The Farmville herald. (Farmville, Va.) 1957-current, 1958-06-27
Rising Cost OF Highway Accidents
Pushes Liability Insurance Rates Up

" lle llstnp COST NJ f'sss nation
4 highway accident Toll drove the.
automobile liability III uranre busi
ness deeper III tiie lcd III 1851 altti
Underwriting losss tilal set 40 All
Time hlgh
/ f'IsulgH releases lodts by VA
] ham Leslie, j., general MANAGER
Of the Natloral Bureau Of Casualty
Underwriters. disclosed that mem
her companies Of the bureau suf-
Tered an aggregate countrywide I'M
! derWtiting loss Of Sll7 900 900 on
their automobile liability insurance
business during 1887 This he
pointed out, came on top Of the
underwriting loss Of Sb4 900 600 IN
1865
The hureau a 4 ratlae oreani-
1at.un with i membership u IA
stock companies writing casualty
insurance
The companies sustained This
underwriting loss the LARGEST N
their history. because claim costs
and expenses Of the automobile ac-
eidents involving their policy
holders exceeded their earned
premiums for automobile Inability
insurance during 1857 Leslie ok
plained
The 1887 figure means that
automobile liability claim costs and
expenses amounted to SIG 10 fof
every 500 OF premiums earned re-
sulting in an underwriting less oi
SIG 70 for every 500 of premiums
earned
slnce January i automobile II
ability insurance rate increases
have been approved by Insurance
supervisory authorltles ii bout
halt Tie states. and ruie lnorea&
will Be proposed III the iigil l,uuIs
III The other states
The companies have suffered un
dcrWritlng losses because rates
iia ~ 1871 iiat1IdtAS w ~ oStt.S
sufficient premiums to meet the
costs and expenses Of Claims ia.
cured By insured cars. Leslie said
On the average. he explained more
c 4 IN are being incurred by
policvholders and i rs costing the
companies more money 10 settle
those claims
When il issues 4 liability policy
the company assumes responsibility
fol q t I 4 q q The poles holttet
against suit for damages ana lot
paying within the limits and cover
age oi the policy the cost " (
claims incurred by ihe pollcSholdef
IN accidentally killing and lajur- +
ng people and damagiae property
Of others.
Nike almost everything else 4
bodily injury liability claim costs
have been caught III the lnf!a. /
tionary spiral The increases IN \
hospital rates. physicians and sur
geons fees therapy and other
medical expenses have all raised
the costs Of treating and lehabiA-
tating victims of automobile ac- +
cidcnts There is also the factor /
Of increasing compensation for lost
earninas while accident victims are
laid uf'
These are some reasons why
jnaes ara awarding increasingly
larger Yerdlcts for death and bodily
inisay A negligence eases These
a ward IN tam Influence INV
amounts lt which companies must
settle claims Whom their policy
holders are liable for killing d
others.
The costs Of settling property
damage claims. most OF which re
stlt from damage to or destruction
D. other motor vehicles. continue
p increase because Of rises N re
PAIR and replacement Gusts. TIE
adverse effect Of initiation on prop
8itv damage claims has been made
worse bv continually climbing Ne
2air and replacement costs result +,
nv from innovations in car design
such aS Wraparound TindShelds
and elaborate fender sections with
light units, Front and rear
originally conceived to
prevent Or reduce damage from
collision, are now more ornamental
-han functional, in collision the
bumper usually Is Just one more
part to be repaired or re-
placed at today high charges.
There is increasing use of power
operated equipment such as win
joWs, seats. brakes and steering
apparatus and when this is dam
aged 1t means additional repair
work and higher repair bills. :
especially It's heart fund appeal Of +.
"a Z Ia