FIEE INSURANCE RATES.

Feilding Star, Volume XVII, Issue 24, 27 July 1895, Page 2

FIEE INSURANCE RATES.

TO THE EDITOR OF THE STAR. Sir, — In your issue of July 17th I notice a leader on the question of high insurance rates ; I also notice that the large towns are forming Insurance Protection Societies. I do not see why the farmers should not take steps to see if their insurances cannot be made a little easiei'. At the present time the farmers on this coast are paying thousands of pounds annually for insurance on farm buildings. I think if we were to form a Fire Insurance Society on similar lines to the one in vogue in Sweden it would be a step in the right direction. Then the ten and fifteen per cent, dividends would remain in the farmers' pockets instead of going to the companies. The society is worked somewhat as follows : — A society is formed with a Board of Directors and Secretary. Farmers wishing to become members of the society would make application, giving a description of their buildings, their value, and the amount they wished to insure for ; also, a small entrance fee to provide secretary's salary and preliminary expenses. When a sufficient number of farmers had joined the society to make it financially strong a start could be made. There would be no premiums to pay until a fire took place, then a levy would be ruade on members at per cent, on the amount of their insurance. There would be no payments to make, only when there was a fire, and then only for what was actually destroyed. At every few miles throughout the district trustworthy farmers would be appointed to. receive applications and value buildings on behalf of the society (gratis). I think if your readers will give the above a few moments' consideration they will come to the conclusion that a very large sum of money could thus be saved, and, further, that the whole of the money handled by this society would be kept in the district. I think that if a return could be prepared showing the amount of premiums paid by the farmers on their farm buildings, and the amount paid by the companies in return for farm buildings destroyed by fire, the difference would astonish most of us. I am, &c, W. G. Peaecb. Colyton, July 24, Xgg^