News Non-Life02 Apr 2018

New Zealand:Majority keen on mandatory motor insurance

02 Apr 2018

The majority of Kiwis support compulsory third party insurance according to a new survey by insurance company Canstar Blue.

The company's general manager Jose George said: "Around three quarters of the Kiwis we asked, felt that third party insurance should be compulsory."

"These are the same results as we saw last year. The feeling is stronger again amongst baby boomers with a response rate of 87%, that's nearly nine out of 10 people in that generation."

The survey asked 1,932 New Zealand drivers if they were in favour of mandatory insurance. Currently there is no law requiring drivers to have any insurance.

However, Insurance Council of NZ chief executive Tim Grafton says implementing compulsory insurance may be more complicated than it first appears.

"Our position is that if motor third-party property damage was compulsory, then insurers would be obligated to accept motor liability insurance risks, such as high risk/high loss drivers, that they would not normally want to insure," he told the news website, Stuff.

"High-risk drivers should be paying larger premiums due to that risk, however those premiums could be unaffordable for many and the government may legislate price caps to assist in this.

"In that case, insurers would be cross-subsidising those high risk drivers with the low risk drivers."





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