15 PER CENT. REBATE

Evening Post, Volume CVI, Issue 27, 1 August 1923, Page 2

15 PER CENT. REBATE

UPON STATE FIRE PREMIUMS

TO OPERATE FOR TWELVE MONTHS.

The hoard of the State Fire Insuranca Umce has decided to grant a rebate of 15 per cent, in respect of -all premiums under policies dating f rom the Ist August, 1923, and within twelve months thereafter.

In making this announcement in the House of Representatives yesterdar, the Minister in' charge (Sir 'Beaton Khooes) said tliat under the original State Fire Insurance Act. provision was made for payment of bonuses to insurers when necessary reserves had been provided. Experience showed, however, that the clerical and administrative work involved in the carrying out of a bonus scheme would be very heavy, and that the cost would m many cases equal the sum available for bonus purposes. Tha Government therefore provided amended legislation last year under which rebates from premiums payable could be granted by the-State Fire Board. By this method the heavy cost which would have attached to the bonus scheme was avoided, and it was under the amended legislation that the rebate was made. Tho rebate was to-be taken as the fulfilment of promises over past years to- pay a bonus, to policy-holders', and the percentage had been fixed at the high rate of 15 per cent, on this account. The rebate of 15 per cent, was for one year only, and the percentage to bn fixed for any future period must depend entirely on the progress and profits of theoffice. The State Fire Office, stated the Minister, was in an exceptionally strong position financially-, and it wos" anticipated that the rebate to be allowed by the State Fire Offinp would be provided out of the underwriting profits for one year without drawing upon the income from investments, which now brought : a considerable revenue.