MOTOR INSURANCE.

Manawatu Standard, Volume LIV, Issue 120, 20 April 1934, Page 7

MOTOR INSURANCE.

NEW RATES FOR THIRD PARTY. SUBSTANTIAL REDUCTIONS. (By Telegraph.—Special to Standard.) WELLINGTON, April 20. Motorists who are concerned only about private cars—and they are in the vast be encouraged to tender their cash to the Rost Office for third party insurance this year by the knowledge that their annual premium has come down by three shillings, and that renewal of the policy will be possible for 17s. The taxi owner will also be pleased to know that the new premium, £6, is ten shillings less than last year. The motor vehicles’ third party insurance scheme is administered by the Department of Transport, insurances being effected with any approved organisation nominated by the insured. There is an annual investigation of the financial results, premiums being contracted with claims in respect to all the varied risks, and the Minister of Transport, following consultations with the insurance agents, approves the premiums for the year. These have been Gazetted in an Order in Council, and show that the following variations fr-om those of the year ended on May 31: DECREASES. Private motors 3s (new premium 17s). Trade motors 3s (£1 7s). Fire engines 2s (18s). Taxis, rental cars and private hire cars 10s (£6). Omnibuses according to seating capacity £1 to 30s (up to ten seats £6, with additional 5s for each seat in excess). Service cars and coaches £1 (up to 7 seats £6, with additional 15s for each seat in excess, and a maximum of £l2 15s). Passenger trucks, contract vehicles and rental cars 5s (up to ten seats £2 ss, with 2s for each seat in excess, and a maximum of £4), INCREASES. As the rates are revised to bring the charges closely in line with the risks of each class of vehicle, it naturally follows that insurance experience prompts a demand for increased premiums in some cases, and the Minister of Transport (Rt. Hon. J. G. Coates) has approved increases in the following classes. Dealers’ motor vehicles 6s (new premium £1 16s). Private cars used for certain business purposes, such as commercial travelling Is (£2 Is). ' Ambulances and vehicles not otherwise specified 8s (18s). Trailers Is (6s). Though the incidence of claims is proportionately heavy in respect to cycles, the former premium of £1 is to be charged, and no change has been made in respect to tractors, which carry a premium of 10s. Contrasting the gross income received by tlie insurance organisations with the amount they have to pay in claims under the third party risk, it is found that the claims proportion is nearly 80 per cent, of the revenue, and out of the balance has to be pa.id costs of administration by the companies. This is the first occasion on which it has been found possible to reduce tho premium for private motors, though there has been a progressive decline in respect to taxis and omnibuses. A tliirty-seater bus two years ago had to be covered by a premium of £2O 15s, but last year it came down, to £ll Bs, and experience appears to warrant reduction during the coming year to £lO.