INSURANCE SETTLEMENTS.

Taranaki Daily News, 22 August 1930, Page 8

INSURANCE SETTLEMENTS.

The discussion at the annual meeting of the Taranaki Chamber of Commerce in regard to payments by insurance companies for fire loss was very timely. As is generally known, New Zealand has an unenviable record in regard to losses by fire —losses which are very largely the outcome of sheer carelessness. The corollary is, of course, higher premium rates for insurance than would otherwise be feasible. The chamber, however, was more concerned with the settlements made by insurance companies when fires had occurred. It was pointed out that very often the insurance received fell far short of the amounts for which the destroyed property had been insured, a state of affairs that is probably unknown to the general public. Suggestions were made that insurance companies should make periodic examinations of properties and submit estimates of the amount they would be prepared to pay in the event of loss by fire occurring. The matter is one for experts to handle, and there is undoubtedly much that can be said from the point of view of the insurance company as well as from that of the insurer. Speaking broadly, the average individual is under the impression that he is entitled to the full amount of an insurance policy in the event of a fire and that his premiums are based upon this understanding. It may be true that over-insurance has been permitted and adjustments after loss have become necessary. So long as insurers are made fully aware of the limitations placed upon the cover afforded them by their policies there should be no difficulties, and the interests of. those who lend money on the security of insured properties would also be safeguarded. It seems eminently a matter in which discussions between representatives of the mercantile community and of insurance authorities should lead to a readjustment of conditions and the removal of what are now considered The sooner these discussions take place the better.