MOTORISTS' INSURANCE.

New Zealand Herald, Volume LXVIII, Issue 20981, 18 September 1931, Page 12

MOTORISTS' INSURANCE.

MUTUAL COMPANIES. THIRD PARTY RISKS ACT. A net profit of £8352 is shown in (he annual report of the North Island Motor Union Mutual Insurance Company, to be presented at the annual meeting on September 23. Net income is shown at £61,476; claims paid and pending at £26,713; ex gratia payments to policyholders whose vehicles were damaged or destroyed by the earthquake in Hawke's Bay, £1423. Working expenses wore £15,970; reserve for unexpired risks (additional), £9OIB. The funds in hand at the close of the third year arc: Reserve for unexpired risks, £24,180 15s 6d; net, profit, £13.641 18s; total. £37,822 13s 6(1. A surplus nf £7337 12.s 8d on the year's working is shown by the annual report and balance-sheet of the South Island Motor Union Mutual Insurance Association, which is to be presented at the annual meeting on September 23. The premium income, less returns, refunds and reinsurances, amounted to £29,589 13s 7d, as against £23,009 17s lid last year, while losses less reinsurance recoveries amounted to £13,053 8s lid, as against £9473 17s 7d the previous year. The association had had two years' experience of risks taken under the provisions of the Motor Vehicles (Third Party Risks) Act, and so far the business secured had not resulted in a loss, hut the past year's operations did not show as satisfactory n result as those of tho first year, and at the present timo left considerable doubt as to the premiums paid being adequate to cover the risks taken.