ACCIDENT INSURANCE

Sun (Auckland), Volume II, Issue 572, 26 January 1929, Page 6

ACCIDENT INSURANCE

EXTRA FEE FOR MOTORISTS INJURY TO OTHER PERSONS fSDedal to THE SUN) WELLINGTON, Friday. When motor-car owners renew their drivers’ licences on June 1, they will be asked to pay the usual fee plus £1 as premium for a compulsory insurance policy which is to cover the risk of accident to other people, the person whom the driver may inadvertently kill or injure. When the £1 is paid, the owner will be asked to nominate his insurance company, and the money will in due course be handed to that company, with the car owner’s name and address. This will not cover any damage to the owner’s or another man’s car. It is only a cover for damage done to the person of the third party Asked whether the £1 would be sufficient to cover such a risk, a well known insurance man replied: "We do not know. The thing has yet to be tried. If it is found to be inadequate, it will have to be readjusted. Most of us are inclined to think the amount is too small.” “We base that view on certain known statistics of people killed or injured in motor accidents—that is, accidents when a car gets into trouble by itself or with another. The number of people killed in motor accidents in New Zealand is as follows: 1924, 94; 1925, 10S; 1926, 148; 1927, 138. As the number of cars on the road increases, so will the number ol' deaths by accident in them increase. “A claim could only be upheld where legal liability is established, but assuming that is, the case in 40 per cent, of the deaths for 1927. and averaging each one at £1,500, it can be seen that the companies would have to pay out something like £90,000. There are only about 130,000 private car owners in New Zealand, and £90,000 makes a big hole in £130,000. “But the companies’ liability does not cease on the payment of claims for death. That is only the beginning. There are all those who are more or less seriously injured—a small army, on present-day statistics. After that, again, there may be a myriad minor claims for shocks, bruises, torn dresses and damaged hats, so it can be seen to what extent the £1 premium is likely to cover the liabilities of the ’npanies.” In the above statistics, no cognisance was taken of level-crossing accidents, when cars are hit by railway trains., These are recorded under the heading of “railway accidents.”