GAMBLING ON WEATHER

Taranaki Daily News, 29 April 1931, Page 9

GAMBLING ON WEATHER

INSURANCE AGAINST RAIN. COVER FOR SYDNEY SHOW. Sydney, April 10. Owing to the facilities offered by one of the °big insurance companies, gambling bn the weather has become popular 0 in Australia. The latest organisation to benefit by a “rain” policy is the Royal Agricultural Society of Sydney, which took out A cover for £2OOO in respect of Good Friday—and won. In fact, it was a double victory, for the rain ceased early in the day, and the attendance was unaffected. The policy provided for the payment of £2OOO -if 10 points of rain were recorded betwen the hours of 8 a.m. and noon. Actually 10 V points were recorded between those hours, but all of it before 9 a.m., so the association had erred reason to congratulate itself on the foresight it had shown. From nine o’clock onwards perfect conditions prevailed. Members of the association said it was “a shame to take the money.”

The premium for the £2OOO cover was £2BO. A similar premium was paid in respect of Easter Monday, when no rain fell/ Therefore, the association was in pocket to the extent of £1440. The premium rates for such a cover are not arrived at haphazardly, but are calculated on the Observatory records over a period of 04 yeans. In country areas a shorter period is taken into account when estimating the possibility of rain occurring on any given day. Proof of the claim consists of a certificate which is given by the observatory officials. One of the suburban agricultural societies recently insured its People’s Day for £5OO, the amount to be paid if 10 points were recorded before 10 a.m. That amount was duly recorded before 8 a.m., and the company paid up. Now Sunday school picnics and bazaars, as well as football and cricket matches, race meetings and tenuis tournaments have been brought within the scope of this particular branch of the insurance business, and more often than not the insurance company wins. Last week a big bridge party in Sydney was insured against rain, and no rain fell. The amount paid out to the Sydney Royal Show committee involves the largest sum paid out on a single claim in New South Wales. Victoria holds the record. The Victorian Agricultural Society drew £2OOO from the company on one occasion. .Many of the sideshows at the Sydney Royal Show were also insured against rain, and they duly collected on account of the fall on Good Friday.