FIRE INSURANCE BILL.

New Zealand Mail, Issue 914, 6 September 1889, Page 15

FIRE INSURANCE BILL.

TO THE EDITOR OE THE NEAV ZEALAND MAIL. Sir, —Referring to your article of the 30tn Jult., permit ma to point out one of the many peculiar, not to say unjust, conditions which some of the Fire Insurance Companies have on their policies. The following condition speaks for itself‘ Statement and Settlement of Claims. — Persons sustaining loss or damage by fire'shall forthwith give notice of such loss to the Company, and shall,'within ten days after such fire, render a particular account of such loss, signed and sworn to by them, ' stating whether any, and, if so, what other insurance hAs been made on the same property, giving copies of the written portion of all policies' thereon, also the actual cash value of the property and their interest therein, for what purpose,'and by whom the buildihg insdred, of containing the property insured, and’ the’ several parts'thereof, were used at the time of the loss, Avhen and how the fire originated, and shall alsd produce a certificate iffidep the hand and seal Of a ' magistrate (nearest to the plage of fife, not concerned in the loss as a creditor, or otherwise, nop related to the assured), stating that he has examined the circumstances attending the loss, the character and circumstances' of the assured, and verily believes that the assured has, without fraud, sustained loss on the property insured to the amount which such magistrate shall' certify. The latter portion of the condition requires a magistrate to certify :—(1) That he has"’ examined the circumstances attending‘the fire • (.2) that'fie knows the character and circumstances of the assured ; (3) that he verily b.elipv.es th£t the assured has notbeen guilty of.fraud ; (4) the amount of the loss. It Avas decided in England many years ago that such a certificate from a magistrate was a condition precedent to the assured’s right to recover, • that 13 to the company may with-im-punity aisrdgard. the claim irrespective of its merits or amount. It must PC borne in mind, also, that a magistrate is gnder no obligation to give a certificate, and few of thorn will be found to trouble themselves to do so, hioreover, fehe.particii: lars to which he is required to certify aye in most instances such as he cannot furnish, even if willing to do so. I was concerned in a case some years ago in which such'a certificate was insisted on, and the greatest difficuly w;x3 experienced in getting over the objection—indee 1, I atn not sure whether a compromise had not to be accepted, The practice is to isme only a receipt when an insurance is effected, and the assured is not aware of the details of the conditions of the policy until some weeks, in many instances months, after the premium hasbeen paid. It is urged

that a company will not seek to enforc all its conditions ; but what guarantee i there that it will not do so '? Moreover, why should a condition be sanctioned which, in most instances, fcanndt be complied with I— l am, &c., Wm. Doavnie Steavart. TO THE EDITOR OF THE NEAV ZEALAND TIMES. Sir,——Referring to Mr Wm, DoAvnie SteAvart’s letter on the above subject, I see lie quotes a condition of an Insurance Company as to staternentand settlement of claims, and it,might be inferred that all tlie companies have someAvhat similar conditions. The following is the condition of our policies respecting settlement, in Avhich, I think, there is nothing that any honest man would object to : 11. The assured sustaining any loss or damage by fire, shall forthwith give notice in writing to the Directors or Manager, or to the nearest agent of the Society, and shall, within 15 days after such fire shall have happened, deliver to the said Directors, their Manager, or agent, as accurate and particular account in detail of their loss or damage respectively, as the nature and circumstances of the case will admit, and shall verify the same by solemn declaration or affirmation before a Justice of the Peace, and shall produce his books, of account, vouchers, and such other evidence as the Directors may reasonably require, and if required, with plans and specifications showing the dimensions and construction of any buildings or erections destroyed or damaged ; and until such declaration or affirmation, account, and evidence, are produced, the amount of such loss, or any part thereof, shall not be payable or recoverable. No profit of any kind is to be included in such claim ; and if there appear to be any fraud, overcharge, imposition, or any misrepresentation; or if the fire shall have happened by the procurement or wilful act, means, or connivance of the assured or claimants, they shall be excluded from all benefit under this policy. Under this clause we have never yet had occasion to defer or refuse a settlement. I never before saAV the condition Mr Stewart quotes, and I should feel obliged if he Avould give me the name of the office to vvliich he refers.—l am, &c., B. Smith, Public Officer, Norwich Union Fire Insurance Company, September 3,