LIQUIDATION PROPOSED

Waikato Times, Volume 123, Issue 20590, 30 August 1938, Page 8

LIQUIDATION PROPOSED

MUTUAL INSURANCE COMPANY LEVY ON POLICY HOLDERS (Special to Times.) AUCKLAND, Tuesday Advice has been received by policy holders of the Public Mutual Insurance Company of New Zealand, the head office of which is in Auckland, of a levy on them of a sum equivalent to two and a-half times the current year's premium on insurance covers. Payment of tiie levy is demanded by September 16. They have also been advised of the intention to hold an extraordinary general meeting of the company in Auckland on September 23 to consider a resolution that the company be wound up voluntarily, and that Mr J. W. Hyland be appointed liquidator. In, an accompanying circular to members it is stated that the directors had decided to recommend that the company should go into voluntary liquidation.* “ Claims under third party motor vehicle insurance risks have been very heavy during the past year and these are primarily responsible for the company's present financial position.” stated a circular to policy holders. ” Unfortunately considerable time elapses before advice is received and reliable estimates can be made of liabilities in this respect. In this connection reference should be made to the increasingly heavy damages awarded by juries with this type of claim, resulting in adverse settlements made out of Court.” DEMANDS IN HAMILTON LARGE SUMS MENTIONED Several Hamilton policy holders are reported to have received demands for the payment of the levy, in some rases the demands run into several hundreds of pounds.