THIRD-PARTY RISK

Poverty Bay Herald, Volume LXVI, Issue 19900, 30 March 1939, Page 14

THIRD-PARTY RISK

* INCREASE IN PREMIUMS HIGHER DAMAGES AWARDS RELIEF IN TWO (.’LASSES RUSES AND SERVICE OARS (Per Prose Association.) WELLINGTON, this day. New rates for third-party insurance premiums, which involve increases for several classes of vehicles, were announced last evening by the Minister of Transport, the lion. R. Semple. He said that an increase of 75 per cent over the last five years in the average damages claim 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 £7 10s to £10; trade motors, from £1 10s to Cl 18s: business cars, from £2 8s to £2 13s; private cars, from. £1 to £1 (is; contract motor vehicles, rental cars, etc., from £2 5s to £3, with a maximum of £4 12s. Mr. Semple said that owing to their excellent safety record the thirdparty rates on omnibuses and service Cars would be reduced. The premiums on motor cycles, dealers’ .chicles, tractors, fire engines, trailers and ambulances would remain unaltered. Still Lowest in World Despite the changes New Zealand still had by far the lowest third-party premiums in the world. On a mileage or petrol consumption oasis the number of claims last year .vas lower than the average for the ,ast five years, said Mr. Semple. It had been suggested that the main reason, for increased awards of damages was the more sympathetic or fiberal attitude of juries toward accident victims,- said Mr. Semple. It had also been suggested that juries vvere 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. The petrol consumption figures indicated that motor vehicles were now travelling, on the average, much greater distances and this fact, together with an increase in 'the last 12 months of 25,000 in the number of motor cars on the road, meant greater liability to accident and injury. The Minister said that the claims ratio of taxis for the past four years was exceptionally high, the claims rate being IGI.U per cent of the premiums paid. Drivers of public-hire vehicles were under a special obligation to their passengers and the community to handle their vehicles carefully. Power of Reduction Taxi drivers 'had it in their own power to reduce their high accident rate and it was unfair to ask other classes of road users to contribute to the cost of accidents for which taxis were held responsible. The current premium had accordingly been raised. Private-hire cars had 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 had an improving accident record which reflected itself in the reductions. The rate for omnibuses had been reduced from 2s Gd 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 cars had been reduced from 7s Gd for each scat over seven to 4s for each seat over seven and the maximum had been reduced from £9 7s Gd to £7 16s. As further records became available, Mr. Semple said, it might be necessary, in the interests of all road users, to introduce the principle of penalising the accident-prone driver and rewarding, toy reductions in premium, those who were accident-free.