FIRE INSURANCE POLICIES

Nelson Evening Mail, Volume LXIV, 21 February 1931, Page 5

FIRE INSURANCE POLICIES

EXGRATIA PAYMENT TOAN ON LONDON MARKET PROPOSED NAPIER, 19th February. Undivided support was given by a meeting of Napier fire insurance policyholders this morning to a scheme outlined in the New Zealand “Financial Times,” under which companies would allow ex gratia 20 per cent, of loss, the remaining SO per cent, to be met by a cheap loan on the London market, the interest and sinking fund lor which would be paid by a. load of an additional 121, per cent, on all fire insurance premiums throughout the Dominion. The contention that it was unfair to expect other districts to contribute to the re-establishment of Napier and Hastings was answered by the argument that, unless both towns were fully rehabilitated and business restored, the rest of the Dominion would have to meet all taxes and other State expenses without help from this district. It was asserted that complete restoration was warranted, as business was certain to be restored because the productive capacity of the province was in no way affected".

“If a terrible blight had swept the province it would have a different matter, but the country districts are just as rich as ever,” said one speaker.

"Those districts must have an outlet for their puroduce, and naturally will use the nearest. Our port is still working, and business is therefore bound to return to Napier and Hastings.” A condition of the scheme to which support was given was that all claims met be put into re-establishment and that no actual cash be paid.