WAR DAMAGE INSURANCE

Wanganui Chronicle, Volume 85, Issue 301, 22 December 1941, Page 6

WAR DAMAGE INSURANCE

OPERATIVE FROM TO-DAY A VOLUNTARY BASIS (Press Assn.) Wellington, Dec. 19. A proclamation bringing the War Damage Act, 1941, into operation, was issued to-day by the Governor-Gene-ral. The regulations under the Act and the appointment of members of the War Damage Commission were also made. Members of the Commission are Messrs. G. E. Brangwin, R. Caughley, J. H. Jerram, and W. Stewart. There are also two statutory members of the Commission, the Minister of Finance, the Hon. W. Nash, who will be chairman, and the Secretary to the Treasury. In an explanatory statement, Mr. Nash said the immediate result would he that war damage insurance will become available immediately to any person, firm or company making application and paying the requisite premium. For the present war damage cover is limited to those persons who apply to the War Damage Commission or an insurance company for it. No property will be covered automatically against risk of war damage until the date of the first renewal of the ordinary fire policy that falls due after March 1. 1942, or until the date of any new policy taken out after March 1, 1942. For example, if a fire policy falls due for renewal on December 29. 1941, war damage cover will not apply automatically until December 29. 1942. To be covered in the meantime, the owner must apply to the War Damage Commission for a cover running from to-day until December 29. 1942. If the fire policy is due for renewal on February 27, 1942, the automatic war damage cover will apply on February 27. 1943. and the owner will need to apply specially for cover from to-day until February 27. 1943. Mr. Nash said the Government appreciated the difficulty facing many people in getting particulars of fire insurance policies and making application for war damage cover over the Christmas period. The insurance companies and the War Damage Commission will meet the position by remaining open between Christmas and New Year throughout the country. The Government arranged with the War Damage Commission that any person who has an existing fire policy for any amount may be protected against war damage to the same amount from today as long as his application and premium for special war damage cover reaches his insurance company or the Commission not later than December 31. This will assure householders and business people of adequate cover for the next ten days, during which time they will have ample opportunity to complete their applications. The rate of premium is 5d per month (or part of month* per £lOO (or part of £100) of cover. In this regard a month means any of the twelve named months of the year, and if any part of the period of cover falls in anv month the premium will be payable for that month. For example, if cover is wanted for December 20 to June 5 the premium will be paid for June as well as December, a total of seven months. Similarly, if the amount of cover required is, say. £lO4O, the premium will be calculated on £llOO. The premium on £llOO for seven months will be £1 12s Id. This simple method will enable anyone to calculate the amount required to be sent. This is essential when it is borne in mind that the cover given will be limited absolutely to the amount of premium forwarded.