Manawatu Evening Standard. FRIDAY, JANUARY 2, 1942. WAR DAMAGE INSURANCE.

Manawatu Standard, Volume LXII, Issue 28, 2 January 1942, Page 4

Manawatu Evening Standard. FRIDAY, JANUARY 2, 1942. WAR DAMAGE INSURANCE.

The threat to this country by Japan's declaration of war has brought into effect the War Damages Act, the regulations under which -were gazetted just prior to the Christmas vacation. The Act was passed last session, when the hope was expressed that it would not be necessary to implement its clauses, but that very natural desire has been extinguished by Japan's aggression. To make it operative is therefore the correct thing, for it means making provision against possible enemy action. Criticism, however, has been levelled against the Government for the manner in which it has proceeded. The wording of the Act implies that it is to be immediately compulsory, applying to all who have their property covered against ordinary fire risk, and the debate in Parliament on the Bill followed this line. The relative Act in Britain is compulsory in its effect upon buildings and voluntary in relation to personal property, but the Government now has resolved that the Act will be voluntary in its application until the end of March, and has given no explanation for its departure from the original proposal. While quite indefinite on the premium to be charged, the Minister for Finance indicated in the House that 2s per cent, was possible, a»d on this basis estimated au annual return of £540,000. The figure has now been fixed at 5s per cent., but as all policyholders are not being brought immediately within the scheme the fund canuot be estimated.

Comment has also been passed about the amount of delay and confusion the regulations have caused. The imperative need is to make the Act work as smoothly as possible, and with necessary speed. But while clause 14 lays it down that any property insured against fire under a contract made "after the commencement of the Act shall be held to be insured to the same amount against war damage by the War Damage Commission," this phrase has been taken to prevent the automatic application of the clause to contracts now current. Yet if this were not so the process was at once available_ to achieve the necessary result immediately. The effect is that persons or companies who want war damage insurance urgently must apply" for it in the prescribed form and pay the necessary premium on application, and considerable trouble has been the lot of those who have had to make application, while the insurance companies have been given much extra work at a period of the year when it is least desirable. The present position is not conducive to bringing the Act into force in the shortest time and by the best means.