Two Insurance Groups Not Pleased with NTSB Proposal

09/25/96

Best News has reported that The American Insurance Association (AIA) and the National Association of Independent Insurers (NAII) both praised a new National Transportation Safety Board (NTSB) report on mandatory seat belt safety laws, airbag performance and the role they played in reducing auto accident deaths, especially among children.

The two insurance groups, however, disliked one recommendation from the NTSB report: that states set up programs to educate citizens about the benefits of child restraints and pay for the efforts through a tax on insurance premiums.

The NTSB report said that States should "consider setting aside one-tenth of 1 percent from all motor vehicle insurance premiums for policies written to establish a highway safety fund" that would disseminate educational material.

AIA Assistant General Counsel David Snyder said the insurance groups objected to the proposal because it would amount to "a hidden tax on auto insurance" for an "ill-defined, state-run information program that may not achieve anything productive." Snyder added that the AIA "would be happy to discuss more effective alternatives with NTSB."

Sue McKenna, spokesperson for the NAII, said, "We feel we're doing more than our share at this time to promote seat belt and child restraint safety. Industry already funds a lot of safety programs."

According to AIA statistics, over 100 people die in motor vehicle crashes every day. Annually, the figure on fatalities exceeds 42,000. The number injured exceeds 5 million people, costing $150 billion annually.

Paul Dever -- The Auto Channel