FIRE INSURANCE RATES.

Star (Christchurch), Issue 7154, 19 July 1901, Page 2

FIRE INSURANCE RATES.

From the remark,? let drop by the- manager of the South British Insurance Company, with reference to the increase in the v fire insurance rates in the North Island, it is., evident that the increase was due, not to a desire on the part of the insurance companies to exploit their customers, but •to a sense of self-preservation. Fires have become' so frequent- in many parts of the N.orthi Island that the companies were compelled to take action in self-defence. They raised the insurance rates, not as a means of revenue,. ' But, a s Mr Kirker pointed out, as an intimation that the fire protection appliances in most of the centres were inadequate to meet the demands made upon them, and to rouse the municipal authorities . to a sense of their responsibility in the matter. The- municipal authorities have given proof that they have taken the hint. In all parts of the North Island, and, in fact, all over the colony, there has been a marked tendency towards better precautions against fire. Owners of household properiv in the North Island have now a greater inducement than ever to encourage the movement in this direction. They are promised, j to again quote the manager M the South I British Insurance Company, that directly the companies are satisfied that the various [ towns in that, part of the colony are furnished .with appliances calculated to afford them a fair protection against fire, the' present Regulations #iirbe relaxed, and the rates reduced to their former level. To us this seems a fair enough .bargain. The insurance companies may in the past have made huge profits out of the public, and no doubt in the South Island they ar,e still doing a profitable business. But they have suffered! heavy losses in the North Island during the past year or two, and from their point of view, at least, they are justified in taking steps to preserve their own interests. When the Government Fke Insurance Bill becomes law, the situation will be different. Then every municipality will be compelled to provide effective fire prevention apparatus, and the insurance coni* panics will have to bear a share of the cost. In the meantime, however, the necessity of providing protection against fire is left to the good sense of the municipal authorities, and as. good sense is not a characteristic- of some municipalities, * the insurance companies had some justification for the course which they adopted. ......