FIRE INSURANCE

Otago Daily Times, Issue 26479, 5 June 1947, Page 4

FIRE INSURANCE

FARMERS’ ORGANISATION

SUCCESSFUL YEAR RECORDED The annual meeting of the Otago Farmers’ Union Mutual Fire Insurance Association was held yesterday morning. The chairman of directors, Mr A. C. Leary, presided over a good attendance of members. In moving the adoption of the profit and loss account and balance sheet for the year ended March 31, 1947, the chairman said that the year had been a very successful one and business had increased at all branches. During the year the general assets had increased by £15.967, and after making provision for taxation and other necessary reserves, the net profit for the year amounted to £IBSO. Premium Rebate He was pleased to be able to announce a premium rebate of 12£ per cent., being a rebate of the previous •year’s profits. This would be deducted from fire premiums during the current year. The introduction of premium rebates had met with widespread approval, and it was gratifying to the directors to know that the principle was both financially possible and sound in application. The policy of premium rebates was in accordance with the best traditions of a farmers’ mutual organisation and he felt sure that it would be appreciated by members. Re-inspection of Risks Owing to the war, shortage of staff and petrol restrictions had prevented the association from carrying out its pre-war policy of re-inspecting all risks at intervals of approximately five years. This policy haa now been reverted to, and branches reported that clients generally liked the system, as it gave them the opportunity of reviewing their insurances and making other adjustments. Rehabilitation of Ex-servicemen “ During the past year, many farms and estates have been taken over by the Government or sold direct to exservicemen,” Mr Leary continued. “In the majority of cases finance has been arranged through the Rehabilitation Department, and one of the stipulations made is that insurances be paid with the State Fire Office. “This is a very serious matter for rival insurance companies with large rural connections, and it falls particularly heavily upon us,” the chairman stated. “We feel very keenly the loss of connections dating back, in some cases, 30 and 40 years, and although we have no option but to bow to Government policy in this respect, we do so with a distinct sense of grievance. “Like so many of our competitors,” Mr Leary said, “we are heavily taxed to pay for the cost of our National Government. During the war we freely contributed to war loans,’ yet now, when it coines to the rehabilitation of our servicemen (and this includes members of our own staff), the State is given a monopoly as far as fire insurance is concerned. Agricultural Machinery “ During the past three or four years there has been an amazing development in the use of agricultural machinery, and farm after farm is becoming , more and more mechanised. From the insurance point of view, this has led to the development of an important avenue of business, and we have given extensive cover throughout the South Island.” Work of Branches The steady increase in the business at. all branches had not been achieved without a good deal of hard work, Mr Learv said, in paying a tribute to the loyalty and "initiative of the staff at the head office and in the branches. The staff now numbered 68 persons, all full-time officers of the association. He also paid a tribute to the work of the'agents oLthe association, many of whom had served it well over a long period of years. Two outstanding agents had recently tendered their resignations upon the score of advancing age. One, Mr O. C. Wilkinson, of Motueka. pioneered the work of the association in the Nelson province and wrote up his first risk in 1924. During the ensuing years his enthusiasm in the interests of the association had been unbounded, and the initial success of our work in the Nelson province was largely due to his efforts. For many years past Mr W. R Fea, of Blenheim, had also given verv efficient service. Appealing to all farmers to support the Mutual Insurance Association, Mr Leary said it claimed it could give an efficient specialised service to farmers, and those who had loyally supported it over the years could bear this out. With the assistance of farmers throughout the South Island, it had already established and consolidated an organisation of which it and they had every reason to be proud. Were it not for the operations of the association, insurance* rates generally would be very much heavier than they were. During the 43 yeai's of its operations, it had saved farmers throughout New Zealand some millions of pounds in insurance premiums as a direct result of its operations. He felt that the early stalwarts who worked for the success of the association and placed their business with it in the days of its early beginnings would be very oroud if they could see to-day the progress which had been made. The motion was seconded by Mr A. Iraig. and was carried unanimously. Directors Re-elected The retiring directors —Messrs C. Mclntosh, G. A. Hamilton, and J. C. Hay—were re-elected. The auditors, Messrs Tyrrell and Turpin, were re-appointed. The chairman congratulated Mr T. H. Russell, of Oamaru, and Mr D. J. Ross, of Hillgrove. on their continued interest in the affairs of the association. Both were present at the first meeting of the association 45 years ago. A vote of thanks was passed to the directors and staff for their work during the past year. (Extended Report, by Arrangement.)