EMPLOYERS’ LIABILITY.
The Government’s proposal to limit employers’ liability in respect of accidents to employees caused through earthquake is rather the acceptance of the inevitable than any desire to weaken the protection afforded the wage-earner by what is generally regarded as beneficent industrial legislation. The decision of the Privy Council in regard to the liability of employers for accidents and fatalities that arose out of the earthquake calamity in Hawke’s Bay nearly two years ago has made necessary a reconsideration of the position. Most employers cover their liability to their employees by insurance, and the private insurance companies say that as liability extends to accident caused by earthquake, caused, that is to say, by circumstances that are beyond human control, the risk is too great for them to accept. It is equally obvious that the State Insurance Department cannot undertake an unknown responsibility either, and without insurance the resources from which compensation could be paid would be simply those of the individual employer. Such resources are likely to be least capable at the time of a catastrophe, and some way out of the impasse must be found. Those who criticise the limitation of liability in regard to earthquake casualties as being in favour of wealthy insurance companies overlook the fact that by refusing to accept such risks the companies can secure their own safety very effectually. No one wishes to see the power for good in the Workers’ Compensation Act made ineffective, but without insurance that would assuredly follow. Limitation of earthquake liability by special legislation seems the only way out. The limitation is a regrettable necessity, but protests against it must show a better plan if they are to prove themselves worthy of public support.
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Bibliographic details
Taranaki Daily News, 21 December 1933, Page 4
Word Count
286EMPLOYERS’ LIABILITY. Taranaki Daily News, 21 December 1933, Page 4
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