WAR DAMAGES

Evening Star, Issue 24004, 1 October 1941, Page 11

WAR DAMAGES

COMPULSORY INSURANCE MEASURE I COMMISSION TO ADMINISTER SCHEIE (Special). WELLINGTON, Sept. 30. The War Damages Bill, introduced in the House this afternoon, makes provision for the insurance of property against loss cither through enemy action or necessary action by the authorities for defence purposes. It empowers the constitution of a war damage commission to administer the insurance scheme, its members comprising the Minister of Finance, who will be chairman, the secretary to the Treasury, and four other members nominated by the Governor-General. This commission will administer the war damage fund created from premiums paid to the commission. It is stated in the Bill that where, after the commencement of the Act, any property is insured to any amount under any contract of fire insurance made in New Zealand with an insurance company, the property shall at all times during the war period be insured against war damage. Tho Bill provides the machinery under which the war damage premium will be collected by insurance companies holding fire policy. Power is given to make regulations prescribing rates of premiums. In addition, the War Damage Commission is empowered to insure property against war damage to the extent that it is not insured against fire. It may also insure manufacturers of munitions against third party risks. Power is given for the establishment of adjustment courts to adjust' liabilities in the case of war damage claims. Insurance against war damage is to be compulsory, though the date for enforcement of the scheme covered by the Bill has not been decided. These points were made clear by the Minister of Finance when he was questioned by the Opposition. Tho Minister explained that the measure gave power to the Government to set up a war damage commission and to collect a damage fund. There would also be an adjustment court with a Supreme Court judge to determine the allocation of damages to properties in connection witii any acts of "the enemy. The risk associated with possible explosions in the preparation of munitions was also to be covered, provision being made for compensation to property owners in the case of damage. ; The collection of premiums would, he added, he associated with the collection of fire insurance premiums, and there was also provision enabling the commission to insure against war damage .to property not normally covered by these fire insurance policies. Mr Holland, Leader of the Opposition: Is it a provision for universal insurance.

Tho Minister: Yes, right through when it comes into operation. Asked if it was the intention of the Government to build up a fund, the Minister replied that when the Government determined that it should come into operation it would fix the rate of premium which the insurance companies would collect, adding the amount of their fire insurance premiums. Mr Dickie: Is it compulsory? The Minister: When the Act comes into operation it will be compulsory. The detailed provisions of the measure show that it may become the nucleus of a national fund to render financial assistance in the case of earthquake or other disaster. Tho fund is based on premiums to be paid by insured persons, and if these at any time are insufficient to meet war damage claims the Minister of Finance may advance money from the war expenses fund to meet the deficiency. “ After meeting all claims all the surplus funds,” states another financial clause, “shall be applied in accordance with appropriation of Parliament for the purpose of granting financial assistance to persons suffering loss or damage by reason of any earthquake or other disaster.”