The Gazette 1972

to the proceedings, the N.U.V.B. could by withholding

consent deprive him of the right of joining another

union of his choice. Accordingly the plaintiff is entitled

to a declaration that the defendants are infringing the

plaintiff's constitutional right of joining the union of his

choice.

[Murphy v National Union of Vehicle Builders;

unreported; Murnaghan J.; 11th January 1972.]

Note

—This decision has been much criticised by the

Irish Congress of Trade Unions.

Petition of P.M.P.A. that they were entitled to Green

Cards as they had performed their part of the

contract granted.

The Governments of some States in Western Europe

have encouraged the notion that third party motor

insurance taken out in one country should be valid in

all others and that it should comply with the compul-

sory in?urance requirements in each State. The scheme

adopted in the United Kingdom and in Ireland was

that the Insurance Companies of each country were to

establish a Bureau which would issue an international

motor insurance card to the companies who were mem-

bers of it. This card was called a "Green Card" and

would show the countries to which the cover had been

extended; in the event of an accident in another coun-

try, the holder of the Green Card could apply to the

Bureau of that country for compensation. In 1952, the

Minister for Local Government (hereafter called the

Minister) began negotiations with the then Irish existing

motor insurance companies—and the British companies

operating in Ireland were not consulted. A draft agree-

ment was prepared establishing the Irish Visiting

Motorists Bureau Ltd. (hereafter called the Irish Bur-

eau). This company was duly incorporated in December

1957. The draft was similar in terms to an agreement

°f January 1953 made between the Minister and the

Irish Bureau. This agreement was stated to be supple-

mental to an agreement of 2nd January 1952 between

the Irish Bureau and the five motor insurance com-

panies incorporated in Ireland (The Hibernian, The

Irish National, The Insurance Corporation of Ireland,

The Equitable and the Shield). In this it was stated

toat the Irish Bureau was making the agreement as the

duly authorised agent of the five insurance companies.

In the agreement of 29th January 1953 it was agreed

toat the Irish Bureau should supply to each of the Irish

companies such Green Cards as they might require.

Meanwhile the British Motor Insurance Companies

could obtain any Green Cards they required from the

Motor Insurance Bureau in London. As the Shield

Insurance Company were not authorised, like other

Irish companies, to carry on motor insurance business

in Britain and Northern Ireland, they took the biggest

Proportion of Green Cards issued by the Irish Bureau

t this time.

In 1963 the Equitable Insurance Company was

°rdered to be wound up because it was insolvent; the

mount of the claims paid on foot of this winding up

ow exceeds £100,000. The introduction of car ferries

Between Ireland and Britain, and Ireland and the Con-

tinent as well as the growing popularity of the caravan

holiday led to a big increase in Ireland against motorists

holding Gréen Cards issued by Bureaux in other States,

^hich gave much extra work to the four Irish insurance

companies involved. These companies finally gave notice

the termination of the agreement to the Minister.

Negotations then took place between the Minister

and the British companies with a view to their sharing

the responsibility of issuing Green Cards with the Irish

companies, and this they agreed to do in 1967. Mean-

while the Irish insurance companies were considering

the question whether the old Irish Bureau should be

wound up, and a new one set up in its place, and asked

the representative of one of the Irish companies, Mr.

X, to look into this.

The Private Motorists Protection

Association

(P.M.P.A.) were incorporated in April 1964 and claimed

that lower premiums for safe drivers could be charged.

This did not endear them to tarriff companies, and when

the P.M.P.A. representatives approached Mr. X in July

1967 he told these representatives that the Irish Bureau

would be prepared to issue Green Cards to their Asso-

ciation provided they complied with the conditions

imposed by the British Motor Insurance Bureau in

respect of new members by procuring a Banker's guar-

antee for £10,000 in respect of each thousand Green

Cards issued by the Bureau, supplemented by the

deposit of suitable securities. The Bank of the P.M.P.A.

stated that they were precluded by the terms of the

Insurance Act 1936 from giving such a guarantee. The

P.M.P.A. then informed Mr. X in October 1967 that,

as a new Irish Bureau was being formed, there was no

point in joining the old one. As P.M.P.A. needed

Green Cards for their policy holders, they first pur-

chased some from brokers associated with a Belgian

insurance company.

In 1969 the Insurance Corporation of Ireland sup-

plied Green Cards to them, and tried to transfer some

of the shares held by them in the Irish Bureau, and

made an application to this effect to the Board, which

was duly refused on June 25th.

Under the new arrangement finally agreed upon, all

the motor insurance companies incorporated in Ireland

and all the British companies and syndicates trans-

acting motor insurance business in Ireland were to

become members of the Irish Bureau and the articles

of association of the original Bureau were to be amended

to provide for this. The draft was agreed and incor-

porated in an agreement signed on 10th July 1970.

The Irish Bureau then sent a circular letter to all

motor insurers to inform them that the necessary resolu-

tions to alter the articles had been passed, and that the

wording of the agreement had been agreed. New mem-

bers could apply for two shares each which could be

made available by existing shareholders, and requested

each company to send Mr. X a formal application for

two shares. On 11th October 1969 P.M.P.A. applied

for two shares in the Irish Bureau, and sent a cheque

for £2. In reply, it was stated that it would be some

time before the reconstituted Bureau came into exis-

tence. On 30th January 1970 P.M.P.A. received their

share certificate for the two shares, and duly asked for

20 cards. At a meeting of the Board on 9th March 1970

the nine directors realised, that, in view of the liqui-

dation of several British Motor Insurance Companies,

the issue of Green Cards could involve the Irish Bureau

in heavy liabilities, and regarded P.M.P.A. with suspi-

cion. A resolution was accordingly drafted that hence-

forth Green Cards would be issued to all members other

than founder members on the basis of a cash deposit of

£10,000, or a deposit of securities of £10,000 lodged in

a Bank in respect of each one thousand cards. The

conditions of the British Bureau that the cash deposit

or the lodgment of securities was to be made for five

years only from date of issue was overlooked.

145