Citation

Holmes RA. J. Risk Insur. 1970; 37(4): 609-619.

Copyright

(Copyright © 1970, American Risk and Insurance Association, Publisher John Wiley and Sons)

DOI

10.2307/251070

PMID

unavailable

Abstract

The effects, under the present system of automobile insurance, of three-party coverage of income loss and two party coverage of automobile damage are explored in this study. A large sample survey has been conducted and the distribution of compensation is found to be biased against the serious injury and fatality cases. These are the large-loss cases which are forced by the present system to rely on three-party insurance for compensation. This discrimination is shown to affect public opinion of the insurance industry adversely and very significantly. The advantages of extending no fault insurance to include income loss are discussed.