Third Party Risk.

Star (Christchurch), Volume LXVI, Issue 20285, 20 April 1934, Page 6

Third Party Risk.

Less to Pay

Premiums Reduced This Year. (Special to the “ Star.’’) WELLINGTON, April 20. 'J'HREE SHILLINGS less for Third Party Risk Insurance will be required cf the owners of private motor-cars this year when they renew their registrations. This policy will now cost 17s as a result of new regulations, and the taxi-owner will have to pay £6 only, 10s less than previousl}-. %he motor vehicles third party insurance scheme is administered by the Department of Transport, insurances being effected with any approved organisation nominated by the insured. There is an annual investigation of the financial results, premiums being contrasted with claims in respect to all the varied risks, and the Minister of Transport 'the Right Hon J. G. Coates) following consultations with the insurance interests, approves the premiums for the year. These have been gazetted as an Order-in-Council, and show the following variations from those of the year ended on May 31: — Decreases: Private motors 3s (new premium 17s). Trade motors 3s (£1 7s). Fire engines 2s (18s). Taxis, rental cars, and private hire cars 10s’(£6). Omnibuses, according to seating capacity, £1 to 30s (up to ten seats £6. with additional 5s for each seat in excess). Service cars and ccaches £1 (up to seven seats £6, with additional 15s for each seat in excess, and a maximum of £l2 15s). Passenger trucks, contract vehicles and rental cars 5s (up to ten seats £2 ss, with 2s for each seat in excess, and a maximum of £4). As the rates are revised to bring the charges closely in line with the risks of each class of vehicle, it naturally follows that insurance experience prompts a demand for increased premiums in some cases, and Mr Coates has approved increases in the following classes:— Dealers’ motor vehicles 6s (new premium £1 16s). Private cars used for certain business purposes, such as commercial travelling Is (£2 Is). Ambulances and vehicles not otherwise specified 8s (18s). Trailers Is (6s). Motor-cycles. Though the incidence of claims is proportionately heavy in respect to motorcycles, the former premium of £1 is to be charged, and no change has been made in respect to tractors, which carry a premium of 10s. Contrasting the gross income received by the insurance organisations with the amount they have to pay in claims under the third party risk, it is found that the,, claims proportion is nearly 80 per cent of the revenue, and out of the balance has to be paid costs of administration by the companies. This is the first occasion on which it has been found possible to reduce the premium for private motors, though there has been a progressive decline in respect to taxis and omnibuses. A thirty-seater bus two years ago had to be covered by a premium of £2O 15s, but last year it came down to £ll Bs, and experience appears to warrant the reduction during the coming year to £lO.