Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-18
M|SHAPS HARASSI
INSURANCE FIRMS
Increased Number of Auto
Accidents Problem to
Casualty Companies.
BY RoLLIN NJ. CLARK.

The increasing number OF deaths and
injuries from automobile accidents con-
tinues to be one of the most bother
some problems confronting casualty in
surance companies. Statistics just
compiled by the Travellers Insurance.
Co., a leader in the automobile insur-
ance field. show that more than 10000
persons have been injured and killed in
l62,OOO motor vehicle accidents during
the first quarter of this year. Deaths
alone totaled 6.600, an increase of more
than 8 per cent over the record-break-
ing year of 1890
While insurance men believe the
highway accident problem is one of
public concern. they realize that they
nave direct responsibility in seeking
and erecting solution.
Check Whole Family.
In the opinion of one prominent in
Surance executive, the casualty cornoa-
MES must be more eItain that aEpli-
cants for liability and property damage
policies are acceptable risks. Not only
should the person in whose name the
policy Is written have a good driving
record, but an investigation should be
made to determine whether the other
members of his family who use his car
would be accepted If they filed applica-
tons. This precaution is necessary, ac-
cording to this company official, because
the policy covers the operation of ear
by all members of the insured persons
family.
Merit rating of automobile risks, q
system whereby drivers who avoid ac-
cidents are given preferential rates, has
been used generally by the casualty
companies in the last two years as q
means of promoting accident preven-
ton. In Connecticut plan of demerit
rating, whereby motorists responsible
for accidents pay penalty rates.. is
incorporated in that States fifian-
cial responsibility law. A similar pro-
posal has Just been made in a. bill
reported favorably to the Massachu-
sets Legislature to amend the coYnpul-
sorry automobile insurance law. Coupled
with the demerit rating provision Is a
requirement that the insured himself
bear the first 500 of damages.
II the dsductible loss feature Is en-
acted, Massachusetts, once more viii be
pioneering in automobile insurance leg
islation just as it did with compulsory
motor vehicle insurance. Members of
the Legislature who favor the proposal
contend that it would reduce rates. be-
cause of the elimination of large num-
Der of small and vexatious claims
.,
would tend to promote highway safety
because motorists are penalized directly
for any damage they cause, and that
1t would help prevent easy settlement
of insurance claims because Of the in
terest of the insured driver in the
matter.
Ignores Pedestrian.
It is considered unlikely In insurance
circles, however, that this proposal will
be retained in any amendment that may
be made this year to the compulsory in
surance law. While motorists of the
Bay State have complained at the In
creaSes made in their automobile inSur-
ance rates since the compulsory law
became effective, they are not likely to
favor plan which insureS their risks
only beyond the first 500 of damage
While such system would undotIbt-
edly have some mitigating influence
upon the accident situation, 1t ignores
completely one important factor-the
pedestrian.
It is safe to predict that insurance
companies in the future will lay even
more stress on accident prevention, Not
only Is their loss ratio in automobile
insurance increasing, but companies
writing accident insurance find that
highway accidents account for IS per
cent of their claims and 10 per cent of
their loss payments in this branch Of
the business.
(copyright. 1919