MUTUAL FIRE INSURANCE

New Zealand Mail, Issue 1666, 3 February 1904, Page 68

MUTUAL FIRE INSURANCE

In connection with the above Mr A. J. MoOurdy, colonial organiser for the Fanners’ Union, has some interesting remarks to make. He states that the members of the Union from the furthest North branch (Hohoura) to the furthest South (Waikawa) are eagerly awaiting the commencement of business by the Union. Statistics ’in the possession of the headquarters’ officials go to show that the introduction of the mutual system among the fanners’ organisations of the United States and Canada have resulted in the reduction of the rate of premium to the extent of 60 per cent, to 80 per cent, upon the rates previously ruling, and that the experience of the working of the “mutuals” since their introduction in 1887 is of a most encouraging character. It is intended to make the colonial tariff as safe as possible, and at the same rime offer to mebers a considerable saving in payments for fire insurance. In fixing the minimum scale for the whole colony, the Colonial Executive has taken pains to provide that the “Premium Note,” which is the “guarantee fund” snail be sufficiently large to ensure undoubted stability, while the annual “fixed payments” (which are afterwards deducted from the amount of the guarantee “premium note” shall be as low as is consistent with safety. The term the insurance covers is fixed at five yeains, and members will 'be balled upon to pay from five shillings per cent, of insurance per annum for the “special olass” risks up to as high as fifteen shillings per cent, for the more risky grade of cover, viz., stable or hay eheda with shingle roofs. As an example of the business transacted by the Canadian Mutuals Mr MoCurdy quoted the following figures from the annual report of the “Portage la Prairie” Farmers’ Mutual: —Receipts. 17.148 dollars. Expenditure, fire losses, 4756 dollars; lightning losses, ‘2082 dollars; cyclone losses. 2963 dollars: expenses of management, 3030 dollars. Balance carried forward to next year, 4310 dollars. The assets of the Mucual vere 116,192 dollars and the liabilities nil, the? amount of insurance in force being 5,294,249 dollars, covering insurers against, lasses bj' fire, lightning, and cyclones. Out of 38 claims for losses by lightning, no less than 22 were for live stock. . With the documents in hand as a guide, and taking into consideration the fact that the union dees not intend to accept risks relating to damage by storms (c3 T clones and lightning) there is no reason why the Farmers’ Union of New Zealand should 1 not he able to transact the fire insurance business of its members upon more economical terms than proprietary or Joint-stock companies. , -■ In order to minimise expenses, it is intended to have an uniform policy-form for the Whole colony, and to merely insert the name of the local provincial district in the blanks which will be left in all printed matter employed in the business of the mutuals. Enquiries are being made as to the feasibility of establishing a guarantee fund in connection with, the Farmers' Union whereby members may mutually idemnify one another from loss under the Workers’ Compensation Act and the Employers’ Liability Act and the amending statutes.

Questioned as to the rc-insuranoo matters, Mr McCurdy says then© will be no difficulty about arranging for reinsurance should the Farmers’ Union decide to -unload any portion of its liabilities’ in that way.