THE “UNKNOWN" HAZARD.

Gisborne Times, Volume XXV, Issue 2009, 19 February 1907, Page 3

THE “UNKNOWN" HAZARD.

In fire insurance tho moral hazard Ims long boon known and recognised, and certain provision made lor sumo according to the experiences of individual companies. During tlio last 12 months another of those risks which may ho classed as an unknown hazard lias boon emphasised by tlie three great earthquakes that have boon felt, and which have caused so much damage at Sail Francisco, Valparaiso, and Kingston respectively. Tho British companies luivo already notified that the earthquake clause will bo given its full largo weight, it may ho stated that all the British companies have oarthquiiko clauses of varying' degrees of stringency and it is understood, us tlio outcome of the San Francisco oarthquiiko, tho following amended clause relating to risks not directly caused by fire has boon proposed for adoption by all fire insurance companies:— “This insurance does not cover loss or damage by fire occurring during or directly or indirectly caused by or in consequence of (a) subterranean fire, earthquake, tempest, liurrienno, volcanic eruption, or other convulsion of nature; (b) invasion, act of foreign enemy, hostilities, riot civil commotion, rebellion, insurrection, military or usurped power, or martial law. Unless the assured shall prove to the reasonable satisfaction of the company that any firo occurring at the time or during the continuance) of such subterranean Cue, earthquake, tempest, hurricane, volcanic eruption or other convulsion of nature, invasion, net of foreign enemy, hostilities, riot, civil commotion, rebellion, insurrection, military or usurped power, or martini law, arose from a cause or causes independent thoreof respectively. Tho above clause is very stringent:, but it is nothing more than should be expected alter the succession ot serious disasters. The losses in San Francisco involved tlio British conipanics very seriously, and had it nrovoil an isolated calamity the position would not liavo caused much alarm, lint with Valparaiso and Kingston added tho question becomes decidedly important. In connection with the disaster at Valparaiso it is interesting tb note that all tho insurance companies have agreed not to pay or promise to pay any claims on account of the earthquake and fire of last August until the fullest particulars have been obtained about tlio damage done. The whole district affected by tlio disaster is to be mapped out and inquiry made as to what damage was caused by earthquake, and wliat fire occurred after the earthquake period was over. The total interests of the thirteen British companies in Valparaiso amount to £903,000, of which the largest ampfint held by any one company is £IBO,OOO. The, figures, however, do not take into account the deductions owing to rein su ranees.—Alercantile Gazette.