MOTOR INSURANCE HAS MANY TRAPS.

Star (Christchurch), Issue 18787, 17 June 1929, Page 5

MOTOR INSURANCE HAS MANY TRAPS.

MOTORISTS WARNED TO READ SCHEDULE OF FEES CAREFULLY

There are traps for the unwary In the compulsory insurance which is now being issued to motorists. Drivers are warned to read the schedule of fees very carefully. Unless care is exercised there will be mistakes where private cars are used for business. The fee for a motorcar used purely for pleasure is £l. but if the vehicle is used only occasionally “ for the purpose of any trade or business " the rate is £1 10s. The cars of doctors and social workers are excepted Hundreds of drivers may unwittingly make a false declaration in this respect, and a penalty up to £lO a day is provided. Further, if a car for which a£l premium has been paid is used for business, the insurance office may recover the amount of any claim from the owner. The motorist may also become liable for the full cost of any claim if he admits liability, or makes an offer without consent of the insurance company. Compulsory insurance is not intended to provide a benevolent fund for distribution to persons who may be in jured through their own carelessness. It does not furnish compensation if there has been no negligence on the part of the driver. For instance, an intoxicated pedestrian who reels into the path of a car has no claim A “ jay-walker ” who puts a driver in a position where accident is unavoidable has no right to compensation. On the other hand the insurance remains with the car for the period of* the number plates, and it is effective whether the vehicle is driven by the owner or by some irresponsible or unauthorised person. It is important that the owner of a private car should remember that if he has paid a fee of £1 he commits an offence if he lends his car to a friend who uses it for a few hours to follow any activity in connection with a trade or business.