STATE FIRE INSURANCE.

Auckland Star, Volume XXVII, Issue 158, 7 July 1896, Page 2

STATE FIRE INSURANCE.

THE GOVERNMENT BILL.

ADDITIONAL PARTICULARS.

(BY TELEGRAPH.— PARLIAMENTARY RE- _ POETER.)

Wellington, this day. The following is a more detailed account of the Government Fire Insurance Bill, a resume of which waa s*nb you yesterday. The meaaara it entitled "An Acb to establish a Government Fire Insurance Office, and to make other provisions for the insurance and protection of real and personal property in tfee colony against loss or damage by fire." It Is a long measure of 73 clausea, and ia divided into two parts. Parb 1 deals wihh the constitution and management of the proposed Government Fire Insurance Office, and Part 2 wibh the compulsory insurance of buildings, and maintenance and equipment of fire brigades. The Fire Insurance Department is to be under.the charge of. a manager, who is to be a corporation and hold office during the Governor's pleasure. A deputy manager, valuers, agents, and clerks, are to be appointed by the Governor, and are bo be subject to the civil service acts, and to find security for the faithful discharge of duties. A general board is to be constituted, consisting of the manager, Colonial Treasurer, Commissioner ef Taxes and two competenb persons choeen by the Goyernor-in-Council. A district board may alee be Bfib up in districts as defined by the Governor-in-Council. In order to provide capital for the business of the department tho Governor-in-Council is to be empowered to raise loans from time to time nob exceeding an aggregate of £250,000. The loam may bs raised is the colony and the debentures issued may be converted into New Zealand consolidated stock. In event of the original capital proving insufficient the Governor in-Council may, upon receiving a requisition from the manager, raise supplementary capital to the amount required, nojs to exceed,£2o,ooo., ~Until the pleasure of Parliament is ascertained the interest payable on loan debentures or scrip is nob to exceed !>\ per cent., bub securities may be hypothecated for the purpose of temporary advances prior to the floating of che loan at higher rates. A sinking fund ia to be established for repayment of the original capital, and yearly tho profit* of tho buwinese are to be applied to paying off any supplementary capital thab may have been raised. All moneys paid or payable into the Government Fire insurance account are declared to bo public moneys within the meaning.of the Public Revenues Acb, 1891. Full provision is made for the keeping: of separate accounts, and for an annual balance-aheot being submitted to Parliamenb. Tho audib office is to exercise its full powors with regard to the Governmenb Fire Insurance Department. Tha surplus profits of its business are to be applied in two moieties, first to the creation of a reserve fund, second to the payment of bonuses to insurers. Rates of premiums, method of valuing fire risks, and other matters are to be determined by the Governor-in-Conncil.

The second parfa of the Acb is proposed to be permissive, and may be adopted by a poll of tke ratepayers of boroughs or counties. The poll is to be taken on the requisition of 50 or more ratepayers, in the manner prescribed^ by the Local Bodies Loans Acb ; bub each ratepayer ia to have " one vate and no more," and the proposal is to be deemed carried if a majority of the valid votes is recorded in its favour. After the lapse of three years the vote may be rescinded by a poll taken in the same way, such rescinding vote to hold good for twelve months, and the rejection of the original proposal to adopt the Acb ia to hold good for the same period. In every district where the Acb is adopted a firo insurance roll ia to bo prepared, ehovrine the value of every building, the name of its owner, its condition and classification at to risk forthwith. Upon the roll conaiag into force every building in the district shall be deemed to be insured up to the full insurable value in the Government) Office, exeepb such aa arc already insured elsewhere, but the latter must come into the Governmenb Office immediately on the expiry of the term, and nob later than twelve months after the roll has come into force. The premiums are to bo paid halfyearly in advance, and until fully paid, are to be a first charge on the property. Any borough or county council, whether or not ib adopts the compulsory insurance scheme, may, if ib thinks fib, and shall if the Governor-in-Council so prescribe*, equip and maintain one or more fire brigades; A fire fund is to be created, onehalf of the necessary amount being contributed from the Council's funds, and one half by all fire insurance companies carrying on business in the colony, including the Government) Fire Insurance Department aa one of them, in proportion to tho amount of fire premiums received by each. Although insurance is to be compulsory, the manager of the Government Office may decline to insure any building if he considers the risk too great.

I have dealt) with this Bill at some length, as the important nature ot the proposals makes it desirable that local councils should at the earliest possible moment be made aware of them. The meaiure ia very carefully drawn, and the scheme embodied in ib has many excellenb features.