MOTOR INSURANCE

Otago Daily Times, Issue 23599, 8 September 1938, Page 7

MOTOR INSURANCE

THIRD-PARTY RISKS REMOVAL OF ANOMALY IN LAW (From Our Parliamentary Reporter) WELLINGTON, Sept. 7. An, anomaly in the law with regard to motor, accident insurance is removed by a clause in the Statutes Amendment Bill, , which was introduced in the House of Representatives to-day by Governor-General’s Message. The clause deals specifically with the Motor Vehicles Insurance (Third Party Risks) Act. The object of the clause is to provide that insurance under the principal Act will include indemnity against claims for contribution. It was explained by the Attor-ney-general (Mr H. G. R. Mason) that under the third_ party risks legislation the whole liability for the damage done to an innocent person by the joint negligence of two guilty parties fell upon the particular party who was sued and an insurance company liable for that particular wrongdoer had to pay accordingly. The Law Reform Act, which applied to wrongs generally, and not only to cases of motor collisions, enabled the person primarily liable to secure a contribution from the other wrongdoer, and it had been found that in motor accident cases such a contribution was not covered by thirdparty risks. The new clause secured that the whole liability was again covered by th 6 Motor Vehicles Insurance (Third Party Risks) Act, irrespective of the question of contributions between two wrongdoers.