MOTOR COLLISION CASE

Evening Star, Issue 23370, 13 September 1939, Page 10

MOTOR COLLISION CASE

QUESTION OF COMPENSATION FOR INJURIES THIRD PARTY INSURANCE RISKS [Pee United Peess Association.] WELLINGTON, September 13. The Appeal Court to-day was engaged! hearing a case concerning the payment of compensation for injuries received in a motor collision. The case arose from an accident in July, 1937, when a car owned by John Cobbe and Co., drapers, of Feilding, and driven by Alexander Reid Shelton, was involved) in a collision with another car driven by Sfanley Stedman Viles, a farmer, of Cheltenham. Shelton was injured, and during the period of his absence from work through the injuries sustained £215 11s 8d was paid as workers’ compensation by Cobbe and) Co., who subsequently took proceedings against Viles to recover the amount paid by them as compensation to Shelton, Viles thereupon joined the North Island Motor Union Insurance Company as a party to the action, alleging that under the insurance contracted created by the Motor Vehioles Insurance (Third Party Risks) Act, 1928. the company was liable to indemnify him and to pay such amount as he was forced) to pay Cobbe and Co. On May 18 last Mr Justice Ostler delivered judgment, holding that Cobbe and Co. were entitled to recover against Viles, and Viles was entitled) to be indemnified by the North Island) Motor Union Insurance Company. From tin's decision the N.I.M.U. is appealing, contending that the liability to indemnify in respect of workers’ compensation payments in such circumstances is out side the scope of its third party insurance contract.