PASSENGER RISKS

Taranaki Daily News, 10 April 1937, Page 7

PASSENGER RISKS

By Telegraph—Press Association.

RISE IN INSURANCE PREMIUMS. MORE COMPREHENSIVE POLICY.

Wellington, Last Night. Although the Minister of Transport, the Hon. R. Semple, recently stated that third party risk insurance premiums would not be raised motorists will find that they will have to pay from £1 to £1 10s extra this year if they wish to be covered against passenger risk, as it is affected by the Law Reform Act, 1936. Third party insurance is compulsory and is paid when the motor vehicle is being re-registered but passenger risk insurance is entirely a matter for the motorist himself to decide and to arrange with his own Insurance company The added liability brought about by the new Act has resulted in a more comprehensive policy, for which additional rates are charged, being issued by most of the insurance companies. The limit of indemnity per accident per year and the rates payable are as follow: £500, private cars £1, commerffial vehicles £1; £1000, £1 5s, £1 10s; £2000, £1 10s, £2 10s. The main point affecting a motorist in the new Act is that the comparative immunity which was formerly enjoyed by a motorist who made it a rule never to carry anyone in his car other than members of his family and his friends is eliminated because following a successful claim against the driver of the other car by, say, one's wife, the husband is possibly liable, if negligence is proved, to contribute some hundreds of pounds toward the amount of the judgment in an earlier court action.