FIRE INSURANCE RISKS.

New Zealand Herald, Volume LI, Issue 15662, 16 July 1914, Page 8

FIRE INSURANCE RISKS.

TIME LIMIT CONDITIONS. EXTENSION SUGGESTED. [n? TELEGRAPH.— CORRESPONDENT.] Wellington, Wednesday. The Minister in charge of the State Insurance Departments, the Hon, F. M. B. Fisher, was asked to-day by Mr. J. A. Young (Waikato) whether he' would consider the advisability of bringing in legislation providing:

(a) That no conditions endorsed on any fire insurance policy issued by any company doing business in New Zealand and requiring proceedings thereon to be commenced within any period less than the period allowed by the statute of limitations, should operate to defeat any claim unless delay beyond the period allowed by the policy wero shown by the com-' pany to have prejudicially affected the company in some material degree.

(b) That no condition in any firo insurance policy should have any validity unless approved by the Governor-in-Council. Mr. Fisher replied as follows: — (a) It is considered inadvisable that tho period in which an action for the recovery of a claim may be brought against' an insurance company should ■be unlimited for the reason that if the action is not heard while all evidencewhich in the case of a fire quickly disappears—is fresh and available, vicious and criminal claims would receive an unfair advantage. The six months from the date of fire allowed by the Slate Fire Insurance Office has in practice proved entirely adequate for the protection of the interests of its policyholders, and it might be advisable to call upon tho companies to adopt a similar period.

(b) No case has been brought under my notice showing that the present policy conditions have pressed unfairly upon an insured person having a just claim, but if it can be shown that injustice is being caused, the Government will be glad to consider the members' suggestion. Mr. Young said that his question had been prompted by a recent Waikato case in which the holder" of a policy, after a fire had_ taken place, had neglected to make his claim within the prescribed period of three months. A law suit had followed, but the decision was against the i policy-holder on the ground indicated. Mr. A. H. Hindmareh (Wellington South): What is tho name of the compahv? Mr. Young said that two companies were concerned, but he would not mention their names in tho House.