STATE FIRE POLICY

Stratford Evening Post, Volume I, Issue 74, 6 March 1931, Page 5

STATE FIRE POLICY

HAWKE'S BAY DISASTER THE EX-GRATIA PAYMENTS STATEMENTS"~CONT.RADICTED WELLINGON, March 5. The Prime Minister stated in an interview that his attention had been drawn to certain statements which were being widely circulated, that tho State Fire Insurance Office was bound under tho terms of its policies to compensate policyholders for losses suffered by fire resulting from tho Hawke's Bay Earthquake. It has been suggested that the Government, in undertaking to make ex gratia payments, was influenced by this. The Prime Minister desired to make it clear that no such consideration had influenced the Government's decision. In fact the Government was advised that no such liability existed. The Government's action was entirely prompted by the unprecedented circumstances which arose in Hawke's Bay. The Prime Minister further stated that the whole position had been subject to review by the Crown Law Office The opinion which had been given by the Solicitor-General completely confirmed the view that the State Fire Office was not legally liable under the conditions of. its ordinary fire policy for losses by Are caused by earthquake. It would only be fair that the same prominence should bo given statement regarding the legal position as had been given the suggestions regarding the Government's motives and terms of the state fire policy.