WAR DAMAGE INSURANCE

Dominion, Volume 35, Issue 9, 6 October 1941, Page 6

WAR DAMAGE INSURANCE

There will be agreement with the general idea of legislation to provide for the compulsory insurance of property against damage by enemy action, or by defence measures. The War Damage which was introduced in the House of Representatives last week, appears to have been modelled on .the War Damage Act in the United Kingdom, which came into operation in April of this year and, by covering damage sustained from the outbreak of war onward, made good the British Government’s undertaking that all owners of damagf-d or destroyed property would receive compensation. Before the New Zealand Bill is passed, however, the. Govern ment should explain how it proposes to determine when—if evqrthe Act shall be put into operation. In the United Kingdom the need had actually arisen, and coverage was made retrospective. Heie the need may never arise. Even if danger should loom close to this country there will still be uncertainty as to whether damage will oe done. Furthermore there will be no means of estimating beforehand the probable extent of damage, and thereby setting a premium rate for protection which will be adequate without being excessive. The creation of legislative machinery for some national protection scheme is a proper and necessary precaution. J3ut it does not follow that it is either necessary or desirable to fix rates by guesswork and then compel property-owners to pay premiums in advance, lhere may be an ever-present risk of damage to property as a result ot domestic defence measures, but the scope for such damage is so small that the risk is surely no justification for levies on all insured property. It would seem that the enforcement of the Act and the preparation of insurance terms would be undertaken more sensib.v and fairly after any future situation of danger had developed—as in the United Kingdom. If, as remarked by the Minister of Finance, the Government does not intend to wait until damage is done, a clearei statement of its intentions should be forthcoming, and the pioposec process of fixing insurance rates should be desciibed.