Motor Vehicle Insurance

Commercial Vehicles.

Under this heading are included all vehicles other than those mentioned previously and motor-cycles. The section provides for vehicles driven by petrol, steam or elec tricity whatever may be their use. For rating purposes these must of necessity be divided into appropriate classes, as, for example, private-type cars used for business purposes, rateable similarly to private cars; light and heavy goods vehicles each of which is rated according to the district and purpose for which it is used, the former on a horse-power-cum-value basis in addition ; private and public hire vehicles rated on horse-power and value; and chars d-bancs rated according to use and seating capacity.

The indemnity granted is more restricted than in the case of the private car policy to the extent indicated above, whilst in addi tion no provision is made for the driving of the vehicle by any per son other than the insured or his servant, nor is the insured cov ered whilst driving a vehicle not belonging to him. It should be observed that whilst the private car policy indemnifies the insured in respect of his liability to passengers this risk is not covered under the commercial policy unless further premium is paid. Amongst the additional benefits which may be covered on pay ment of further premium are compensation for loss of use and, if the vehicle is steam driven, an indemnity for claims due to sparks and ashes escaping from the vehicle and explosion risks.

Motor-cycle.

In many respects insurances for motor-cycles are similar to private and commercial vehicle policies, except that even the private cycle policy does not indemnify the insured in respect of claims made by passengers unless additional premium is paid. Further, the cover is normally operative only whilst the cycle is being driven by the insured or, in the case of a commercial cycle, by the insured or his employees. Pillion riding suspends the policy cover unless an additional premium has been paid.

Motor Traders.

Difficulties arise over the insurance of ve hicles for such traders, as it frequently happens that for most cars they are only temporarily responsible. Several methods have been devised to overcome this difficulty, the commonest of which en tails the payment of premium based upon the number of identi fication plates held by the insured. Alternatively, tickets supplied by the insurers must be produced by the insured's driver to a po liceman upon the occurrence of an accident, the premium being computed upon the number of tickets issued. Such policies cover the road risk only. Within recent years so-called "internal policies have been issued designed to indemnify garage proprietors in respect of claims for accidents to customers' cars occurring upon their own premises. (A. G. M. B.) American Practice includes five distinct types of coverage : Public Liability is imposed by law on the owner for injuries or death suffered accidentally or alleged to have been suffered through the use of his automobile. The usual protection granted by such

a policy covers the defence of all claims and suits for injury caused by the insured ; the assumption by the insurance company of all costs incurred with its consent ; the payment of all costs charged to the insured in the suit ; the payment of all interest accruing and the repayment of any expense incurred in providing immediate and necessary relief to the injured at the time of the accident. The ordinary form of public liability insurance is usually limited to $5,000 for one person. The policy usually covers a person, a firm or corporation responsible for the operation of the car. The policy usually also covers any person legally operating the car with the permission of the insured. This coverage is provided in a so-called "omnibus" clause.

Property Damage insurance is generally written with public liability insurance and sometimes with fire insurance. The policies cover against losses caused by any damage that the insured car has caused to the property of other persons, and any loss due to the inability to use the damaged or destroyed property. Damage to the car of the insured, to the property of others while it is being used by or in charge of the insured, is not included.

Collision Damage.—These policies protect the owner from any accidental collisions of his car with any other object, either moving or stationary. The insurance company's liability is limited to the actual cost of suitable repairs or replacements or to the actual value of the car at the time of the accident. Protection is limited to specified geographical limits. Damaged tires are not covered unless there is other injury done to the car. The insurance com pany does not protect against collision damage incurred while racing or while the car is operated by a child under the age of 16. The rates are based on the degree of coverage, the territory, the age and the type of the car, the motive power, and a classification based on price and size.

Fire and Transportation.—The protection against fire covers the body, the machinery and the equipment of the car while in the United States or Canada. The car may be in a building, on a road, in a railroad car or other conveyance, on a ferry, on an inland or coastal vessel. Fire and lightning are covered. Rates depend on use, construction, age of car, and motive power.

Theft.—This coverage is usually written with fire and trans portation insurance and is governed by the same conditions. The theft of the car must be committed by a person other than one in the household or employment of the insured. Cars are divided in classes on basis of price lists. The cheaper cars have higher rates.

Motor vehicle insurance is subject to legislation in many States and there is a definite movement towards universal compulsory public liability insurance.