THE GLOBE. WEDNESDAY, FEBRUARY 16, 1881. THE EXORBITANT FIRE INSURANCE RATES.

Globe, Volume XXIII, Issue 2177, 16 February 1881, Page 2

THE GLOBE. WEDNESDAY, FEBRUARY 16, 1881. THE EXORBITANT FIRE INSURANCE RATES.

The presentation which takes place this evening to those officers and men of the Volunteer Fire Brigade who have distinguished themselves by long and faithful services, calls attention once more to the necessity which exists for some increased facilities for fire prevention, as a method by which the present exorbitant rates of insurance may be reduced to a just and equitable level. As our readers are doubtless aware, an insurance ring has been in existence for some time, by which the rates are kept up to one uniform standard, and the insurer entirely shut out from the benefit of what obtains in all other departments of trade —competition. This, of course, is perfectly legitimate, and the insurance companies have a perfect right, if they so desire, to say, " We will agree not to take any insurances below a certain rate." But, on the other hand, it is equally open to the persons having property in the city, to take such steps as shall seem to them advisable to reduce the rate of premium to be paid to a fair basis. We contend that it is not a fair rate. The statistics will show that in Christchurch, with as compared to Dunedin and Wellington—a comparatively insufficient water supply, the losses have been a mere trifle. The companies derive a large and increasing revenue, with the minimum of risk, and yet they persist in keeping up the rates of insurance to a most exorbitant figure. Let us just take one instance. In Christchurch, an ordinary detached dwellinghouse, with abundance of water close by, pays 225. per cent. In Wellington, the same risk pays 5s per cent. It will at once be said that Wellington has an efficient water supply. Granted that this is so, we contend that, with our efficient Brigade, and the water supply we have even now, to charge nearly five times the premium charged in Wellington is nothing more nor less than exorbitant. Again, tlie companies will say that they contribute to the support of the Brigade. So they do, most munificently, their contributions amounting in the aggregate to about £250. The Bill proposed to be introduced into Parliament laid down a system of assessment whereby the companies had to contribute according to the amount of business done. But we think this is a mistake. There is no necessity whatever for the companies to be asked to contribute a single shilling, and by doing this, though it may appear paradoxical, the public will save money by largely reduced premiums. Let the City Council undertake the entire cost of the Brigade, furnishing them with a water supply adequate for fire prevention purposes, which could be achieved at a comparatively small cost. Tho ratepayers would then be in the position to say to the insurance companies—" Now, gentlemen, we are in a position to protect ourselves. You must reduce your rates to a fair level, or we will combine and start a mutual association, or decline to insure at all." Tho natural result would be a reduction, and, though on the one hand the direct cost of maintaining the Fire Brigade would seem

a large item, the indirect return to the I pockets of the ratepayers by & reduction of premiums would more than counterbalance it. The first step towards so desirable a consummation is the obtaining of an improved water supply for fire prevention purposes. Hitherto the difficulty has been that this has to a large extent been incorporated with, and made dependent upon an expensive and elaborate scheme of house water supply. That is a luxury for which we can wait a few years, but more water for supplying the fire engines is urgently needed, the more so as its obtaining is the most effectual method of bringing down the present excessive and oppressive rates of insnrance.