Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-10
new TYPE OF AUTO
INSURANCE URGED
Massachusetts Legislature
Expected to Vote on Gre
sponSibiIity" Plan.
BY RoLLIN M. CLARK.

Insurance executives, automobile
manufacturers and the general motor
ing public are turning their eyes to-
ward Massachusetts, to see whether an
other noble experiment" compulsory
automobile insurance, is to be strapped
forthwith as an utter failure or whether
it is to get a new lease on life.
The Insurance Committee Of the
Massachusetts, Legislature Is about TO,
report favorably bill for the repeal OF
the present law, which requires every
motorist in the State 10 carry automo-
bile insurance, furnish bond or deposit
collateral as o means Of indemntfytng
victims Of motor vehicle accidents.
Responsibility" Law.
As a substitute the committee will
propose q so-called financial response
bility" law, with . system Of rating that
would make poor drivers pay higher
premiums than those who are consid-
cred good risks. Under this type OF law
a motorist would not be required to
carry insurance unless he Is convicted
of a major trafflc offenSe or Is involved
in an accident.
While there is no assurance that in
dennity will be paid to the victims OF
the first accident, there Is a provision
that the operators license will be re-
voked until any Judgment rendered In
an accident case Is SATISFIED. In other
words, the erring motorist must pay for
this first accident or forfeit the privilege
Of driving; if he pays. he must then
carry insurance to take care OF any fu-
ture damage he may do, and under the
demerit rating plan he may pay high
er rate Of premium than his more fortu-
nate brethren who do not run afoul OF
the law.
Financial responsibility laws have
been tried out in about dozen States
and, with minor exceptions, seem to be
meeting with the approval Of State Of
ficialS and the public.
When compulsory insurance was
adopted by the Bay State in 1925, 1t
was hailed by its proponents as the
only sensible method of reducing high
way accidents, providing indemnity to
victims and eliminating reckless drivers.
In 1927 compulsory insurance proposals
were considered In more than 30 States.
None became law, however, the con-
sensus Of opinion being that 1t would
be better to await the outcome Of the
Massachusetts, experiment before tax
ing action.
Loss for Companies.
BY the time these same Legislatures
met again in 1929, the waters had be-
come tnuddied. Late in 1928 the in
surance commissioner of Massachusetts,,
who fixes rates for the mandatory au-
tomobile insurance, announced that the
insurance carriers had sustained Q loss
In 1927 and therefore a rate increase
was imperative. Political exigencies-
this was the eve Of q presidential. cleo
tion-resulted in demand upon the
commissioner for q withdrawal Of the
new rate schedule. Instead he resigned
With this new aspect of compulsory in
surance brought to their attention
other State Legislatures again refused
to force 1t upon their citizens.
Now these same States are once more
reviewing the experience of MasSachu-
sets. They find that premium rates
have continued to increase, that acci-
dents and claims have jumped by leaps
and bounds, that courts are congested,
that there Is general dissatisfaction
with the law, and that the Massachu-
sets Legislature Is about to repeal the
law. Their continued refusal to adopt
compulsory insurance indicates that
they agree with the Massachusetts, Leg
iSlative Committee-the experiment Is
(Copyright, 1919