MOTOR INSURANCE

Hokitika Guardian, 10 January 1929, Page 1

MOTOR INSURANCE

THIRD PARTY RISK

QUESTION of EXISTING POLICIES

Nominally, the ATo tor Vehicles Insurance (Third Party Risk) Act came into force on January Ist. but it does not actually operate,' as far as the motorist is concerned, until Juno Ist. next. There are certain exemptions from me operations of the Act —persons who may not claim compensation. These include any member of the owner’s family, or a relative. Employees of owners of insured vehicles, covered by the Workers’ Compensation Act, may not claim compensation, and another clause states that a person who may be injured when entering or alighting from, or about to enter or alight from, a motor vehicle lias no claim. Presumably, the claim in the latter event would Ikj against the owner personally. Some objections were raised to the exemptions when the Bill was before tiie House, but the reply was that the scheme was largely experimental, and the premiums were low and at a standard which would give reasonable cover to the third party, but would not be a burden on the motorist. PREMIUMS PAYABLE. The proposed premiums arc a,s follows : —i £. s. d. Private cars, including cars ’; used by the medical profession and religious bodies, and also hearses and mourning coaches 1 0 0 Commercial vehicles nst-u \oi the conveyance of goods and cars used by insurance companies, stock agents, commercial travellers, and the like 1 10 0

Commercial vehicles winch, while primarily used for the conveyance of goods, may lie used on special occasions for the conveyance of passengers • ••• 3 0 0 Fire Brigade vehicles 2 0 0 Taxis, service cars, and buses, having a licensed seating capacity, excluding driver, as follows: Up to six seats £7 10s; for each additional seat up to eleven seating capacity, £1 10s; for eacli additional seat exceeding eleven up to twenty-live seating capacity. £1; fur each additional seat exceeding twenty-five seating capacity, 10s. ..mid roller and tractors ... 1 0 0 Motor-cycles 10 0 Some- protest has been made by motor-cyclists, who maintain that their premium is too high, as compared with that of cars. The Act provides for the repeal of the clauses in the Motor Omnibus Actwhich require owners to insure against injury to passengers. COMPENSATION PAYABLE. There is no limit to the amount ot compensation which an injured third i ii\ in,-. >• claim, led tii is a limn a lion of tli'e amount, which may he claimed by a passenger injured while travelling in a bus or taxi. This is fixed at £2OOO per passenger, of £20,000 in an accident where many passengers are injured. It is regarded as certain that owners who have policies in existence when the national scheme comes into operation in June will obtain relunds, emit is expected that the basis will be a n non need before J line. For in tsancc, if an owner is paying, say £0 10s for a comprehensive policy, when lie pays bis Government levy the £1 may lo deducted and the amount of the prim inn would then be £-5 10s. The same applies in tho case of a cover partly expired, a refund will be mam of the unused portion. MUTUAL INSURANCE SCHEME. The South Island Motor Union’s mutual insurance scheme covers general damage to property, etc., but the Government’s compulsory levy is a cover against bodily injury to the third party onlv.

An essential departure from past insurance practice is set out thus: For the purpose of this Act. . . . every person other than the owner who b at any timo in charge of a motor vehicle, whether With the authority of the owner or not, shall be deemed to be the authorised agent of the owner acting within the scope of’ the authority in relation to such motor vehicle.

Hany car-owners arc asking how they may comply with the Act already nominally in force? But that point need not concern them until .June next, when they make application for their new number plates, 'flic position will then he quite clear. They must comply with the new Act or go without tho registration plates.