WAR DAMAGE INSURANCE

Grey River Argus, 27 November 1943, Page 5

WAR DAMAGE INSURANCE

MOTOR UNION’S DISCUSSION. CHRISTCHURCH, Nov. 25. The opinion that a review of the war damage insurance scheme was much overdue, in view of the eas-ing-up in the war situation in this area generally, was expressed bv the executive committee of the South Island Motor Union this evening, after it (had received a report that no contributions to Australia’s war risk insurance scheme would be required during 1944 from firms or persons already covered under the scheme. The president (Mr. W. R. Carey) mentioned also that marine insurance rates had undergone several favourable changes. The Australian report stated that the figures on which the Commonwealth War Cabinet reached its decision showed that almost £14,000,000 would stand to the credit of the scheme by the end of this year. One estimate of the total of the compensation payments likely to be paid under the scheme was £5,000,000. The scheme would thus remain in operation, but the contribution for 1944 would be payable only by those who acquired property after January 1, or. who, now being uninsured, wished to insure voluntarily. Australia had about 2,000,000 contributors to the war risk insurance scheme and the fund created had been invested in Commonwealth loans.

A circular from the War Damage Commission of interest to motorists was also before the committee. The circular stated that it had come to the knowledge of the War _ Damage Commission that applications had been made to insurance offices for alteration in the expiry dates of fire policies which would have the effect of making the periods of cover less than the usual 12 months. This, no doubt, was a s a consequence of the official statement that the war damage rate would be reduced as from March 1, provided that the war situation had not deteriorated meantime. I , • 4. , “The Commission desires to make it clear that anv such, evasion of liabilitv for the full 12 months’ war damage premium will not receive the approval of the Commission,” stateu the circular. “All fire insurances taken out or renewed on or . before February 29 which, apart from the operation of the War Damage Act, would have been taken out or renewed in the usual wav for the normal period of 12 months must carry, the full annual liability of ss. per cent. Returns submitted by. insurance offices are to be on this basis. War damage premiums for less than 12 months are to attach only to lire insurances where it is the £°rmal fire insurance practice to effect such for lesser periods than 12 months.