The Feilding Star. THURSDAY, JUNE 25, 1891. Municipal Five Insurance

Feilding Star, Volume XII, Issue 155, 25 June 1891, Page 2

The Feilding Star. THURSDAY, JUNE 25, 1 891 . Municipal Five Insurance

A -Btll has been introduced to the House to permit city and Borough Councils to insure building's against lire, within their respective boundaries. Exception is made of such building's as may be used for carrying on any trade or occupation of a hazardous nature, . or buildings likely- to be endangered by their proximity to those specially referred to, which buildings may be excluded from insurance, or included on special terms. - All lands. and buildings are to be valued separately, and a rate is to be /struck and levied of sixpence in the - pound en the rateable value of houses and, building? of every, description, ".which may not have been evoepted .for reasons before stated. This rate I ■ 'shall become due and payable in the same manner as other municipal rates. .Notwithstanding the levying of this rate, the council shall! not be responsible for any losses arising from ' fire until the expiry of twelve months from the date at which the rate for the h'isitidate became payable. After tue expiry of twelve mouths, and > immediately a. second year's rate has becmua due, the whole of the building's wiilnn the Borough, with the eneiuioii;. kuiicd, shall stand insured on payuiHut uE rates. Whenever, by i Btiiiju -of -fiequent fires in anyone year, the funds are found inadequate to meet the payments required, the council uifiy levy an extraordinary rate to liquidate all payments, but in case of need the council shall have power to spread such extraordinary rate over any period not exceediug three years, and may borrow money to pay claims for fire insurance for which such rate is levied. Any council undertaking Fre Insurances must maintain an efficient fire brigade. The -foregoing are the chief provisions of the Bill,' and in our opinion they carry with them their own condemnation. In- the first place, during the first year°insurers .vould have to pay, besides the borough insurauce rate, their premiums .to existing in--1 gurance companies— a double charge. Secondly, no provision whatever is made for the insurance of goods and chattels, furniture, and other risks, now accepted by fire insurances companies as legitimate. Perhapsit is expected the "latter will take risks on stock, and leave the' buildings to be insured by the Borough. If that hope evfcn existed 'in the mind of the framer of the Bill, it is doomed to disappointment. No doubt the Bill may be intended to assist in stopping those " speculative fires " which have been so common in New Zealand, (as well as other parts of the world where excessive competition amongst the insurance companies has encouraged that peculiar form of industry) by making each ratepayer or burgess a ' watchman over his neighbour's house. t •If that is the idea it is as much a mistaken one as the other.' We have before advocated the Government undertaking fire insurance, , risks in connection with the Life' Insurance Department, because we believe, that '. insurers would then be protected at a much smaller cost than 1 they are" now put to hy having to maintain so-many companies with their costly systems of management, i>ut we object altogether to any such feeble scheme as that proposed by Mr W» Hutchison.