INCREASES NOT UNEXPECTED

Southland Times, Issue 23781, 31 March 1939, Page 8

INCREASES NOT UNEXPECTED

Premiums For Third Party Insurance

PRESIDENT OF OTAGO MOTOR ASSOCIATION

PROTEST BY DUNEDIN TAXI PROPRIETORS

(Special to The Times) ... DUNEDIN, March 30. “The proposed increases in third party insurance premiums do not come unheralded,” said Mr P. W. Breen, president of the Automobile Association (Otago) in a statement tonight. “For some time it has been evident that with the increasing volume of traffic on our roads, together with the higher speed of modem cars, the accident risk has been substantially increased and, consequently, a higher premium rate appeared to be inevitable. “It must be remembered,” Mr Breen said, “that motor transport is taking a more prominent place in modern civilization and the consequent greater risk is proved by the total sum of personal injury claims paid. Premiums must, therefore, be adjusted to meet the demands upon the funds. “It would appear that the statistical records of the insurance companies have convinced the Government thatthe proposed increases in premium rates are justified,” Mr Breen concluded. “The only way to obtain a reduction is for motorists to exercisers greater measure of care on the road.” “Dunedin taxis are being asked to pay for the misdemeanours of the ones up north,” said a taxi proprietor when discussing the decision to increase the third party insurance premiums on taxis from £7 10/- to £lO.

“There have been very few accidents down here recently,” he said, “and the claims made under the third party risk do not justify an increase of £2 10/— a car annually.” He also expressed the opinion that the Otago Taxi Proprietors’ Association would have to call a special meeting to consider the new rates and make some sort of protest against the premiums to be charged against the taxi companies. ’ Summed up, the general opinion expressed by a number of taxi proprietors was that the increase was an extortionate and unreasonable rise. It was considered to be out of all proportion to that for private vehicles, especially as Dunedin and, indeed, Otago, had been particularly free from serious claims under the third party risk for two or three years.