WAR DAMAGE

New Zealand Herald, Volume 78, Issue 24084, 1 October 1941, Page 8

WAR DAMAGE

RISK ON PROPERTY' COMPULSORY INSURANCE PATE NOT (VET FIXED ' S R > WELLINGTON, Tuesday Compulsory insurance of propertv <igainst damage by enemy action or by defence measures is provided for in the War Damage Bill, which was introduced in the House ot Representatives to-day, and read a first time. A preliminary explanation was given by the Minister of Finn nee, the Hon. W. Xasli, but be added that there were so many qualifications and safeguards in Ihe regulations to he passed that it would require a second reading speech ol hall an hour to explain all the provisions in ('nil. I lie establishment of n War "Damage ( ommission is provided for under the bill, it is to consist of the .Minister of I'inaiice, wiio is to be chairman, the Secretary to the Treasury, and four Other members to be appointed by the Governor-General. Commission to Pay Claims A separate account in the Public Account, to be known as the War Damage I'und, is established, and into it are to be paid the proceeds of all premiums and other money payable to the commission. It is stipulated that there shall lie paid out of the fund all claims admitted or sustained against the commission in connection with insurance of property under the Act, and any advances received from the War Expenses Account to meet claims on the fund. Money remaining in the fund after jail claims have been settled and all adj winces repaid is: to be applied to granting financial aid to persons who suffer loss; or damage through any earthquake or other disaster. The Payment of Premiums The part of the bill dealing with insurance against war damage states that real or personal property insured against fire shall be insured for the same amount against war damage. The insurance company is to pay a "war damage premium—the amount of which is not stipulated—which is to become a debt due to the commission. Ihe amount of war damage premium ior which any insurance company hecomes liable becomes also a debt due by the insured person to the company, and may be recovered bv the company. The commission may allow discounts to insurance companies or may release a company from its liability in respect of a premium irrecoverable from an insured person. ' Insuring Munitions Manufacturers Power is included for the commission on application by anyone having an insurable interest in 'any property to insure the property "against "war damage to the extent that it is not insured against fire. The commission is liable to make good war damage to insured property. _ It is also provided that the commission _ may insure manufacturers of munitions against third party risks. The establishment of Adjustment Courts to adjust liabilities in the case of war damage claims is provided for in the bill. The Court is to consist of a Judge, or former Judge, of the Supreme Court and iwo other members. The longest clause in the bill relates to regulations, and defines purposes under IS heads for which they may be made. These include providing for the conduct of the commission's business, prescribing the commission's powers, providing for reinsurance by the commission of risks, classifying property for the purposes of the measure, prescribing rates of premiums payable, requiringany persons to apply for contracts of insurance, providing for apportionment of war damage premiums in certain cases, and prescribing punishments. Governor-General to Appoint Date It is particularly stipulated that the Act is to come into force on a date to be appointed by the Governor-General. Another provision is that the Act shall bind the Crown. War damage is defined in detail. It is to mean damage, whether occurring accidentally or not, as the direct result of enemy action or action taken in combating the enemy, accidental damage arising from precautionary or preparatory measures taken to prevent an enemy attack, or accidental damage occurring as a direct result of any explosion or fire among munitions for war. Precautionary measures mentioned do not include the imposition of lighting restrictions or measures taken for training. In reply to the Leader of the Opposition. Mr. S. G. Holland, who asked if universality was provided for. Mr. Nash said: ""Right through when the bill comes into operation we can take a cover for risks —" Collection of Premiums The Rt. Hon. G. W. Forbes (Opposition —Hurunui): What about collection of the premiums? Will that wait until damage is done? Mr. Nash: When the Government decides that the Act shall go into operation, it fixes the right for premiums to be paid, and existing insurance companies will collect those premiums with their collection of fire insurance premiums. Tt will not wait until damage is done, but the Government will decide when the Act is to go into operation. When it goes into operation, the insurance companies, in collecting their premiums, will add so much to,cover war damage. Mr. H. G. Dickie (Opposition— Patea): Will it he compulsory? Mr. Nash: When it goes into operation it will he compulsory, but there are so many safeguards and qualifications under the regulations that it would take a half-hour's second reading speech to explain all the provisions. APPROVAL OF PRINCIPLE PREMIUM DETAILS AWAITED Tn the absence of more details, particularly in relation to the amount of premiums yet to be fixed, insurance officers were reluctant to comment upon the War Damage Bill last night. Agreement was expressed with the principle of war damage insurance, especially as such a measure was iollowing the example initiated by Great Britain. There, however, there were limitations, whereas it appeared the intention in New Zealand to go lor the full amount of insurance. The chief concern of the companies, it was pointed out, was the method of premium collection to be adopted. This was likely to give rise to problems the bill had not foreseen. The policy should be to make the collection of premiums as simple as possible, especially as at the present juncture companies were already working under pressure as a result of staff shortages due to the war. Even under ideal con ditions the collection of the additionn! premiums was hound to create a largevolume of extra work, and in this connection the suggestion was made that the Government should adopt as the most simple the method of having affixed to the ordinary premium receipt a special stamp for the amount of th A war damage premium.