“MOTOR INSURANCE RATES CHARGED ARE OUTRAGEOUS."

Star (Christchurch), Issue 18208, 15 July 1927, Page 6

“MOTOR INSURANCE RATES CHARGED ARE OUTRAGEOUS."

GOVT. SHOULD PROVIDE THIRD PARTY RISKS. (Special to the “Star.”) WELLINGTON, July 14. “Has the Government given any attention to the question of universal motor insurance?” asked Mr Forbes, Nationalist leader, in the House to-dav, when the annual report of the State Fire Insurance Department iyas presented. The member for Hurunui suggested that, if motor insurance were made compulsory, as it should be, the obligation would certainly be on the Government to provide it. lie thought it would hardly be a sound principle where compulsory legislation was brought in that private enterprise should reap the profits, as it was not a case of getting business under ordinary competitive conditions. The House knew what had happened in connection with workers’ compensation, which was compulsory, and, instead of the matter being made a Government monopoly and the low-est rates afforded, it was allowed to drift into private hands and very high premiums were charged. He therefore hoped that the Government would be forewarned, and make every preparation to itself provide compulsory third party risks for motor owners. “The rates charged by private companies fo* motor insurance are absolutely outrageous,’ declared Mr T. W. Rhodes (Thames). “They want you to take all the risk yourself.” The member referred to " the Auckland Motor Association scheme for insurance, which, he said, would give an approximate reduction of 20 per cent. It private concerns could do this, then the Government could at least do the same.

The Hon W. Nosworthy, Minister in charge of the Department, replied in ? general terms that the Government was J always open to consider from a busi- \ ness point of view any proposal for the >j benefit of policy-holders. Jn regard to | motor insurance, he was quite prepared |to consider it seriously and.try to meet i the position. “I n fact,” added the ! Minister, “ I believe the office is considering the matter now.”