§ 6. Mr. GOLDIEasked the President of the Board of Trade whether he is aware of the hardship inflicted on persons sustaining injuries and the dependants of 932 persons killed through the negligence of motorists insured against third party risks with insolvent insurance companies; and whether he is prepared to introduce legislation where by policies covering third party risks shall only be issued to motorists by insurance companies who have satisfied his Department as to their financial position and their ability to carry out their commitments under the policies issued?
§ Mr. RUNCIMANI am aware of the circumstances referred to in the first part of the question. As regards the second part, I cannot at present add to the answer given on the 30th April to the hon. Member for East Birkenhead (Mr. White).
§ Mr. GOLDIEIs the right hon. Gentle man aware that on the figures of his own Department no less than 160,000 policy holders have been "defaulted" by these companies, and, in the circumstances, does he not think it is about time that something was done? Will he not consider my suggestion, which does not make his Department responsible for the financial stability of companies, but simply asks that they should say what companies should issue policies for this purpose?
§ Mr. RUNCIMANI am well aware of the seriousness of the problem, but it is not an easy one to deal with. We must deal with it in the best possible way.
§ Captain P. MACDONALDAs the Government took it on themselves to introduce legislation imposing on motorists the responsibility to insure against third party risks, should not the Government take the responsibility of seeing that the policies taken out by motorists are valid and secure?
§ Mr. RUNCIMANNo, Sir, the Government are under no obligation to do so; but it is in the public interest to see that these companies perform a proper function and are sound.