THIRD PARTY RISK INSURANCE

Southland Times, Issue 23945, 11 October 1939, Page 3

THIRD PARTY RISK INSURANCE

APPEAL COURT DECISION (United Press Association) WELLINGTON, October 10. Expressing the unanimous view that the liability of insurance companies under Section 6 of the Motor Vehicles Insurance (Third Party Risks) Act. 1938, extended to include liability to indemnify a defendant against whom judgment had been obtained by an employer for amounts paid by the employer to an employee as worker’s compensation during the period of incapacity caused by the negligent use of the motor-car by that defendant, the Appeal Court today refused to disturb a judgment given in the Supreme Court at Palmerston North on May 18 in the action Stanley Stedman Viles against the North Island Motor Union Insurance Company, and dismissed the appeal of the North Islam’ Motor Union Company. The Chief Justice (Sir Michael Myers) in his judgment, said that although in fact/the claim was one made by an employer against a negligent motorist, it was really a claim for part of damages that ordinarily in motor Collison cases were claimed by the injured party himself.

Costs on the middle scale were allowed to the respondent, Viles.