FIRE INSURANCE RATES.

Otago Daily Times, Issue 20906, 21 December 1929, Page 14

FIRE INSURANCE RATES.

THE PROPOSED INCREASE,

i AN EXPLANATORY STATEMENT.

(Per United Press Association.) WELLINGTON, December 20.

"The proposed, increase in the fire insurance rates will, in the main, apply to risks in the country and unprotected areas, and therefore will barely affect proterted areas. The rates on dwellings will not be affected.” This statement was made by the president of the council of the Fire Underwriters’ Association when interviewed to-day. “ The huge fire waste of the Dominion, which is receiving the consideration of the Government, and which Is estimated by Captain Hugo, inspector of fire brigades, to amount/ to 22s 6d per capita, has caused very serious losses to the underwriters,” stated the president. " Statistics collected by the Government Statistician over the last five years show that certain classes of business risks have been particularly unprofitable. The question of revising rates on the basis of the Government Statisticians returns has received very careful consideration, and, as an outcome, it has been found necessary to increase certain rates if these risks arc to secure insurance protection. No general increase is contemplated, but special attention has been given to business risks situated in areas where fire protection and water supplies are absent or inadequate. The figures on which these increases are based were compiled by the Government Statistician from time to time for the purpose of framing a scientific schedule of rates, the object being to adjust the rates equitably as between different classes of risks according to the claim costs disclosed on the 1 rates. The State Fire office figures an*included in the Government Statistician's returns and the increase, it is understood, will be observed by that office.

The increases arc to lake effect from January 1.