THIRD PARTY RISK

Hokitika Guardian, 8 January 1929, Page 3

THIRD PARTY RISK

MOTOR INSURANCE ACT. A COMPREHENSIVE MEASURE. WELLINGTON, January (). The .Motor Vehicles Insurance (Third Party Risk) Act, which nominally came into force on January Ist, but, as far as the motorist is concerned does not operate until June Ist next, has a number of points which place it ahead of any scheme adopted abroad to safeguard and ensure compensation for persons who may bo injured by motor vehicles. It is compulsory and applies to all types of motor vehicles. In its present form the scheme is to some degree experimental, and will be subject to revision ns experience is gained of its operation.

Compulsory motor insurance is being taken up in many parts of the world —in England, the United States, Australia, on the European Continent—but no country apparently has adopted so wide and almost a novel scheme as has New Zealand. The argument in favor of compulsory lpotor insurance is the same in each case—that motor ownership is no proof of wealth, and that too frequently the victim of a motor accident has no redress, and can obtain no compensation from the driver of the vehicle that caused the injury. It is not necessary for anyone. to think hade far to recall just such cases and tragedies. Overseas scheme of compulsory insurance propose that every motor owner shall take 'out a policy with an approved company, but—and this is the difference—the New Zealand Act virtually fixes the terms upon which Dominion motorists shall contract with insurance companies.

The arrangement between owner and company will be a private agreement, but the Act, not the company, determines the general terms of that contract. The difference is very great.

For instance, there is an essential departure from past insurance practice in the provision set out thus: — For the purpose of this Act . . . every person other than the owner who is at any time in charge of a motor vehicle, whether with the authority of the owner or not, shall he deemed to be the authorised agent of the owner acting within the scope of his authority in relation to such motor vehicle.

The meaning of this clause is that, the insurance attaches to the car, and no matter by whom it is driven, whether by the owner, an employee, a friend j)an unlicensed driver,'a “drunk,” a thief, or a joy-rider, there is an insurance to any person who may lie injured by the machine. This is going a good’ deal further than any existing insurance in this country. Present policies do not apply in cases where a person has been injured by .a car driven bv a thief, an intoxicated person, a joy-rider, or even a servant of the owner not at the time engaged 'in the employer’s business. The new insurance is to apply to the car, not to the owner. CAR PASSENGERS NOT COVERED It is to be noted, however, that the policy does not apply to passengei s in a private car injured in accident in that car, nor does the Act provide ffo’ a cover of the machine. Except in the case of public vehicles, taxi-cars, omnibuses, etc., it is an insurance to tin person or persons outside the insuio car which causes the accident. On paper that is all very clear and concise. but there is room for a world o legal argument as to what the Act means and how it shall apply in regaid to injury to the driver of anotliei vehicle or damage to property not owned by thp insured. The scheme does not embrace and cover every and any case of road accident, but merely cases in which the driver-owner would be liable on der present policies, where there has been neglect or negligence on the part of the driver. Where, for instance, the injured person was injured through his own fault the Ad will not apply.

Upon the point that passengers in a private car are not insured the Act is clear, and, commenting upon that as pect when introducing the Bill last September, the Hon. Mr Rolleston remarked that the man who was knocker, down on the road was generally, knocked down through no fault of his own. but the man who went voluntarily into a car took the riks voluntarily and knowing the risk he was taking. If an accident occurred he was in a different position from the man who. through no fault of his own, was knocked down and injured. The private owner who desires to protect, himself against such claims, rare, certainly, 01° to cover his machine against damage, must take out a cover or covers privately. It was suggestec during the discussion on the Bill that the scheme should he widened to cover passengers in private machines, and a reply was given that later that extension might be made. A SUGGESTED EXTENSION. Motorists are very much divided in opinion as to whether such an extension, would be wise; certainly it would result in a 'tremendous increase in the number of motor compensation cases. 'Hie law' has been interpreted bv the Superior Courts as saying that ii a passenger in a ear is injured as a it suit of 1 accident to that car he has a claim against the owner off the machine. Few insurance companies readily give cover to owners to safeguard them against such claims, and

actually, though many passengers are injured in the course of a year, for claims are made against the owners How many decently-minded friends would bo inclined to proceed for damages against a driver who took them in his car, knowing that the compensation would come out of the driverfriend’s pocket? If the driver was adequately covered by insurance, and moreover, had been compelled to take out that cover, every passenger scratched, bruised, or broken would naturally apply to the Courts, and his driver-friend would, in all probability encourage him to do so. As to the third party risk, the car, lorry, or bus owner has no option. Clause 5 of the Act reads: — No license or registration plates ■ shall be issued . . . until tin owner or his agent has paid the pro scribed insurance premium . . . and has nominated the insurant company with which the contract o insurance is to he made. There is no getting away from that no premium, no number plate; n number plate, no right to be on tin road; and the existence of a number plate bn a car betokens .to anybody that any damage that may he done by that car is, within the scope of the Act, insured against. There is no issue of proposals, policies, or other documents ; the owner signs no insurance documents. The issue of the numbe and registration plates is proof tha' he is party to the scheme.