WAR DAMAGE PREMIUM

Otago Daily Times, Issue 25393, 26 November 1943, Page 2

WAR DAMAGE PREMIUM

REDUCTION TO ONE SHILLING INCLUSION OF EARTHQUAKE RISK PLANNED (P.A.) WELLINGTON,’Nov. 25. In accordance with his statement in the House of Representatives on July 1 last, the Minister of Finance, Mr W. Nash, announced to-day that the annual premiums for war damage insurance will be reduced as from March 1 next, on which date all insurers will have been compulsorily covered for a period of two years at the late of as per cent. , .... “To secure uniformity of liability among all those who are called upon to contribute compulsorily under the War Damage Act,” Mr Nash said, it will be necessary to maintain the rate of 5s per cent, until February 28 next otherwise those whose fire policies fall due towards the end of the second compulsory year would, quite fortuitously and for no sound reason, pay less than policy-holders whose fire policies happened to fall due earlier in the year. If all had been called upon to pay on one date, say at the beginning of each compulsory year which, theoretically, would have been proper, objection on the part of those whose policies fall due before March 1 next and who will still be called upon to pay at the rate of 5s per cent., would not have arisen. Administratively, however, it was not practicable to collect premiums on the one date and the fact that under the system in operation some people have to make their second compulsory payments later in the year than others is not a sound reason for contending that the more favourable war conditions justify a lower war damage charge in their particular cases. “It may be added,” Mr Nash said, “ that although the risk of damage through enemy action has happily lessened, the definition of war damage in the Act includes ‘ accidental damage occurring as a direct result of any explosion or fire which involves any explosives or munitions or other dangerous things required for war purposes, and which happens or is caused by, through, or in connection with the manufacture, storage, or transportation of any such explosives, munitions, or other dangerous things.’ Risks under this heading will remain until the end of the war.

“The new premium,” Mr Nash continued, “will be at the rate of Is per cent., and will be levied under the same conditions as have operated from the commencement of the compulsory payments of premiums on March 1, of last year. On the re-assembly of Parliament it is proposed ‘to extend the War Damage. Act to cover earthquake damage and to provide for all premiums at the Is per cent, rate to cover both earthquake and war damage. The balance in the War Damage Fund on February 28 next will still be conserved to cover war damage risks and. subject to an appropriation by Parliament, compensation may, if required, be paid to cover damage against earthquake or other national disaster.”