WAR INSURANCE

New Zealand Herald, Volume 79, Issue 24244, 9 April 1942, Page 6

WAR INSURANCE

GOVERNMENT SCHEME IMMENSE SUM INVOLVED (0.C.) WELLINGTON, Wednesday The war damage insurance scheme established by the Government started to operate on a voluntary basis last December, and has now reached the stage when the war risk premium will be added to the fire insurance renewal accounts, the compulsory principle hav-ing-come into force on March 1. The new department has been created without precedent for its guidance or even the nucleus of a staff. Initial handicaps have been overcome, but the War Damage Commission is not yet able to get-out a total of the immense sum involved in the risks it has accepted to cover the property owners of the Dominion. The chairman of the commission is the Prime Minister, the Rt. Hon. P. Fraser, in his capacity as actingMinister- of Finance, and the deputychairman is Mr. J.-H. Jerr|im, general manager of the State Fire Insurance Department. ■ Mr. Jerram states that during the period of vol untarf? insurance against war risk many millions of cover were taken, and that the preliminary rush of proposals in December and January was overwhelming. It is possible that when the figures of the total cover are compiled they will exceed the gross fire insurance cover carried by the insurance organisations of the Dominion, though this is over £500,000.000 The reason for this prediction is that, while many property owners are satisfied with the amount of normal cover for fire risk, they prefer to insure for a larger amount in respect to war risk, as the loss, if it comes, is more likely to be total. There are a number of large undertakings in the Dominion which arrange their'fire insurance overseas, but the war damage cover is secured in New Zealand. The organisation of a staff for . the War Damage Commission has been extremely difficult, as the State office fljjd all the commercial companies are hying to carry on business with seriously depleted staffs. The State Fire and Accident Office was able to provide the nucleus of an experienced 6taff, and recruits, male and female, are being trained. ,