MOTOR-CAR INSURANCE.

New Zealand Herald, Volume LXI, Issue 18889, 11 December 1924, Page 11

MOTOR-CAR INSURANCE.

REQUEST FOR A REBATE.

MUTUAL SCHEME MOOTED.

A remit from Waihi that the association should endeavour to combine with all similar bodies in the Dominion to obtain a rebate in the very high rates for motor insurance was discussed at the meeting of the council of tho Auckland Automobile Association last evening. Mr. Grayson, who seconded the motion, pointed out that tho council of the Wairarapa Association already, enjoyed an insurance scheme of its own, whereby it offered members much lower premiums than those offered by the companies. That association was naturally objecting to any effort being made to induco tho companies to reduce their rates. Mr. J. B. King said he had paid £10 a year for 16 years to insure his car and he " had not got a penny oitt of it." (Laughter.) The cost of motor insurance was ridiculous. In fact, it almost forced a motorist to take his own risk. He thought a scheme could very well be run on lines similar to those adopted by tho shipping companies. Mr. J. Gilbert, of Hamilton, said that losses were so great in motor insurance that the companies could not afford to reduce premiums. Tn fact, the companies were not looking for motor business. Mi-. Farrell, supporting the previous speaker, said that though ho held no brief for the companies, he considered that people whose cars were damaged in accidents made grossly unfair claims on the companies. "If a car is damaged to the extent of £15 they want £50 out of the company," he declared. Ho knew that premiums wero very high, but did not think they remunerated the companies. If the association tried a scheme of tho sort ho was sure its disbursements would exceed its incomings.

The remit was carried with the added instruction that the New Zealand Motor Union be urged to establish a mutual insurance scheme