MUNICIPAL ENTERPRISE

Evening Star, Issue 18255, 20 April 1923, Page 2

MUNICIPAL ENTERPRISE

CORPORATION INSURANCE. GAIN AVERAGES £3,000 A YEAR, In the course of his address to ratepayers at North-cast Valley last night, Or W. Begg referred to the progress of the insurance fund of the corporation. He said that the operations of the two branches of the insurance fund for the year ended March 31 were again highly satisfactory, showing an advance in the total of the accumulated fund for the year of £5,150 5s Id. The amount of premiums paid into the fund for the year was £4,910 7s fid. The total claims paid out were £1,330 5s 3d, while the fund earned £1,570 2s fid in interest during the vear. The claims for accidents to woikmcn were the highest since the scheme was instituted, the sum actually paid out and brought to account at balancing date being £1,052 Is, which was 39.9 per cent, of tho premiums received on account of tho accident branch. There was, howevei, a contingent liability for tho unfortunate death of a worker at the Soulhcio Eeservior, which had not been provided for at the date of closing the accounts. After allowing for this, tho accumulated surplus for the year was reduced to £4,375, and the _ percentage of claims to premiums was increased to 59.8. the operations at the Southern Rcservior had proved a fruitful source of accidents. Jhe only claim in respect of the fire bianche was the damage to one of the motor lorries.' , . The net surplus of £4,375 for the year must, however, be regarded as highly satisfactory, and clearly indicated that the time was close at hand when the council could, with absolute prudence, allow the whole of tho departments to operate without paying any premium at all, as the interest earned by tho accumulated funds should bo ample: to cover all the demands for claims, ihat was tho goal for which, they set out when the funds were established, and when they recalled the fact that that was as late as 1918 in respect of tho accident fund, and during the following year for the fire fund, the hypothesis on winch tho whole scheme was based was sound. After deducting tho £IO,OOO that was set aside to form the nucleus of the fund, together with compound interest on that amount at 5 per cent., they were still about £IB,OOO to tho good for the six years' working,.or a clear gain of an average of £3,000 per year. That should he a complete justification ot tho policy of carrying their own fire and accident risks. . Cr Bogg, who had previously mentioned that the council was always being accused of muddling by newspaper correspondents, asked if there was any muddling about tho insurance scheme. The figures were there, be said, and they spoke for themselves.