E30m extra burden or road transport
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CUTS in public expenditure announced by the Chancellor of the Exchequer, Mr Denis Healey, last week could mean at least another £30m a year being paid to the insurance companies by hauliers and passenger operators.
TEe increase represents a rise of at least five per cent and probably as much as seven per cent in premiums paid by operators to the £600m a year haulage insurance business, and they come as a result of a decision to activate a clause included in every Road Traffic Act since 1930.
Under the clause drivers involved in accidents are entitled to neither National Health treatment nor National Insurance payments while off work — and that applies to all professional drivers.
A spokesman for the Department of Health and Social Security told CM this week that at the moment a doctor called to the scene of an accident could charge £1.25. The maximum for in-patient treatment was £200 and for out-patient treatment, £20.
But the spokesman emphasised that these fees were up for increase — and that increase will have to recoup up to £45m, according to the Chancellor's speech, which could mean huge increases to be passed on to the insurance companies.
"This clause did and does apply to hauliers and coach operators," said the DHSS spokesman.
And a spokesman for the British Insurance Association said: "The industry took £600m in premiums last year. This move could mean an extra 5p in the pound. Plus administration costs it could mean another seven per cent on premiums."
The DHSS man said that National Health treatment for accident victims and National Insurance payments to them costs around £45m a year — but the Government only recoup around £11/2m — so they will legislate to increase the fees. From CM investigations ii clear that the newly increas insurance costs could put £f. a year on running a 10-vehil fleet An idea of the amour involved can be seen in the ( table calculated using the ( Tables of Operating Costs I f. — but these figures are based on averages of a operator in any part of t country.