major groups and companies. But the 18 company nontariff Insurance Association of New Zealand has no similar plans to change its system, or increase its premiums. This group includes the two largest single motor insurance companies in the country the North Island Motor Union and the South Island Motor Union. Revised Premiums

Policy holders with the tariff group will receive from their insurance companies explanatory pamphlets and notices showing their revised premiums before their policies fall due next year. Under the new system, owners of vehicles in bad condi-

tion will not be able to insure them for a low figure to gain a low premium. A similar scheme was announced in Australia. Mr L. A. Randerson, president of the Insurance Association of New Zealand said: “While the underlying objectives must be applauded there may be room for some difference of view concerning the statistical soundness of some aspects of the new scheme.

“It is not without significance that neither the National Roads and Motorists' Association nor the Government Insurance. Office, who write 75 per cent of the motor insurance business in New South Wales, have followed the tariff scheme. “It is known that both these organisations, assisted by advanced computer installation, are in the midst of statistical research of a range and quality not previously attempted in this part of the world, and meantime, have deferred final judgment on the merits of the tariff changes. “The fact that we have a competitive insurance market in New Zealand is of great value to the motorist and will insure that he is treated fairly,” said Mr Randerson.