Evening star., 1927-11-23

Continued from First Pagel
its creators-the insurance companies
this bureau acts as a clearing mouse
through which the commissioner may
deal with insurers as a group instead
of as 65 individual units.
Owners Are Rated.
As it's name denotes, a specific
province of the bureau is to rate IN
diyidual car owners as insurance risks.
Keeping accurate touch on the records
of all drivers as evidenced in court
cases. the bureau is enabled to provide
both the registrar of motor vehicles
and the commissioner with data upon
the reckless driver. If the companies
decline to accept a man as risk on
the basis of this information, the case
becomes one for the appeals board
should the driver care to fight this de-
ciSion.
In this way, the insurers are play
ing a large part in making the opera
ton of compulsory liability insurance
a success. The bureaus rating of driv-
ers is not always upheld by the ap-
peilate board, but nevertheless, 1t has
brought to light many drivers whose
records have justified the State in re-
fusing them the right to own and op-
crate automobiles.
But, in spite of all that it has done
and is doing in this and other respects
Massachusetts, Insurance group as yet
is no more than reasonably certain
that State insurance will not event
ually come into being. 1t accepts the
dictum that history repeats itself.
The second point on which insurers
still want to be shown" is that State
supervision of rates will work out
equitably to the insurance companies.
An even break is all they ask, their
executives declare, and while, as
pointed out previously, they do not
know what the present is bringing
them in Massachusetts. they recognize
that as a principle such supervised
rates have a tendency toward un-
favorable lowness.
Wait Is DiscOncerting.
Still, they do not know that their
present experience will not be the ex-
ception to the old rule. Perhaps the
rates under which we now are operat-
ing are fair and reasonable, both to
insured and insurer" said an executive
of one Of the largest companies. I'm
other fields of business, books can be
balanced at the end Of year, but not
so in insurance. There always is lag
of year or more, and while this has
been reduced by the Massachusetts
Law which makes all policies expire
yannually December 81, we still must
wait for an answer to the question of
our profit or loss. 1t is only human to
fnd such waiting diSconcerting."
II, however, insurers are uncertain
as to their economic position as a
whole, they know very definitely that
in one or two specific ways they are
losing and, naturally, they do not like
! 1t.
/ This leak in the sieve is through
the desire Of hundreds of motorists
to collect property damage claims un-
der the false guise Of personal in
jury. According to underwriters, who
declare they are losing as much as
$250,000 annually in this fashion,
Massachusetts car owners Of a GER
tain type were quick to discover the
trick in connection with this fea-
ture of compulsory insurance.
1t works out in this way. n a
collision between two vehicles, no
one is injured, but both cars suffer
damage. Both policy holders learn
that the other carries no property
damage insurance. So. in order to
get enough money to pay the cost of
repairing damaged tenders, running
boards or the like, they feign injury
of one kind or another.
Must Go to Court.
Now. the insurance company may
know Of the duplicity. But, to prove
II, the case must be taken to court.
Such a procedure means an outlay on
the company's part Of 500 or 5000
even should it win the case. Settle.
ment means $25, $50 or $40. Indig
nation may dictate the wisdom of
taking the whole thing to court, but
good business Judgment does not
From the insurers point of view. it is
unfortunate that a certain type of
motorist knows this only too well.
The nuisance case" is an old story
to underwriters. That it became SO
common an occurance so early in the
history Of the Massachusetts com
pulsory insurance statute is one of
the reasons why they cannot see the
law as perfect. If the insurance COM
pany could put such losses into its
Experience" when going before the
insurance commissioner regarding
new rate schedules. it might have
an opportunity for redress. The com
missioner. naturally, will not allow
them to do so, because, technically
they are not public liability losses.
his "GdhIicSS III IiIe 10" has dp-
pealed. however, not only to the un-
derwriters themselves, but also to
Frank A. Goodwin, registrar OF motor
vehicles and Wesley B. Monk, insur.
ance commissioner. Both recognize
it has one of the defects Of the statute
and one that will have to be remedied
in the interest Of fairness to the in
surdnce companies.
The individual who deliberately gets
injured in order to collect from the
insurer-known in all ways of insur
ance life--is not missing in Massa
chusetts today. One noteworthy case
is that Of a man who picked out a
street in which traffic winds slowly
and circuitously, raised his arm in
an attitude of protection and stepped
in front of car, knowing that his
worst fate would be to be knocked
down and bruised.
Although the insurer found wit
inesses ready to testify to the delib
crate intent of the pedestrian to get
injured, 1t settled for 500 to aVoiC
the higher cost of fighting the case ir
court,
After cashin1 tha conopanv's draf,