NEW INSURANCE SCHEME.

Evening Star, Issue 2907, 13 June 1872, Page 3

NEW INSURANCE SCHEME.

Two letters on the subject of fire insur anee, addressed to the Colonial Treasurer, have lately appeared in the columns of the Wellinijton 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 “0,” drives straight to his main object at the outset. “ 1 wish,” he says, “ to point out how the Government may introduce a system of lire insurance more beneficial to the community than that which at present prevails.” His system is based on two propositions 1. That a business which depends for its success, not upon the application of judgment 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 much of the loss from fire may be prevented, and ■would be prevented, if the risks of insurance yfere localised. The scheme itself is propounded as follow . “ Let municipalities within their several localities be at liberty to undertake the business of insuring buildings against fire upon the following conditions : Municipality to have po ,ver 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 year such rates shall not be less than those heretofore charged by private compaaies—all premiums

to be paid into the account of the Commissioner, and the monies bo received by him from the several municipalities to be invested as a general insurance fund in Treasury Bills. Losses to be paid by the Commissioner upon the certificate of the proper officer of the municipality out of the general insurance fund (sucti losses, however, as will be seen presently, being borne ultimately not by the general fund, but by the particular district within which the fire lias occurred) In the improbable case of the general insurance fund being at any time insufficient to meet the losses, Government to be empowered to issue additional Treasury Bills to cover the deficiency, to be 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 effected with such municipalities shall be shown, livery municipality to be credited with the premiums on insurances effected with it and with interest at the current rate of interest on Treasury Bills upon its minimum monthly balance, and debited with lossi s paid on its account; and, if these should exceed the amount standing to its credit, with interest on the overdraft at the Treasury Bill rate of iuterest. Whenever, upon the half-yearly statement of account, the balance standing to the credit of any municipality shall exceed a certain fixed propostion (say three per cent.) of the principal sums insured, such excess to be paid over to the 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 be levied, sufficient to replace the deficit, and to place such municipality in to the extent of the last-mentioned proportion of 3 per cent, on the sums insured, and to have power to require such municipality to raise its rates of insurance should he deem them insufficient ”