What the Alta
Page 27
If you've noticed an error in this article please click here to report it so we can fix it.
Insurance Plan Offers
INSURANCE premiums buy security
but yield no dividends. They are, perhaps, "necessary evils," and this tempts many to pay as little as they can, quite overlooking the fact that a cheap price can buy only a cheap article, As a " once bitten " haulier has put it : " I can see no sense in saving a few pounds, and running the risk of getting an inferior cover, when my only object in taking insurance at all is to avoid risk." It appears that this has been the guiding principle behind the novel A.R.O. insurance plan—that security must come first.
This plan, however, is far more than a guide to reliable insurance companies. It goes right to the roots of the main problems which haulage and insurance interests have in common—the elimination of accidents so far as is humanly possible. Insurance is expensive to-day simply because claims are numerous and costly. Reduce the claims and premiums Will come tumbling down, without sacrifice of security.
The first step has been to get, members keenly interested in this big experiment, also to persuade selected reliable insurance companies to recognize the value of the development in some tangible manner. From all accounts the result has been striking. Members have been quick to see that only by such united action can they hope to be relieved, in some measure, of the extremely heavy insurance premiums now being paid. The insurance companies, for their part, having seen, in the idea, steps towards the reduction of claims, have agreed to repay half their profits to all members joining in with the enterprise.
From a study of the speCial bOOklet which the A.R.O. has issued, it appears that on entering the plan a member would pay exactly the same premium as anyone else and that the normal concessions—such as " no-claim bonus' would continue to operate. The profit-sharing benefit, however, comes at the end of each year and is allowed as a direct deduction on renewal, When insurance is mentioned, a haulier may be inclined to think solely of. his motor _policies. This A.R.O. insurance plan, however, extends also to goods-in-transit and employersliability policies.