OPERATIONS OF LLOYD’S

Wanganui Chronicle, Volume LXXXIII, Issue 19648, 6 September 1926, Page 2

OPERATIONS OF LLOYD’S

BUSINESS IN NEW ZEALAND. : SECURITY DEPOSIT QUESTION. The question whether Lloyd’s under- I writers should be allowed to carry on < business in New Zealand without mak- < ing security deposits is exercising the minds of insurance men at present. It is stated a group of them has begun operations in the Dominion through a firtn of brokers and is cutting rates. Lloyd’s underwriters now conduct business overseas in all forms of insurance. By statute every overseas insurance company commencing operations in New Zealand is compelled to make a , deposit of £50,000 as security for the meeting of claims which may be made against them. This Lloyd’s has not done and this at present it cannot be compelled to do. The reason for this is that Lloyd’s is not a company but a collection of individuals who work in groups. Each takes personal responsibility for any policy which it may issue. Two years ago tho Attorney-General and the Public Trustee commenced an action against G. H. Scales, Ltd., who i were making contracts on behalf of ! Lloyd’s, to compel them to make the! deposit. It was argued that Lloyd’s is | not a company within the meaning of i the Act and the action failed. The Prime Alinister is stated to have i been approached by the council of the j Underwriters’ Association with, a re-; quest that the operations of the In- ; surance Companies’ Deposits Act’ should be extended to include persons j as well as companies. The council has i ibeen advised that deposits have been | ’made on behalf of Lloyd’s in West Aus-! (tralia and South Australia and it con- j ■siders that similar safeguards should j (be required in New Zealand.