Insurance Companies Defended
Page 34
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ADEFENCE of the insurance companies against charges that, they were exploiting the public was put up by Mr. J. A. Pollen, retiring chairman of the British Insurance Association, last week.
He said that there was intense competition between tariff and non-tariff companies and Lloyd's underwriters, and for that reason insurers had elaborate rating systems by which they, tried to take into account all the variations between types of vehicle, the uses to which they were put, the districts in which they were operated, and the driving records of their owners.
"All these things are matters of judgment and experience in regard to which insurers compete with each other. If an underwriter were to ignore any of these distinctions and attempt to simplify his schedules, competitors would step in and offer more attractive terms for the better risks, leaving him the bad ones," he explained.
"To any who feel disposed to question the adequacy of the discounts and allowances offered by the tariff companies to the, good drivers, I will say simply that the differentials announced are the result of a great deal of thought by people who have spent their lifetime in the business, thought stimulated by the knowledge that if they make any mistakes, keen competitors are ready and waiting to take the business from them," he added.
Countering suggestions that because insurance was compulsory the State should control it more closely, he said that only one section of motor insurance — bodily injury to third parties—was compulsory and barely one person in 500 was satisfied with so limited a cover. Most people preferred to buy full third-party or comprehensive cover. Government control would add to cost.
[The Commercial Motor last week called upon insurance companies to explain in suitable detail the justification for substantial increases in their charges which came into effect on Monday.]
HIGHER LICENCE FEES
THE fee for a public service vehicle licence will rise from £4 to £6, and that for a certificate of fitness from £5 to £5 10s. on July 15 under the Public Service Vehicles (Licences and Certificates) (Amendment) (No. 2) Regulations, 1957.
On the same date, under the Goods Vehicles (Licences and Prohibitions) (Amendment) Regulations, 1957, the fee for an A licence will rise from £7 10s. to £10, a B licence from £3 10s. to 15, and a C licence from £1 5s. to £1 10s. per vehicle.
These regulations will also provide that the identity certificate issued for each-authorized goods vehicle must be displayed on the vehicle. Copies of the regulations are obtainable from the Stationery Office, price 3d.