’QUAKE INSURANCE SCHEME SUGGESTED,

Star (Christchurch), Volume XLIV, Issue 144, 19 June 1931, Page 5

’QUAKE INSURANCE SCHEME SUGGESTED,

POWER BOARD’S COVER TO BE INVESTIGATED. (Special to the “Star.") AUCKLAND, June 19. A scheme for insurance against damage by earthquake, suggested to power boards by Mr J. S. Barton, S.M., chairman of the Napier Commission, has been considered by the Auckland Power Board. The board decided to advise Mr Barton that the scheme submitted by him was one which required careful consideration by the whole of the supply authorities throughout New Zealand, and for this purpose it was intended to submit details of the scheme to the Power Boards’ Association. Mr Barton suggested that the donation of £2OO made by the board to the Napier earthquake relief fund should be used as the nucleus of a larger fund, and that a contribution by all boards at the rate of two-thirds of a penny in the pound of the total revenue received should be made. He estimated that this would yield £IO,OOO. In reporting on the scheme the general manager, Mr R. 11. Bartley, said that while the suggestion might possess merits in certain directions, he could not see how it could be adopted on the basis suggested. lie thought the estimated revenue was excessive, and that a more satisfactory method of dealing with a scheme of this description would be some form of insurance with the premium required on very substantial capital much less than £IO,OOO a year. He could not recommend the board to adopt the scheme put forward. The board decided to have inquiries made concerning the possibility of an earthquake cover for the whole of the supply authorities of the Dominion under the following headings:—Power station buildings and plant; other buildings; overhead reticulation; underground reticulation. " Similar inquiries are to be made concerning cover on this basis as applicable to the undertaking in Auckland.