§ 57. Mr. HALESasked the Minister of Transport whether his attention has been drawn to the failure of one of the authorised insurers recognised under the Road Traffic Act, the fact that the claims of third-party policy holders alone exceeded the amount of the sum of £15,000 deposited with the Accountant-General, which sum was pooled to meet the claims 1262 of all creditors; that, as a consequence, large sums for third-party claims cannot be met, with the result that in this case compulsory third-party insurance was rendered nugatory; and will he make inquiries into the matter?
§ The MINISTER of TRANSPORT (Mr. Pybus)I am aware that a company which was an authorised insurer under the Road Traffic Act has gone into liquidation, but I have no information regarding the amount of the claims of the company's creditors. The £15,000 deposit provided for by the Assurance Companies Act, 1909, as amended by the Road Traffic Act, 1930, is not intended to do more than to provide some measure of guarantee for the financial stability of the company, following in this respect the precedent established by the provisions of the 1909 Act. I will, however, confer with my right hon. Friend the President of the Board of Trade.