STILL CRAMMED

Auckland Star, Volume LXXII, Issue 303, 23 December 1941, Page 3

STILL CRAMMED

INSURANCE offices -STAMPEDE UNNECESSARY" | i ! Much confusion still appears to | exist in the public mind concerning wa r damage insurance cover, and j insurance offices in the city to-day I were again besieged with applicants ' and inquirers. It was stated that) application forms for the whole of i the Dominion numbered 4000 and one company alone in Auckland required 20,000. These forms, which were available to-day to a limited number of firms • and individuals, were somewhat simi- j lar to the usual insurance proposal J form, and quite simple in wording. I Some people, it was stated, were phon-! ing a company with the request thatj they be automatically covered. This i is not possible, and all the insurance | officials can do is to take the name. and address of the applicant andj forward forms to be signed and re-! turned. There is no cover without' cash. In cases where no application forms are available (several insurance companies in the city are said to be without them) particulars are being taken and cash receipts given. "There is no occasion for the public to get pannicky," commented an insurance official to-day. "The present stampede is quite unnecessary, and as long as applications are completed within the next eight days there should be no trouble." The usual principles of indemnity applying in the case of ordinary insurance will operate in war risk cover. For instance, the firm or person insured cannot receive more than his loss, but he would get the amount of his loss, up to the amount covered. As many people are still uncertain about the formula for war damage insurance laid down by the Government, it might be well to repeat it. The rate of premium is 5d per month (or part of a month) per £100 (or part of £100) of cover. In this regard a month means any of the 12 named months of the year, and if any part of the period of cover falls in any month the premium will be payable for that month. For example, if a cover is wanted from December 20 to June 5 the premium will be paid for June as well as December, a total of seven months. Building Societies' Position Efforts to secure a blanket cover ■ for members up to the expiry date | of their present fire insurance poli- j cies are being made by the Northern . Co-operating Terminating Building Society, which is one of the largest mortgagees in Auckland. The secretary, Mr. R. D. Matthews, said to-day that if the Government declined the request, the society would circularise members advising them that war damage insurance was compulsory in March atid recommending them to make arrangements with insurance companies for cover till then. The society would, of course, pay half the cost in accordance with the regulations. Mr. Matthews added that the fire insurance cover on various properties in which the society was interested amounted to £1,120,000. Other building societies in-the eky, are taking j similar action, and will Eoint out to their mortgagors, if no lanket cover can be arranged, that the mortgagors must take the initiative. Representations to the Government have already been made by the Northern and the Auckland societies. Another point which has caused some speculation concerns the rights of the mortgagee during the present voluntary period for taking out war damage policies. It is not known whether a mortgagee who takes out cover has the fight to recover from the owner if the mortgagee has been unable to consult or make contact with him. Clarification of this position is awaited.