THIRD PARTY INSURANCE

Evening Star, Issue 22619, 10 April 1937, Page 25

THIRD PARTY INSURANCE

PASSENGER RISK COSTS MORE [Per United Press Association.] WELLINGTON, April 9. Although the Minister of Transport (Mr Semple) recently stated that thirdparty risk insurance would not be raised, motorists will find that they will have to pay from £1 to £1 10s extra this year if they wish to be covered against passenger risk as it is affected by the Law Reform Act, 1036. Third-party insurance is compulsory, and is paid when a motor vehicle is being re-registered, but passenger risk insurance is entirely a matter for the motorist himself to decide and to arrange with his own insurance company. The added liability brought about by the new Act. has resulted in a more comprehensive policy, for which additional rates are charged, being issued by most of the insurance companies. The_ rates being charged by most companies are as follows for the stated limit of indemnity per accident;—Private cars and commercial vehicles—cover, £600; premiums, £l. £1; £I,OOO, £1 ss, £1 10s; £2,000, £1 10s, £2 10s. _ The_ main point affecting the motorist in the new Act is that the comparative immunity formerly enjoyed by the motorist who made it a rule never to carry anyone in his car other than the members of his family and his friends is eliminated because, following a successful claim against the driver of the other car by, say, one’s wife, the husband is possibly liable, if negligence is proved, to contribute some hundreds of pounds towards the amount of judgment in the earlier court action.