H,— 4o

attributed mainly to the fact that the premium-rates are annually reviewed and fixed so as to provide the lowest amounts consistent with a reasonable minimum margin to cover overhead and profit for the companies undertaking the third-party business. The small margin is made possible by reason of the fact that the pooling of the business (nearly 90 per cent, of the business of which is carried on by companies forming the third-party pools) results in expense being kept down to the barest minimum. The following table shows the claim ratios for various classes of accident insurance during the last available five years : —

) 1 (6) Annual Review op Premium Rates. Section 16 of the Motor-vehicles Insurance (Third-party Risks) Act, 1928, provides that the amount of the premiums to be paid in respect of third-party insurance may be fixed from time to time by Order in Council. After all available statistical data had been carefully examined the conclusion was reached that in view of the fact that the experience had not altered materially from that on which premium-rates for 1934-35 were based, no alterations to the existing rates were warranted. (c) Actions when Negligent Driver subsequently dies. Action has not yet been taken to overcome the disability under which a party injured by an accident finds himself when the person responsible —e.g., driver of motor-vehicle —subsequently dies. The views of the motor unions, insurance companies, and the New Zealand Law Society have been obtained, and they have recommended that action be taken to overcome this disability. The subject is one of general law rather than motor-vehicle law particularly, and the Justice Department now has the matter under consideration. (d) "Hit and Run" Drivers. The table hereunder indicates the number of claims and the amounts paid out under the agreement relating to personal damages caused by " hit and run " drivers for every year since the agreement has been in force. The agreement mentioned is one which enables persons injured by an unknown motorist to claim damages on account of personal injuries if caused by negligence of the motorist. It will be noted that the number of claims lodged has materially increased this year. The possible causes of this increase are —(a) The terms of the agreement becoming better known to injured parties (the Police have agreed to co-operate in this) ; (6) the greater disregard of obligations to stop when motor accidents occur ; (c) increase in total of accidents.

Table of Claims.

Note.—The number of claims shown above includes in some instances accidents re which the driver was subsequently located. 3. MOTOR-VEHICLES ACT, 1924. (a) Registration of Motor-vehicles, by Types op Vehicle. In last year's report it was mentioned that the registrations of motor-vehicles effected during the year had shown a rising tendency compared with the previous year, which recorded the lowest total on record since the inception of the Motor-vehicles Act, 1924. As the table hereunder shows, the registrations during the year covered by this report were higher by 9,293 than those for the previous year, the percentage increase being 85-68. The registrations effected during the month of

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j Percentage of Claims paid (including Costs) during the Year Class of Insurance. j j I 1929. 1930. 1931. 1932. 1933. Per Cent. Per Cent. Per Cent. Per Cent. Per Cent. Employers' liability .. .. 69-84 71-99 71-63 71-52 77-75 Personal accident .. .. 52-23 .54-12 54-34 49-40 47-09 Motor-vehicle comprehensive ... 52-44 64-04 67-61 56-16 50-03 Other forms .. .. .. 27-50 j 23-60 32-05 33-83 28-08

Number of . ., Year ending 31st May, \ made. Claimants. £ s. d. 1932 (five months only) .. .. .. 5 595 0 0 1933 .. .. .. .. .. 11 885 8 0 1934 .. .. .. .. .. 12 720 2 6 1935 .. .. .. .. .. 27 566 12 6