State

Auto Accidents In the State Commissioner Hodges gives some interest¬ ing figures and slntisties in eonneetion with acc idents of this type in North Carolina. By WILLIAM P. IIOIHpES Insurance ConnnUsioner of North Carolina JUST recently the State De¬ partment of Motor Vehicles re¬ leased statistics for the year 1946 covering automobile accidents occurring within the State of North Carolina. It is reported that dur¬ ing the year 1946 there occurred 10,287 automobile accidents which resulted in 6,071 injuries and 1,028 deaths. Comparing the 1946 figures with those developed during the Sear 1945 we find an increase of 5 per cent in the number of acci¬ dents; an increase of 39 per cent in the number of persons injured; and an increase of 40 per cent in the number of persons killed. These figures are most disturbing and pre¬ sent an alarming commentary upon carelessness in the operation of automobiles. They very nearly ap¬ proximate the 1941 accident record which was the worst in history, both in the number of motor ve¬ hicle accidents and in injuries and deaths resulting therefrom. In that year 11,765 automobile accidents on North Carolina streets and high¬ ways were reported which resulted in 6,423 persons injured and 1,286 killed. Automobiling has again ceased to be a pleasure; it is a haz¬ ard. Unless adequate safety meas¬ ures are employed the year 1947 bids fair to even exceed the disas¬ trous record of 1941. The Insurance Department of the State of North Carolina is charged with the responsibility of adminis¬ tering the insurance regulatory laws of the State. Among the many laws coming under the general su¬ pervision of the Department are those referred to as the North Car¬ olina Automobile Rate Administra¬ tive Office Act and the North Caro¬ lina Fire Insurance Rating Bureau Act. The first named provides for the making of automobile bodily injury and property damage rates while the second, among other lines, is required to make rates for automobile fire, theft, comprehen¬ sive and collision coverages, all subject to the approval of the In¬ surance Department. Under these statutes the Department of Insur¬ ance must find that a rate submit¬ ted by either of the bureaus is fair, adequate and reasonable, and no rates may be put into effect by these bureaus until they are sub¬ mitted to and approved by the Department. The trend in automobile rates of all types is definitely rising, not¬ withstanding the fact that rates for the collision coverages have al¬ ready reach alarming proportions. The rate of premium for this par¬ ticular type of coverage is already high, and in all frankness it must be said that with the public of North Carolina developing such alarming accident records as that developed during 1946 when com¬ bined with the present high costs of settling claims and repair bills, further rate increases appear im¬ minent. Little, if any, comfort can be derived from the simple knowl¬ edge that we in North Carolina are not alone in this appalling record. Accident frequency with resulting increases in injuries and fatalities is general throughout the entire United Stales. Increases in accident frequency directly affect the rates and premiums payable by automo¬ bile insurance policyholders. In twenty-seven states of the United States increases have already been put into effect within the last thirty days applicable to au¬ tomobile bodily injury and prop¬ erty damage insurance, and it is safe to say that applica¬ tions for increases will be made in the remaining states soon, or are already pending before the insur¬ ance supervisory body of the re¬ spective states. At the present time in North Carolina the combined rate for bodily injury and property damage for a private passenger car is only slightly different from the rates in effect in 1941. The 1941 rates based upon detailed statistics and experience developed in the State of North Carolina were ap¬ proved as being fair, adequate and reasonable. Acting on this premise alone, it is evident that by reason of the deplorable accident record developed by the motoring public in North Carolina, increases in au¬ tomobile bodily injury and proper¬ ty damage premiums must be even¬ tually made if the insurance com¬ panies are to continue to write such classes of business, without endan¬ gering company solvency. It is a cardinal principle of insurance ratemaking that the insuring pub¬ lic makes its own rates by the good or bad experience it develops. Regardless of whether one has insurance on his automobile or not. it is the responsibility of each and every North Carolinian to do his best to bring about some correction in the terrific accident toll in this State. That accidents can be pre¬ vented has been proven and it is up to you as a responsible citizen to do your part. It is not sufficient that you merely reach a mental conclusion that something should be done; it requires active partici¬ pation in a program which actual¬ ly brings results. The very least anyone can do is to drive carefully himself, and above all with due re¬ gard to the other fellow. tiroup insurance Group insurance has made rapid strides in recent years. This type of insurance is the insurance of fifty or more employees of the same employer at a low premium rate, most states requiring that the employing firm pay at least a part of the premiums. The remainder usually is deducted from wages of the employed group. The employer cannot be the beneficiary of an insured employee. In most cases the benefits arc of¬ fered to all employees and are required of 75 per cent of them. The blanket policy is issued to the employer, and certificates to the insured employees. The reserve and cash surrender value on a life insurance policy are usually the same, but in the early years of the policy a sur¬ render charge is usually made for the cash. 23 THE STATE. MARCH 22. 1947