MOTOR INSURANCE

Wairarapa Times-Age, 30 March 1939, Page 8

MOTOR INSURANCE

THIRD PARTY RISKS NEW RATES ANNOUNCED. I INCREASES IN SEVERAL CLASSES. (By Telegraph—Press Association.) WELLINGTON, This Day. New rates for third-party insurance premiums, which involve increases for several classes of vehicles, were announced last evening by the Minister of Transport, Mr Semple. He said that an increase of 75 per cent over the last five years in the average damages a claim awarded to motor-accident vic? tims had compelled the Government to agree to certain increases in thirdparty insurance premiums. ' The following increases will be made in third-party rates from May 31:— Taxis, from 150 s to 200 s. Trade motors, from 30s to 38s. Business cqrs, from 48s to 535. Private cars, from 20s to 265.

Contract motor vehicles, rental cars, etc, from 45s to 60s (with a maximum of £4 12s).

Mr Semple said that owing to their excellent safety record, the third-party rates on omnibuses and service cars would be reduced. Premiums on motor-cycles, dealers’ vehicles, tractors, fire-engines, trailers, and ambulances would remain unaltered. Despite these changes New Zealand still had by far the lowest third-party premiums in the world.

“On a mileage or petrol consumption basis, the number of claims last yeai; was lower than the average for the last five years,” said Mr Semple. “Last year, there was one third-party claim for every 36,837 gallons of petrol consumed, compared with one claim for every 35,408 gallons during the preceding four years. At 15 miles a gallon this represents an increased mileage on each claim of 21,441 miles.”

Mb Semple said that it had been suggested that the main reason for the increased awards of damages was a more sympathetic or liberal attitude of juries toward accident victims. It had also been suggested that juries were now awarding damages in cases in which, some years ago, no claim would have been recognised. The power of cars had increased and it was possible that accidents were now more serious. The petrol consumption figures indicated that motor vehicles were now travelling on the average much greater distances, and this fact, together with an increase in the last 12 months of 25,000 in the number of motor-cars on the road, meant greater liability to accident injury. The rate for omnibuses had been reduced from 2s 6d for each seat over 10 to 2s for each seat over 10, and the maximum had been reduced from £8 to £7 12s. The premium for service cars had been reduced from 7s 6d for each seat over seven to 4s for each seat over seven, and the maximum had been reduced from £9 7s 6d to £7 16s.