N.Z. EARTHQUAKE

Poverty Bay Herald, Volume LV, Issue 17441, 13 April 1931, Page 6

N.Z. EARTHQUAKE

INSURANCE QUESTION POSITION AT LLOYD’S LONDON. Feb. 28. The Daily Telegraph’s marine insurance correspondent- writes: I am able fn stale, on the highest authority, that a suggestion cabled from New Zealand yesterday that Lloyd’s underwriters are refusing to insure earthquake, risks in thnl Dominion is-wholly without founda.

Sim-c the recent- disaster, insurances amounting to millions of pounds have been placed at Lloyd's against the risk of earthquake in various locations in New Zealand, and quite recently an insurance of this nature was effected to cover an important drapery store for over LB3O. GOO. .Moreover, the whole tradition of Lloyd's is to provide insurance when it is most- needed, anil it may be recalled that after both the Sail Francisco and Hie Japanese earthquakes enormous amounts were covered on the new buildings as they were erected in the devastated areas.

The-suggestion that Lloyd's will not cover earthquake risks probably arose through a misunderstanding of the recent movement by which marine underwriters in London, both at Lloyd’s and the insurance companies, are seeking to exclude the risk of damage by earthquake to goods on shore covered under a marine policy, except on the payment- of a special premium. This is being done on the grounds that earthquake is a peril of the land, and not of the sea. Tt is contended that there js no justification for including this risk in tho marine policy at the ordinary marine insurance rate, especially since there is n. very adequate non-marine market at ! lovd’s and with the companies in which the risk can he covered.