CORPORATION FIRE INSURANCE.

Otago Daily Times, Issue 17158, 10 November 1917, Page 11

CORPORATION FIRE INSURANCE.

SlH,—I understand tho City Council has decided bn : taking up all tho corporation fire risks and providing a reserve fund for possible and probable losses. The fact that thero have not been any hear? losses in the past does not prove' that there may not bo any in the future. In tho event of a fire epidemic coming along, tho results may be rather disastrous. Recent events intensify the risk that is run, and I think the council would be justified in staying its hands before committing .tho city to a corporation firo insurance scheme. —I am, etc., ■ J. C Abbuckle. November • 8.

Sib,—On Saturday last thero appeared in your paper a letter suggesting the inadvisability of the City Corporation taking its own firo risk, which view is now confirmed by a eubj-leader in your paper to-day. Two fires have occurred in Xhinedin during the past week involving a loss of approximately £50,000. It will bo noticed that the insurance for £25,000 on the stock of John Edmond (Ltd.) wore divided between 20 different insurance companies, whoso aggregate funds exceed one hundred and seven,iy-fivo million pounds. Not one of the?" insurance companies wonld think of holding, for its own risk, anything like £50,000 on the Town Ha.ll, or as rrrach as 10 per cent. of. the £60,000 or £80,000 value at the corporation power stations. Yet the corporation proposes to tako the whole of these risks itself with a fund of only £10,OCO. Good heavens!—lap, etc./ Sane.