INCREASES IN THIRD PARTY INSURANCES.

Otaki Mail, 31 March 1939, Page 4

INCREASES IN THIRD PARTY INSURANCES.

RESULT OF HEAVY ACCIDENT CLAIMS. ANNOUNCEMENT BY MINISTER WELLINGTON, Last Night. New rates for third party insurance premiums which involve increases for several classes of vehicles were announced this evening by the Minister of Transport, lion. R. Semple. He said an increase of 73 per cent, over the last five years in average damages claims awarded to motor-accident victims had compelled the Government to agree to certain increases in third party insurance premiums. The following increases will be made from May 31: — Taxis: From 130 s to 200 s. Trade motors: From 30s to 3Ss. Business cars: From 4Ss to 535. Private cars: From 20s to 20s.

Contract motor-vehicles, rental cars, etc.: From 45s to 00s (with a maximum of £4 12s).

Mr. Semple said that owing to tlieir excellent safety record third party rates on omnibuses and service-cars would be reduced. Premiums on motorcycles, dealers’ vehicles, tractors, fireengines, trailers and ambulances would remain unaltered.

Despite these changes New Zealand still had by far the lowest third party premiums in the world. On mileage or petrol consumption basis the number of claims last year was lower than the average for the last five years, said Mr. Semple.

Mr. Semple said it had been suggested that the main reason for the in creased awards of damages was the more sympathetic or liberal attitude o' juries toward accident victims. It had also been suggested that juries were now awarding damages in cases in which some years ago no claim would have been recognised. The power of cars had increased and it was possible that accidents were now more serious. Petrol consumption figures indicated that motor-vehicles were now travelling on an average much greater distances and this fact together with the increase in the last 12 months of 25,000 in the number of motor-cars on the road meant a greater liability to accident injury. The Minister said that claims in ratio of taxis for the past four years was exceptionally high, the claims rate being 161.6 per cent, of the premiums paid. Drivers ot public hire vehicles were under a special obligation to their passengers and the community to handle their vehicles carefully. Taxi drivers had it in their own power to reduce tlieir high accident rate and it was unfair to ask other classes of road users to contribute to the cost of the accidents for which taxis were held responsible. The current premium had accordingly been raised. Private hire cars laid formerly been in the same group as taxis, but they would now be placed in a separate group with their premium rate unaltered. Omnibuses and service-cars laid an improving accident record widen re fleeted itself in reductions. The rate for omnibuses had been r diced from 2s fid for each seat over 10 to 2s for each seat over 10 and the maximum had been reduced from £8 to £7 12s. The premium for service-ears laid been re dueed 1; .an 7s (id for each seat o’, ui seven to Is for each seat over seven and the in a mum had been reduced from £9 7s fid to £7 His. As further records became available, Mr. Semple said, it might ire necessary in the interests of till road users to introduce a principle of penalising accident-prone drivers and rewarding by reductions in premium those who wore accident-free.