PREMIUMS HIGH

Wanganui Chronicle, Volume 79, Issue 11, 14 January 1936, Page 3

PREMIUMS HIGH

INSURANCE AGAINST AERIAL RISKS ACCIDENT RISK POLICIES THE SAFETY FACTOR Though nothing exemplifies more the great strides made towards safety in passenger flights than the changed attitude u-f the insurance companies towards aviation risks in a decade, there is not, as many people would imagine, a universal flat rate for air risk in accident, and workeic-’ compensation insurance policies whatever trip is to be undertaken by the holder, says the Otago Daily Times. The methods by which the various insurance companies compute the risk they are running are in the main simi lar, and quite a number of companies could be found with practically thv same basic premium for sale, recognised, and approved aviation companies’ passengers, but there are such a number of factors which enter into the adjustment of premium to risk that each company pref-er R . to assess the risks of any particular flight for itself. So Jiumerous and varied are these factors that they cannot be mentioned without unduly inferring that flying is risky, which in the main it is not, as shown by the thousands of people who regularly use efficient air services all over the world. For the same reason (says the Evening Post) it would be unfair to mention an accident rate for any specific service without giving the conditions or circumstances determining the charge. Multi-engined machine, improved designs, greater experience in the problems of the air, improved communications which render weather and other conditions certain, improved radio direction'll guidance for the pilot, and other facilities for the successful operation of regular air services which were lacking in almost flic immediate pa<?t, have nxluc.-ed the risks over ordinary commercial routes in countries where the most flying is done to lhe }>oiut when, in proportion of accidents to the number of passengers carried, the air need not fear comparison with «-omv slightly older forms of transport. Life Policies. Even in New Zealand where flying, if not in ils infancy, is still looked on as something of a luxury in travel, ami the aids to observation and direction for the pilots are fewer, as are the landing grounds, than in. more den-sely-j'opulated countries, the ordinary life policy remains good with many companies; in fact, with the. majority, provided that the holder travels as a passenger. This in itsvlt shoYo the diminished accepted risks of flying todav. It is no longer necessary to labour the point, as wa<s done in the annual report of the New Zealand Aeio Club two years ago: “Tn view of the statistics, which clearly show the saf-etv of flying, even under the somewhat’ disadvantageous conditions at present obtaining in New Zealand.” the report r'tated, “it is difficult to understand the conservatism of the I’fe insurance companies in declining to modify the restrictions which at present prevent persons from travelling by air who v.ould do so, could they be asrured that they were not endangering the protection afforded their dependents under their life insurance policies.” There are some companies, however, which decline this additional risk, and in any case policyholders who trax el by air would do well to have their policies cndors'ecl to include aviation rislas in order to avoid possible future misunderstanding. Some policies were taken out many years ago, in the daxs when people watched aeroplanes out. of right with the feeling that they had been cheat-ed of a thrill when nothing happened. Not only old policies arc the better for being endorsed; some thing inferred is not as satisfactory as something stated. English Methods. Much greater progress in extra cover m accident policies has been made in England and other countries where both passengers and flying facilities are more numerous than in New Zealand. but the English basis of assessing- the risks seems likely to come more into use in this country. There policies making provision for £lOOO in bho case of death, for sums varying from £lOOO to £5OO for the loss of limbs and other physical injuries, for the payment of £6 a week for total disablement, and from 30s for partial disablement, are obtainable for anyrecognised trip by a registered avialion company, the premium depending on circumstances, and latterly there has come into being the practice of giving lhe same cover at so much per 100 miles flown, or over a certain period of time. Some companion offer the cover for the full day’s flying. lit many cases in England it is possible by means of coupon schemes to obtain extra accident cover without visiting the office of the insurance company, the applicant filling in the signing the particulars at the aerodrome, and leaving the address to which he wishes the policy posted. This is apparently considered sufficiently binding While in some cases New Zealand representatives of insurance companies issue such coupons, the practice is far from general, though with the increase of flying here it seems likely to become so.