STATE FIRE OFFICE.

Timaru Herald, Volume CXXXIV, Issue 18819, 6 March 1931, Page 7

STATE FIRE OFFICE.

EX GRATIA PAYMENTS IN HAWKE’S BAY. By Telegraph—Press Association. WELLINGTON, March 5. The Prime Minister stated in an interview that his attention had been drawn to certain statements which were being widely circulated that the State Fire Insurance Office was bound, under the terms of its policies, to compensate policy-holders for losses suffered from fire resulting from the 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 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 at Hawke's Bay. The Prime Minister further stated that the whole position had been the subject of a review by the Crown Law Office. An 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 fire caused by earthquake. It would only be fair that the same prominence should be given this statement regarding the legal ; position as had been given to the suggestions regarding the Government’s motives, and the terms of the State Fire policy.