THIRD-PARTY INSURANCE

Evening Star, Issue 22032, 18 May 1935, Page 3

THIRD-PARTY INSURANCE

ENGLISH COMPANY'S CASE STRONG COMMENT MADE I Strong comment is made by the ‘ Economist ’ on the experience of the Anglian insurance Company in Great Britain and its,connection with compulsory third-party insurance for motorists. , The ‘ Economist ’ states that since 1930 it has -been -compulsory for motorists in Great Britain to insure their third-party risks with a responsible insurance company, and the companies which were authorised to undertake such compulsory insurance are those which place a deposit of ,-£15,000 with the Board of Trade. The Anglian Insurance Company fulfilled' this condition. using 37j,- per cent, of its capita) for the purpose. Then it circularised the country, offering to insure on the payment of quarterly premiums, and, collecting many premiums, incurred liabilities far exceeding its deposit with the Government. i The company was hall-marked as an authorised insurer, and under this highsounding title was accepted by the type of motorist to whom it made its appeal as sound in limb and wind, because the Government said it was all right, the journal comments. It piled up liabilities beside which £15,000 was a fleabito. and made it clear to anyone who knew what was happening that it was bound to crash, and that when it crashed the deposit would be almost valueless. But the law of libel being what it is, those who knew dared not Speak, mud right up to the end the company has- been able to take premiums from ill-informed members of the public, because it war an “ authorised ” insurer and because the English law of libel makes criticism —the only kind of criticism that in a case of this kind is worth while —too dangerous io publish. Between the two of them, the Government, by its childish belief in deposits, and the courts, by their attitude to defendants in libel actions, have held open the garden gate while this and other insurance companies have led the public up the path.