ITEMS OF INTEREST

Evening Post, Volume CXII, Issue 2, 2 July 1926, Page 12

ITEMS OF INTEREST

MUTUAL INSURANCE

A Dunedin insurance official, in recommending motorists to join the Mutual Insurance Company of the South Island Motor Union, said: "The-idea of tho Mutual Insurance Company is to reduce the cost of insurance to its members. Certftjji Chriatcuurch members of the South Island Motor Union approached tiie Underwriters' Association and asked for special deductions or special terms for their own members only. Though no reductions in the premiums were agreed to, certain extensions in the cover under comprehensive policies were suggested by the Underwriters' Association. In the meantime the Motor Union went on with its own scheme. It is charging exactly the same rate as the insurance companies. The peculiar part is that though so many advocates of this insurance scheme of the Motor Union are local manufacturers, and at different times advocate the supporting of local industry and tho keeping of money within the Dominion, their scheme is made possible by a very small retention on cars that are insured by their scheme, and the balance of the premiums obtained is sent out of New Zealand by way of reinsurance premiums."