FARMERS’ INSURANCE

Otago Daily Times, Issue 23829, 8 June 1939, Page 2

FARMERS’ INSURANCE

OTAGO ASSOCIATION’S MEETING SOUND FINANCIAL POSITION HEAVY CLAIMS MET The annual meeting of the Otago Fanners’ Union Mutual Fire Assurance Association was held in the Returned Soldiers’ Club yesterday morning, Mr A. C. Leary presiding over an attendance of about 30 members. Death of Mr John Christie

The chairman said that at the last annual meeting of the association, reference was made to the resignatmn through ill-health of Mr John Christie who had at that time completted 32 years as a member of the board of directors of this association. Mention was made of the director’s 'intention of presenting Mr Christie with an illuminated minute setting forth his long service to the board and expressing his co-directors’ appreciation of the part he had played in helping to build up the business of the association. The presentation was duly made, and the directors had every reason to believe that Mr Christie warmly appreciated this action. Unfortunately he was not long spared to enjoy retirement. His death took place at Warepa in February last. The directors knew that it would be the members’ wish that their sympathy be conveyed t to the members of Mr Christie’s family, and nothing was left undone in this respect. Public reference had already been made to the part he played in the activities and life of the province.

Members paid the customary tribute to Mr Christie’s memory. Chairman’s Remarks

The adoption of the statement of accounts was moved by the chairman, who said that the association had had a very satisfactory year. During the past 12 months the general assets had increased by £3714 10s Bd, and now stand at the. satisfactory figure of £162,818 14s 4d. After making provision for all contingencies, the association showed a net profit for the year of £1537 2s —a figure which all would agree was satisfactory, and more particularly, in the face of the heavy fire and accident losses sustained by the association during the past year. “ During the past two or three years reference has been made to the heavy fire and accident losses experienced by this association,” Mr Leary continued. “ One of the interesting and, may I say, perplexing things about insurance is that these losses appear to follow cycles. And, may I say, this experience is not peculiar to this association. According to the law of averages, we should be due for a period of lower losses from what we have experienced during the past three years. If this comes, well and good. However, your directors are reasonably prepared for whatever the future may bring them. As in the past, we rely upon our good friends in the country to use all reasonable precautions to ensure losses being kept to a minimum. Heavy Accident Claims

” This year our accident losses amount to 75 per cent, of the accident premium income,” Mr Leary said. h This is a very high incidence of loss, and means that our accident business, taken apart from the fire business, is not profitable. This, unfortunately, is the experience of most companies, and the only conclusion one can come to is that sooner or later farmers and other sections of the community will be faced with a definite rise in premium rates.

"Two years ago we drew your attention to the increased liability which all farmers had to carry as a result of amendments to the Arbitration Act. It was pointed out that in addition to the usual liability a farmer was now liable at common law in the event of contributory negligence on the part of himself, members of his family, or employees. The Law Reform Act also increases the farmers’ liability in other directions.

'"As a result of this legislation Insurance companies such as ours are carrying a greatly added responsibility. Our own claims this year include two fatal accidents, three claims for losses of an eye, and several serious claims involving spinal injuries, losses of limbs, etc. Inexperienced Workers "An analysis of the position,” the chairman continued, “ reveals the fact that many claims (not necessarily the ones I have mentioned) are directly due to the inexperience of the workers themselves. This leads one to the conclusion that there is a very definite relationship between the high ratio of claims and the class of labour which, in lieu of better, some farmers are forced to employ at the present time. Please do not misunderstand me. I know that farm workers include the cream of the manhood of this Dominion. The point I wish to make Is that it is not the efficient farm worker who meets with the accident. The bulk of the claims are caused in such a manner that it is impossible to escape the conclusion that many are due to the inefficiency of the employee. Undoubtedly, this is a problem which, to a certain extent, is born of the times through which we are pass"l have sufficient optimism to believe that farming will not always be a “ Cinderella ” industry—dependent for its hired labour upon the leavings of other more remunerative callings. Indeed, it is to their credit that so many intelligent young fellows prefer farm labour to other obviously more attractive work when judged from the wage and leisure point of view. It is a truism to say that the prosperity of this country depends upon the prosperity of its primary producers, yet many in our midst fail to realise this. Sooner or later this should become an accepted tact, and this will go a long way towards putting agriculture in its rightful place I venture to suggest that the day when this truism is realised by the great majority of people in this country—the day when our legislators give agricultural problems pride of place in their deliberations—then that day will be one of the greatest national importance to this country. Agriculture would then be well on its way to prosperity 1| Work of Branches "It is a pleasure for me to be able to report that all our branches continue .to show a steady increase in new premium income,’’ Mr Leary said. “ This is possibly the surest indication of all that the association is holding the confidence of those with whom it does business. Satisfied clients constitute our goodwill, and the volume ot new business acts as an almost infallible Indicator. Expanding business at Nelson, Christchurch, and Timaru has recently necessitated our shifting Into larger premises at each of these centres Apother matter worthy of mention is the fact that it is our policy to accept rural secretaryships. which we consider to be helpful as a means of keeping the closest possible contacts with country districts. At certain points our qmcero hold the provincial secretaryship for the Farmers’ Union and Women s Division. Our Nelson manager has recently been appointed secretary for local A, and P Society, and at certain other centres we do the secretarial work for the various Pig Councils, Young Farmers’ Clubs, and the Royal Agricultural Society. Farm Accounting Association

