FIRE AND ACCIDENT FUND.

Manawatu Standard, Volume XLIII, Issue 1705, 19 December 1919, Page 5

FIRE AND ACCIDENT FUND.

BOROUGH BECOMES ITS OWN INSURANCE OFFICE.

After consideration of all aspects of tho case and discussion on a/ report submitted by a special committee, tho liorough Council decided last night that it should take over its own insurance policies, both accident and lire, with the exception of.a few outlying cottages in respect to fire insurance. The report of this special committee was a? follows:—Wo have perused the letters from the town clerks of Auckland,

Wellington, Christchurch, and Dunedin, and find that: Auckland carry their own accident risk, but not fire, and find this cheaper than paying insurance premiums. They also favourably consider-the question of establishing a" fire insurance fund. Wellington inaugurated their own accident fund in 1909-10, and it ' has" proved a decided success. After paying all claims they have an accumulated credit of £26,351. Fliey have not established a fire insurance fund. Christchurch established both a liro and accident fund some years ago, and both have proved an undoubted success. Dunedin

has also taken over the whole of its fire and accident risks, and the results are regarded as exceedingly satisfactory. This Borough (Palmerston North) is paying £127 per annum for fire premiums and £2OO to £230 for accident premiums, making a total of about_ £350 a year. In 10 years this, together with compound interest, would amount to nearly £SOOO. During the last 10 years not a singlo claim has been mado for fire loss, and in no one year have tho accident claims exceeded tho premiums. Last year was by far the heaviest claim, which amounted to £127 as compared with a premium of over £2OO. We therefore unanimously recommend the Council to establish its own fire and accident fund. fa Eliott suggested, in moving the adoption of the report, that the firo risks on three or four outlying cottages, on which the premiums were small and the fire appliances in tho vicinity also small,'should

be allowed to continue. This course was oventually agreed to so that as the various policies lapse, which will occur on March 30, tho Borough will automatically become its own insurance olfice with a fund established by tho payment to itself of tho usual premiums.