THIRD-PARTY RISKS

Nelson Evening Mail, Volume LXXI, 10 April 1937, Page 9

THIRD-PARTY RISKS

INSURANCE PREMIUMS HIGHER PRIVATE MOTOR CARS (By Telegraph—Press Association) WELLINGTON, This Day. Although the Minister, of Transport (the Hon. R. Semple) recently stated that third-party risk insurance premiums for private motor cars would not be raised, motorists will find they will find they will have to pay from £1 to £1 10s extra this year if they wish to be covered against passenger risk, as it is affected by the Law Reform Act, 1936. Third party insurance is compulsory and is paid when a motor-vehicle is re-registered, but passenger , risk insurance) is entirely a matter for the motorist himself to decide and arrange with his own insurance company. The added liability brought about by the new act has resulted in a more • comprehensive policy, for Which additional rates are charged, being issued by'most insurance companies. The main point in the new Act affecting motorists is that the comparative immunity formerly enjoyed by a motorist who “made it a rule never to carry anyone in his car other than members of his family and friends” is eliminated because following a successful claim against the driver of the other car by, say, one’s wife, the husband is possibly liable if. negligence is proved to contribute some hundreds of. pounds toward the amount of judgment in the- earlier court action.

INCREASE FOR TRADE CARS (United. Press Association) . X ,' WELLINGTON. 9tlr April. ;.A- further explanation of the rates for third-party insurance ■ premiums for 1937-1938:was made by the Minister of Transport (the Hon. R. Semple) last night. The Minister said that there would be an increase in the premiums for business cars and trade motors. “My attention has been drawn to headings in certain papers indicating that there will be no increase in premiums,” said the Minister, “and I want it to be clearly understood that my previous remarks were confined to private motor-cars (class 4). As a matter of fact, the records of certain and service cars) continue to show a very gratifying reduction in claims: so much so that I am recommending to Cabinet that the following reductions in premiums be made: —

Previous Premium. Class 8V (omnibuses) £G plus 5s for each seat over 10 (maximum £10). Class 8C (service • £6 plus 15s cars and coaches) for each scat ■ - over 7 (maximum £l2 15s). Proposed Premium 1037-38. Class 8V (omnibuses) £6 plus 2s Gel | for each scat over 10 (maximum £8). 1 Class 8C (service £6 plus 7s 6d : cars and coaches) for each scat, over 7 maximum £9 7s 6d). : “In regard to omnibuses, it will be : seen that the maximum premium which applies to 26-scaters and over • has been reduced by 20 per cent., while the maximum for service cars, which commences at 16 seats, lias been reduced by over 25 per cent. Naturally I am very pleased at the excellent record which the drivers of these vehicles are establishing for safe and careful driving, and their example is worthy of emulation by other, road users. “Unfortunately, the same record has has not been attained by business ears and trade motors (classes 5 and 6). Claims for these vehicles continue to increase, and I have been compelled to recommend Cabinet to increase the premiums from 41s to 45s for class 5 and from 27s to 3(L loi “From this it will be seen that safdriving also means cheaper driving, and I hope that in the near future the records of all drivers will be such chat all-round reductions will be practicable.”