INSURANCE COMPANIES’ “COMBINE.”

Gisborne Times, Volume V, Issue 80, 12 April 1901, Page 3

INSURANCE COMPANIES’ “COMBINE.”

A meeting was held at the Council Chambers last night in regard to the threatened increase of insurance premiums by the insurance companies. There were present —Messrs Morgan (Chairman), T. Adams, Orr, Rosie (2), Lunn, Ambridge, Pettie, Townley, Whinrav, Redstone, Cox (2), Shelton” Webb, Robinson, J. Brown, Lewis, Humphreys andß. Johnston (Kaiti). The Chairman said that the committee had sent a telegram to the Secretary of the Underwriters’ Association at Wellington, asking for information, and the following' reply had been received : “ Your telegram should bo sent to the President of the Fire Underwriters, Auckland. Lyon, Secretary, Wellington Underwriters.” —He had then written to Auckland, but , had not received any reply. He had received the following telegram from the President of the Auckland Chamber of Commerce : “ At the Chamber of Commerce meeting to-day a strong protest was made against the proposed increase in insurance rates for the North Island. Kindly take similar action- immediately.— Caldwell, President.”

There was some preliminary discussion

as to whether or not a municipal organisation was desirable, Mr Whinray holding tiie opinion that it was, with a Govern-

luent guarantee to start with. Mr Lunn moved, and Mr Whinray seconded, the following resolution :—“The Gisborne Chamber of Commerce and the

insurers of Gisborne strongly protest against any increase in tire insurance tariff rates, and, further, think that the existing rate is higher than is necessary, and that the Gisborne Chamber of Commerce and insurers of Gisborne agree to eo-operato with and assist any league that

rnay lie formed in other parts of the colony for the purpose of having the present fire insurance tariff reduced.”

Mr Shelton asked if there had been any report made by the Committee. The Chairman explained that no definite reply had been received as to what was being done. Mr Whinray said that the telegram from Auckland showed that they were being included in the increase. Mr Shelton said that ho thoroughly endorsed the whole of the resolution, which he thought a very proper one. He was sorry that the committee had not got a little more information to back up the resolution. It was a pity that they had not before them some information as to the premiums being paid and the fires that had occurred, so that they would be able to say whether the companies and the insured were receiving a fair thing or not. He quite agreed with the resolution that the rates should not be increased. He considered the present rates very high indeed, and for that reason he thoroughly endorsed the proposition. For the past 25 years, since he had to do with insurance, it had had been a “ boo in his bonnet,” and he felt that if the insurance companies and the insured would look at the matter in a more straightforward way it would be better for the companies and better for the insured. He _ maintained, as lie had put before the highest managers, that no money should be paid over on insurance ; that in the ease of goods or furniture being burned they should bo replaced to the value of the insurance ; and if it wore a house, that the amount of insurance should bo a contribution towards the building of a new house. Nothing should be paid in cash. This would do away with a largo amount of these high and unfair premiums which the insured had to pay. If, for instance, a man has insured stock for £SOOO, ho should not have the right to call on anybody to pay a penny, but should have it reinstated to that value. If a building were burnt down, a man might get a bettor building, but the amount of insurance should be spent in that way and not handed over in cash. This was the proper time to consider that question. They were talking about unfair rates, but should remember that that was brought about because the insuring public wore unfair to the companies. If the

insured would insist as far as they could that insurance was simply to cover loss, whether a fire was caused by carelessness or someone, clsc’s villainy, that money (should never bo paid over, but the property reinstated, they would instead of anticipating an increase of rates, have them considerably reduced. Years ago the insurance on villages in England was 3s to 4s. Wool stores in London only paid 6s with all the risks of so many men moving abouE, while hero the charge was something like 255. The difference was, in New Zealand people were prone to got into difficulties and then go for a match to complete the job. Many fires were caused by the match, purposely. If people patronising the offices .would give more consideration to this matter, and insist on payment only being made in kind, there would bo a great difference. Under the present system a man might have 11200 worth of property insnred for £IOO, while another with £3OO worth of property had £6OO pounds insurance on, and so heavy rates had to be paid. Ho had pleasure in supporting the motion. The Chairman explained that the reason there was no inoro information at hand was that there had been so little time and the holidays lmd intervened. Some members had thought that they ought to try and ascertain the amount of premiums, but they could hardly expect the agents to give that information. As to the fires in Gisborne, it- had been stated on the authority of the Fire Boigade that there had only been three fires, small ones, during the last year. Mr Shelton said that that was wrong information as applied to the whole district.

