THIRD PARTY

Hokitika Guardian, 9 April 1929, Page 5

THIRD PARTY

INSURANCE SCHEME. B ROY ISI ON,S OF ACT. THE COYER PROVIDED. The following statement, which has been supplied for the information of owners of motor vehicles, summarises the more important features of the legislation. For fuller information owners are referred to the Act itself. The Act comes into force so far as owners of motor vehicles are concerned on Ist. June, 192!). As from that date all owners of motor vehicles are required to insure and to keep insured against third-party risk (personal injury only). The payment of the prescribed premium automatically effects a contract of insurance which continues in force for the period for which the registration plate is issued.

The insurance is to he effected at the IV.st Office when the registration plate is applied for, and no registration plate will be issued until Llie prescribed premium lias been paid. The owner of the motor vehicle is required, on the form provided, to nominate the insurance office with which he wishes to insure, (being an insurance office that has given notice of its willingness to carry on this kind of business), and his nomination is binding upon the insurance office for the period covered by the registration plate. A list of approved insurance offices is given on the insurance application form. Accuracy in filling in the form is essential in order that the correct premium may be charged. Sub-section one of section 8 of the Act makes provision for a penalty of £IOO in respect of any false or misleading statement made in the application for insurance. The said sub-section is in the following terms: “8. (1) If any person for the purjiose of effecting a contract of insurance under this Act makes any statement that is false or misleading, in any respect, he commits an offence, and is liable on summary conviction to a fine of one hundred pounds, but the contract of insurance shall not thereby he avoided.” EXTENT OF COVER PROVIDED Subject to certain limitiations referred to hereafter, the motor vehicle owner, having paid his premium, is incured against any liability to pay damages that may thereafter arise on account of the death of, or of bodily injury suffered by, any person through toe use of the insured motor vehicle in New Zealand. For the purpose of •safeguarding the interests of persons who may suffer injury from a motor vehicle in tiie hands of an unathorised driver, the technical liability of the owner is extended by the Act and he is made nominally responsible for the acts or defaults of such an unauthorised driver As, however, he is protected- from loss by 1 , the contract .of insurance, this statutory ex’tcntidn .of liability does not carry with it any real liability, except for the insurance company concerned. Nor does such extension of liability lessen in any way the personal responsibility of the unauthorised driver for his wrongful acts or defaults, and he remains subject to any civil or criminal liability to which he would he subject independently of the Act. An authorised driver, on the other hand, if he is the holder of a driver’s license, is protected by the contract of insurance to the same extent in all respects as is the owner. LIMITATION OF THE COVER.

Tt is important to note that insurance in terms of the Act is limited to insurance against legal liability arising out of negligence or wilful default of 11 10 owner, or of his agent (including in the term “agent” an authorised driver as referred to in the last preceding paragraph). In particular it is not intended to provide compensation for persons who, though injured by a motor vehicle, cannot attribute that injury to such negligence or default as aforesaid or who for any other reason would be unable to sustain an action for damages. Further, a contract of insurance under the Act does not protect the owner of a motor-vehicle against any of the following classes of claims, that may be made on account of injuries attributable to the use of the. motorvehicle, namely:— (a) (In the case of a motor-vehicle that is not used for hire), claims made against the owner by passengers in that vehicle (for example, friends to whom the owner may have given a gratituous ride); . , (b) (In the case of a vehicle used for hire), claims made by any person being carried therein at the time of an accident otherwise than as a passenger for hire; ( c ) Claims made against the owner made by any member of his family or made by a relative, not more remote than a cousin; Id) Claims made hv persons employed in the service of the owner. The reason underlying the limitations referred to ' in paragraphs (a) to (d) above, is that the domestic or other rdationsliips existing between the owner and a claimant of any of the classes referred to would make collusion between the claimant and the owner easv, to the detriment of the insurance companies. One inevitable result of the admission of such- claims would bo an all-round increase m premiums. In the event of an accident affecting a motor-vehicle that is .used for hire, the protection afforded by insurance under the Act is limited to (a) - £2OOO for any claim made in respect of any one passenger; (b) £20,000 for claims made in respect of all passengers. The amounts specified include costs. In this respect the Act merely limits the liability of the insurance company, and does not affect in any way the right

of a passenger to recover more than £2OOO from the owner, if the circmnsfances would justify the recovery of a larger amount. CHAX(; E OjN OWNER SI I IP. Although the contract of insurance is available (for the benefit of tlio owner for the time being, notwithstanding any change in ownership, tho former owner of a motor vehicle is re-, quirt'd within seven ,days of its sale or other disposal to give notice direct to the insurance company concerned of the fact of such disposal, together with the name and address of the new owner. Failure to comply with this regulation may involve the owner in it penalty of £5. IN EVENT OF ACCIDENT. On the happening of any accident affecting a motor vehicle and resulting in the death of or in personal injury to any person, it becomes the duty of the owner forthwith to notify the insurance office direct, and give all such particulars and information as the insurance office may reasonably require. If the owner was not in charge at the time of the accident, he must give notice immediately ho becomes awa'ro of the accident. This notice is required whether or not any claim for damages has actually been made. Likewise notice of any claim or action must be given to the insurance office immediately the owner becomes aware of it and the owner must not, without the consent of the insurance office, admit liability, or make any offer or promise of settlement. Failure to comply with this provision may render the owner personally liable for the full rest of the claim. CORRECT PREMIUM ESSENTIAL. It is not permissible for an owner to use his motor vehicle, or permit it to be used, for any purpose 'other than that for which the appropriate insurance premium has been paid. Permission must lie obtained from the insurance company and the correct premium paid before the vehicle is used for any purpose other than that declared at the time when the contract of insurance under the Act was effected.. Penalty £lO per day-for contravention and should liability arise at a time when a premium less than the appropriate prescribed premium has been paid the insurance office may recover from the owner the full amount of the claim. Attention is drawn to tlie fact that a continuance of low rates will depend upon the cost of claims under the Act. Motorists as a whole will pay for the carelessness of individual drivers. Carefulness will pay in low rates.