WAR INSURANC E

Bay of Plenty Beacon, Volume 8, Issue 9, 19 September 1944, Page 6

WAR INSURANC E

ACTIVE SERVICE RISKS

INJUSTICES SEEN

The attention of the Dominion Executive Committee of the N.Z.R.S.A. lias been drawn to a matter that is causing serious losses to dependants of men killed 011 active .service. As- the law now stands a person who insured his life since the outbreak of war ceases to be covered as. soon as lie goes overseas and* for six months after if if death occurs as a direct result of his, war servicc j unless an additional premium of £7 KKs is paid for each £100 of the sum assured. This lias also an important bearing on Mortgage Repayment Insurances. In t lie case brought lie fore the notice of the N.Z.R.S.A. a soldier was granted a loan by the State Advances. Corporation when a civilian iii; 1940, the, Corporation msist.-i ing ; for their own protection on the man taking up a Mortgage Repayment Insurance policy. This policy carried with it the usual provision that) certain Avar risks were not covered by the Mortgage Repayment insurance unless the additional premium previously referred to was paid. e In this case the soldier left New Zealand approximately two years after the Mortgage and the insurance were effected and apparently considered his home for his wife and children adequately protected by j the arrangements lie and the Corporation had made regardless, of the j'act that the insurance carried the memorandum of agreement absolving the insurance company from risk due to war service. He was killed in action and his wife and family were justified in taking some comfort in the thought that his life insurance, would protect liis> Mortgage. Such hopes however, proved to be false, as nobody except the State Advances Corporation and the insurance company concerned appeared to know anything of the document which released the insurance company of its obligations to pa3 T out to the Corpora- I tion.

The N.Z.R.S.A. decided U> give publicity to tills matter in order that next-of-kin of policy holders; could be acquainted with the position so that they could take the action required to safeguard their interests before it was. too late.