FIRE LOSSES IN THE DOMINION.

Press, Volume LXV, Issue 13374, 16 March 1909, Page 2

FIRE LOSSES IN THE DOMINION.

SOME LOCAL OPINIONS

At the Fire Brigade Conference, held recently in Auckland, Captain Hugo, the Government Inspector under the Fire Board Act. called attention to the very large percentage of fires taking place in Xew Zealand. A member of

"The Press" staff yesterday* interviewed some gentlemen of considerable experience in the* matter, with a view of ascertaining their opinions on tho subject. Attention was first directed to the figures quoted in the '" Australasian Insurance and Banking Itecord '' in its review of the results of 1!? OS with regard to fire losses in Australasia. These shewed that Captain Hugo was quite right when he called attention to the fact that the New Zealand results shewed an enormous percentage considering the population. In dwell-ing-house risks, out of a total amount of £'220,000 paid by insurance companies in Australasia, practically one-halt the loss occurred in the Dominion; *o on a ttttal of £120,000 for yenei»;l stores, and £84,000 tor hotels, the same result occurred. It was admitted thai perhaps ttie high rale in comparison was due to the tact that whilst in Australia the buildings insured »viv mainly of brick and stone, in the Dominion they were of wood, which would perhaps account for a good deal ot the increase. But even allowing for this, those interviewed on the subject were strongly of opinion that the losses by tire in New Zealand were exceptionally high. Since the. reduced rates of premium oamo into force in 190-3 it was asserted that an increase in fires liad been apparent. This was attributed to carelessness and a neglect of precaution, to a large extent arising from the fact that owing to reduced premiums a larger amount of insurance was taken in many cases. On the subject of what precautions are taken by the insurance companies to prevent over-insurance, there appeared. according to opinions gathered, to be considerable" difficulty in arriving at a proper valuation of premises and goods sought to be insured. " When you consider," said one of tho gentlemen interviewed, " the great variety of buildings and goods we are called upon to deal with, the difficulty of arriving at anything like a true valuation will be apparent. Take buildings, for instance. It is notorious that experts differ very widely indeed in their estimates of value, and to cover all the different ranges and descriptions which we have offered to us would require an army of experts in different lines. liven then, as I have said, there are wide differences of opinion as to value. The same applies—even in a greater degree—u> goods, etc. We may tako ii valuation cf a shop, lor instance, where there is a large stock at the time fully giving plenty of margin But circumstances may alter, and at the time a tire occurs, there may not bo. this margin. If the tiro is an incipient one we have a check to some extent, but when there is. a total loss we have practically little, or none. I niT'. not surprised that Captain. Hugo should draw attention to the nuuiber ot fires in Wellington. Tliero are a large number of buildings erected on paper having first, second and third mortgages on them, and tho natural desiro is to insure- them as fully as possible. It must, be also understood that the keen competition is to be taken into account. If one office will not take n risk another will. And hero again comes in the question of valuation to which I have already referred. Wo do tho best wo can by careful inspection, and ho doubt this to some extent prevents, many losses. But unless tho great expense is incurred of employing experts as to the building, the household furniture, and the hundred and one classes of goods contained in the buildings throughout tho whole of tho Dominion, risks varying almost in every particular, we have really no real test of value. To do this would cost an enormous sum, and would mean the increase of expense to a very large extent. The course proposed by Captain Hugo of an enquiry being held into every firo which takes piaeo 1 think suggests one remedy which would check the evil complained of. Under the present system, unless n fire results in los; of life or possesses suspicious circumstances no enquiry is held. But if it wcru made compulsory in every case to hold an enquiry it would mako the honest insurer far more careful, and would, I tlynk, act as a deterrent to the dishonest. Again it would have the result of making insurers more careful in their estimates of vnluc. Locking to tho fact that the money lor the fire losses jcomes out of tho pockets of tho general public and is in every sense a national loss, the whole subject is one which the Government should carefully consider with a view of legislation so as to deal efficiently with the. evil complained of. The-sug-gestion of Captain Hugo as to the holding of enquiries in all cases is one thing that should be made compulsory, and no doubt if the Government take up tho question other checks against so great a, waste of the money of the people owing to firo losses may bo devised."