MUTUAL INSURANCE

New Zealand Mail, Issue 1681, 18 May 1904, Page 64

MUTUAL INSURANCE

At a meeting of the Hawke’s Bay Provincial Council of the Farmers' Union, the Chairman explained briefly the position of would-be insurers under the present Mutual Insurance Act. He pointed out that with .£40,000 of insured property the liability could only be met with a sum of <£Boo the first year, being premium notes of 2 per cent on the value insured. One fire involving <£Boo would clear them out and leave nothing to further liabilities. It was evident, then, that to be successful very large areas must be dealt with, so as to spread the risk The section in the Act requiring 10 per cent, of the insurers to be present at meetings made it impossible to deal with very large areas. It was uncertain if the Government lending departments would accept insurance with Farmers’ Mutuals. He had tried, but had been unable to obtain definite data so far, and felt they ’would be wise to await further information before committing themselves*

It was moved and carried, (1) That this meeting is in favour of a Farmers' Mutual Insurance Association, but delays action until further data are at its disposal. (2) That a clause requiring at least 10 per cent., of members of an association to be present at certain meetings be referred to the colonial conference for their consideration and action. (3) That the colonial conference be asked to consider the position with regard to Government lending departments.