Explanation Of War Damage Insurance Cover

Northern Advocate, 24 December 1941, Page 3

Explanation Of War Damage Insurance Cover

[Per Press Association—Copyright.] WELLINGTON, This Day.

The War Damage Commission at its first meeting yesterday made a number of decisions with a view to assisting applicants for insurance, stated the Minister for Finance (Mr Nash) last night. Where any person, firm or company has a large number of mortgage risks or owns a large number of properties, special difficulty arises in getting full details immediately, said Mr Nash. Global Cover The commission will grant a global cover to approved holders of not less than 50 mortgage risks or properties on the following conditions: (1) The mortgagee or owner must declare that he applies for cover on all his mortgage investments or properties to the amount of the existing fire insurance cover. (2) The application must be received and proved by the commission by December 31, 1941. (3) Payment must be made by December 31, 1941, of any interim premium calculated on the full amount for a period of six months (which will be about the average period over all the properties). (4) A schedule must be furnished by January 31, 1942, giving full details of the risks covered and periods of the cover required. (5) Any additional premium required must be paid by January 31. 1942, and any refund due to the applicant will be paid by the commission.

Alternative Proposals

Alternatively, the commission will grant a group cover where an applicant applies for war damage cover oit a selected number of his properties or mortgagee risks (not less than 50 in number) on the following conditions: —

(1) A list of properties or of the names of' the mortgagors must be furnished with the amount of the cover required for each property. This must be received and approved by December 31, 1941. (2) Payment must be made by December 31 of an interim premium calculated on the total amount for six months.

(3) Details of each property and the period to be covered must be given by January 31, 1942. (4) Any additional premium required must be paid by January 31, 1942, and any refund due to the applicant will be paid by the commission.

Dealing with mortgaged property, Mr Nash, said that under the regulations concerning voluntary cover, if either mortgagor or mortgagee pays the full premium on the war cover of not less than the full insurable value of the property he may recover half the premium from the other party. Mortgaged Properties

“Most mortgages require that the property under the mortgage must be insured against fire to the full insurable value,” he continued, “and therefore the commission has ruled that insurance against war damage to the amount of the fire insurance will be considered to be equal to the full insurable value.”

Referring to short-term cover, Mr Nash said this will only be granted for commodities* or risks normally so covered by fire insurance, such as builders’ risks, crop and produce policies.

“It should be mentioned,” added Mr Nash, “that war damage insurance can be taken out voluntarily at any time in the future. If application is made by December 31, 1941, the cover will operate for the whole of December. Any cover taken out after December 31, 1941, will not commence to operate until the application is lodged and the premium is paid in full.

Overates For Whole Term

“It is necessary, when applying for war insurance on the property insured against fire, to produce to the insurance company the fire policy or the last renewal receipt, or give the expiry date, policy number and the amount of the cover. Except for the short period until the next renewal date after March 1, 1942, the commission will not accept an application for any period less than 12 months.”

The date of the of the War Damage Act is formally notified in a proclamation issued in last night’s Gazette as December 19.