MOTOR INSURANCE.

Hawera Star, Volume XLVI, 2 July 1927, Page 15

MOTOR INSURANCE.

SUGGESTION OF COMPULSION

AM EKICAN ATTITDDE. Urging committees to get fuller data on compulsory automobile liability insurance be:ore rushing headlong into a network of complicated laws, tiie National Automobile Chamber of Commerce has issued a summary of proposed legislation bearing on this point, says an American paper. Bills advocating compulsory insurance hate been introduced in twentyone of the forty-two-State* whose are now in session. In many of the States there is no expectation that the measure will be passed, but rather the Bill is introduced as a trial balloon.

Cnless the pub.ic advantages of such measure can be clearly demonstrated, the motorist should not be burdened by compulsions of this nature, the National Automobile Chamber of Commerce holds. Massachusetts is the only State which has attempted such a law, and there it lias been in effect for but six weeks. It is felt in motor circles that the Bay State has not had guificient experience with the law yet to deter-I mine its effect.

Among the reasons advanced against compulsory insurance by the automobile chamber, in which the motor club, ’dealer, and other automobiles groups concur, are:— 1. Compu.sory insurance creates an accident hazard among the irresponsible because it would remove the present fear of financial loss which tends to hold the reckless in check. 2. No evidence exists to show the total amount of uncompensated losses due to motor vehicle accidents. The great majority are being penalised to carry the burden of cases, the number and extent of which is not- known.

3. A cost of 30 dollars per car to handle the burden which will he the charge if the plan is fully operative, is probably excessive and should not -je imposed until there are more facts.

4. It adds an extra burden on transportation. 5. it gives undue power to bureaucracy which is justifiable only in case of criminal offence. 6. It is an added cost- on rural transportation.