§ 41. Sir Knox Cunninghamasked the Minister of Transport if he will state the estimated percentage increase in premium which would be necessary if drivers of vehicles were required by law to be insured against injury to their own passengers as well as third parties.
§ Mr. SwinglerI am unable to do so precisely. Motor insurance premium rates are a matter for the market, which is competitive. There is no common basis for rating, and it is difficult to generalise about the premium required to cover the additional risk of liability to passengers. Moreover, different classes and types of214W vehicle would attract different levels of additional premium. Most private car policies already provide passenger cover and the overall additional premium would, therefore, generally speaking, not be significant. But in other cases the additional premium might well be substantial, particularly in the case of pillion riding on motor cycles, which is a risk for which cover is not at present generally available. In the proceedings on the Bill introduced by my hon. Friend the Member for Loughborough (Mr. Cronin) in 1961, it was said that the cost might bear very heavily on those who owner motor cycles or scooters. It was then estimated that the increases for this type of vehicle might range from £3 15s. 0d. to £22 per annum according to the size of the cycle, age and experience of rider and district in which the cycle is used.