London, June 5.
Trading on the Stock Exchange opened the week quietly.
The announcement of the pending flotation of a £5,000.000 Australian 4 per cent. loan at 96% imparted easiness to the gilt-edged section, where the premium on the new South African loan declined from 4} to Accident, Motor General Account This account, owing to the increasing cost of motor claims both at is met with provincial support.
hile Kaffirs closed quiet, following earlier Cape home and abroad, results in an underwriting loss. Claims in respect of loss of expectation of life continue to be numerous, and the Courts have now awarded damages for shock suffered by witnesses of an accident despite the fact that such witnesses were not themselves in physical peril. In view of the indeterminate Position in regard to the assessment of liability it is desirable to make provision for outstanding claims on the fullest possible basis and upon ihis principle it was decided to strengthen the provision hitherto nade in this respect, As was stated by the chairman at our last annual general meeting, motor insurance must, in the interests of all concerned, be placed upon a sound economic basis, but apart from increases in the rates for motor cycles, there is as yet little evidence of such a general rise in the cost of motor insurance as is commensurate with the constantly increasing hazard, This hazard, quite apart from the larger amounts awarded by the Courts, continues to increase in conformity with the ever growing number of vehicles on the roads and unless some drastic improvement in road conditions and usage can be brought about, a general rise in the cost price of motor insurance appears to be inevitable. In the meantime, your Company will conserve its interests by declining to 3e interested in the heavier types of this class of business and by increasing the rates charged for the less hazardous sections where such a course is demanded by results, I am glad to say that our miscellanegus accident business has given satisfactory results and it is hoped to develop this profitable account, Reuter.
June 2
War Loan 314% (Red.) £9%
Text read from the printed page and cleaned; old type leaves the occasional error.