COMPULSORY INSURANCE

Wanganui Chronicle, Volume LXXXIII, Issue 19846, 21 May 1927, Page 10

COMPULSORY INSURANCE

QUESTIONED IN AMERICA. The continued attempts to have compulsory insurance made applicable to all New Zealand cars make this comment from America of interest:— “Urging committees to get fuller data on compulsory automobile liability insurance before rushing headlong into a network of complicated laws, the National Automobile Chamber of Commerce has issued a summary of proposed legislation bearing on this point. “Bills advocating compulsory insurance have been introduced in 21 of the 42 States whose legislatures are now in session. In many of the States there is no expectation that the measure will be passed, but rather the Bill is introduced as a trial balloon. “Unless the public advantages of such measure can be clearly demonstrated, the motorist should not be burdened by compulsions of this nature, the National Automobile Chamber of Commerce holds. “Massachusetts is the only State which has attempted such a law, and there it has been in effect for but six weeks. It is felt in motor circles that the Bay State has not had sufficient experience with the law yet to determine its effect. “Among the reasons advanced against the compulsory insurance by the automobile chamber, in which the motor club, dealer and other automobile groups concur, are:— More Facts Sought. “L Compulsory insurance creates an accident hazard among the irresponsible because m would remove the present fear of financial loss which tends to hold the reckless in check. <a 2_ No evidence exists to show the total amount, of uncompensated losses due to motor vehicle accidents. The

great majority are being penalised to carry the burden of cases the number and extent of which is not known. “3. A cost of 30 dollars a car to handle the burden which will be the charge if the plan is fully operative is probably excessive and should not be imposed until there are more facts. “4. It adds an extra burden on transportation. “5. It gives undue power to bureaucracy which is justifiable only in case of criminal offence. “6. It is an added cost on rural transportation.”