BIG INCREASE IN PREMIUMS

Hokitika Guardian, 23 February 1931, Page 8

BIG INCREASE IN PREMIUMS

ACCIDENT INSURANCE. MOTORISTS’ THIRD PARTY POLICIES. WELLINGTON, February 18. The complete report on New Zealand insurance statistics now made available covers the calendar year 1920 and the first year’s experience of compulsory third-party insurance I'Pr motors. In the accident insurance class, which covers employers’ liability, personal accident and other forms ot accident, the motor insurance is responsible for about half of the total premiums .received, and in 19*29 involved payment of about 45 per cent of the claims bandied. This legislation lias brought a considerable amount of increased business to the companies operating in the Dominion, as will be seen from the statement of their premiums under that heading for two years preceding the operation of compulsion, and the first year of the new system : Year Alotor Vehicle Premiums £ 1927 518,217 1928 570,854 1929 852.034

The compulsory legislation sent the annual premiums up by £281,780 in the first year, but. this carried a big increase in liability to the companies, though the fir;>t year’s experience would suggest that the premiums fixed by t'lio statlicit have fairly met the position. Prior to compulsion', the proportion of claims to premiums had been 52.01 per cent, in 1927, and 55.11 in the following year. The wider business paused by compulsion operated to the advantage of the companies, as the claims rate dropped to 52.14 per cent. This, however, may he a temporary fall, if the previous experience may be taken as a guide. The amounts paid on motor insurance claims of recent years have been as follows: Year. £ 1927 269,532 1928 314,586 1929 447,110 A special compilation of motor insurance statistics has been made covering the period from June 1, 1929, till May 31, 1930. This affords a more accurate view of the position. Net Pi •emium receipts totalled £235,006, and the claims and outstanding claims amounted to £182,910, giving a ratio of claims to premiums of 77.83 per cent.

Workers’ Compensation. Amendments in the Workers’ Compensation for Accidents Act became operative in the beginning of 1927. in. volving increased liability on the insurance' Companies, though, it ivas agreed that this would be undertaken without raising the premiums. The result was that in 1927 the claims advanced by £54,420. though the premiums rose only by £15,942 in excess of the previous year. The result of operations for 1928 and 1929 is similar, only slight proportional increases being recorded. Employers’ liability premiums in 1929 totalled £635,657, nnd the claims £443.962.