MOTORS AND INSURANCE.
A COMPULSORY LAW. [tkom oru own coiutEsroxDENT.] NEW YORK, Nov. 3. Compulsory insuranco of aptomobiles has proved a failure iu tlio Lnitcd States. It, lias hcca in forco in Massachusetts under a law passed at tlio beginning of 1927, but it now finds no favour among the insuranco companies that have underwritten tlio mandatory policies. Tlio failure of tho new law is mainly duo to tlio tact that drivers have become moro reckless, assured of financial compensation to both sides in the case of accident. Normally careful drivers have become slipshod, in the samo as sured state of mind. Under the ordinary commercial insurance law, the provision that motorists shall pay tho first £5 of the bill of damage has hitherto had the corrective influence. That has disappeared in Massachusetts. Companies have been forced to write insurances irrespee tivo of tho moral issue The law penal ises the good with the poor moral risks. The State of New York has a law providing for compulsory insurance of taxicabs. No fault is found with it Its operation is flexible. Companies fix their own premiums.
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Bibliographic details
New Zealand Herald, Volume LXV, Issue 20112, 24 November 1928, Page 13
Word Count
186MOTORS AND INSURANCE. New Zealand Herald, Volume LXV, Issue 20112, 24 November 1928, Page 13
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