RIOT INSURANCE.

New Zealand Herald, Volume LXIX, Issue 21159, 16 April 1932, Page 12

RIOT INSURANCE.

ALL RATES INCREASED.

PLATE-GLASS WINDOWS. THE DANGERS OF FIRE. HIGH PREMIUMS REQUIRED. Insurance rates covering damage to properly arising out of strikes, riots or civil commotion were raised in Auckland yesterday, following the street rioting of the previous evening. Premiums covering damage lo plate glass windows were doubled and premiums covering damage from fire arising out of similar causes were increased 1000 per cent. This particular class of lire risk was thus rendered practically prohibitive and it was gathered, as the result of inquiry in the city, that no owner of property was prepared to take out a policy on the terms offered.

All the insurance companies were, besieged yesterday morning with inquiries regarding the terms of cover with respect to not and scores of "plate glass policies" were written on the higher scale. The ordinary rate for plate glass risk is £2 10s per £IOO, hut this does not, cover damage arising out 'if riots, strikes or civil commotion. To insure for this extra risk it, was customary for policy holders to pay 50 per cent, additional to Iho ordinary rate. Yesterday morning, however, a meeting of local underwriters decided to recommend the council of the New Zealand Fire and Accident Underwriters' Associations to double the premium, and pending a decision applicable throughout the Dominion, local insurance companies tentatively accepted policies on the lines of the recommendation. An example quoted was that of a shopkeeper whose windows were insured against ordinary damage for £3 a year. Yesterday morning he altered the terms of his policy to obtain cover for the additional risk and was required to pay £9 a year. Fire Policies Not Accepted, It is understood that not, a single property owner in Queen Street was covered fr>r damage bv fire arising out of strikes, riots and civil commotion. The position now is that instead, for example, of an owner paying a premium of £IOO a year to effect cover on his property, he is now asked to pay £IOOO. "People cannot expect insurance companies to offer adequate cover for their property after last night's experience," said the manager of onn company.

"Scarcely a window was left intact in Queen Street and the risk of lire breaking out at various stages of (he rioting was by no means an improbability. Current policies, of course, are nof, subject to revision, but wo are in what might lie termed 'a state of war,' and new policies cannot reasonably lip issued on the old basis. The 100 per cent, increase for plato glass cover us extremely reasonable. li should bo very much higher, but. the insurance companies feel that they owe a duty to the public, and have temporarily decided to accept risks that arc really not, justified." Wording of Policy.

A typical clause in a policy dealing with noting states that the policy is designed to "cover loss or damage to the property directly caused by rioters, strikes, locked-out workmen or persons taking part in labour disturbances or civil commotions, or any person of malicious intent, and fire, or explosion directly caused by any of the foregoing, whether originating on the premises insured or elsewhere.

"This policy does not extend to cover (1) loss or damage occasioned by or in consequence of confiscation, nationalisation, requisition, occupation or wilful destruction by or under the order of the Government or any municipal or local authority of the country in which the property is situated; (2) delay, deterioration or loss of market; (3) loss of possession arising out of the insured premises, or of any premises containing the insured propery; but this shall not be deemed to exclude liability for damage to or removal of the insured property during such occupation."