MUNICIPAL INSURANCE.

Dominion, Volume 2, Issue 561, 16 July 1909, Page 6

MUNICIPAL INSURANCE.

COVERING EMPLOYEES AND THE ■', PUBLIC ~ PEOVISION .AGAINST:.ACCIDENTS. •.' The City"Council last night,adopted the principle of doing its own accident. insurance. Steps, were taken to establish : two funds, ono to cover'accident rislcs in the tramway service and the other to cover the,same class of risks!in .connection.with the other employees of- the'corporation and also claims brought .by the general'public. Tho Finance Committee recommended that the' general publio ' and employees' liability risks.be undertaken by .tho council, and that an amount of .£SOO, plus the' amount that would bo required to be paid to au insurance company, be set asido.as an insurance fund. ; "Councillor Shirtcliffo moved ah ninondment in'.favour of investing tho proposed insurance fund .separately. In adoptiug the principle of doing its own insurance, ho contended/the council should safeguard the" fund and not allow: it' to go' into the district fund.. The money was to bo 6et asido for a special pur-: pose', and should bo treated accordingly. The Mayor said that if that were-done tho city would have to pay 5 per cent, on .tho overdraft,, and.it would bo difficult to invest the insurance money, at i per cent. He asked the council to pass tlie clause ns it; stood,' and ho would .bring the matter before the .Finance Committee again. ' , : '■'■'■ \" '. Councillor ShirtclifFe: You are- encouraging us to do what you condemned in no : measured terms in connection with the , abattoirs,'-loan. Even if a loss of i per cent, or 1 per cent, interest were involved,' the fund ought to be kept separate.; ..■.„.. .'...•• ".,- Councillors Ballinger and Devino thougflt the. matter should be referred back'to'.the committee. ■■ ■ .'>" ■'■ . ■••'•' Councillor Fletcher . thought it was a question whether the council was not taking too bjg a risk in taking this scheme on; Ho thought the sum of .£SOO should be increased to .£IOOO. He agreed with the principle, but he considered the council might get m right away. - : -', ■" ■' '~ • ; V Councillor, Smith urged the council to go slow, although he agreed with .tho, principle, of the scheme.'- Ho thought the council would be .well advised'if it only took a proportion of the risk. ■'•-.'. ; -~ ,'■'• ■ Councillor Devino thought there.should.nave been a nucleus' fund: before the.., step was taken', as a ■;■ big .claim/might come in rignt "tomicillor Fitzgerald, supported the_> amend-There-was no desire to lose sight of the .™.ThT ;i Mayor. pointed : out. that '■ there would, have, been a clear gain.CLf X4oo'last 'year./, The-amendment'was carried. ■-~-. Tho'- Tramways Committee' brought down- a recommendation to the effect that, the. Corpora-. tioh' undertake their own accident, insurance risks (both, public and employees - liability) with -respect to the Electric, Tramways and Lighting -■■-Departments, :and that- sum ,oi 1 ieiOOO.'-plus the amount, which, would bo payable m premiums be sot,aside as.au insurance fund:: ' ■■■■--. : v - •.'.--. : . ;':.. .."•■::■,„'■.■' The words Vand-be separately.invested-were, added.; at'the suggestion' of Councillor . bhirtcliffe;■'■■{: .•'" ' ''■■-~' "•". . ,';'■. '-,'. :-. . .' Councillor" Suiith said 'he would vote against the proposal, because ,ko -did not■■ think the, council should 'take such an immense risk. It, might involve the council in. very .serious loss. Councillor - Fletcher. . endorsed-: Councillor Smith's views.:-"':-V: .: .. ■' ' :s•'''.-■ 'Councillor: Devine moved .a;further amendment in-the' direction: of-setting aside a, sum equal to half the amount: (instead' of the whole* amount)'.that would be payable in Dremiunis,- : The Town .Clerk.(Mr.;,JS E. Palmer) stated •that itho insurance 'companies: had'. declared, that they would not take the'public, risks under -the tramways 'unless -they also /took the ■ employers? liability .'risks.". ■ They-, would have all : or, none.- .'. --'-.'l'.-ri. ■'•-.' ■~■:•..■■.,'.,■.-. .'.",-:■ ••.';'."'-.-.'; :'• ■Councillor Devine said perhaps the council might make the desired arrangement outside Wellington: However, he did not wish,. io~ ask - for. an impossibility*. -. .For a very big • thing like this there should.be a nucleus of a fund. However, he'would not push the .mattersCouncillor Shirtcliffe said, the committee had studied the figures carefully. Ho believed that, although the council would be taking a.risk, it would pay them do, so. One reason why they"should do it was' the, asked by the!companies.- The' companies also limited- themselves to a maximum of .1000 in any (one : year, for which they were paid an enormous premium. In the Lighting Department there: was already •£750. put aside, and he thought the council*.would be perfectly justified;.in taking the: risk. Further, he might mention that: the' insurance: companies..only took.a three-fourths risk.. "-,.' ■'; .'■

Councillor Ballinger'agreed that tho council did not got proper cover at present. He supported Councillor Shirtcliffe. ~ ."•'"..„ After: further : discussion, the olauee Was adopted,.;with Councillor Shirtcliffe'a amendment.: ':•':' ■