HC Deb 02 December 1931 vol 260 cc1059-60
11. Lord APSLEY

asked the Under-Secretary of State for Air whether he is aware of the high premiums charged by insurance companies for the insurance of private aircraft and the conditions they insist on which make it almost prohibitive for the private owner to insure; and whether, in view of the check it has caused in the development of the aircraft industry in the United Kingdom owing to the falling off of the demand for private aircraft, he will take any action, by means either of a subsidy or a national insurance scheme, which would ensure easier terms to private owners?

Sir P. SASSOON

I can assure the Noble Lord that the number of private aircraft is not declining, but steadily increasing: this suggests that his misgivings as to the effect of insurance rates are unfounded. In any case my Noble Friend regrets he cannot see his way to adopt either of the suggestions made: apart from any question of increased cost to public funds, aircraft insurance should, in view, be left to develop along normal commercial lines.

Lord APSLEY

Is the right hon. Member aware that, though there may have been some increase in the number of private owners, there would have been a greater increase if it were not for the high rate of insurance charged?

Sir P. SASSOON

That may be so, but there has been in the last year an increase of 117 in the number of private aircraft owned, which the Noble Lord will agree is a very considerable increase. I do not see that the Air Ministry can in any way interfere with the insurance companies, or anything of that kind.