insurance Passenger liability
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by John C. Vann
• It seems to be coming. In fact, it is due to be debated in the Commons in early February. Yes, the subject is compulsory passenger liability insurance. The private member's proposed Bill being debated is the Motor Vehicles (Passenger Insurance) Bill, the aim being "to amend the Road Traffic Act, 1960, so as to require users of motor vehicles to be insured in respect of liability for death of or bodily injury to passengers'.
This alarmed an operator I was chatting with the other day. He asked: "Does it mean another premium increase if passenger cover becomes compulsory?" But on checking his policy, I found that he was paying extra premium to have passenger liability cover included. He had forgotten about this arrangement, so he felt pleased that he would have nothing more to pay out on this score.
Yet the passenger liability position needs watching carefully. The normal standard commercial vehicle policy.in its basic wording does not include passenger liability. What does this entail? If a commercial vehicle is carrying a passenger and he is injured, he can claim for his injuries against the firm concerned and /or against the driver, but it will be necessary for the passenger to prove that the driver or firm was negligent. Without passenger liability insurance, a successful claim of this nature has to be met by the firm, unless it can switch it on to the driver, but not many firms would wish to do this even if they legally could do so.
Inclusive policies
In practice, by paying additional premiurr usually amounting to 10 per cent of the thirc party premium relating to the vehiclt concerned, unlimited passenger liability cove' can be added, as in the case of the operata already mentioned.
But there has been a more welcomE development. A handful of insurancE companies have in the past year or so brough out new commercial vehicle policies unde which passenger cover is included in the basil premium, ie without extra charge. This is step in the right direction and it is to be hope( that the remainder of the motor insuranci market will follow suit--and quickly. 0 course, if passenger liability cover doe become compulsory, this may well encourag, such insurers to give this cover withou charge. Or is this wishful thinking? Perhap we shall soon know.
Let there be no mistake about it, passenge liability is important, especially with the ver high awards one hears about today. Payment reaching around £100,000 have been mad in settlement of some individual passenge claims where serious injury or death ha occurred.
So check that policy without delay ani inquire if you are in doubt.