BIG INCREASE IN PREMIUMS

Nelson Evening Mail, Volume LXIV, 21 February 1931, Page 11

BIG INCREASE IN PREMIUMS

ACCIDENT INSURANCE MOTORISTS’ THIRD PARTY 1 POLICIES WELLINGTON, lHtli February. The complete report on New Zealand insurance statistics now made available covers the calendar year 1929 and the lirst year’s experience of compulsory third-party insurance for motors. In the accident insurance class, which covers employers’ liability, personal accident, and Other forms of accident, the motor insurance is responsible for about half of the total premiums received, and in 1021) involved payment of about 45 per cent of the claims handled.

This legislation has brought a considerable amount of increased business to the companies operating in the Dominion, ns will lie seen from the statement of their premiums under that heading for two years preceding the operation of compulsion, and the first year of the new system:— Year. Motor Vehicle Premiums. £ 1927 518,217 1928 570,854 1929 852,084

The compulsory legislation sent the annual premiums up by £281,780 in the lirst year, but this carried a big increase iii liability to the companies, though the lirst year’s experience would suggest that the premiums fixed by the statute have fairly met the position. Prior to compulsion, the proportion of claims to premiums laid been 52.01 per cent, in 1027, and 55.11 in the following year. 'l'he wider business caused by compulsion operated to the advantage of ‘the companies, as the claims rate dropped to 52.44 per cent. This, lowever, may Hie a temporary fall, if the previous experience may be taken as a guide. The amounts paid on motor insurance claims of recent years have been as follows: — Year. £ 1927 209,532 1928 : 314,580 1929 " 447,110

A special compilation of motor insurance statistics has been made covering the period from Ist June, 1929, till 31st May, 1930. 'l'llis alfords a more accurate view of the position. Net premium receipts totalled £235,000, aful the claims and outstanding claims amounted to £182,910, giving a ratio of claims to premiums of 77.83 per cent.

WORKERS’ COMPENSATION Amendments in the Workers’ Compensation for Accidents Act became operative in the beginning of 1927, involving increased liability on the insurance companies, though it was agreed that this would he undertaken without raising the premiums. The result was that in 1927 the claims advanced by £54,420, though the premiums rose only by £15,942 in excess of the previous year. The result of operations for 1928 and 1929 is similar, only slight proportional increases being recorded. Employers’ liability premiums in 1929/ totalled £035,057, and the claims £443,902.