Earthquake Loss Liability Extended

Chronicle (Levin), 19 July 1948, Page 2

Earthquake Loss Liability Extended

press Association)

(Per

WELLINGTON, Juiy 17. The logal liability i'or daiiiage is exlended by a reecnt ameudmeat to the Earthquake ahd War Damage Uegulations to water-tanks installed as part oi' the wator-Bupply system of dweJliugs and farm buildings which earry fire insurauce. Liability has been made' retrospeetive lo June/l, 1947, to cover earthquake damage to tanks las't 3*ear. The Minister of Finance .(^jr.'Nash) said yesterday that the feguliitions also' made possible a reasonablc ' classilication of buildings and their eontents aecording to resistance to earthquake siiock, as estimated by qualilied building experts. "Great variations exi.st in resistance of shoek, and it is found that heavy strueturcs of the weaker types, sulfering a coiupartivcly slight shock, are ol'ten badly damaged while structures ereeted in'accordance With more moderji standards may suffer little damage froin the same shock," said Mr. NaSh. {Previ)us'.'to- tlie operation of liie ! Act, selective insurance , trcated the inferiOr buildings mostly as uninsurable * agaiiist earthquake damage, while otliers of*a somewhat better standard could only bc insured at rates above averagc. "The new regulations, giving the I'ommission power to classify buildings in thrce grades and to apply to lirst-Joss ' franchise' up to niaximum of 25 per eent. of the amount carried under tne fire poiicy in cases wliere buildings fall weil below a reasonablc average stan dard of resistance, will result in more favourable insurance for the better type of building, as compared with poorer types, witliout raising the present ratc of 1s per eent. or lcaving anv risk insured by the Act witliout cover for less than 75 per ceut. of the amount carried for fire insurance. Each building will be treatod on itsmerits."