S.I.M.U. doubles its under-25 excesses

Press, Volume CXIV, Issue 33521, 30 April 1974, Page 1

S.I.M.U. doubles its under-25 excesses

Excesses applied against young drivers have been doubled by the S.LM.U. Mutual Insurance Association, which insures more South Island private cars than any other firm.

Owners of vehicles insured with the company could find themselves liable for the first $lOO to S2OO of an accident’s cost if, when it occurs, the driver is aged under 25. The increase is said generally to bring the company’s excesses into line with those of other motor-insurance companies. The excesses apply only to the insured vehicle, and not to the “third party” vehicle it might hit. Ini the case of policies issued by; some companies, excesses are; applied to both vehicles. i As with other companies,! the S.LM.U. can continue to! : apply special higher excesses in individual cases where there is a bad accident record. The company’s customers are being sent leaflets with

- their policy-renewal remind-; • ers telling them that the ; changes are to ensure that ’ more of the burden caused by under-25 drivers is car-j tied by those drivers. ' The company’s standard ex-1 cess in cases where the per- : son who has insured the car; is more than 25. but the car is! being driven by someone. . under 25, has been doubled , from $5O to $lOO. The S.LM.U. excess for ’ policy-holders under 25 has been approximately doubled to $2OO. The assistant manager of; [the State Insurance Office ini /Christchurch (Mr K. W. Les-! '[ter) said yesterday that his 'office’s standard excess for /drivers and policy-holders '[under 25 was $lOO, and there ' was no talk at present of this ' being increased. Cover extended The S.LM.U. leaflet also says that because parts of insurance policies have been made redundant by the Accident Compensation Act, policies have now been extended to cover loss or damage to trailers (with a maximum claim of $100) and to loss of persona! effects from the vehicle (with a maximum of

■ [sso an article and $2OO an /occurrence). The company’s general I manager (Mr E. B. McKessar) said yesterday that it had been decided to increase the ! standard excess rather than la blanket increase in premiums, which would have 'penalised the accident-free i driver. The extension of policies to trailers and personal effects put the company ahead of some of its competitors in this respect, he said.