THIRD PARTY

Rotorua Morning Post, Volume 2, Issue 248, 10 June 1932, Page 2

THIRD PARTY

RISK EXPIRES AT SAME TIME AS ANNUAL LICENSE. It is important for yehicle owners who have not relicensed their vehicles to realise that the third party compulsory insurance poliey, which is taken out with the license each year, expires coineident with the license on. May 31, the Wellington Automobile Club says. There is no implied contract on the part of the insurance company to keep the vehicle covered against third party personal accident risk after May 31, and the vehicle owner, in the event of an accident, may he involved in a very heavy financial elaim. In addition to this, a heavy penalty is provided under the Third Party Insurance Act for failure to take out the third party insurance cover. This, of course, is in addition to the penalties provided under the Motor Vehicles Act for failure to relicense. The club's advice to all motorists is to relicense without further delay. If a vehicle owner does not propose, in the meantime, to relicense his vehicle for the' current year there is no necessity for notification to the Postal Department. In fact, this only creates unnecessary work for the Department. When the owner decides to make use of the vehicle again he must relicense it and also take out the compulsory third party risk insurance policy before taking it on the road. It is only where the vehicle is sold, destroyed, 01* otherwise disposed of that notification to the department is compulsory.