§ Mr. BOYTONasked the Secretary to the Treasury whether, under the Government scheme of insurance against damage by aircraft, he has taken, or will take, the necessary measures to ensure that money paid under such insurance policies in satisfaction of damage done shall be expended on the insured premises in all cases where there are two or more interests, or that no person or the Government shall have power to recover their loss from any third person who may be under the usual lessee's covenants for repairs?
Mr. RUNCIMANMy right hon. Friend has asked me to answer this question. Special legislation of a difficult and contentious character would be required to give effect to the proposals made in the question, and as at present advised I cannot recommend legislation on these matters.
As far as the Government Aircraft Insurance Scheme is concerned, when a loss is paid the Government is subrogated to the rights of the insured against any 676W other person primarily liable. Whether the Government would exercise those rights would depend upon the circumstances and equities of each case. Hitherto the Government have refrained from exercising those rights if the other person is uninsured.