WAR DAMAGE INSURANCE

Evening Star, Issue 25032, 26 November 1943, Page 5

WAR DAMAGE INSURANCE

RATE REDUCED TO ONE SHILLING

INCLUSIVE COVER FOR EARTHQUAKES

(P.A.) WELLINGTON, Nov. 25

lii accordance with his statement in the House of Representatives on July 1 last, the Minister of Finance, the Hon. W. Nash, announced to-day that the annual premiums for war damage insurance will be reduced as from March 1 next, on which date all insurers will have been compulsorily covered "for a period of two years at the rate of 5s per cent. "To secure uniformity of liability among all those who are called upon to_ contribute ; compulsorily under th« War Damage Act," Mr Nash said, " it will be necessary to maintain the rat« of os per cent, until February 28 next, otherwise those whose fire policies fall due towards the end of the second compulsory year would, quite fortuitously and for no sound reason, pay less than policy holders whose fire policies happened to fall due earlier in the year, if all had been called upon to pay on one date, say at the beginning of each compulsory year, which, theoretically, would have been proper, objection on the part of those whose policies fall due before March 1 next and who will still be called upon to pay at the rate of 5s per cent., would not have arisen. Administratively, however, it was not practicable to collect premiums on the one date, and the fact that under the system in operation some people have to make their second compulsory payments later in the year than others is not a sound reason for contending that the more favourable war conditions justify a lower war damage charge in their particular cases. " It may be added," Mr Nash said, "that although the risk of damage through enemy action lias happily lessened, the definition of war damage in the Act includes ' accidental damage occurring as a direct result of any explosion or fire which involves any dangerous things required . for war purposes, aind which happens or is caused by, through, or in connection with the manufacture, storage, or transportation of any stick explosives, munitions, or other dangerous things.' IRisks under this heading will remain until the end of the war.

"The new premium," Mr Nash continued, "will be at the rate of Is per (•ctot., and will be levied under the same conditions as have operated from the commencement of tho compulsory payments of premiums on March 1. of last year. On, the reassembly of Parliament it is' proposed to extend the War Damage Act to cover earthquake damage and to provide for all premiums at the Is per cent, rate to cover both earthquake and war damage, Tho balance in the War Damage Fund on February 28 next will still be conserved to cover war damage risks and, subject to an appropriation by Parliament, compensation may, if required, be paid to cover, damage against earthquake or other national disaster."