INSURANCE IN AMERICA

Evening Post, Volume CX, Issue 71, 20 September 1930, Page 28

INSURANCE IN AMERICA

ATTITUDE OF COMPANIES

AIDS TO PUBLIC SAFETY

"The only way to make money in the insurance field is to watch the fellow who has the policy," says an experienced American underwriter, and following out this policy the big insurance companies of that country Lave found it profitable to spend large amounts of money in an endeavour to keep premium payers from falling upon the funds. A bureau maintained by insurance companies, it is reported iv the "New Tort Times," has ten men travelling about constantly advising police departments how to prevent automobile thefts and how to recover stolen cars. Despite the increasing number of motor vehicles the number of thefts is stated to be declining and the percentage of recoveries increasing. Abouf 92 per cent, of the cars stolen last year were restored to their owners. The insurance bureau has an office in Detroit to maintain contact with the manufacturers, and as a result of this at the source of supply there are stated to be secret identification marks for each car built. The official designation of the bureau is tho "Automobile Protection and Information Bureau."

Most ear owners in America apparently prefer to depend upon their own resources, as only about 16 per cent, of the drivers carry public liability insur-. ance, covering injury, to other persons. The two other classes of automobile insurance are property damage liability, involving the belongings to other persons, and collision insurance, covering the loss or damage of one's own car.

The insurance companies are not overeager for bus and other public conveyance' business. Such motor vehicles, driven more continuously than private ears and in all kinds of weather, depreciate rapidly. In many cases the owners forego insurance, relying upon court procedure to settle damage cases. The casualty compnuies, which have to meet competition despite the unpopularity of. the. risk, endeavour to insure theni-

the drivers of public conveyances. Bonuses are paid to drivers who escape accidents, as tramway motormen get extra remuneration for clean records. CHECK ON PUBLIC CONVEYANCES

Known and unknown "spotters" follow the buses to check up on operations. Persistent violations of traffic rules are reported to the bus company for attention, resulting in cancellation of the policy if the recommendations are unheeded. Working drivers' overtime is frowned upon. Proper lubrication, to keep the machine in good running order, is stressed. Grades ou the route and the time allowed for runs between cities are important factors in determining the premium rate to bo paid. If the owner of a bus wishes to bear the risk of legal liability for passengers, the rate is cut in half.

More total car losses are caused by collisions than by iires. Collision insurance, however, is a relatively small part of the automobile field, since car values are definitely fixed. About twothirds of the total automobile insurance carried covers damage to the person or.' others, wh-ere the liability is not readily determinate.

Prominent and wealthy individuals ■whose place in the public eye makes them bright targets for damage suits, arc avoided by companies anxious to keep down their loss ratio. College students and pugilists, persons with no apparent means of support, alcoholic imbibers, narcotic addicts, mental defectives, and those with serious physical defects arc listed also as above "the average potential causes of loss. A bad previous accident record makes the' underwriter wary, as does an apparently illicit business. Thrown upon their own resources, the- non-elect arc likely to have their motoring- careers cut short by heavy damage suits or revocation of licence. Thus the insurance companies continue indirectly to cull out some of the menaces of the road.

The companies usually excuse themselves from liability if the car insured is used in a speed contest or for demonstration or testing, or if the driver is under the age limit fixed by law. Operators of racing tracks caii get coverage, at high rates, for property" damage or injuries to spectators, but the racer takes his own chances. Underwriters are reluctant to take risks on race tracks because the events do not occur often enough to make a profitable average on the business.

Public liability insurance laws, making automobile insurance either wholly or partially obligatory for citizens owning motor-ears, are in force in. certain parts of the United States and Canada.