INSURANCE RISK

Bay of Plenty Beacon, Volume 8, Issue 97, 14 August 1945, Page 5

INSURANCE RISK

EARTHQUAKE & WAR DAMAGE HARBOUR BOARD'S POSITION QUERIED In a letter to the Whakatane Harbour Board the Earthquake and War Damage Commission referred to a recent verbal request for advice as to the rate, for which Commission would,cover against earthquake and war damage the Whakatane River channel groynes and two wharves and advising that the. request was being submitted to the Commission for consideration at its next meeting. Meantime, , the following information was desired —value of each item it was proposed to the basis on which the valuation was determined and the amount of insurance proposed on each item. If it was proposed to insure for amounts approximating the value of each item the. Commission woukl consider acceptance of the risks without the application of thte average clause. If the Board desired insurance for only a proportion of the value the condition of average would apply. Also it. was desired to know whether the Board required insurance not only against physical damage to the items covered but also for loss of use of the property should an earthquake either

raise or lower the level of the channel or the adjacent land. The existing war damage insurance of £10 s OOO on the two wharves did not expire until 29th December 1945, and if an earthquake and war damage insurance was effected on those items prior to that dat Cj a refund of pre--mium for unexpired term would be allowed. The secretary reported that the. present war damage insurance was>: Town wharf £7500; Paper Mills wharf £2500; River Channel £5000; Groynes £2000. The Board decided "that further information be obtained —that the Commission be advised that the Board is favourably inclined to effect earthquake insurance for full value provided the premium rate was reasonable.''