Transport Ministry survey results may affect ‘compulsory third party insurance’ move

Steven-JoyceWith a recent survey of 4000 New Zealanders by the Ministry of Transport revealing that almost 92.4 percent drivers already have third party vehicle insurance, Transport Minister Steven Joyce said that the statistics might affect the government's proposal of making third party insurance compulsory in the country.

Going by the figures, the level of the 'already third party insured' vehicles is nearly at par with that in countries where vehicle insurance is mandatory; thereby spelling the needlessness of the government's 'compulsory third party insurance' move which is part of its Safer Journeys road safety strategy.

With the survey largely contradicting the anecdotes that have apparently magnified the problem of uninsured drivers on the roads, Joyce said that the over 92 percent insured drivers' figures had surprised him. He added that the findings of the survey have made it difficult to justify the cost that the compulsory vehicle insurance move would entail.

However, the Minister refrained from adding that the proposal would likely be thrown out, and said that the government will take an appropriate decision about the move later this year.

Meanwhile, Insurance Council Terry Jordan told NZPA: "Anecdotes suggest whenever someone is hit it's by an uninsured motorist." Adding that the Ministry survey mostly included youth and people from lower socio-economic classes, Jordan said that the results - which showed that more New Zealand drivers were covered by insurance than earlier thought - were "fairly compelling."