H.—4o,

5. MOTOR-VEHICLES INSURANCE (THIRD-PARTY RISKS) ACT, 1928. A. STATISTICS. 1 he Motor-vehicles Insurance (lhird-parfcy Risks) Act passed in 1928 compels every owner of a motor-vehicle to insure against liability to pay damages on account of the death or injury to another person caused through the use of a motor-vehicle. Payment of the insurance premiums is made annually to the Deputy Registrars of Motor-vehicles simultaneously with that of the annual license fee payable under the Motor-vehicles Act. Owners of motor-vehicles are required to nominate each year the insurance company with which the contract of insurance is to be made. For the year ended 31st May, 1938, forty-one 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 nine years ended 31st May, 1938. The figures for claims do not represent the amount paid during each year, but refer to accidents happening during each particular period.

B. ANNUAL REVIEW OP 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 1939-40.

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Claims paid and EstiYear ended 31st May, Revenue from mated Liability for 1 . R Premiums. Claims outstanding j Claim Ratio, at 31st May. i no a ® £ 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 •• •• •• 221,734 166,648 75-15 1935 •• •• •• •• 211,709 230,626 108-93 1936 •• •• 230,696 264,700 114-73 1937 •• •• •' .. 257,559 331,134 128-56 1938 •• ■■ •• •• 289,891 432,352 149.14 Totals .. .. .. 2,152,324 2,112,449 98-14

Class. Old Premiums. New Premiums. ( : J Increases— £ s. d. £ 8 . d. Class 4 .. .. .. .. 100 160 Class 5 .. .. .. .. 280 2 13 0 Class 6 .. .. .. .. 1 10 0 1 18 0 Class 8a — Class 8a : Public motor-cabs .. .. 7 10 0 10 0 0 Class 8ab : Private motor-cabs .. .. 7 10 0 Class 8d — CJp to ten seats (including driver) .. 2 5 0 3 0 0 For every seat in excess of ten .. .. 0 2 0 0 2 0 Maximum premium payable .. .. 4 0 0 4 12 0 Decreases— Class 8b— Up to ten seats (including driver) .. 6 0 0 6 0 0 For every seat in excess of ten .. .. 0 2 6 0 2 0 Maximum premium payable .. .. 8 0 0 7 12 0 Class 8c— Up to seven seats (including driver) .. 6 0 0 6 0 0 For every seat in excess of seven .. 0 7 6 0 4 0 Maximum premium payable .. .. 9 7 6 7 16 0