INSURANCE CLAIMS,

Waikato Times, Volume 112, Issue 18797, 19 November 1932, Page 3

INSURANCE CLAIMS,

MEMBER'S ATTACK ON COMPANIES PREMIUMS AND PAYMENTS. “Private Insurance companies are not playing the game, and are giving a tremendous amount of trouble to policy-holders making claims against them," declared Mr R. McKcen (Labour—Wellington South), when the annual report of the State Fire Insurance Office was under consideration in the 'House of Representatives. Mr McKeen said that in numerous cases polloy-hr Iders were having to resort to migration to enforce their claims. He thought that in the interests of the public all insurance should be controlled by tile Stale, whether life, fire, or accident. The only guarantee of security was to insure with the Stale,, whose office had made marvellous progress, despite the fact that it had originated the policy of reducing premiums. “ i cannot allow the remarks of the member for Wellington South to go unchallenged," said Mr A. .1. Stall - worlh.y (Government —Eden). lie would be sorry to sec the whole of the insurance business controlled by the Slate Office. Earthquake Damago. Mr M. J. Savage (Labour—Auckland West), congratulated the officers in charge of the Stale Ulllee on the success'Of the department, lie thought the Government should consider 111.’ necessity for universal coverage as far as earthquake damage was concerned.

It seemed to him that the State Office might very well devise a universal policy to protect citizens against earl hquakes.

Mr A. M. Samuel (Government — Thames), asked when the Government proposed to take action to deal with insurance companies which were accepting policies very much in excess of Hio amount they ever intended to pay out. Companies were extracting money from the public, in circumstances which would he called false prelcners if the same pracliccs were followed by others. If I lie furniture of an insured person were totally destroyed, tlnm lie had to show, by means of an itemised fist, exactly what was

the value of the furniture, in spile of the fact that the company had accepted the risk. The contract was altogether too one-sided, amt the time J has arrived for the Government to go into the question. Discussing the report of the accident insurance branch of the office, Mr A. S. Richards (Labour —-Itoskilli, said lie considered it was time all accident insurance should lie conducted totally by the Stale. Before a company settled a claim it conferred with ultier c uup.tnios "in the pool,'’ amt competition was thus compielely eliminated. if the State established a munupJly it would be possible to reduce premiums.