HIGHER PREMIUM

Evening Post, Volume CXXVII, Issue 75, 30 March 1939, Page 11

HIGHER PREMIUM

THIRD-PARTY RISK

ACTION BY GOVERNMENT

CLAIMS FOR DAMAGE

Increases in rates for third-party insurance covers, involving several classes of motor vehicles, were announced by the Minister of Transport (the Hon. R. Semple) last night. The I Minister explained that an increase of 75 per cent, over the last five years in the average damages awarded to motor accident victims had compelled the Government to agree .to certain increases in the premiums, * The following increases in thirdparty rates will become operative from May 31:-— Taxis, from 150s to 200s. Trade motors, from 30s to 38s. Business cars, from 48s to 535. Private cars, from 20s to 265. Contract motor vehicles, rental cars, etc., from 45s to 60s (with a maximum of £4 12s). Mr. Semple said that owing to their excellent safety record, the third-party rates on omnibuses and service cars would be reduced. Premiums on motorcycles, dealers' vehicles, tractors, fire engines, trailers, and ambulances would remain unaltered. Despite these changes New Zealand still had by fat the lowest third-party premiums in the world. "On. a milage or petrol consumption basis, the number of claims last year was lower than the average for the last five years," said Mr. Semple. "Last year, there was one third-party claim for every 36,837 gallons of petrol consumed, compared with one claim for every 35,408 gallons during the preceding four years. At 15 miles a gallon this represents an increased milage on each claim of 21,441 miles." ATTITUDE OF JURIES. Mr. Semple said that it had been suggested that the main reason for the increased awards of damages was a more sympathetic or liberal attitude of juries towards accident victims. It I had also been suggested that juries were now awarding damages in cases in which, some years ago, no claim would have been recognised. The power of cars had increased and it was possible that accidents were now more serious. The petrol consumption figures indicated that motor vehicles were now travelling on the average much greater distances, and this fact, together with an increase in the last 12 months of 25,000 in the number of motor-cars on the road, meant greater liability to accident injury. The Minister said that the claims ratio o£ taxis for the past four years was exceptionally high, the claims rate being 161.6 per cent, of premiums paid. | The drivers of public hire vehicles were under a special obligation to their passengers and the community to handle their vehicles car/fully. Taxi drivers had it in their own power to reduce their high accident rate, and it was unfair to ask other classes of road users to contribute to the cost, of accidents for which taxis were held responsible. The current premium had accordingly been raised. Private hire cars had formerly been in the same group as taxis, but they would now be placed in a separate group with their premium rate unaltered. Omnibuses and service cars had an improving accident record, which reflected -itself in reductions. The rate for omnibuses had been reduced from 2s7 6d for each seat over ten to 2s for each seat over ten, and the maximum had been reduced from £8 to £7 12s. The premium for service cars had been reduced from 7s 6d for each seat over seven to 4s for each seat over seven, and the maximum had been reduced from £9 7s 6d to £7 16S. . . ' As further records became availablej Mr. Semple said, it might be necessary, in the interests of all road users to introduce the principle of penalising the accident-prone driver and rewarding by reductions in premium those who were accident free. COST OF ACCIDENTS. "Nobody can examine the figures without being astounded by the cost to the public of motor accidents to persons and property," said Mr. Semple. "In 1936, the last year for which aggregate- Sgures were available, it was necessary for the public to pay out more than £850,000 in premiums to cover such accidents. With 50,000 more cars on the road the cost this year will probably exceed a million pounds. In addition there are many cases of fatal and serious injuries, many cases of crippling for life, and many cases of cars being wrecked or seriously damaged which are not included in these figures. There are also many other losses which are not fully covered and the total annual cost of traffic accidents, if fully computed, would reach a staggering figure." "Every man, woman, and child in the Dominion bears this loss in some form or other," said Mr. Semple. "It is up to every road user, pedestrian, cyclist, and motorist to do his bit to reduce the high annual cost of motor accidents. It can easily be done if all road users take greater care. ' Particularly would I draw the attention of motorists to the effect of liquor on drivers arid I would appeal to them to cut down their speed at night time and to be specially careful during weekends."