INCREASED PREMIUMS NOT UNHERALDED

Dominion, Volume 32, Issue 160, 1 April 1939, Page 8 (Supplement)

INCREASED PREMIUMS NOT UNHERALDED

Third-Party Insurance DUNEDIN TAXI OWNERS MAY PROTEST Dominion Special Service DUNEDIN, March 30 "The increases in third party insurance premiums do not come unberald ed." said Mr I’. \V. Breen, president of the Automobile Association (Otago), in an interview tonight. “For some time it has been evident that, with the increasing volume of traffic on our roads, together with the higher speed of modern ears, the accident risk has been substantially increased, anil con sequeutly a higher premium "ate appeared to lie inevitable. "It must be remembered." Mr. Breen said, "thal motor transport is la king a more prominent place in mod

era civilization, and the consequent greater risk is proved by rhe total sum of personal injury claims paid Premiums must therefore be adjusted to meet the demands upon the funds. It would appear that statistical records of insurance companies have -•orivinced the Government that the increases in premium rates are justified.” "The only way to obtain a reduction is for motorists to exercise a greater measure of care on the road." Mr. Breen concluded. “Dunedin taxis are being asked to pay for tlie misdemeanours of those north," said a local tayi proprietor, discussing the Government’s decision to increase third-party insurance premiums on taxis from £7/10/- to £lO. “There have been very few accidents down here recently, and claims made under third-party risk do not justify the increase of £2/10/- a car annually.” He also expressed the opinion that HuOtago Taxi Proprietors’ Association would have to call a special meeting to consider the new rates and make some sort of protest against the premiums to be charged against the taxi companies. The general opinion expressed by a number of local taxi proprietors was that the increase was extortionate and unreasonable. The rise, it was consider ed. was out of all proportion to that

in respect of private vehicles, specially as Dunedin, and indeed Otago, had been particularly free from serious claims under third-party risk for two or thee years.