H.—4o,

For the year ended 31st May, 1937, forty-two insurance concerns gave the prescribed notice to undertake business under the Act, and carried on business accordingly. The following table shows the experience of the scheme during the seven years ended 31st May, 1936. The figures for claims do not represent the amount paid during each year, but refer to accidents happening during each particular period.

I B. ANNUAL REVIEW OF PREMIUM RATES. Section 16 of the Act provides that the amount of the premiums to be paid in respect of thirdparty insurance may be fixed from time to time by Order in Council. In accordance with the usual practice, the financial operations of the companies undertaking this class of insurance were carefully examined, and it was decided to make the following alterations to the premiums for the year 1937-38 : —

C. " HIT AND RUN " DRIVERS. The table hereunder indicates the number of claims and the amounts paid out under the agreement gazetted on the 29th October, 1931, at page 3023, and relating to third-party insurance to cover the damage resulting from death or injuries due to the negligence of such drivers. It is gratifying to note that, possibly as a result of the increased penalties operative since August, 1936, the number of claims still continues to drop in spite of the likelihood that claims are now lodged following nearly all the " hit-and-run " accidents. In the earlier years the provisions of the agreement were not generally known, but steps have now been taken so that the police advise the injured parties of their rights under the agreement.

Table of Claims.

30

Claims paid and Esti- j y„,«««. "Bsasr oi * i - r, "°- at 31st May. £ f Per Cent. 1930 .. .. .. 235,007 202,380 86-12 1931 .. ... 242,864 186,379 76-74 1932 ' .. .. 233,731 161,217 68-98 1933 .. .. .. 229,133 137,013 59-80 1934 .. .. . 221.734 165,743 74-75 1935 .. .. .. 211,709 232,394 109-77 1936 !! .. .. •• 230,696 280,938 121-78 1937 .. ,, .. 257,559 344,777 133-86 Totals .. .. •• 1,862,433 1,710,841 91-86

Class. Old Premiums. New Premiums. £ s. d. i £ S. d. Class 2 .. • • 1 16 0 2 0 0 Class 4 .. . • 0 17 0 10 0 Class 5 .. •• 2 5 0 2 8 0 Class 8a .. . • 6 0 0 7 10 0 Class 10 . • • ■ 0 18 0 10 0

Number of Amount paid ' „ Accidents for . r Expenses incurred Year ending 31st May, which Claims Claimants ' n handling Claims. made. £ s. d. £ s. d. J 932 (five months only) .. .. ■■ 5 595 0 0 145 3 6 1933 .. 11 885 8 0 144 8 7 1934 " " .. 12 720 2 6 151 10 10 1935 " ..29 1,661 11 4 327 8 4 1936 " 38 1,224 9 6 517 5 2 1937 37 1.730 14 0 247 5 3 1938 " " •• •• •• 25 22819 4 * 66 4 2 * Totals .. .. •• 157 7,046 4 8 1,599 5 10 *Incomplete