“ The work of the Farm Accounting Association continues to make steady progress,” Mr Leary said, and continues to prove of assistance to the Insurance Association in the matter of overhead, besides providing a very necessary and much-appreciated service to the farming community. During these times of complicated taxation demands it is a very great relief to many to be able to place the responsibility upon the shoulders of the experts of the Farm Accounting Association.

Young Fanners’ Clubs “The New Zealand Federation of Young Farmers’ Clubs is now making wonderful strides in the North Island, and it would appear to be firmly establlshed upon sound and progressive

lines. We look back with pride to the important part played by this association when the federation was formed and first established here in the South Island. Although we take credit for the assistance- goven by this association, the major credit is undoubtedly due to our general manager, Mr A. C. Cameron, who was its founder and the driving force of the movement during its early years. Staff Matters “ Our general manager and branch managers continue to give loyal service to the association,” the chairman added “ and I take this opportunity of placing upon record our thanks and appreciation to them and to the other members of the staff for the work accomplished during the year. I can assure you that the directors fully appreciate the fact that we have a staff which it would be hard to beat in any sphere of commerce or industry. With their co-operation, and with the co-operation of our clients, there is no reason why this association should not continue to grow steadily until the stage is reached when every farmer of good moral standing in the community has his insurances with this association.” Sound Co-operative Enterprise The motion was seconded by Mr J. C. Hay (Morven), who said that the results for the past year were very satisfactory indeed, and reflected credit upon the management of the association. There was not very much wrong with an organisation which could show a steady profit every year for 34 successive years, plus steady reserves and expanding business. It was hard to sav what the future had in store for organisations such as theirs, but past experience should enable them to look forward with confidence. He considered this an example of ideal cooperative enterprise. Here was an association controlled by farmers, functioning solely in the interests of farmers, and handling an essential commodity as far as farmers are concerned.

“You, as farmers, have the satisfaction of knowing that you have helped 'to create something which gives the maximum efficiency with a minimum of outlay," Mr Hay continued. "You have demonstrated that a co-operative enterprise such as this can reduce your costs and at the same time build up sound reserves. I need hardly remind you that this association was the first to reduce rates, and that the basic rate to-day for completely detached wooden farm dwellings is now approximately 60 per cent, below the rate charged by tariff companies 35 years ago As we were the first to reduce rates, and as our competitors have always criticised our reductions as unsound—ana incidentally prophesied for us a disas trous ending—we can hardly be accused of egotism if we claim full credit for the immense saving to farmers which has resulted. . “ I am naturally more in touch with the Timaru and Christchurch offices of the association than with Dunedin, and I feel that I can speak with firsthand knowledge when I say that it is obvious to all who come in contact with the work of the association in Canterbury that we have a capable staff composed of men and women who are willing, enthusiastic, and who are, above all, imbued with a spirit of service. I can assure you that the prestige of the association stands hign in Canterbury, and undoubtedly this is largely due to the efforts of the Canterbury staff of the association. From what I can gather this applies right throughout the South Island. I should also like to confirm what the chairman has said about the work of the Farm Accounting Association. This, also, is very greatly appreciated in Canterbury, as the growing business in this branch of the association s activities Indicates.”

Report Adopted

Mr R. J. E. Smith (Wedderburn) congratulated the directors on the •sound position as disclosed by the statement of accounts. Mr R. McCaw (Waitahuna) expressed appreciation of the manner in which the general manager and the staff met members of the association when they had occasion to visit Dunedin on business. This did much to retain the goodwill of the farming community. Mr A. L. Adamson (Invercargill) said that the association was held In high esteem in Southland, and the marked increase in premium income during the past year was an indication of how much it was appreciated in the rest of the South island. The report was adopted. Election of Directors The retiring directors. Messrs John Clarke . (Dunedin), E. H. Murney (Tapanui), and A. Craig (G’f® en Jl e * < D were re-elected unopposed. The directors’ remuneration was fixed at the same amount as last year, namely £3OO, to be divided as the directors desired. . . , Mr J. A. Robinson was re-elected auditor for the forthcoming year. Vote of Thanks A vote of thanks to the directors and the staff for their work during the past year was moved by Mr J. C. Begg. and carried by acclamation,, Mr Leary and Mr A. C. Cameron briefly replying.