STATE FIRE INSURANCE.

Wanganui Herald, Volume XXXVII, Issue 10971, 10 June 1903, Page 4

STATE FIRE INSURANCE.

The subject of State Fire .Insurance was dealt with pretty fully by the Premier. in Itifi address at Hokitika on Friday evening last, and his views are in marked contradistinction to those recently expressed by Mr C. M. Montefiore, president of the Insurance Institute of New Zealand. The latter ridiculed the idea of State fire insurance, and alleged that so far from the present ratea being too high, 'they 'were barely sufficient. Mr Seddon, on the other hand, expressed the opinion ' tliat < the premiums paid ia the colony were out of proportion to s the risks, which- was proved by the enormous profits made by the companies. .. He. quoted, t ne .following figures in reference to ,New Zealand fire insurance companies : — S'ou-th • British.^--Profits, .£44,896; dividend", 25 per cent (£16,157); added to reserves, -<£ 28 ,739; reserves, ,£274,817." New Zealand Company. —Profits, .£55,119; dividend,' 13} per cent (.£27,500) ; added to reserve, ,£13,682 ; reserve, ,£295,167. National Company. — -Profits, .£32,436 ; dividend, 12£ per cent (£12,500); added to reserve, £19,836; .reserve, £163,124. .Standard Company.-r-Profits, £11,013; dividend, 10 per cent (47&000.): added to reserve; ' iSjh3;., ie-'' serve, £50,200. '; /Farmers' .Corop^atjVje Association. — Profits, £4539'; dividend;. i&. per cent (£2874); added toTesefve/£-1565 ; ; reserve. £11,527. Ihe ''a^'ount^oi'jcSlJeiS^ up cdpifal was:— South £ rlfishi .'"£64,629; . New Zealand, £200.000; % National, £200,000; Standard, £75.000; - Farmers' Co-operative, £49,468. Proceeding, the Premier claimed that the accident insurance policy of the Government ,had been , amply justified by the resulta achieved. It had ensured a lower rate of premiums being charged to both employers and employes, and he anticipates the same, success would attend the. policy of State fire insurance. The rate of premiums charged in some districts amounted almost to confiscation. It was liis determination, to go on with the measure in the coming; session. The large resrves quoted in 'tekpect 'of the companies previously mentioned w#re greatly due to the premiums

charged. However, the figures called for consideration. He did not think there was much risk to the colony if it embarked on a State fire insurance scheme. If necessary, we could get capital, at 3 per cent. Wo could allow a sinking fund to ensure the repayment of that capital. The premiums charged would be less ihan thoso now obtaining, and there would , « till be a good margin, because the State did not want exorbitant dividends. He would propose that all\who insured with the Govern1 ment, after taking half the profits for «a reserve fund, should receive the other half of .profits among them. As far as he could pee/ the only> way in which private insur- ■ ance riontpan^es would suffer would be in th' 6 diminution of their dividends. If they fpll> iqto line with the Government, and distributed half their profits among those who insured with them, J no. harm would ''be /done. The Premier was satisfied that the .proposals of last session were soimd in every respect. He would >be quite prepared to weigh well arguments against the block system and the Fire Brigade proposals. There must be .legislation for our Fire Brigades apart from aiiy insurance proposals. The fire insurance companies profited by the ..services rendered by the Fire Brigades, also the Government; bu.t , the cost of these generally fell on the burgesses.