The Chairman : I said in Gisborne. Mr Adair said that he was quite in sympathy with the motion, excepting that lie thought they might well exclude the reference to a reduction. What was wanted now was to prevent an increase of rates. When they had a water supply there would bo something tangible on which to ask for a reduction. The Chairman: Will you move that it bo struck out ?

Mr Adair accordingly moved to that effect.

Mr Whinray said tlio Piro Insurance Association evidently did not intend to reply. Ho saw no reason wliy, if they were going on increasing insurance rates, they could not have a mutual insurance association, with Government assistance until, like a company,they got sufficiently strong. They should be able to run the business better than a company. There were agents who would take risks without ascertaining whether the value was there, but in the case of a mutual association all would bo interested, and in time big bonuses could be returned. The Chairman said they had hardly got to that stage of the discussion yet. Mr Pettic said the object at present was to try and prevent the increase. He agreed with the remarks made by Mr Adair. They should leave the matter of a reduction to a later stage. Mr Lunn said that when the increase was proposed a year ago they had protested, and plausible arguments had been brought forward, and if it was right to protest then it was right now ; it could not do any harm, and they should let the companies see that it had not been forgotten. Mr Shelton agreed with Mr Lunn. The rates had been too high. [Mr Wkinray : Hear, hear.] If the motion were lost he would support such an amendment, but in the meantime would vote against it. The companies slfould he told plainly that they considered the rates too high. Mr Pettic said the amendment would still show that was their opinion. Ho one would be better pleased than himself to get a reduction, but he thought, as reasonable and sensible men, they should now simply protest against an increase. Mr Ambridgc said he did not think the resolution was going too far. Mr Adair said the companies had the power, and if they got suoh ' a resolution from all the Chambers of Commerce in Hew Zealaud, would take determined action, and would not be dictated to. Mr Whinray: Then wo will take another determined stand. Mr Adair: I am afraid they are too strong for us. Mr Whinray : Hot a bit. We have got some of the strength. They get theirs from us.

Mr Orr said they ought to have some figures to. back up the ease. The Chairman : Can you give them ? Mr Orr: We ought to have them. The amendment was put and lost, and

the motion was then carried unanimously. Mr Shelton urged that there should be a permanent committee to report on the subject from time to time. He suggested that the temporary' committee be asked to continue to act. The Chairman said he would like to see the addition of some others, and it was resolved that the former committee, with the addition of Messrs Shelton and Orr, act in the matter of gaining information, etc. Messrs Shelton and Townley said that, as agents, they had not been informed of the intended increase, and Mr Lewis said he had written, but had not yet'’received a reply. A voice : Silence is golden. Mr Whinray said they had coinmuni- | cated with the Underwriters, .who had [ declined to reply, and now they should ! give tfrem a counter blow. The Chairman was commenting on the non-receipt of a reply from the Underwriters, when Mr Shelton pointed out that with the holidays there would not have been time. In regard •to the question as to what the companies intended, Mr Adair said he had been informed bj- anrinsuranee agent that the premiums were to be increased, and had been shown the list. The President proposed that the resolution be wired to the Underwriters Association, Auckland and Wellington, and copies sent tc the Chambers of Commerce throughout New Zealand. This was seconded by Mr Ambridge and carried. A meeting of the committee was held immediately after the other meeting, and the following letter was drafted : “ In reference to the proposal which has been reported as being now before the New Zealand Underwriters’ Association to increase the tariff rates in certain portions of the -colony, my Chamber has unanimously adopted the following resolutions [as above]. I would ask you to bring the matter before your Chamber, with the object of united action being taken throughout the colony. The Underwriters’ Association, I understand, meet again, on the 19th inst., in Wellington; so any action to be effective will require to be promptly taken. — B. D. B. Bobinson, Secretary of the Gisborne Chamber of Commerce.”