HC Deb 14 December 1937 vol 330 cc976-7
37. Mr. Lewis

asked the Minister of Transport whether in view of the fact that insurance against third-party risks is compulsory, he will cause inquiry to be made into the practice of insurance companies in requiring serving officers in the Army under the age of 21 years to pay £10 excess in all sections of a motor-car insurance policy, an additional premium of 50 per cent., and to be excluded from any benefit for personal accident and passenger's risk, with a view to ascertaining what evidence the companies can produce to justify these heavy premiums and restricted benefits?

Captain Hudson

I have no reason to suppose that there is any agreement among insurers to impose the special terms mentioned by my hon. Friend, and there is complete freedom of contract in respect of motor insurance except in regard to the compulsory cover against third-party risks. Insurers have clearly the right to adjust their rates in accordance with claims experience, but I am satisfied that the market is sufficiently wide to ensure competitive rates.

Mr. Lewis

Having regard to the fact that these restrictions are imposed because these men are in the service of the Crown, does not the Minister think that it behoves the Government to take note of this question; and, if I give him particulars of an actual case, will he have it looked into?

Captain Hudson

Certainly. If my hon. Friend will let us have the particulars we shall be glad to have them looked into.