60. Mr. TEMPLE MORRISasked the President of the Board of Trade whether he is satisfied that the deposit of £15,000 by insurance companies referred to in Section 42 of the Road Traffic Act, 1930, is adequate; and if he will consider the advisability of taking steps to increase it and of obtaining a close scrutiny of the accounts of insurance companies if and when expedient?
§ Lieut.-Colonel J. COLVILLE (Secretary, Overseas Trade Department)The purpose of the statutory deposits required from insurance companies is to provide some measure of check on companies entering on this class of business without resources. The question whether the deposit of £15,000 fixed in 1930 for motor insurance business is adequate will be considered when amending legislation is under consideration. As regards the latter part of the question, I would remind my hon. Friend of the special powers recently conferred on the Board of Trade by the Assurance Companies (Winding-Up) Act, 1933, which will necessitate a close scrutiny of the statutory accounts of motor insurance companies.