NEW INSURANCE SCHEME.

Dunstan Times, Issue 531, 21 June 1872, Page 2

NEW INSURANCE SCHEME.

Two letters on the subject of .fire insurance, addressed to the Colonial Treasurer, have lately appeared, in the columns of the Wellington Independent. They deserve the prominence which our contemporary has given them, alike for the importance of the question, and the way in which it is treated. The writer, who gives no clue to his identity by the signature “ C,” drives straight to his main object at the outset. “I wish, 1 ) he says, “to point out how the Governmen may introduce a system of fire insurance more beneficial to the community than that which at present prevails,” His system is based oh two propositions:—-!, That a business which depends for its success, not upon the application of judgihent or energy : in’particular instances, but upon the correctness of general rules deduced from statistics, and upon the command of capital and credit, and which is of general advantage, may be properly undertaken by the Government. 2. That damage from tire may he prevented, and would be prevented, if the risks of insurance were localised. The scheme itself is propounded as follows —“ Let municipalities within their several localities he at liberty to undertake the business of insuring buildings against fire upon the following conditions :—Municipality to have power to fix the rates of insurance, subject to the approval of a Government Commissioner (say the Government Annuities Commissioner), and to the condition that for the first ye ir such rates shall not be less than those heretofore charged by private companies—all premiums to be paid into the account of the Commissioner, and the monies so received by him from the several municipalities to be in vested as a general insurance fund in Treasury ■ Bill?. Losses to be paid by the Commissioner up- n the certificate of the proper officer of the municipality out of tho general insurance fund (such losses, however, as will he seen presently, being borne ultimately not by the general fund, but by the particular district within which the fire has occurred’.) In the improbable case of the general insurance fund being at any time insufficient to meet the losses, Government to he empowered to issue additional Treasury Bills to cover tho deficiency, to bo redeemed out of the future accumulations of the general insurance fund. Half yearly accounts to be stated between the several municipalities and the Commissioner, in which the amount of the insurances affected with such municipalities shall be shown. Every munici- ! pality to he credited with the premiums on 1 insurances affected with it and with interest at the current rate of interest on Treasury Bills upon its minimum monthly balance, and debited with losses paid in its account; and, if th£se should exceed the amount standing to its credit, with interest on the overdraft at +he Treasury Bill rate of ■ interest. Whenever, upon the half-yearly statement of account, the balance standing to tho credit of any municipality shall exceed a certain fixed proportion (say three per cent) of the principaTsums insured, such excess to be paid over to tho municipality in aid of its general rates. Should any municipality, whose account is overdrawn, not place in credit within three years or such extended time as might under special circumstances be granted by the Assembly, the Commissioner to direct a special rate to he levied, sufficient to replace the deficit, and to place such municipality in credit to the extent of the last mentioned proportion of 3 per centon the sums insured, and to have power to require such municipality to raise its rates of insurance should he deem them insufficient.”