INSURANCE COMPANY'S

Auckland Star, Volume LVIII, Issue 277, 23 November 1927, Page 11

INSURANCE COMPANY'S

DEPOSITS.

AN AMENDING BILL.

JAKES £20,000 FROM LLOYD'S.

V f WELLINGTON, Tuesday. As amendment to the Insurance Comptaies Deposits Act was introduced by Governor's Message in the House of Bepresentatives early this morning. It was explained that the principal Act made it compulsory for insurance complies to lodge deposits with the Public Trustee, varying according to the class of business.

Mr. p. Fraser asked how this would Meet Lloyds. The Minister replied that there were agents in New Zealand carrying on busiQMS for the underwriters, but the existing law mule no provision for these age&ta making deposits. The. bill would place Lloyd's on the same footing as other companies doing business in New Zealand, and they would be . required to deposit £80,000. Mr. Atmore (Nelson) suggested that the measure was not so innocent as it appeared. These underwriters cut insurance rates, and the bill was a concession to the clamour of insurance companies. The Premier, stated that the bill was •n effort to place all insurance operators on the same footing. There was similar legislation in two Australian States. Mr. Campbell (Hawke's Bay) declared that he felt strongly that the bill was PTt of an attempt to drive Lloyd's out or force them into the combine. There were very big savings in insurances on ®eat and wool.

The Hon. F. J. Rolleston, Minister of Justice, suggested that the critics did not understand the bill. The underwriters had millions covered in New Zealand. It was absurd to suggest that * £20,000 deposit would drive them out. JuCjyd'g chairman had declared that a deposit from agents was not unreasonable, though- he thought the proposed amount was too high.