§ Mr. OLIVER
asked the President of the Board of Trade whether he will state the number and the names of insurance companies doing motor insurance business which have gone into liquidation since the passing of the Road Traffic Act, 1930; the amount of issued capital of such companies; the causes of the insolvencies; the deficiencies in each case; and the number of persons who became uninsured as a result of these insolvencies?
§ Mr. RUNCIMAN
Five companies transacting motor vehicle insurance business have gone into liquidation since the passing of the Road Traffic Act, 1930, and the desired information, so far as available, in regard to each of these companies is given below.1537W
Name of Company. Issued Capital. Causes of Insolvency. Deficiency (excess of liability over assets). Number of person who became uninsured as a result insolvency. South East Lancashire Insurance Company Limited. £50,000 (of which £26,787 10s. 0d. fully paid). (a) Insufficient capital. £26,787 contributories. Approximately 20,000 of whom some 4,000 accepted the special offer by another Company to take over their policies. (b) Heavy claims since June, 1930. £142,164 creditors. £168,951 Total deficiency. Port of Manchester Insurance Company Limited. £150,000 (of which £107,472 fully paid). (a) Bad underwriting. £115,745 contributories. 15,450 (including 14,030 Motor policy holders). (b) Insufficient reserves. £69,435 creditors. (c) Inability to collect uncalled capital. £185,180 Total deficiency. North and South Insurance Corporation Limited. £76,305 fully paid. (a) Insufficient capital. £76,305 contributories. Approximately 117,000. (b) Indiscriminate underwriting. £207,223 creditors. (c) Insufficient rates of premium. (d) Failure to collect moneys in hands of Agents. £283,528 Total deficiency. Anglian Insurance Company Limited. £56,000 fully paid. (a) Under capitalised for business underwritten. Total £138,767. Approximately 49,000. (b) Heavy claims from third party risks, the premiums having been payable by instalments. London General Insurance Company Limited. £75,153 10s. 0d. (of which £65,590 17s. 0d. fully paid). (a) Heavy claims in the motor department during the last 18 months of the Company's existence. £70,590 contributories. Life department … 3,331 £165,340 creditors. Fire and General (excluding Motor) … 4,592 £235,931 Total deficiency. Motor department … 14,061 (b) According to former officials of the Company excessive damages awarded by juries in motor accident cases and solicitors' costs. 21,984 NOTE.—Particulars with regard to the Hearts of Oak Assurance Company Limited, which went into liquidation in 1932, have not been included, since it did only a small amount of motor vehicle business and its failure was in no way connected with that business.