STATE INSURANCE.

New Zealand Herald, Volume LXVIII, Issue 20793, 9 February 1931, Page 12

STATE INSURANCE.

GOVERNMENT'S DECISION.

EX GRATIA PAYMENTS.

ONLY DAMAGE BY FIRE.

USE OF DEPARTMENT'S RESERVES

[uy telegrafh.—press association.] WELLINGTON, Saturdny.

A statement of tlic policy to be adopted by tbo State Fire Irisuranco Office in respect of earthquake insurance claims was made to-day by the Rt. Hon. ,G. W. Forbes, the Prime Minister. He announced that, in view of tho special circumstances, it has been decided by the Government that the State Fire Office will make ex gratia payments at the discretion of the general manager to policy holders whose insured property has suffered damage.

Payments will not in any case exceed' the amount of the fire damage and will not extend in any circumstances to purely earthquake damage. This arrangement will apply only to firo damago which has already been sustained. The large amount involved in thi3 proposal, said Mr. Forbes, will bo wholly provided from the reserves of the office itself, without any call being made on the Consolidated Fund. He.added that this amply justifies the wisdom of creating an available reserve, which has been built up over the past 26 years.

Reserves shown in the last, published balance-sheet of the State Fire Insurance Office, dated December 31, were as follows:—Reserve fund, £587,117 13s 8d; investments fluctuations reserve fund, £16,000; bonus rebate reserve, £28,500; reinsurance reserve fund, £45,000. The total amount is £675,617 13s Bd. Attention has already been directed to the fact that loss or damage caused by earthquake or by fire associated with earthquake is not covered by the ordinary insurance policy in use by all underwriters in New Zealand. The relevant portions of the clause excluding these risks are as follows:—"This insurance does not cover loss or damage directly or indirectly, proximately or remotely, occasioned or contributed to, by, or through, or in consequence of (a) subterranean fire, earthquake, typhoon, hurricane, volcanic eruption, or other convulsion of nature. . . In the event of any claim being made under this policy the insured shall, when directed by the company, produce proof to the company's satisfaction that the loss or damage was not either directly or indirectly, proximately or remotely, occasioned by or contributed to, by or through or in consequence of any of the events herein referred to."'

MOTORISTS' LOSSES.

NO INSURANCE COVER.

COMPANY TO ALLOW REBATE.

" All our risks are reinsured with underwriters in London, who are not prepared to pay out when they are not liable," said Sir. 11. C. Smart, Auckland manager of the North Island Motor Union Mutual Insuranco Company, last evening. " There is a clause in all our policies which exempts us from payment for damage resulting from earthquakes, and we are under no liability to any of the owners insured with us whose motorcars have been damaged or destroyed in Hawke's Bay." Mr. Smart said his company had decided to give rebates on the unexpired part of all policies covering motor-cars destroyed as a result of tho earthquake, and had advised its sub-agents throughout tho North Island to this effect.

The earthquake history of New Zealand was of such a nature that the establishment of a compulsory earthquake insurance on buildings was urgently called for. The Government could easily introduce Bnch a scheme, at from Is to 2s per cent., which was much less than the insurance companies at present charged for special earthquake policies.

AMBULANCE PARTY.

BACK FROM STRICKEN AREA.

AN ARDUOUS EXPERIENCE.

Every person injured at Napier who was in a fit condition to bo moved has now left that town, according to members of the St. John Ambulance who returned to Auckland yesterday afternoon. J

The two ambulances, which were despatched from Auckland 011 Tuesday evening, returned yesterday with six men under Transport Officer S. E. Langstone. Each ambulance had covered 3000 mile 3. The two ambulances, loaded with supplies of every description, reached Napier at 4.50 p.m. on Wednesday, after covering the 506 miles through Wanganui and Palmerston North. The party reported immediately at the Napier field hospital and tho ambulances were called upon straight away to take urgent cases from tho Botanical Gardens to Waipukurau, a trip of nearly 50 miles, owing to the wido detour necessary.

From tho time of their arrival tho ambulance men were engaged, with scarcely a break, in duties of every nature. In the cook house, controlling traffic, taking messages and as orderlies they carried out many duties, in addition to their ambulance work. Tho average distance covered by the ambulances was 500 miles a day, many of the trips being over roads requiring the greatest care in negotiating them.

It had been reported by the officer in command of tho camp that there were no linen supplies left. There was a large, supply in tho Napier Hospital, which was in a state of partial collapse and was dangerous to. enter, particularly as there were frequent shakes. At great personal risk members of tho brigade entered tho building and recovered practically tho whole supply.

In each of the ambulances from Auckland. there was a hundredweight of cot-ton-wool, in addition to the other supplies When the ambulances returned yesterday none of the supplies remained. It is stated that the Auckland ambulances were the talk and pride of the field hospital. Tho men had an arduous experience, being in their clothes the whole time, and taking every meal standing up. On their return trip to Auckland the ambulances took patients from Napier to Palmorston North, leaving Napier at 1.30 p.m. on Saturday and reaching Auckland at 2 p.m. yesterday. It is not known when it will be possible for the rest of the men of the St. John Ambulanco to return to Auckland,