INSURANCE RISKS.

Dominion, Volume 2, Issue 429, 11 February 1909, Page 5

INSURANCE RISKS.

GOVERNMENTS UNFAIR ADVANTAGE. '■ (BY TELEGEAPH—SrECIAL CORRESPONDENT.) . Auckland, February 10. . In the courso of his speech at the annual meeting:of the New Zealand:lnsurance Company to-day, the Hon.. Thorno George said: "And now as to'our underwriting, in the Dominion. Our. year's operationsliave- resulted .in a loss,• which I.believe has been the experience of all other fire companies do-ing-business in.New Zealand..; This.has been caused by the exceedingly .low' rates which have been ruling, together with the heavy expense which! is entailed, upon companies through the contributions under the Fire Brigade Act. The condition of. fire underon,;-

in the Dominion gives cause for. grave consideration. It stands to reason that in viewof the'heavy risks wo carry,'and tlio conflagration .hazard which; is:always with .us, the rates ought to be' put on. a basis .which, will allow of a .proper, provision being.made for such a-contingency,'and also for-a -fair profit after paying current loss. . Though' it does, not affect our last year's failures, I.may hore-refer to' what_ has recc :;ly transpired as • regards • our accident business.' ; Shareholders are aware thai owing to the coming into operation of .tho Workers' Compensation Act of last session'our mining industry.has been passing through a very critical period. The liability of mine-owners has been greatly augmented by the inclusion of certain, speck fled diseases in Clause'lo of the Aci'j.-ih'addi-' tionto tfie increase of the amount: payable for the death of aworkman. ; This'/liability' was so greafr-and indefinite, and the time within which .'.workers... could inako: their claims ; so unlimited that insurance' companies refused to cover the risk, without a medical examination. This, as : you a're .aware, the. men (unwisely, I think) refused to submit to, and the trouble. Culminated at the Huntly mines.. In the meantime instructed tlio State: Insurance Department to cover the whole risks under the Act without medical examination, at an increased premium of 10 per cent, on the,present rate of '455., making 495. 6d. per cent., and 20s. per cent, to cover the rick of pneumoconiosis, or, in all, 695. Gd. per cent., the State, guaranteeing the, Accident. Department ' against loss.. The result; of this was' .that mineowners who .were not 'prepared to carry the risks themselves were forced in a groat many instances to take; their business' from; the private.companies and -to';obtain the; necessary cover with the. State Department. In ;our. opinion, the; State; has thus: by their guarantee taken an unfair advantage over, private companies. We are now passing through the jubilee of the company's existence, an d- at our next annual meeting your directors hope, to mark .in. some special mariner the completion-of tho company's fiftieth 1 year.". " ■;'•'■ '!,'.; : '.','