FIRE INSURANCE RISKS.

Press, Volume L, Issue 15021, 16 July 1914, Page 10

FIRE INSURANCE RISKS.

TIME LIMIT CONDITIONS. EXTENSION SUGGESTED. (Sr-ECIAI. TO "the tress.") WELLINGTON, July 15. The Minister-in-Charge of tho State Insurance Dopartirients (the Hon. F. M. B. Fisher) was asked to-day by Mr Young (Waikato) whether he would consider the advisability of bringing in legislation providing—(a) that no conditions endorsed on any fire insuraiico policy issued by any company doing business in Now Zealand and requiring proceedings thereon to be commenced within any period less than tbe period allowed by tho statute of limitations, should operate to defeat any claim unless elelay beyond the period allowed by the policy were shown by the company to have prejudicially affected tho company in some material degree; and (b) that no condition in any fire insurance policy should have any validity unless approved by the Governor-in-Council.

Mr Fisher replied as follows: —(a) It is considered inadvisable for the period in which an action for the recovery of a claim may be brought against an insurance office to bo unlimited, for tho reason that if the action is not heard while all evidence (which in tho case of a tiro quickly disappears) is fresh and available, vicious and criminal claims would receive an unfair advantage. The six months from the datb of fire allowed by the State Fire Insurance Office has inpractico proved entirely adequate for the protection of the interests of its policyholders, aud it might be advisable to call upon the comnanies to adopt a similar period, (b) No case has been brought under my notice showing that the present policy conditions have pressed unfairly upon an insured having a just claim, but if it can he shown that injustice is being caused, the Government will be glad to consider the hon. member's suggestion.

Mr Young said that his question had been prompted by a recent Waikato caso, in which the holeler of a policy after a fire had taken place had neglected to make his claim within the prescribed period of three months. A lawsuit had taken place, but the decision was against the policy-holder on the ground indicated. Mir Hindmarsh: What is the nairie of the company ?

Mr Young said that two comnanies were concerned, but he would not mention their names in the House.