WAR RISK COVER

Auckland Star, Volume LXXII, Issue 302, 22 December 1941, Page 6

WAR RISK COVER

RUSH IN AUCKLAND

INSURANCE OFFICES BUSY

There was an immediate rush of applications at insurance offices in Auckland to-day for war damage insurance cover at the rate of 5/ per annum, or 5d a month, for every £100 of value, as announced by the Minister of Finance, Mr. Nash, on Saturday night. As no special forms had yet been issued by the Government, the companies were using their own receipt forms in the meantime. Hundreds of householders and business folk made it their first business of the day this morning to call on the insurance companies concerned and see that the war risk was added to their policy. As a result the insurance employees have been the busiest people in town all through the day. At most lire insurance offices policy holders seeking the extra cover queued tip early at the counters, and all hands in the offices had to be impressed at times to cope with the rush of business. This unusual activity continued throughout the day in all offices. Compulsion In March People are not compelled to insure until March 1 next, but, if they desire a cover now, they may obtain it by paying 5d per cent per month, until the expiry date, on their present fire insurance policies. A portion of £100 is charged for as £100, and a portion of a month is charged for as one month, irrespective of the number of days left in the month. For the information of readers the rate of insurance on £100 up to March 31 next and every month of expiry after that date is given as follows:— At 5d per cent

s d March—Four months ........ 1 8 April—Five months . 2 1 May—Six months 2 6 June—Seven months 2 11 July—Eight months 3 4 August—Nine months 3 9 September—Ten months 4 2 October—Eleven months 4 7 November—Twelve months ... 5 0 December—Thirteen months . . 5 5 January—Fourteen months ... 5 10 February—Fifteen months ... 6 3 The war cover will be available immediately for the protection of all property owners in New Zealand who make application either through their insurance companies or direct to the Government, stated the Minister. Cover would not be arranged automatically until after March 1, 1942; therefore, persons who wished to safeguard themselves now must lodge applications. All premiums would be paid into a war damages fund, from which all claims would be met., | People could arrange war damage cover for an. amount greater than their fire cover if they so desired, said* the- Minister, and any not insured against fire could obtain a war, I damage policy. No guarantee could be 'given that a property would be reinstated immediately, as this was not always wise- or practicable. Mortgaged Properties Speaking of mortgaged properties, said mortgagees had a very | vital interest in security against war . damage. The interest of the mortga--1 gee varied from one property to i another, and for the whole Dominion ! it would be safe to sav that the mort- | gagees' interest would not be less I than half. I The regulations provided that the owner of the property or the person making application must in the first place meet the premium himself before the property became covered. He could then recover from the mortgagee one half of the premium and failing payment by the mortgagee, he could deduct it from his next payment of interest or principal. In the same way, if the mortgagee paid the premium he could recover one-half from the owner or add that amount to the security if the money was not paid. When there was more than one mortgage on the property the mortgagees would share equally one-half of the premium payable bv the mortgagee.