§ 3. Mr. Gwilym Robertsasked the President of the Board of Trade what study he has made of the evidence supplied to him by the hon. Member for Bedfordshire, South showing that passengers in coaches were frequently not fully covered by insurance unless the liability of the coach company could be fully proved; and if he will take steps to close 394 this type of insurance loophole in this and other forms of transport.
§ The Parliamentary Secretary to the Board of Trade (Mrs. Gwyneth Dunwoody)The liabilities of coach operators for damage to the luggage of their passengers are usually governed by the conditions of carriage. It is for the operators to decide whether to insure against these liabilities. In general, the conditions of carriage, not the degree of insurance, limit the extent to which claims by passengers are entertained.
The Law Commission is at present considering, in relation to contracts for services generally, how far it should be permissible to contract out of common law liabilities.
I shall write shortly to my hon. Friend on the matter.
§ Mr. RobertsI earnestly urge my hon. Friend to expedite the matter as much as possible. Does she realise that 99 per cent. of the general public who go abroad in a coach believe that their luggage is covered by the company in case of accident? Can she tell us what the position is in British Railways and bus companies?
§ Mrs. DunwoodyIt may well be that passengers are not fully cognisant of the terms under which their luggage is carried. In general, I think that a lot of people choose to insure their luggage individually. Questions about British Rail are for my right hon. Friend the Minister of Transport.