HEAVY DAMAGES

Evening Post, Volume CXXVII, Issue 67, 21 March 1939, Page 14

HEAVY DAMAGES

! MOTOR-CAR INSURANCE Mr. J^ A. Boyd, chairman of the Southern Union Insurance Co., Melbourne, addressing shareholders last week made special reference to losses on motor vehicle business. He pointed out that net premium income again showed an upward tendency, but loss ratio also showed an increase, from 47 per cent, in 1937 to 53 per cent, for 1938. Increase in loss ratio was mainly due to claims under the motor-car section of their business. The tendency to award very heavy sums for compensation in third-party claims must have the effect of forcing a reconsideration of present premiums chargeable. At the annual meeting two years ago he had referred to the introduction of legislation making it compulsory for motorists to insure their liability to third parties for personal injuries. The Governments of New South Wales and Victoria had announced their intention of submitting Bills to Parliament this year. It was understood legislation would be uniform in order that transit from one State to another would be as free and unhampered as possible. LOCAL CAR BODY BUILDING. Australian motor-car bodies are of much higher standard and of better quality than the average American body, according to Mr. W. Ledyard Mitchell, chairman of the board of the Chrysler Export Corporation. Mr. Mitchell has been investigating conditions affecting the motor trade in Australia. The appearance and general character of motor-cars particularly appealed to him because of the excellent quality of the interior fittings, finish, and embellishment. There was definite evidence that Australian motorists were much more fastidious than those in the United States.