MUNICIPAL INSURANCE.

Otago Daily Times, Issue 19530, 13 July 1925, Page 4

MUNICIPAL INSURANCE.

SAYING TO THE COUNCIL. £24,000 IN EIGHT "STEAKS. “At March 31, 1925,” states the town clerk (Mr G. A. Lewin) in his annual report, “ we completed the eighth year in conducting our own accident insurance risks and the seventh year’s experience of the fire risks. “Healing first with the accident branch of the scheme, it is to be noted that the year opened with 10 cases on the books. There were 81 cases that constituted a claim on the fund during the year, and at March 31 there remained seven cases still in receipt of compensation.. In addition, there were a further 25 cass reported, but none of these became a charge on the fund. “The total premiums paid, in respect of the whole of the departments amounted to £3371 8s Id, while the total paid out during the year was £2005 3s 3d. The fund earned £625 2s 3d in interest, and the surplus on the year’s work was therefore £1991 7s Id. During the eight years the scheme lias been on foot the total premiums paid in amounted to £19,020 6s; the fund has earned £2646 11s 9d in interest, while the total claims amounted to £8656 19s 4d, leaving a margin for tile eight years of £13,015 18s 5d to represent the amount now in hand as the sum saved to the city since the inception of the accident insurance fund. “In respect of the fire branch wo are able to record another year during which no claim for loss has been made on the fund. The only charge against this branch for the year 'is £SO ss, made up of £SO administration charge and 5s the bank fee for keeping the account. The year just closed makes the fourth year out of the seven since the inception of the scheme which gives a similar result. “In this branch the year’s premiums amounted to £1894 19s 8d; the fund earned £1223 13s lOd in interest, and the surplus for the year is £3068 8s 6d, which, added to the £1991 7s Id of the accident branch, gives a net surplus of £5059 15s 7d for the year. The accumulated surplus of the combined funds at March 31 stood at £38.087 8s Bd. A sum of £IO,OOO was set apart as the nucleus of the fire branch when the scheme was initiated, and if this sum, together with 5 per cent, interest per annum, bo deducted, there remains approximately £24,000 to represent the net saving to the council as the result of conducting its own accident and fire cover for the period named —eight years Tot the former and seven for the latter. “It will bo seen, therefore, that iheaverage yearly saving- is £3OOO, and iii the course of a few years, should the results prove, anything approaching those of the past eight years, a fund will have been established sufficiently strong to meet any possible claim that is likely to bo made upon it.’’