A.A.A. Joins Mutual Insurance Scheme

Sun (Auckland), Volume III, Issue 717, 17 July 1929, Page 1

A.A.A. Joins Mutual Insurance Scheme

STRONG ORGANISATION LOWER RATES POSSIBLE The A.A.A. has officially decided to link up with the North Island Motor Union mutual insurance scheme for the insurance of members* cars, in place of the Lloyds insurance scheme at present in force. Th.o council of the A.A.A., as the outcome of lengthy negotiations with the North Island Motor Union Mutual Insurance Company, has adopted that company’s motor-car insurance policy as the official policy of the association, and in consequence three months’ notice of termination of the existing arrangement with Lloyds underwriters has been given to the New Zealand agents. The North Island Motor Union Mutual Insurance Company was formed In August, 1928, by various automobile associations in the North Island, but owing to the existing arrangement the A.A.A. did not previously link up with the others. The steps now taken will strengthen the relations which exist between the various associations, and add considerably to the success that the mutual insurance company has already attained. Within the first nine months of the launching of this mutual scheme its income exceeded £B,OOO, and its accumulated funds exceeded £3,500. This latter sum is the result after paying all claims, organising, legal stamp duty, registration and all working expenses. The company has been established on a purely mutual basis; there are no shareholders other than the policy holders, and no share capital; therefore all profits belong to the policy holders, will be used for granting increased policy benefits, and for further reductions in the rates. The company’s rates are 15 per cent, below those of tariff companies, and a more liberal policy is given.