FIRE INSURANCE RATES.

Evening Post, Volume XLIX, Issue 97, 25 April 1895, Page 4

FIRE INSURANCE RATES.

• A PEOTEST. FOEMATION OP A PBOTECTIVE ASSOCIATION. A public meeting convened by 33 business firms in town was held last evening in the Chamber of Commerce to discuss matters in conneotion with existing firo insurance ratesBetween 60 and 70 persons attended, and apologies were read from several business men who were unable to be present. Mr. D. J. Nathan, who was voted to the chair, said the object of the meeting was to form a Protective Association, to secure, among other things, a rednotion in the inburance rates in Wellington, which had for years ruled enormously high compared with those in other parts of the colony. Action in a similar direction had already been taken in Christchuroh, ana he was informed that at least three strong companies had withdrawn from the combination which had existed so long in that city. If a Protective Association was formed they would bo able to do much more than individually. Individual effoit had proved fruitless, heretofore. The rales ruling to-day were ridionlously high, and out of proportion to the risks. In Switzerland to-day the rates for first class risks were Is 3d per cent. ; second class, Is 8d per cent. ; and third class, 2s Id per cent. ; *nd he understood that certain New Zealand companies were actually trading in Switzerland at those rates, while here they were charging from 10s to 12s per cent, on dwellinghouses, and for warehouses, business premises, &c , from 10s to as high as .£5 per cent It was downright robbery. Long ago, when the Wainui-o-mata water snpply scheme was projected, reductions were promised, but it would be found in some instances the rates were SO per cent." higher than before the water snpply was obtained. As single individuals it was beet in many cases to compromise disputed claims, rather than go to the expense of ac aotioii at law. Policies wore full of pitfalls, and to rectify this it was necessary to secure legislation. Provision should exist for referring all disputes to arbitration. (Hear, hear ) Insurance companies might not recog nise it, but they were surely paving the way for a system of State insurance. Mr. J. Q. W. Aitken siid it was a wonder the people had borne so long with the existing rates The firo insurance companies had acted very selfishly, and it would recoil on them. Hates had beon accepted in Dunedin, for instance, by some companies which could not possibly pay, bnt the reflection of the companies seemed to have been that those fools in "Wellington were prepared to pay for it." They were not asking a reduction of the rates to a minimum which would not pay, but that they should be placed on an equitable basis. He movedThat it is desirable a Fire Insurance Protection Association should be formed in Wellington, to secure nnanimous action am °ngst insurers, and having for its objectß — 1. The reduotion of fire insurance rateß ; 2, the abolition of oppressive and unjust clauses in insurance policies; 3, prompt settlement of claims, and generally to guard the interests of insurers in all their relations with underwriters; 4, the provision of a recognised body whioh shall be authorised to deal with the insurance companies • that the proposed Association shall be managed by a committee of nine members, who shall eleot one of their number as Presidentthat a preliminary committee be now formed consisting of Messrs. A. Veitoh D Nathan, B. Hannah, J. Myers, C. Smith" J. G. W. Aitken, James Smith, M. Laing and T. A. Field, to organise the Association, draw up rules, and report to a subsequent meeting. „ T, n * motion was seconded by Mr. Alexander Veitoh. Mr. George Allen recollected the promised reduction in rates when the water supply jcheme was taken in hand, and in the interests of fair play they ought to be reduced. He hoped the proposed Association would succeed in its objects. Mr. W. F. Parsons said that when in the City Counoil he moved that the Government should be asked to insert a olause in the Municipal Corporations Act giving power to establish a soheme of municipal fire insnranee, but the proposal was rejected on the casting vote of the then M<iyor. For tne last three years the average damage per annum to buildings and stocks by firo amounted to J27411 6s Bd. The premiums p ?}£ amounted to something like .£30,000 lo ilO.OOO a year. If tlie city undertook its °n^?Ji nanranoei ft would effeot » saving ot .£25,000 a year. Mr. John PI mmor said he had been paying insurance for the last 40 years, and during that time he had only received .£l5 His !eMOd prcmiam was 103 > and his "'ghes-t Mr. Joaoph Myers asserted that the amount paid in premiums in Well.nglon last year was between £75,000 aud .£BO,OOO insurance business was to a certain extent problematical. A big company was prepared to open business in Wellington and cut tho rates, provided it was assured of a competent fire brigade. Tho Municipal Brigade was as efficient as the funds of tho Corporation allowed, bnt the insurance companies ought to contribute towards its support. Ho intended moving in tho City Council that tho Government should be asked to legislate in the direction of supporting a thoroughly equipped brigade, the expenso to be borne equally by the Corporat on, the Government, and the insurance companies. The Chairman said without a strong Proteotive Association they would never get any reduotion from the companies, oven if they had 50 fire brigades in the city. The motion was then put and carried unanimously. Votes of thanks to the Chairman and to the conveners concluded the business of the meeting.