THIRD PARTY LIABILITY
ADDITIONAL PASSENGER COVER NEEDED Provisions having a far-reaching effect on motorists’ third party liability and third party motor insurance genereally are contained in section 1.7 of the Law Reform Act. 1936, which was passed by Parliament toward the end of the session. The effect of the new law is to make the compulsory third party insurance cover inadequate, it being necessary for drivers to take out an additional passenger cover to secure the same degree of protection as in the past. Briefly, the new law is a motoring version of the maritime principle generally known as the “ admiralty rule, under which an admiralty court has power to apportion the blame for a collision at sea. In the event of damage to a third vessel, for example, the court could award two-thirds of the total damages against one ship and one-third against another, according to the degree of negligence on the part of the masters of each.
In the past, when a passenger in a motor car lias been injured as the result of a collision between that car and another one, he has been free to claim against either driver. For obvious reasons, in view of the Motor Vehicles Insurance (Third Party Risks) Act. 1928, it has been customary to proceed against the driver of the car striking that in which the plaintiff was a passenger. The injured party has had to elect whom he would sue, and once he took action against this person and obtained judgment, the person against whom the damages were awarded had, under common law, no right to claim against the other driver. In legal parlance. there has in the past been no contribution between joint tort-feasors. The effect of the new law is to make it possible for a driver against whom judgment has been obtained to sue the driver of the car containing the passenger, alleging, most probably, contributory negligence. Discussing the matter, a city hamster, who specialists in motor cases, said be thought motorists would be very unwise to drive now without a special passenger cover. Rates varied at present, but the annual premium for most private cars would be in the vicinity of 30s, he said.
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https://paperspast.natlib.govt.nz/newspapers/ESD19361207.2.24.4
Bibliographic details
Evening Star, Issue 22515, 7 December 1936, Page 5
Word Count
368THIRD PARTY LIABILITY Evening Star, Issue 22515, 7 December 1936, Page 5
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