THIRD PARTIES

Wanganui Chronicle, Volume 72, Issue 82, 6 April 1929, Page 8

THIRD PARTIES

INSURANCE SCHEME PROVISIONS OF THE ACT In order that motorists may be made acquainted with the ‘‘Third I’arty Insurance” scheme a conference of representatives of insurance companies lias drawn up the following explana-<-j'y conditi »it whmh have been rati tied by the Crown Law office. The statement which has been supplied fur the i i.‘( rmation of owners ot motor vehicles, summarises the more huportant fviuuier of the legislation. For fuller information owners are refcircd to the Act itself. The Act eumes into foce so far as owners of motor vehicles are concerned on June J, 1929. As from that date all owners uf motor vehicles are required to insure and to keep insured against third-party risk (personal injury only). The payment of the prescribed premium automatically effects a contract of insurance which continues in .force fur the period foi which the registration pine is it sued.

The insurance is to be effected at the. Post Office when the registration plate is applied for, and no registration plate will be issued until the prescribed premium has been paid. The owner of the motor vehicle is required on the form provided, to nominate the insurance office with which he wishes to insure (being an insurance office that has given notice of its willingness to enrry on this kind of business), and his nomination is binding upon the insurance office for the period covered by the registration plate. A list of approved insurance offices is given on the insurance application form. Accuracy in filling in th e form is essentio] in order that the correct premium may be charged. Sub-section one of section 8 of the Act makes provision for a penalty of £lOO in respect of any false or misleading statement made in the application for insurance. The said sub-section is in the following terms: — “8 (.1) If any person for the purpose of effecting a contract of insurance under this Act makes any statement that is false or misleading in any respect he commits an offence and is liable on summary conviction to a fine of one hundred pounds but the contract of insurance shall not thereby be avoided. ’' Extent of Cover Provided Subject to certain limitations referred. to hereafter, the motor vehicle owner having paid his premium, is insured against any liability to pay damages that may thereafter arise on account of the death of, or of bodily injury suffered by, any person through the use of the insured motor vehicle in New Zealand. For the purpose ot safeguarding the interests of persons who may suffer injury from a motor vehicle in the hands of an unauthorised driver, the technical liability of the owner is extended by the Act and be is made nominally responsible for the acts or defaults of such an unauthorised driver. As, however, be is protected from loss by the contract 67 insurance this statutory extention ot liability does not carry with it any real liability, except for the insurance company concerned. Nor does such extention of liability lessen in any way the personal responsibility of the unauthorised driver for his wrongful acta or defaults, and he remains subject to any civil or criminal liability to which he would be subject independently of the Act. An authorised driver, on the other hand, if he is the holder of a driver’s license, is protected by the contract of insurance to the same extent in all respects as is the owner. Limitation of the Cover It is important to note that insurance in terms uf the Act is limited to insurance against legal liability arising out of negligence ur wilful default of the owner or of his agent (including in the term “agent” an authorised driver as referred to iu the last preceding paragraph). In particular it is not intended to provide compensation for persons who, though injured by a motor vehicle cannot attribute that injury to such negligence or default as aforesaid or who fur any other reason would be unable tu sustain an action for damages. Further, u contract of insurance under the Act does not protect the owner of a motor vehicle against any of the following classes of claims, that may be made on account of injuries attributable to the use ot.’ the motor vehicle, namely:—

(a; (In the case of a motor vehicle that is not used lor hire), claims made iagainst the owner by passengers iu that 'vehicle (for example, friends to whom the owner may have given a gratituous ride); (b) (In the case of a vehicle used for hire), claims made by any person being carried therein at the time of an accident, otherwise than as a passenger for hire; (c) Claim s made against the owner made by any member of his family, or made by a relative, not more remote than a cousin; (d) Claims made by persons employed in the service of the owner. The reason underlying the referred to in paragraphs (a) to (d) above, is that the domestic or other relationships existing between the owner and a claimant of any of the classes referred to would make collusion between Mie claimant and the owner easy to the detriment of the insurance companies. One inevitable result of the admission of such claims would be an all-round .increase in premiums. In the event of an accident affecting a motor vehicle that is used for hire the protection afforded by insurance under the Act is limited to (a) £200(1 for any claim made in respect of any one passenger; (b) £20,000 for claims made in respect of all passengers. The amounts specified include costs- In this respect the Act merely limits the liability of the. insurance company and ! does not affect in any way tin l right of a passenger to recover more than £2OOO from the owner, if the circumstances would justify the recovery or a larger amount. Change of Ownership Although the contract of insurance, is available for the benefit of the owner for the time being, nothwithstanding any change in ownership, the former owner of a motor vehicle is required within seven days after its sale or other disposal to give notice direct to the insurance, company concerned of the fact of such disposal, together with the name and address of the new owner. Failure to comply with this regulation may involv e the owner in a penalty of £5. On the happening of any accident affecting a motor vehicle and resulting

in the death of or in personal injury tu any person, it becomes the duty of the owner forthwith to notify the insurance office direct, and give all such particulars and information as the insurance office may reasonably require. JI th ( . owner was not in charge at the tune of the accident he must give notice immediately he becomes aware ot the accident. This notice is required whether or not any claim for damages has actually been made. likewise notice of any calun or action must be given to the insurance office immediately the owner becomes aware of it. and the owner must not, without the consent, of th,, insurance office, admit liability, or make any offer or promise of settlement. Failure to comply with this provision may render the owner personally liable for the full cost of the claim. Correct Premium Essential It is not permissible for an owner to use his mol or vehicle, or permit it. to be used, for any purpose other than that for which the appropriate insurance jiremium has been paid. Permission must be obtained from th P insurance company and the correct premium paid before the vehicle is used for any purpose other than that declared at. the lime when the contract of insurance under the Act was effected. Penalty £lO a day for contravention and should liability aris ( . at a time when a premium less than the appropriate proscribed premium has been paid the insurance office, may recover from the owner the full amount of the claim. Attention is drawn to the. fact that a continuance, of low rates will depend upon tin' cost of claims under th P Act. ! .Motorists as a whole will pay for the caroh'ssness of individaul drivers. Carefulness will pay in low rates.