"SHARE EXPENSES"

Evening Post, Volume CXVI, Issue 75, 26 September 1932, Page 8

"SHARE EXPENSES"

D>T PEIVATE CABS

NO/ INSURANCE COVER

THE . LAW EXPOUNDED

There have been many references recently to a fairly common.' practice whie7a ,has developed- of car-owners carrying passengers, generally on longdistance trips,' upon' a "share expeases" arrangement. The views of the motor unions upon the matter have been.widely distributed, and protests have been registered against certain provisions of the , Transport Licensing -&«t. Further views are expressed by tt/e Motor Omnibus Proprietors' Federation and organisations^ representing passenger transport operators throughput New Zealand. This statement emphasises that there is no insurance cover for 'the passenger '"travelling 'on a "share expenses" basis. The payment, .says the statement, may be on a purely pre-arranged business basis, or'it may be a voluntary contribution by a friend, but the motivation: in the transaction does not affect the legal position as long as the money or other reward is giy'en by the passenger as some reimbursement to the car-owner carrying the passenger., AGAINST THE ACT." V "It is perhaps not generally realised that the owner of a private ear carrying persons on this basis contravenes the provisions of the Transport Licensing Act,, 1931, and also that he makes himself liable for payment of a higher premium under the Motorvehicle Insurance (Third-party Act, 1928; nor is it realised that if such higher premium is not paid, not only does the owner commit a breach of the lattor Act and the regulations thereunder, but in the event of a successful claim being brought against him as the result of an accident, he is not covered by the third-party risks policy in respect of damage to any paying passengers, and is personally liable for the amount involved in such claims" continues, the statement. "Thus there is the twofold danger to the owner of the car: firstly, that he may be prosecuted for breaches of both the Transport Licensing Act, 1931, and Motorvehicle Insurance (Third-party Eisks) Act, and, secondly, that he is not indemnified by' the insurance companies against his liability in the case of injury to the passenger, and would have to meet the damages out of his own pocket. . , i "A considerable amount of criticism has been levelled against the provisions of the Transport Licensing Act, which makes it an offence for owners" of private cars to carry 'expenses-sharing' passengers.,, One' of the objects of the Act is the regulation of the public motor-passenger carrying business .in the public interest by specially appointed licensing authorities who determine the time-tables, fares to be charged,' t and all conditions governing the operation of the service. Furthermore, licensed operators are required to maintain their vehicles to a high standard of fitness, and the vehicles are subject to thorough examination by Public Works Department inspectors at regular intervals. Heavy annual payment for, route licences, vehicle certificates, heavy traffic fees, and passenger insurance is also required from licensed passenger service operators. "Is it equitable that private motorcar owners should be. permitted to carry passengers who share 'expenses/, and in respect of whom they may be making a profit (although this may Lot be tho main object in carrying such passengers) and escape compliance with these standards of fitness and other requirements? An analogy exists in the Factory Acts, which, in order to achieve the objects for which they were formulated, were made to apply to the home as well as the factory if the home came within the definition of factory; . similarly with the public motor passenger business, if a private car owner carries passengers so as to bring himself within the meaning of a passenger-service, as - defined in the Transport Licensing Act, he must be prepared to comply with the provisions of the Act.

"So far as the insurance, is concerned," the statement concludes, "passengers travelling in private cars are not covered under the Third-party Eisks Insurance Act so" far as their driver's negligence is concerned."

En route from Sydney, the Zealandia has reported by wireless that she expects to arrive at "Wellington at 7 a.m. to-morrow. She will berth on arrival at Ho. 1 South, Queen's" Wharf, and after being examined by health and Customs officials her passengers will be free to leave the ship. The Zealandia's Australian mail comprises 169 bags and 75 parcel receptacles.