HAMILTON INSURANCES.

New Zealand Herald, Volume LXI, Issue 18890, 12 December 1924, Page 12

HAMILTON INSURANCES.

BOROUGH COUNCIL'S RISKS.

INTERNAL SCHEME ADOPTED. SOUTHERN CITY'S EXPERIENCE. .■in i [BY TELEGBAPH. —OWN COBBESBONDENT. ] HAMILTON. Thursday. The report of a special committee set up to investigate the possibility of the Hamilton Borough Council undertaking its own insurances was submitted to the council by the Mayor, Mr. J. R- Fow, at its meeting last evening. The committee' strongly recommended the adoption of the scheme, and its report was adopted. The report stated that during the year tha council had expended approximately £1033 in insurance premiums covering fire, accident and comprehensive motor risks. The only claims made had been claims for accidents, none of which had been serious, and the total was not likely to exceed the amount of the previous year, £205. Only one claim under fire or motor insurance had been made during the whole of the period that the council had been paying premiums. Taking the example of Dunedin, the report stated that, for the . past seven years that city had been carrying its own insurance, and durir* the period had made a profit of £20,000. It commenced operations with a fund double the amount proposed in Hamilton, and the amount of premiums was also about double the amount that Hamilton was now paying. There* was no reason that Hamilton should not be - proportionately successful. The committee therefore recommended (1) That the council undertake its own insurance in future, and as tha present policies lapse, that the risks be borne by an insurance fund account, which it is proposed to open; (2) that as a nucleus of the insurance fund the sum of £5000 be set aside out of the district fund account, and, that this be invested in streets loan debentures at 6 per cent.; (3) that to the credit of the insurance fund be paid the interest on the £5000 nuoleus, and the premiums that in the ordinary way would go to various companies, until eventually the fund is strong enough to meet all ordinary claims; (4) that during the firs ii year the djstrict fund account advance to the s insurance fund such moneys as may be required to meet the ordinary small claims for accidents, such advances to be repaid out of the accident premium moneys at the close of the year. Mr. Webb suggested caution, and moved that the council take over half of the risks this year, the balance to be thrown on the insurance companies. In seconding the amendment Mr. J. A. McEinnon said that he considered all insurance a gamble, and caution was necessary. He thought, however, that the council was justified in taking a certain amount of risk.

Mr. ! D. Hay said that the committee had not been supplied with' complete information. The council's records of premiums paid and losses sustained were not available, and he had learned that the Auckland Harbour Board had promoted a similar scheme some years ugo, and after giving it several years' triad, had lost a substantial reserve, besides the premiums it had paid into the fund. Mr. Hay said ha was not opposed to the proposal, but was of the opinion the council was not giving the scheme the consideration it merited.

After considerable discussion the amendment iwas lost, and the report was adopted. It was decided to commence the scheme immediately.