WAR DAMAGE

Bay of Plenty Beacon, Volume 5, Issue 24, 4 March 1942, Page 3

WAR DAMAGE

COMPULSORY INSURANCE

OPERATION FROM MARCH

The compulsory provisions of the War Damage Act of last year come into operation on the first of March and from tliat date all new insurances effected Avill be automatically loaded Avith Avar damage premiums at the rate of 5s per £100, or part thereof.

War damage premiums ay ill also be added by insurance companies to "jEnewal premiums as they tail due. P[*n important point is that war damage does not attach till that Avar damage premium is actually paid. The classes of policies affected arc fife, earthquake fire, householder and householder comprehensive, baggage, motor vchiclc comprehensive, and all risks.

There appears to be some misconception still existing in the minds of some people as to the actual operation of the compulsory provisions of the Act. Although these come into force this month, coA T er is not automatically provided until the payment of the first premium due after March 1. Interim Cover As an instance, a policy renewed during this month would not be charged with the Avar damage premium until February of next year and until then the holder Avould not be coAered an account of Avar damage unless he A'oluntarily takes out cover for the intervening months.

Voluntary cover against war damage may still be taken out b> r application lo the cilice covering a risk or by dircct application to the War Damage Commission in Wellington. Such cover will protect property until the date on which the next premium paid heepmes due. after which the payment is compulsory and is automatically added k. the annual premium charge. Insurance olfices report general:}' that man}" clients have voluntary taken out war risk cover for ihc period until their next premiums fall due. hut many others have taken ■ no action Avhatever. The increasing menace with Xew Zealand has added to the risk oi war damage and makes the obtaining of cover more necessary than ever. It has 'been pointed out that "property which is under mortgage to the State Advances Corporation, the Government Life Insurance Department. and the New Plymouth Savings Dank lias a 1 ready been covered by those institutions for tlx 1 protection of their securities until the respective policies come under the compulsory provisions of the Ate.