REPORT PREPARED ON EARTHQUAKE INSURANCE

Bay of Plenty Beacon, Volume 15, Issue 67, 10 July 1950, Page 5

REPORT PREPARED ON EARTHQUAKE INSURANCE

Although insurance companies have full authority to charge their policy holders with the premium for which they are liable in earthquake insurance, "they undertake no authority for payment of claims. They act merely as agents for the Earthquake and War Damage Commission, states a report of a special committee set up by the Whakatane Citizens’ Association •to inquire into earthquake insurance. Earthquake insurance is of two kinds, the report continues. The first is an earthquake cover which can be arranged with any good insurance company. The second is compulsory earthquake and war damage" insurance; for which a premium of one shilling per cent is added to all fire insurance premiums. Additional Premium

From this it will be seen that Where property is insured against fire, the insurance company* is required by law to collect an additional premium, and thus properties which are insured against fire are also insured against earthquake damage. In earthquake insurance a proportion of any loss due to earthquake must be borne by the insured person. This is usually called the franchise. The effect is Amount of insurance Franchise £ISOO and under £5 £I6OO and under £6 £I7OO and under £7 £2OOO and under 1 £lO

In the event of earthquake damage occurring to an insured property the following action should be taken by the property owner:— 1. Notify the Insurance Company holding the fire insurance at once. The company will then notify the Commission. 2. Have the damage inspected immediately it is discovered by a reliable person who would be in a position to certify that the damage is due to earthquake. 3. Take' careful note of the time and date of the earthquakef causing the damage. There could be more than one earthquake on one day. 4. If repairs are not "urgent, obtain quotations for them. 5. Prepare claim in writing (using form E & W.D. II if available) 'for the loss or damage including as full an account as may be reasonably practicable of all the several articles of property destroyed or damaged and of the amounts claimed. Particulars of all other insurances are also required. Replace Or Pay

The Commission may at its option reinstate the property destroyed or damaged instead of paying the amount of the loss or damage As a general rule the payment of compensation is at the discretion of the Earthquake Commission. Payment is not usually made for restoration of damage if the buildings or equipment were unsound before the earthquake occurred.