CO-OPERATIVE INSURANCE.

Mataura Ensign, Issue 1033, 15 May 1902, Page 2

CO-OPERATIVE INSURANCE.

A CANTEUbUHV EXPERIMENT. At the Southland Provincial Council of the N.Z. Farmers' Union, a communication received by the Mataura branch in referenoe to co-operative insurance was laid on the table. This was a letter from the secretary of the Farmers' Co-operative Fire and Marine Insurance Association of Canterbury, and ran as follows: —" We charge the same rates as other offices, but shareholders doing business with the Association have for years past been receiving a bonus of 10 per cent, on their premiums. With regard to insuring risks on Government properties we do a good deal of this class of business, especially in connection with that of the Government Advances to Settlers Act. In reply to your inquiry for information about the Association, I beg to advise that it was promoted by the Now Zealand and Canterbury Farmers' Co-operative Ansociatione for tbe purpose of undertaking Fire and Marine business in all its branches on the property of its shareholders, together with the investment of the funds of tbe Association. Some short time after tbe formation of tbe Company, it was decided at a general meeting of shareholders to extend tbe Articles of Association so as to pennit of the acceptance of business from non-shareholders, ai.d which necessitated an increase in tbe capital to £50,000 as provided by the Companies Act. Moreover, it* was also agreed that the acceptance of to An and borough dwelling r slg oou!d be undertaken when sufficiently detached from contiguous buildings. Tbe buKincss of the Association for some years was confined to tbe Canterbury district until other Cooperative Associations started throughout the colony, when our operations were extended, and these Associations were added to our list of agencies. We are new doing business throughout the whole of New Zealand, and shareholders, instead of having to pay up not less than 50s each on two shares, the minimum holding, can pay '2os each per sbare, and participate in profits. With regard to tbe binus of 10 per cent, on fire business, which has been paid to the shareholders since the formation of the Company, with the exception of some two years, no doubt it will be said by some that there is no certainty of this ulways being paid, but the fact that it has been paid for so many years without interruption, and that a chance of receiving a bonus is better than no bonus at all should prove an inducement to tbe farmers in your district to support the Association ; moreover, it is almost exclusively a farmers' institution, having come into operation through their exeitiou, and not without considerable hostility from other offices. It is just possible that but for its coming into existence, farmers would have been paying higher rates to-day than those now charged. The capital paid up has almost entirely been invested in faini holdings, so that here again the farming community have benciited from the operations of the Association. Besides fire, we do a considerable marine business on wool, frozen meat, and other descriptions of produce intended for shipment to London. In both cases wc charge tariff rates.' I may say we are represented in Dunedin by the Otugo Fanners' Co-operative Association, and that the Southland Farmers' Co-operative Association are our agents for Southland. Enclosing copy of our last balance sheet for tho year ended, 30th Juno, IDOI Yours faithfully, It. W. Buown, Secretary."