COMPULSORY INSURANCE

Hokitika Guardian, 2 May 1929, Page 7

COMPULSORY INSURANCE

There are traps for the unwary in the compulsory insurance which is now being issued to motorists (remarks a North Island writer). Drivers are warned to road the schedule of fees very carefully. Unless care'is exercised there will be mistakes where private cars are used for business. : The fee for a motor car used purely for pleasure is £l, but if the vehicle is Used only occasionally “ for the purpose oif any trade or business ” the rate is £1 10s. The cars of doctors and social workers are excepted. Hundreds of drivers may unwittingly make a false declaration in this respect, a penalty up to £lO a day is provided. Further, if a car for which a £1 premium has been paid is used for, business, the insurance office may recover the amount of any claim from the owner. The motorist may also become liable for the ifnl 1 cost ol any claim if he admits liability, or makes an offer without consent of the insurance company. Compulsory insur_ a nee is not intended to provide a benevolent fund for distribution to persons who may be injured through their own carelessness. It does not 'furnish compensation if there has been no negligence on the part of .the drivel, hoi instance, an intoxicated pedestrian who reels into the path of a car has no claim.. A “jay-walker” who puts a driver in a position where accident is unavoidable has no right to compensation. On the other hand, the insuiance remains with the car for the period of the number plates, and it is effective whether the vehicle is driven by tbe owner or by some irresponsible or unauthorised person. It is important that the owner oif a private car should remember that if he has paid a lee of £1 he commits an offence if lie lends his car to a friend who uses ft for a few hours to follow any activity in connection with a trade or business.