INSURANCE RATES

Southland Times, Issue 19653, 2 October 1922, Page 5

INSURANCE RATES

AND FIRE PREVENTION THE COMPANIES’ LOSSES In view of the great interest taken in the question of fire insurance rates and fire brigade improvement in Invercargill, a Southland Times reporter called on Mr E. B. Pilcher, manager of the New Zealand Insurance Company, Ltd., and asked him if he would make a statement on the quet* tion from the point of view of the underwriters. In reply, Mr Pilcher said:— "The subject of Fire Brigade mat tert seems to exercise the minds of the Corporation and Chamber of Commerce in w i unusual degree. The Council of tt* hteOufu writers’ Association of New Zealand sjy that unless the municipal authorities place the Brigade on a thoroughly efficient footing the classification of Invercargill will be raised and further if the Fire Board system be adopted lire classification will likewise be raised. The assumption that Invercargill is singled out for higher classification by the underwriters should a Fire Board be adopted, while in no other towa has this been done in the past, is apparently the cause of dissatisfaction. There are, of course, two sides to every problem, and while I have no authority from the underwriters to make a statement, yet I think a few points can be slated on the other side which it may be well for the public to know. Invercargill is a favoured town, and since the inception of the Council of Underwriters, 27 years ago, wo have enjoyed the lowest rates of any towa of similar size and population; in fact only very small areas of the cities have had lower rates than Invercargill. The whole of the towns in New Zealand have been reported upon by exjsirts with a view to reclassification, and that is now being carried into effect. In Invercargill we hav® at the present time perhaps the most poorly equipped Fire Brigade of any town of similar size and population, and the reticulation of our water su|»ply?ji,s not all that could be desired. In a commercial part of this town there is only a 3-in. mum water supply, and perhaps corroded at that. Ail the underwriters ask ib that the authorities place the Fire Brigade on an efficient footing and rates will remain as heretofore, but they will not be saddled with extra taxation through a Fire without um increase in rates. “The Mayor, I notice, stated that it was proposed to procure a standby plant at the waterworks in case of the failure of electric power when required to increase the pressure in the mains for fire purpose*. This was to cost £6600, and he thought that in adopting a Fire Board the cost would fall on the Board. Before adopting the Fire Board system it might be ua well to inquire what really comes under the Board’s jxrwer. Certainly not standby plants. It is the duty of the Munici|nd authorities to supply the pressure in the water mains and carry out all the necessary reticulation —otherwise you may as well ask the insurance companies to pay half the cost- of a gravitation supply. “Perhaps it might be as well to mention what Invercargill has cost the underwriters during recent years—not including the years when Invercargill was widely known, as the ‘city of blazes.’ From 1916 to 1922, a period of six years, the fire losses paid amount to the enormous sum of approximately £IIO,OOQ, or an average of about £20,000 |X?r year. I have no accurate data of premiums received, but taking the town valuation for improvements, and roughly calculating average rates, the underwriters have lost at least £5,000 per year. With these facts in view, what commercial firm could continue* to do business on these lines? But. as before stated, the underwriters only wish the Municipal authorities to place the Fira Brigade on a more efficient basis. It may be interesting to mention that the Wanganui Fire Board’s total equipment cost £25,000; interest on loans and iTiuinienanco amount to about £5OOO a year,”