H.—6a.

2

Motor-vehicles Insurance (Third-party Risks) Act, 1928. —The outstanding feature of the year from an insurance point of view has been the operation of this Act, which came into force on the Ist June, 1929. The Act is an interesting advance oil any legislation of the kind in any part of the world, a*nd is without precedent in its abrogation of many of the conditions usual to an insurance policy. Compulsory acceptance by each insurance office of all risks for which it is nominated is also novel to insurance practice. Administrative details were worked out by representatives of the insurance companies, the Post Office, and the State Accident Office, and the insurance on over 200,000 vehicles under the scheme has been satisfactorily effected. Simplicity of procedure and the entire elimination of competitive costs were aimed at, with a view to giving the public the benefit of cover at the lowest possible administrative cost. The premiums fixed by Government were in all cases lower than were charged for more restricted cover at the time of the passing of the Act. Experience of the cost over a period of at least two years will enable equitable adjustments to be made ; in the meantime premiums are experimental. Motorists thus have a direct financial interest in eliminating the negligent and careless driver, and, when an accident unfortunately does occur, in preventing" exploitation. Exploitation is probably the greatest danger to which any system of compulsory third-party insurance is exposed. j. On account of the lack of any previous experience of insurance similar to that provided by the Act, and the uncertainty of the incidence of claims, the insurance companies and the State Accident Office have established a " pool," by means of which the risk is shared and experience exchanged. The information collected through the operation of the pool has already proved most valuable. J. H. Jerram, General Manager.

Revenue Account of the Accident Beanch of the State Fire Insurance Oefice for the Year ended 31st December, 1929. £ s. d. £ s. d. Premiums after deduction of reinsurances .. 81,353 10 10 Free-year bonus on personal accident policies .. 166 7 4 £ s. d. Claims .. .. .. .. 49,853 1 5 Interest .. .. .. 13,342 13 10 Commission.. .. .. .. .. 5,490 8 8 Less land and income tax .. 3,939 0 2 Salaries .. .. .. .. .. 10,393 15 0 9,403 13 8 Contribution to Public Service Superannuation ."Fund .. .. .. .. .. 140 0 0 Expenses of management .. .. .. 2,316 16 1 Further appropriation to reserve for unearned premiums .. .. .. . . 4,330 0 9 Further appropriation to Investments Fluctuation Reserve .. .. . . .. .. 3,000 0 0 Amount of accident funds, 31st December, 1929 .. 15,066 15 3 £90,757 4 6 £90,757 4 6 Balance-sheet of the Accident Branch of the State Fire Insurance Office as on the 31st December, 1929. Liabilities. £ s. d. Assets. £ s. d. Accident funds, as per Revenue Account .. 15,066 15 3 Government war-loan securities .. .. 100,500 0 0 Outstanding accident claims .. .. .. 19,255 0 0 Other Government securities . . .. .. 18,000 0 0 Government taxes .. .. .. .. 3,939 0 2 Local-authority securities .. .. .. 93,867 511 Commission.. .. .. .. .. 459 10 4 Rural Advances bonds .. .. .. 14,425 0 0 Premium and other deposits .. .. .. 127 17 4 Mortgages on property .. .. .. 4,392 8 1 Sundry creditors .. .. .. .. 904 14 9 Fixed deposits and at short call .. .. 35,000 0 0 Officers' Fidelity Fund .. .. .. 500 0 0 Interest accrued but not due .. .. .. 4,186 6 4 Reserve for unearned premiums .. .. 36,609 111 Agents'balances .. .. .. .. 1,675 18 3 Investment Fluctuation R,eserve .. .. 6,000 0 0 Sundry debtors, including Motor-vehicles InsurReserve Fund constituted under section 6of the ance (Third-party Risks) Act pool . . .. 16,361 710 Government Accident Insurance Amendment Cash in hand on current account .. .. 4,583 18 0 Act, 1924 .. .. .. .. 210,130 4 8 £292,992 4 5 £292,992 4 5 J. H. Jerra-m, General Manager. 2nd April, 1930. C. B. Redward, Accountant. T hereby certify that the Revenue Account and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.— G. F. C. Campbell, Controller and Auditor-General.

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