THE RATES CHARGED BY PRIVATE COMPANIES

Nelson Evening Mail, Volume XXX, Issue 45, 22 February 1896, Page 2

THE RATES CHARGED BY PRIVATE COMPANIES

PROPOSED MUNICIPAL ASSOCIATION. At the meeting of the City Council last night the Committee to consider the pronosal of the Invercargill Council to establish a Municipal Fire Insurance Association controlled by tbe State presented their report as follows :— Your Committee after carefully considering the matter, recommend that a .reply he sent to the effect that this Council is in favcnr of the principle of mutual Municipal Fire Insurance, nut consider that the details of the scheme submitted require some modifications before final adoption. Cr Piper (one of the Committee) said he differed from the recommendations made, as no proof had been given that the rates charged by private companies were inequitable or excessive. Cr Lock disagreed from Cr Piper. The scheme proposed was elaborate and good, and tbe rates of insurance were too high. He quoted figures to show tbe difference between the premiums paid to Insurance Companies and the losses paid, and be held that the high rates went to swell the cost of maintenance of the companies instead of lessening the losses on fires. The Government would undertake the control of State Fire Insurance, • and it would be a good thing. He hoped the Premier would carry out the scheme. Cr C. Harley said past experience did lead to the belief that a State Fire Insurance would cost less in working expenses than any private concern. Io was the result in the life assurance department atad the only result of a State fire insurance department would be that another insurance company would be started. Cr Akersten complained of high insurance rates, and thought the companies should pay for the water consumed in extinguishing fires. The companies, by taking bigb risks, induced incendiarism. Gr Piper quoted Dritish figures of insurance showing that the rates ranged from Is 6d to 2a 6d per cent for risks from ordinary to hazardous, with somewhat higher rales for extra hazardous rates. Cr Everett said that the general run of rates had been lowered since the agreement between the insurance companies. The Mayor said tbe insurance companies were charging far more than they should in Nelson seeing the magnificent water supply and the small risk of large conflagrations. Those who lived in tbe centre ot the town had to pay through the nose fa.' insurances, though the people outride might have less to pay. The report was adopted.