INSURANCE ON TUNNELLERS

Wanganui Chronicle, Volume 80, Issue 100, 30 April 1938, Page 8

INSURANCE ON TUNNELLERS

Sir, —In the “Chronicle” of 23rd. instant appeared a letter on the above subject from Mr R. O. Montgomerie, wherein he complained bitterly of the cost of certain tunnelling work on his farm, and stated that, if the wages paid to a tunneller were 25s per day, the insurance premium payable would amount to, roughly, 19s per day. He further stated that for that 19s per day premium the insurance companies would accept only half the risk. To make his figures quite plain, he concluded his letter by referring to the payment of £75 in insurance for every £lOO of wages or contract price.

Enquiries from two of the leading insurance companies carrying on business in Wanganui shew that the rate payable for the insurance of men engaged in tunnelling is 13 per cent, of the amount of wages paid, in other words instead of paying £75 for every £lOO of wages, Mr Montgomerie would require to pay £1.3 to obtain full cover, not half cover, as state! by him. Mr Montgomerie says that on a wage of 25s per day, the premium would be, roughly, 19s per day for half cover. Actually it would be 3s 3d per day for full cover. —I am, etc., W. R. BROWN.