HC Deb 05 December 1932 vol 272 cc1239-40W
Sir W. SUGDEN

asked the President of the Board of Trade if he is aware that a practice obtains amongst certain insurance companies of endeavouring to evade adequate settlement of claims made against their policy holders by putting forward, through their Solicitors, their latest balance sheets as indicative of their precarious financial position with a view to obtaining inequitable settlements of claims; and will he take the necessary action by requiring deposit of a proper capital sum, such as obtains in the case of other sections of insurances, to remedy this?

Dr. BURGIN

The practice to which my hon. Friend refers has not previously been brought to my notice, and I should be glad if he would communicate to me any information in his possession. If the question has reference to motor insurance companies, I would remind him that under the Assurance Companies Act, 1909, as amended by the Road Traffic Act, 1930, a company carrying on this business is required to make a deposit of £15,000 in addition to any deposit made under the Act in respect of other classes of insurance business.