RATES EXCESSIVE

Auckland Star, Volume LXXIV, Issue 39, 16 February 1943, Page 4

RATES EXCESSIVE

WAR RISK PREMIUMS

CONCESSION INADEQUATE

"These alterations can be regarded only as a rectification of certain minor anomalies which dnflicted particular hardship on insurers for small and broken amounts and for very short periods," said Mr. L. Alfred Eady, president of the Auckland Chamber of Commerce, to-day, when asked to comment on the changes in the methods of charging premiums for war damage insurance, which become effective on March 1. At present the premium is 5/ per £100 or part of £100, but under the new system the premium will be 5/ per £100 with a pro rata charge for amounts of less than £100. Thus on £50 the premium will be 2/6, and on £25, 1/3. Moreover, from March 1 only the actual period of the cover will be taken into account in assessing the premium payable. At present the premium is charged for a full month in cases where the period of cover is for part of a month. "Although the alterations are m the right direction in that they involve in certain cases a reduction in the premiums, the effects are comparatively insignificant, and do not represent a substantial reduction in the premiums," added Mr. Eady. Mr. Eady recalled that an appreciable reduction in the rate of war damage insurance had been advocated by the chamber for some time, mainly on the grounds that the premiums were far in excess of the experienced or anticipated risk. Some months ago the funds stood at approximately £1,500,000. By reason of the fact that the second year's premiums were mostly payable in December last, the fund today stood at about £3,000,000. "The Government has recognised the reduction in risk of war damage by curtailing fire watching and also relaxing the restrictions on lighting," said Mr. Eady,,- "so that the risk of war damage can be regarded as definitely lower than when the ,War Damage Act was originally passed on October 13, 1941."