WAR DAMAGE BILL

New Zealand Herald, Volume 78, Issue 24084, 1 October 1941, Page 6

WAR DAMAGE BILL

New Zealand's War Damage Bill has been introduced before any loss such as it is designed to cover has been suffered. In this it is different from the corresponding measure in Britain, which did not appear until December, 10-10, after there had been extensive experience of attack from the air. The British Government had declared as long ago as ]037 that it was not practicable to insure against war risks on land, and this view had been endorsed by the Weir Committee shortly after the war began. However, the casualties among buildings proved so much less than the experts had predicted that the insurance scheme was not only devised, it was made retrospective to the beginning of the war. New Zealand has that experience as a guide. The policy followed differs in some respects from the British. It includes real and personal property —that is, buildings and contents — while in Britain the compulsory scheme covers only buildings, there being separate provision for the voluntary insurance of personal property. In New Zealand the amount of the cover, and presumably the premiums, will depend on existing fire insurances. In Britain the premiums are based on the annual or rateable value of the property. The compensation paid is either the cost of restoration, or, where the damage is too great for repair, the loss actually sustained. The New Zealand scheme seems reasonably adapted to Dominion conditions. No doubt many details remain to be settled, and difficulties not yet obvious may be disclosed later. However, the main factor at the moment is that the measure will not be operative until the Government decides it is necessary ; and everyone will hope fervently that it will never need to be put into force.