PREVALENCE OF FIRES.

Dominion, Volume 2, Issue 457, 16 March 1909, Page 7

PREVALENCE OF FIRES.

A CHRISCHURCH OPINION. DIFFICULTY OF GAUGING RISKS. (Ur I'ELEGUAI'II—SPECIAL COIUtIisroKPENT 1 Christchurch, March 15. A Christchurch man who is largely interested in insurance matters, speaking to a "Press" representative to-day regarding Captain Hugo's recent remarks on firo losses, said that there was 110 doubt they wero exceptionally high. Sinco tho reduccd rates of premium camo into forco in 1905 an increase in fires had been apparent. This was attributed to carelessness and a neglect of precaution to a large extent, arising from tho fact that, owing to reduccd premiums, a larger amount of insurance was taken in many cases. "

On tho subject of what precautions are taken by the insurance companies to prevent over-insurance thoro appeared, according to the opinions gathered, to bo considerable difficulty in arriving at a proper valuation 01" premises and goods sought to be insured. ' "When you consider,'-' he said, "the great variety of buildings and goods which we are calledupon to deal with, tho difficulty of arriving at anything like a true valuation will be apparent. Tako buildings, for instanco. It is notorious that experts differ very widoly indeed in their estimates of value, and, to cover all tho different ranges and descriptions which wo havo offered to us, would require an army of experts in different lines. "Tho samo applies even in a greater degree to goods, etc, Wo may take a valuation of a shop, for instance, whero there is a large stock at the time. Circumstances may alter, and, at tho time a fire occurs, there may not be this margin. If -the fire is an incipient one, we have a check to some extont, but, when there is a total loss, we have practically little or none. "I am not surprised that Captain Hugo should draw attention to the number of fires in Wellington. Thero are a large number of buildings erected on paper, having first, second, and third mortgages on them, and the natural desire is to insure them as fully as possible. It must be' also understood that the keen competition is to be taken into account. If one office will not take a risk another will. Wo do the best we can by careful inspection, and, no doubt, this to some extent prevents many losses. But, unless the great expense is incurred of employing experts as to tho building, the household furniture, and the hundred and one classes of goods contained in the buildings throughout the whole of tho Dominion (risks varying almost in every particular), wo havo really no test of value. To do this would cost an enormous sum, and would mean tho increase of expense to a very large extent. The course proposed by Captain Hugo of an inquiry being held into every firo which takes place, 1 think, suggests one remedy which would check tho evil complained of. If it were made compulsory it would make the honest insurer far more careful, and would act as a deterrent to the dishonest. Again, it would have the result of making insurers more careful in their estimates of value, looking to ,tho fact that the money for the fire losses comes out of tho pockets of tho general publio and is, in every sense, a* national loss. "The whole subject is one which tho Government .should carefully consider with a viow of legislation, so as to deal efficiently with the evil complained of."