LOWER INSURANCE PREMIUMS.
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A New Scale of Rates Issued by a Well-known Non-tariff Office.
ASTRONG lead in reducing premiums has been given to other insurance institutions operating motor vehicle i,usuranee by the Provincial Insurance Co., of Kendal and London.
Such reduction was forecast in this journal in the early part of the year, as it appeared logical to conclude that the reductions then made by the tariff offices in Ford premiums for private car insurance would, in turn, affect the premiums charged for insurance on other vehicles.
This is the natural effect of the competition of the non. tariff offices with the tariff concerns, and it is all to the good of the transport industry and the general public that there should be good healthy competition in this way. It secures improved conditions of assurance and, sometimes, as now, lower rates of premiuma.
I say lower and not /ow premiums advisedly. Insurance is a business worked for profit and depending on supply and demand like any other business, except in so far as the modern tendency of all reputable insurance offices to regard themselves to a greater extent as trustees of their policyholders' interests distinguishes them from the ordinary trading concern.
The similarity between insurance and ordinary commercial concerns extends, however, to the general public's way of looking at them. Some people often go in for the cheapest article, irrespective of its worth; others, more wisely, look for the catch in the cheap article. A low insurance premium, therefore, is naturally regarded with some suspicion, as the attendant catch very often is less security or less indemnity. With the Provincial Insurance Co., however, and its policies, these suspicions are entirely unnecessary. The company, although not one of the mammoths of the insurance industry, is, nevertheless, an extremely well-managed, reliable and sound concern with a trading history going back to 1903 and funds of half a million pounds. It is well able to meet any obligations entered into. In making a determined bid for more motor insurance business at this period, it is again displaying those characteristics which one has come to regard as associated with its management. Motor insurance is now much more stable than it was for some time after the,war. Repairs are lower ; replacements in many cases are lower also, and there is a steady expansion manifested in the use of motors.
The Provincial, therefore, comes boldly into the field at the right moment, offering full indemnity at premium rates which show a derided reduction on those charged by the majority of its competitors.
Examples are :— Light vehicles carrying own goods:—Fords, £10 10s. Other makes—not exceeding 15 h.p. and 1400 in value :Country districts, £11; large towns, 112 10s. ; London and . Glasgow areas, £15. Other makes—not exceeding 20 b.p. and 1500 in value :—Country districts, £12: large towns, £13 10s.; London and Glasgow areas, £17. Heavy vehicles carrying own goods :—Country districts, £15 10s.; large towns, £17 15s.; London and Glasgow areas, £19.
Hauliers and other readers of this journal will find that premiums on their risks have also been revised, and that facilities also exist with the Provincial for other classes of insurance in which they are interested.
It will be noted that these classifications of risks differ somewhat from those obtaining in the majority of offices.
Apart from the lower premiums proposed to be charged— in most cases quite 20 per cent. lower—vehicle owners will in many towns effect a further saving as the result of the revised classification of areas. It will be very interesting to see what reply will be made by other motor insurance concerns.
The Provincial Insurance Co., and at least one other insurance 'company also in the first flight of insurance institutions, have shown commendable enterprise in reducing their rates to correspond with reductions in the cost of new
vehicles, repairs and replacements. It cannot be urged against them by their competitors that they are lacking in those directions necessary for the adequate protection of policyholders, and it seems quite clear, therefore, that there will have to be an all-round general revision of motor insur ance rates ere long. I:Wm-nuns.