State insurance on vehicles

Press, 19 September 1985, Page 14

State insurance on vehicles

Sir,—l would be interested in the justification of the State Insurance office for not only putting up the premium and increasing all excesses by ?50, but also cancelling the (free?) headlight or windscreen each year. As an example, assuming a headlight costs $l4O, if one was broken and claimed upon the claimant would have to pay $lOO excess, and then lose the “noclaim” bonus which is $47 upwards. This means that one broken headlight claimed upon would effectively cost $147 plus. Two headlights at different times of the year — the State pays you $BO and you pay $247 plus. The State Insurance office seems to have learnt, from other financial institutions, the golden rule: put up prices, cut down services, sit back and rake in the profits. — Yours, etc., P. G. HAWTIN. September 12, 1985. [The Christchurch manager of the State Insurance Office, Mr J. G. Walker, comments: “The alteration to the past practice has become necessary because of the greatly increased costs of windscreens and headlights. They are now treated the same as other types of claims in respect of the no claims bonus and the standard excess of $lOO is applied. It is very difficult to break even in motor vehicle insurance in todays conditions of high costs. In

order to maintain premiums at the lowest possible level for the claimfree motorist, it is necessary for claimants to bear a share of the loss. I would also point out that shields are available for the headlights of most vehicles.”]