INSURANCE DEPOSITS.

New Zealand Herald, Volume LIX, Issue 18195, 14 September 1922, Page 6

INSURANCE DEPOSITS.

TERMS OF NEW BILL. THE FOREIGN COMPANIES. [BX TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON. Wednesday. In the House to-night, the Hon. E. P. Lee, in moving the second reading of the Insurance Companies IDeposits Amendment Bill, said a difference of opinion ha'd : arisen in connection with the interpreta- ; tation of some of the clauses in the pre~ ! vious legislation, and this Bill aimed at I making the position clear. There was no ] alteration in the law relating to com- ! panies carrying on business in New Zeaj land prior to February, 1922, but British I companies commencing business here after I that date instead of being compelled to i deposit £150,000 would deposit only ' £50,000 spread over the three branches I of insurance if they were carrying on all three:—Fire £22,5*00, life £22,500, anu marine £5000. On the other hand new foreign companies would have to pay £50,000, even if they were only carrying on one of the above branches. It was not proposed to ask local companies to pay any deposit. ] The Hon. J. G. Coates said when this Bill was first introduced the opponents i of the Government called it a Government j Loan Bill. That- was not the position at | all, for all the money which came in under '■■ it had been paid into the Public Trust I Office, and had been lent out as follows :— Mortgages, £367,800; local body debentures, £470,680; hospital and charitable aid boards ; £47,550. The Minister, in reply to several critics, j said, so far from increasing the premiums, j the Bill should have the effect of reducing ; them. The Bill was read a second time.