State Fire Office Profits

Dominion, Volume 36, Issue 304, 18 September 1943, Page 6

State Fire Office Profits

Sir, —The test for a fire office’s prem iums is the proportion of these which it pays in claims based on the average of several consecutive years. Centuries of experience has shown that if an office pays in claims 11/- of every pound received in premiums it can pay its way very handsomely. On this test the results of the State Fire Office prove that for many years, its policy-holders have paid premiums more than three times higher than were or are necessary or just. As a result the 'profits have been stupendous, many times greater than ever known anywhere in the centuries of fire business. .... , For every pound paid in claims during the seven years ending 31/12/43 more than 30/7 has gone to the Income Tax Dept. It would hardly be possible to find anywhere in the world, any business which has ever been so high a payer of income tax in proportion to benefits given to its customers or clients. Nowhere else in the English-speaking world have fire premiums even half as high been charged. The workers and farmer's have every right to buy their fire insurance on at least as good terms as those do who live outside N.Z.

Naturally the astounding income tax paid by the State Fire represents only a part of the excessive charges. Several hundred thousand pounds are disguised in the names of several reserves, all of which are quite unnecessary, except for purposes o£ disguising profits. It would be hardly practicable to return these to the original contributors, many of whom are dead or could not be found. These so-called reserves could best be used by distributing them among the various patriotic societies. The Wellington society’s share would be about £BO,OOO. Such action would win public support everywhere.-r-I am, etc., REALIST. Wellington, September 16.