VOLUNTARY COMPENSATION

Taranaki Daily News, 25 July 1930, Page 3

VOLUNTARY COMPENSATION

ROADSIDE FATALITY. THIRD PARTY INSURANCE. The insurance companies handling third party motor risks have decided to pay compensation in the case of a man who was killed on Papanui Road, Christchurch, by an unknown motorist about 18 months ago. Efforts were made to trace the driver of the car, but these were unavailing, and although it was held by the coroner that the driver of the motor-car was at fault, there was nothing to compel the payment of compensation under the compulsory motor insurance, as it could not be ascertained which company carried the risk for the motor driver concerned The matter has been discussed from time to time by motorists’ organisations and other interested parties, and at one time it was suggested that the lav/ should be amended in order to provide for compensation -in such cases. Nothing has been done to alter the law, but it has been ascertained that the Underwriters’ Association, the two Motorists’ Mutual Insurance Companies, and the only other firm handling this class of business which is not a member of the association held a meeting, and after discussing the situation decided that the case was one where, had the driver _of the- car been identified, compensation would have had to be paid. Therefore the companies agreed to pay the money out. of the pool which has been created by the companies handling this of risk. The position was an unusual one, and it is understood that it is the intention of the companies to deal with any further such cases on their merits.