DOMINION'S FIRE LOSSES.

Sun (Christchurch), Volume I, Issue 150, 31 July 1914, Page 8

DOMINION'S FIRE LOSSES.

ARE PROPERTIES OVER-INSURED [From our own Parliamentary Reporter.] WELLINGTON, July 30. In the Legislative Council to-day the Hon. J. Duthie (Wellington) asked the Minister of Internal Affairs:— (1) Whether the grave danger which exists throughout New Zealand from fire risk through over-insurance, with its accompanying excess rates of premium, has received the consideration of the Government, and if so, dQ Ministers propose to deal with the question this session? ' (2) Whether the system of co-insur-ance recommended in volume 14 of the latest ''Encyclopedia Britannica," and which is widely resorted to in the United States, JPrance, and Germany, has had their consideration? (3) Whether the New Zealand State Insurance Department, after its 10 years' experience, is now*able to derive a tariff for risks calculated to get the equities and to command general confidence? In an appended note the hon. member pointed out that, according to the report of the Department for 1913, the Dominion had to shoulder probably the largest consumption of wealth by fire of any civilised country. The total fire losses over a period of 10 years probably exceeded six millions sterling. Over-insurance was, in Mr Duthie's opinion, one of the chief factors in j causing the present loss ratio. It could be largely prevented if joint action was , taken by all the insurance offices. The office which now declined to insure up to the full value or to over-insure lost the business to some other office with more elastic regulations. He could unhesitatingly state that at the present time there were many hundreds of policies current in the Dominion which covered property for more than the value and which afforded a strong incentive to' incendiarisifi. Ujitil the insurance offices associated to fight the evil, whole-heartedly and honestly, many thousands of pounds would continue to be sacrificed yearly. THE MINISTER'S REPLY. In reply the Hon. H. D. Bell stated that the issues raised in the hon. gentleman 's questions had been under the consideration of the Government for some time, and it was hoped that in the i*ear future steps would be taken to minimise the enormous fire losses incurred in New Zealand upon the lines suggested by the Hon. Mr Duthie. Mr Duthie intimated that he would move on this subject at a later date in order to give an opportunity for its discussion.