STATE FIRE INSURANCE.

Otago Witness, Issue 2210, 9 July 1896, Page 24

STATE FIRE INSURANCE.

OPINIONS 'OF AN EXPERT.

SOME INTERES I'ING FACT 3. (Fbojt Ova Own Correspondent.* Wellington, Jaly 9,

I learn that tho Government Firo Iniurance Bi'l, which h«s not yet been circulated, is of a very far reaching character and is a document of considerable dimensions, covering no less than 21 pages. The preamble of the bill states that it is expedient to lessen the cost of fire insurance and to make better provision for the protection of proparty agniosb fire by enabling the Government to uudeitaks the business of fire insurance, and also by providing for the compuUory insurance of buildings in curtain cases and the equipment and maintenance of fire brigades. The act is divided into two parts, the first relating to the Government fire insurance effioe and the second to the compulsory insurance of buildings and maintenance of firebrigades. The office is to be administered by an officer, appointed by the Govornor-in-Council, who may also appoint the staff »s he deems necessary for carrying on the burinets. A general board is also constituted, consisting of the manager and four others -the Colonial Treasurer and the Commissioner of T»xe«, together with two cqmpetent persons outside the civil service. The Colonial Treasurer shall be ex officio chairman. District board* are also to be constituted, each board cousisting of from three to five persons, chosen by tha Governor-in-Oounoil. The business shall bs insurance against fko of buildings, chattels and effects, and insurable real and personal property of all kinds situated in the colony. Ia orcUr to provide the original capital for the effice the Govemor-in-Couuuir is empowered to raise from time to <itna sums uot exceeding iv the whole £250,000, find provision is made for the appointment if two or more persons as agents for raieiDg^ and managing the loans. The loans may be raised in the colony or elsewhere. In the event of the original capital proviug insufficient, power is given to raifesuppleineHtary capital. A number tif clauses follow dealing with the securities in respect of loans raised. Provision is made for a sinking fund for the repayment of the original and supplementary capital. Ths Colonial Treasurer shall at all timss have access to the bcoks and accounts, and the manager is given power to acquire premises for transacting business. The surplus profits are to be used for a reserve fund and in payment of bonuses.

Part 2 of tho bill wake?, among other provisions, the following :— The ratepayers of any borough or county may by vote adopt a proposal to bring the acb into force, power being givea to 50 ratepayers to demand a poll, and the question is to be decided by a bare majority of the vo'es recorded, each ratepayer to hare bub one vote. Similar powers are given to the ratepayers to terminate tb.9 operation of the acb. Upon the adoption of the act in any district the manager shall prepare a fire iniurance roll, which shall contain particulars of every building in the district, including tho capital value, the nominal insurable value (being nob more than three-fourths the capital value), and the amount for which the building is actually insured under. the compulsory clauses. The manager may put in a special class or decline to insure any building which in hit judgment; is too hazardous a n'sk, and iv respi- cb of such buildings the provisions for compulsory insurance shall nob apply. The manager is to fix the premiums having regard to all .considerations of risk forthwith. Upon the flrafc coming into fores of the fire insuranca roll in any. district, and continuously thereafter until the act cea:e3 to be adopted therein, every - building shown on such roll as net then insured shall be deemed to be insured in the name of the owner in the Government office in a earn equal to the aotaal

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insurable value thereof. With respect to every building" which upon the coming into force of the toll is already insured elsewhere, the rjprovlgtoM of the compulsory lections -dull ,»pply from the expiry of the current policy, being in no case latsr than 12 months after the coming into force of the roll. At the expiration of th« 12 months every snch policy not expired shall bo deemed to be cancelled, and .the owner shall be.entitled to a duly proportionate refund of premium for the unexpired term from the company that issued roe polioy. Premiums shall be paid half-yearly in advance, and until fully paid shall he a first charge on the building. The bill then goes on to deal with fire brigadeß. The council of every distriob, whether the act is adopted therein or not, may if it thinks fit, and shall if the Governor-in-Counoil sopresoribes,eifioiently equip and maintain to his satisfaction one fire brigade or more. The expenses of these brigades are to be paid out of a separate account, to be called the fire fund. This fund shall be credited with contributions from the county or borough fund to the extent of one-half j ofthenmonntrequired, and contributions from a)l the fire insurance companies carrying on business in the colony, including the Government fire office, to the exteafc of the other half of the j amount required to meet the charges on the fire fund. The contributions shall be in proportion to the amount oE the premiums received in the colony by the contributing > companies. j