MOTOR INSURANCE

Hokitika Guardian, 11 May 1929, Page 7

MOTOR INSURANCE

THIRD PARTY RISKS. WHAT CONSTITUTES A BUSINESS OAR? te, • WELLINGTON, May 9. The delegates at the half-yearly meeting of the North Island Motor Union yesterday spent some time in an endeavour to solve the problem of what constitutes a business car according to the Motor Insurance (Third Party Risks) Act. “ The legislation,” explained the President (M.r A. J. Toogood), ‘‘comes into force on June 1, and under it every private motorist on payment of a ifee of £1 is required to nominate the particular insurance company with whom he desires to insure. The Act presents serious pitfalls for the motorist—for instance, the definition in the schedule of fees denotes that a car used for private purposes only shall pay £l, whereas a car used in any sense of the word for business necessitates a Ifee of 30s. In the event of a vrong declaration being made, the motorist renders himself liable to a maximum fine of £lO. The trouble does not end here, because if a motorist (in order to be on tne safe side) registers his machine as a commercial vehicle owing to the fact that his car may be used only occasionally for business purposes, it is possible that the insurance companies when insuring the car under a comprehensive policy outside third party risk, might demand that the car be insured under commercial rates, which are very much higher than the rates for a private car. Conversely, if a motorist, conscientiously believing that his car is a private car, nominated it as such when taking up third party risk, it is possible under the existing state of affairs that in the event of an accident he might render his policy null and void if at the time of an accident it could be proved that according to the Act as it stands at present the car was being used for. business purposes. The executive suggests that this matter should be thoroughly discussed and a resolution passed asking the Government that more elasticity should be shown in the definition of a private car used occasionally for business purposes, and that the Act be amended accordingly.” Mr W. Howard Booth '(Wairarapa) declared that practically every farmer in the Dominion used his car as a business car occasionally. “ I frequently carry a stud ram from one of my farms to another in my car,” he said, “and if anything happened on the journey 1 don’t suppose 1 would get anything from the insurance people.” It was decided that a deputation from the union should wait upon the Minister of Transport in .connection with the matter.