LOSS BY NATIONAL DISASTER : STATE MAKES PROVISION

Gisborne Herald, Volume LXXVI, Issue 23028, 19 August 1949, Page 4

LOSS BY NATIONAL DISASTER : STATE MAKES PROVISION

(P.E.) WELLINGTON, Aug. 19. Critics of the Government attitude towards expending moneys from the earthquake insurance fund, as instanced last year following the Gisborne floods and the Frankton tornado, will be interested in evidence that “natural disaster” insurance has been studied by Mr. Nash, Minister of Finance, and his Budget-making associates. In his address to the House last evening Mr. Nash stated that in accordance with the promise given last year, it was proposed to extend the cover under Section 14 of the Earthquake and War Damage Act. 1944, to insured property damaged as the direct result of storm or flood, which is of an abnormal and unforeseen nature.

“No increase in the present premium charge is intended for this additional cover, but 10. per cent, of the premium income will be credited to a special Disaster Fund to be used to meet approved claims,’ said Mr. Nash. “It is also intended to give authority to grant insurance on a voluntary basis under section 15 of the Act for damage occurring as the direct result of storm and flood to property of any kind, including property which is not normally insured against loss or damage by fire. “Apart" from these provisions, if farmers . promote mutual insurance schemes to protect their crops and stock not normally covered by insurance, the Government will consider favourably paying a proportion of the cost of approved claims."