FIRE INSURANCE QUESTION.

Hawera & Normanby Star, Volume XLII, Issue 7384, 10 February 1902, Page 2

FIRE INSURANCE QUESTION.

The fire insurance question was discussed at some length by the Conference of the Chambers of Commerce at Wellington. A Feildmg delegate, Mr Cobbe, as will have been gathered from telegrams previously published, went straight for. State fire insurance, his argument, like that of some other members, being that premium rates were out of proportion to the risks run, and that therefore enormous profits were made. As to the complaint of the companies that they made no profits out of the fire business in recent years, Mr Cobbe observed that it was curious that they could pay dividends out of losses, but, apart from that, his point was that the number of companies doing business in New Zealand (twentysix) was out of all proportion to the population and the amount of business to be done in the colony ; that the multiplication of offices and management expenses were excessive, and that by combination these expenses were squeezed out of a comparatively small bodypf insurers. He urged that the Government could do the work cheaper, and/

avoid many charges which insurers have to pay. Members of tbe Conference who defended the insurance companies had not very muoh to say against these arguments except reiterating that the figures actually showed that fire losses j approximated very closely to the premiums, that the only safe biaia of insurance business was expert knowledge, and that therefore the Government could not depend on ordinary oivil servants to do the work. It was admitted that there were too many companies and too muoh expense, j but oce of the objects of the com- ! bination was to reduce these. Mr John Duthie spoke very strongly on thesubjec.., and rather to tha point, too. He said that "to his mind. Mr Gobbe had made out a very good case against the existing methods of the insurance companies. No doubt much of iheir business was done at an excessive cost, and, while the insurers were powerless to interfere, yet they had to pay for it. Hs could not see how the business of the companies could be effectively carried on without combination and a tariff; but the number of fires which had occurred, during the last two years in New Zealand was a soandal. It pointed to incendiarism, and showed that insurance was being conducted without regard to ordinary business safeguards. Competition was keen, and there was no proper examinafc on of the risks, and the losses went on. He had no sympathy with Stat9 fire insurance, but if the companies did not alter their methods, we would have to get legislation to have the risks jropevly assessed. Tha companies, by accepting ruiaous risks, were jeopardising the public safety by off ring an incentive to incendiarism." As a result of the discussion, it was decided that the Underwriters' Association be asked ito adopt a uniform fire insurance j policy for the colony, and failing compliance, that the Government be asked to introduce a bill, and also that the Association be asked in drafting a uniform fire insurance policy to insert a clause providing that iv every case of insurance of a building, tbe underwriting company shall notify the insurer within six months after date of insurance whether it is satisfied with the risk, such notification, or the fact that six months has passed

without such notice, to be a bar to any reduction of the claim in case of firs occurring.