WAR DAMAGE

Evening Post, Volume CXXXIII, Issue 41, 18 February 1942, Page 6

WAR DAMAGE

INSURANCE COVER

SOUGHT

Under 2 per cent, of the policy holders in the N.I.M.U. Insurance Company had voluntarily applied for war damage insurance on their motor vehicles, and only one in three persons had applied for war damage cover on property insured against fire, said the president of the Wellington Chataiber of Commerce (Mr. R. H. Nimmo) at a meeting of the council of the chamber last night, when presenting a memorandum on war insurance prepared by Mr. N. S. Hunt. Of these, thousands had been insured by such organisations as the State Advances Corporation, life insurance offices, mortgage aijd investment companies, etc. This showed the traditional apathy of New Zealanders and indicated ' that the majority were prepared to take a chance. Therefore the provisions of the Act should be made automatic.

It was possible for the War Damages Act to operate unfairly under the voluntary provisions adopted, the report stated. As the Act stood it imposed a potential legal liability to contribute towards a community fund without any compensating legal right to participation in the fund. The position was best illustrated by a suppositious case. "A" Ltd. might have to renew insurance in April and would consequently be covered against war damage, while "B" Ltd.,? with fire insurance renewable next November, would not be covered, although the potential legal liability was the same. If a raid occurred in July, "A" Ltd., through sheer chance, would be legally entitled to compensation, while "B" Ltd. would not, although "B" Ltd. was under the same obligation to contribute when the policy fell due. A COMMUNITY EFFORT. "The War Damage Act is a community effort and should operate fairly and impartially as between . members of the community," Mr. Hunt's memorandum concluded. "As it is framed at present, it does not provide for equal rights and equal liabilities, and so it should be amended—particularly as the process of amending it is so simple—by a proclamation extending all existing fire insurance contracts, as defined by the Act, automatically to embrace war damage cover as well. That the authorities in Australia recognise the great importance of war damage protection being universally and [immediately operative is evidenced by an extract from the 'Australasian Insurance and Banking Record' dated January 21, 1942. Speaking of 'compulsory insurance on buildings and fixed property, which will include immovable machinery and plant,' the 'Record' states: 'Subject to such conditions and limitations as may be prescribed, the scheme outlined above is in force as from the beginning of the year, and any damage occurring from January 1 onwards will be paid for, though the premiums deemed to be due on that date will not be collected till later.'"

Mr. M. F. Luckie said he agreed with Mr. Nimmo. The Act had caused many difficulties which could be removed as suggested. He believed that if representations were made on those lines they would meet with ready acquiescence. There were £600,000,000 of insurable assets in New Zealand, and the insurance should be on a community basis. He suggested that a deputation should be sent to the Minister concerned through the Associated Chambers of Commerce.

This course was agreed to