INSURANCE INSTITUTE.

New Zealand Times, Volume LXXVII, Issue 5311, 24 June 1904, Page 7

INSURANCE INSTITUTE.

MAINTENANCE OF FIRE BRIGADES At tho mooting of the Insurance Institute last night a paper was road by Mr W. A. Pai ton on “Fire Insurance Companies and Fire Brigades—should the former lie compelled to- contribute ; towards the maintenance of the bitter Tho president, Air -Morris i‘ox, occupied the chair. The president reminded members that tho time limit for the prize essay competition was August Ist. Ho Imped a good many essays would be sent in. lie stated that bo had received bound copies of the proceedings of the Insurance Institute of Now South Walos, which wished to receive similar papers in return. Air Parlon argued that the solo business of tho firo insurance companies,excepting their duty to their shareholders, is to indemnify their clients against any loss they (tho clients) may sustain to their property through lire, and not to contribute towards the cost of maintaining fire brigades or other similar institutions, or to put out fires. When oflices pay tho amount of losses incurred by thoir clients, their contract is fulfilled, and they .should not bo compelled, or oven askod, to do more. All people have tho privilege of taking advantage of tho security offered by fire insurance companies, and if they fail to do so, theirs .should bo the loss, and those wlio do insure ought not to bo compelled to bear the extra burden in the way of enhanced rates by which companies t would have to raise the amount of ’their contribution to help support tho iiro brigades on which the uninsured man relies for safety. Offices must, of course, take all expenditure into account when fixing rates, and tlioso who safeguard themselves by insurance aro really tho ones who would have to “pay the piper” if companies are compelled to contribute, as seme consider they should. Should legislation on the lines referred to bo passed, tho offices will bo placed in this peculiar position—on tho ouo hand Government compelling them to pay for the moans to put out fires, and on tho other hand tho public asking for reduced rates on account of tho efficiency of fire brigades, mado efficient to a great extent out of the coffers of the firo insurance companies. Firo insurance companies were instituted for commercial and not sentimental purposes, just as were banks and other kindred concerns—they do not pose as public benefactors, therefore, argued the writer, why endeavour to compel them to assume that role? Firo insurance companies have themselves to- blame to a great extent for the prevalent belief that it is their particular privilege to support firo brigades, as they have been too indifferent in coping with the question, and have not shown sufficient unity of action to impress the public with tho justice of thoir action in resisting the efforts of tho powers that bo to foist on their shoulders a largo proportion of tho cost of maintaining fire brigades. Legislation in this direction, maintained (he writer, would be arbitrary and unjust, and it behoved all offices to assume active opposition to such a measure.

The president remarked that it seemed to him that Air Parton’s contentions were logically incontrovertible, except as a matter of policy. The-public expected insurance companies to make 21s out of £l. If the companies were compelled to contribute to the fire brigades. they must necessarily increase the rates of premium to meet tho contribution.

Mr Kemot considered the paper full of debatable matter. Ha bad heard responsible fire insurance men combat the position advocated by Mr Parton. In the Australian States it was the custom to apportion the costs of fire brigades’ maintenance between the Government, the municipality and the companies, each paying one-tbird, speaking generally; but such levy bad to bo met by increased premium. A(n interesting discussion followed, in which Messrs Muter. Hall, Rushton, Kinniburgh and Montefiore took part. Mr Kinniburgh stated that the aggregate taxes made upon the companies in Australia amounted to between 5 per cent/and 9. per cent, of their premium income. Mr Kernot pointed out that as the underwriting profit of the big offices of the world did not average 5 per cent., these figures showed what an enormous tax would be inflicted upon the companies if they were compelled to support the fire brigades. A hearty vote of thanks was passed to Mr Parton.

At the next meeting Captain Willis will read a paper on “Marino Insurance.”