MOTOR INSURANCE

Evening Post, Volume CVI, Issue 54, 12 September 1928, Page 6

MOTOR INSURANCE

THIRD PARTY RISKS COMPANIES' LIABILITIES BILL INTRODUCED The Bill foreshadowed in the Speech from the Throne requiring owners of motor vohiclos to insure . against their liability to pay damages oil account of deaths or bodily injuries caused by the use of such motor ■vehicles made its appearance iti the Houso of Representatives yesterday, being read a first time. It is proppscd that the measure shall come into force on Ist January next. The. contract of insurance may be entered .into with any accident insurance company operating in the Dominion, including the Government Accident Insurance Office. v Companies must give notice of: their intention to undertake third party motor risks, and such > notice will have effect on the first day of June following the date of its delivery to the Begistrar of Motor Vehicles. If, however, notice is delivered between 31st March and Ist June, it will take effect on Ist June in the succeeding year Provision is also made for revocation of notices of willingness to undertake risks. Owners of motor vehicles are required to pay their insurance premiums to the deputy-registrars at the same time as paying their annual license fees, nominating the company with which the contract -is to be,made, and no license or registration plates will be issued until the insurance premium hasten., paid for the poriod. The: insuranco'1 contract "will have effect immediately on payment of the premium, and will indemnify the owner from liability to pay damages, including costs, on account of the death, of, or bodily injury to, any person as the result of an accident occurring during the period for which the premium has been .paid., and in which tho licensee's car is in* volved The liability of the insurance company is limited to £2000 for any claim in respect to any one passenger, or to £20,000 in respect to all claims made iii; respect to passongers, those amounts !to include all costs. COMPANIES PROTECTED. The liability of the insuring companyis not to extend to indemnify the owner against any claim made in respect to the death of or injury to any person living with tho owner as a member of his family or'anyfrelative-pf the owner ■where the degree of relationship: is not more remote ..than ,the ; .fourth; to any. person in the service of the owner at the time of the accident; or any person who was not a passenger for hire at the time of the accident. Insurance contracts are to insure for the period of the premium notwithstanding change of ownership, but notice of the change of ownership nrust be made by the first insurer within seven days of the chango of ownership. A fine of £100 is-liable to be inflicted in the event of any person giving false or misleading information for the pur-, pose of effecting insurance. The provisions of the Bill are applied to motor-omnibuses, the existing law in regard to motor-omnibus insurance lbeing repealed' af tor 31st May, 1029. In the event of the death or insolvency of the owner of the car, after an accident giving rise to a claim for damages, the liability is to be a charge on tho-insurance moneys. An ownor is also "requirecl to give notice' to the insurance company-of all accidents affecting the 'motor yehiclpj and of consequent aetibns.; "■'..:. Provision'is made whereby tho insuring company may apply for the cancellation of the driver's license on the ground of public safety being endangered. Premiums received by deputy-regis-trars are to be paid into the Post Qfu'pe Account, and after a deduction being made to cover administration expenses, the residue is to be paid to the nominated insurance companies. The rates of premiums are to be proscribed by regulations, and if differential rates are prescribed for certain vehicles or purposes for which they may bo used, the owners must not permit such vehicles to be used unless the full amount of premium has been paid, subject to a penalty of £10 for every day of contravention of this requirement. The final clause in the Bill binds the Crown' to the payment of insuranco premiums,,.'' i. !■ •••• •■"•;.■■■■■ :