Insurance on the Road
Sia,—Leslie Adrian (October 14) fiercely criticises the Accident Offices Association for the manner in which the 'new deal' has been introduced and alleges that large numbers of policyholders have been 'un- wittingly cheated' by what is described as a 'piece of incompetence.'
This strongly worded allegation is not justified by the facts. It is correctly stated that the new terms will be applied automatically to existing policies due for renewal from November 1, and that policies due for renewal in the preceding three months may have the new terms applied at the policyholder's request. This procedure was necessary because at the time when the 'new deal' was announced in mid-July the notices to existing policy- holders telling them of their renewal premiums were already in the administrative pipeline for those policies falling due in August, September and Octo- ber. It was therefore administratively impracticable to apply the new terms automatically until Novem- ber, but in any case many policyholders would not find it advantageous to avail themselves immediately of the new terms; for example, a man with a poor claims record, or a high-performance car, or who uses his car for business, or whose car is likely to be driven by young or inexperienced drivers, could easily find himself better off if he renewed his policy on the old basis. While the new terms involve better -discounts for careful drivers, they also incorporate increases in basic premiums.
In the circumstances, the AOA members con- sidered that it was fair to enable those who would find the new terms advantageous, e.g., most 'proven care' policyholders, to request that they be applied on renewal of their polices in the months of August, September or October. It is not unreasonable to expect that the policyholder who wishes to avail himself of this facility should ask for it and it is simply not true to say that 'no one bothered to tell him' The position was clearly set out by the asso- ciation in the statements issued to the press in July, and in the advertisement which was carried by major national and provincial newspapers shortly afterwards, and subsequently by technical motoring journals.
0. S. MASErIELD
Chairman Accident Offices Association, Aldermary House, Queen Street, London EC4 [Leslie Adrian writes: 'Administratively imprac- ticable' has a familiar ring. The question surely is, why could not the ACA's member companies cir- culate their policyholders individually, instead of leaving it to them to ferret out the news for them- selves?]
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