INSURANCE RATES.

Gisborne Times, Volume V, Issue 82, 15 April 1901, Page 2

INSURANCE RATES.

A PROTEST.

(By Telegraph—Press Association.) New Plymouth, last night. A special meeting of tho Chamber of Commerce resolved that, in view of tho satisfactory balance-sheets of the leading Fire Insuranco Companies of tho colony, and with the special knowledge that in this district lire underwriting is remunerative, tho Chamber strongly protested against any increase in tho rates of premium. [Special to Times.] Auckland, Saturday. Tho telegrams from Gisborne regarding tho increase in tho rate of fire insurance premiums caused considerable interest. Tho Star, in reference to the Association : —“ Wo aro given to understand that it has already relinquished its intention to make the increased rates applicable to Wellington on account of the strong opposition manifested in that city, and we are confident that a similar opposition here would achieve the same results. The companies may be strong, but they are certainly not so strong as to set at defiance a very large section of their clients. In discriminating between tho North and the South Islands in tho matter of this proposal—for tho increase waS, even at the outset, only intended to touch the northern division of tho colony —the companies make a distinction which, from a purely business point of view, they would find it difficult to justify ; and in further discriminating between Wellington and the North they make their position still worse. In fact, their present action, if it is intended to he confined to this part of Now Zealand, would suggest that thoy are trying to improve their revenue at the expense of those of their clients who are least likely to resist the demand.”

The Herald assumes a very mild tone. It says : — ,l If rates are greatly raised in this city, while Southern cities arc exempt, there can be no doubt that our commerce will be handicapped, and that the result will not merely bo directly ’ costly, but indirectly detrimental to trade. It would therefore bo regrettable if any hasty action were taken by the Underwriters’ Association, which should consider the probable effect of an inereaso and should endeavour to meet the commercial community in as conciliatory a manner as possible. It is admitted on all sides that Auckland is not sufficiently protected against fire, but the City Council has already given certain orders for appliances, with the intention of making the Firo Brigade more effective, and may reasonably bo expected to take further necessary stops after hearing the deputation from the Chamber of Commerce. This is distinctly its duty. The Underwriters’ Association has a right to expect fair ordinary protection in return for fair ordinary rates. But while Fire Brigade improvement should be pressingly. urged, it is not advisable to penalise the whole commercial community even for the tardiness of the municipal authorities. It was stated yesterday at the Chamber pf Commerce that losses by incendiarism were among those complained of by the underwriters. This loss would seem to be more the fault of the companies themselves than of the city or of the community generally, supposing it to exist. Besides four Now Zealand companies, we have about twenty foreign companies doing business in Auckland. While they have heavy losses and bad years, it is in the very nature of their business that they should take the good years with the bad, and should endeavor, by avoiding bad risks, to reduce the losses to the unavoidable and accidental risks, against which alone honest people insure. That this is generally done is indicated by the sound position in which a number of well-known companies are to-day. The underwriters have reasonable cause for complaint in the defective fire brigade system of Auckland ; but it is to be hoped that the Association will decide to hold the question of raising rates'in aboyance until the city has had the opportunity of rectifying its shortcomings in that quarter. If this bo done the present difficulty can . be readily smoothed over, but forbearance on the ; one side and energy on the other are both much to bo desired.”