THIRD PARTY INSURANCE.

Hawera Star, Volume XLVI, 2 April 1927, Page 4

THIRD PARTY INSURANCE.

FOR MOTOR VEHICLES. COMPULSORY MEASURE PROPOSED. . A suggestion that the insurance against third party risk in the event of an accident be made compulsory for the owners of motor vehicles was discussed at the meeting of the executive of the South Taranaki Automobile Association last evening, and as a result it was decided to recommend to the general committee ‘ ‘ that a premium of, say, £1 should be levied upon the owners of motor vehicles by the Government; and collected at the time that the annual license fee is paid, and used to cover third party risk.” The question arose during a discussion on the matter of fire insurance, when Dr J. McGhie remarked that the association should encourage all members to take out a “comprehensive” insurance policy. Mr R. H. Lecce agreed, and said that were a motorist uncovered by insurance to be involved in an accident from which someone sustained permanent injury that person would have no redress should the motorist have only a small estate. He considered that the scheme which had emanated from a South Island local body for a compulsory charge of £1 to be made for each car to cover third party risk could be adopted with success. There were about 150,000 motor vehicles within the Dominion, and it seemed scarcely probable that claims would exceed £IOO,OOO a year. Mr J. A. Duffill remarked that even were the amount subscribed exceeded in claims, the Government could be asked to grant a subsidy. Dr McGhie urged that the insurance should be made compulsory, and all members agreed that the matter was extremely urgent, and that the suggestion was an excellent one for providing cheap cover. The above recommendation, moved by Dr McGhie and seconded by Air Leece,

was then carried unanimously.