WAR DAMAGE RISKS

Wanganui Chronicle, Volume 87, Issue 62, 16 March 1943, Page 3

WAR DAMAGE RISKS

MINISTER EXPLAINS RATE OF PREMIUM (P.A.) Wellington, March 15. An explanation of the Government’s reasons for striking an insurance rate of 5s per cent, to cover war damage risks was given to-day by the Minister of Agriculture, the Hon. J. G. Barclay, who was chairman of the Government Committee set up when the proposal was originally considered. When the proposed Bill was first under review the Minister of Finance, the Hon. Walter Nash, had indicated that in all probability the the rate would amount to approximately 2s in £lOO. However, in the period following the passing of the Bill and before the gazetting of regulations Japan entered the war on December 7 and the Prince of Wales and I,he Repulse were sunk on December 11. Thus the whole circumstances had completely changed and the clamour from the public for some cover had become very urgent. It was also obvious thaT the cost of the risk had increased enormously, and the final rate of 5s was si ruck. In explanation of the regulations Mr. Nash at the time explained the difficulty in assessing what the premium should be, stating that the best that could be done was to fix a sum that would provide the nucleus of a fund, and if the damage was greater than could be provided out of the fund the premium would have to be increased. Regulations were accordingly gazetted on December 19 and warmly received bv the public, who were so eager to secure some protection and considered the rate so reasonable that during the voluntary period up to- February 28 between 650,000 and 700,000 applications were received by the various insurance companies. Mr. Barclay added that it was interesting to note that in Australia the war damage premiums, which was still operative, was fixed at 4s per cent, for buildings and 8s per cent, for the contents, in which category are included motor-cars, stores.