WAR DAMAGE FUND

Press, Volume LXXIX, Issue 23972, 12 June 1943, Page 4

WAR DAMAGE FUND

29 CLAIMS LODGED LAST YEAR NO PREMIUM REDUCTION YET From Our Parliamentary Reporter WELLINGTON, June 11. Last year, 29 claims for war damage were lodged with the War Damage Commission, and settlements were effected for a total of £955 12s 2d. This was stated in the report of the commission presented to the House of Representatives to-day. The aggregate amount insured under the act was not less than £600,000,000, said the report. The premium income for the year was £1,611,218, interest earned was £16,622, and, after provision for claims and expenses, a net balance of £1,620,149 was credited to the account, which, including the balance brought forward from the previous period, amounted to £2,495,240. Administration expenses amounted to less than half of 1 per cent, of the premium income. This low cost was made possible by the gratuitous* services of insurance organisations, and members of the commission gave their services without remuneration.

Because the damage could exceed by several millions the present total of thj fund, the commission considered that it would not be prudent to recommend a reduction .of the premium earlier than the end of February of next year. Consideration had been given to applications for a lower rate for mobile property, but the commission was of the opinion that no departure from the flat rate should be made. The basis of the scheme was that all owners of property should subscribe to a common pool, without regard to geographical or other distinctions, so that those who might be unfortunate enough to suffer property loss through enemy action would receive compensation.