THIRD PARTY INSURANCE
Figures quoted yesterday by the chairman of the executive of the Wellington Automobile Association (Mr. E. A. Batt) on the subject of third-party insurance for motor-vehicles, show that, generally speaking, the insurance companies are paying out more in settlement of accident claims than they receive in premiums. Such being the case, a rise in the premium rate is only what might have been. expected. Stripped of irrelevancies, the position simply is that the premium late is directly related to the accident rate. If the number of traffic accidents could be substantially diminished, and the reduction maintained at a low average, owners of motor-vehicles would have a case fot a reduction of the premium rate. With buildings, the insurance rates are determined by the risk. Buildings with a high fire risk ate rated accordingly. The position is exactly the same with insurance cover for motor-vehicle third-party risks. It is the high road accident rate that has forced up the premiums. There is the case in a nutshell. Ihe moral is obvious —drive carefully.
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Bibliographic details
Dominion, Volume 32, Issue 170, 15 April 1939, Page 10
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175THIRD PARTY INSURANCE Dominion, Volume 32, Issue 170, 15 April 1939, Page 10
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