PROFITABLE INSURANCE

Hokitika Guardian, 29 August 1929, Page 3

PROFITABLE INSURANCE

DUNEDIN CITY COUNCIL’S

SCHEME.

DUNEDIN, August 27. Tne operations of the Insurance Fund that lias been established by the Dunedin City Council are reviewed by the Town Clerk (Mr G. A. Lewin) in the course of his annual report to the Council.

“The surplus standing to tire credit of the combined fund at April Ist, 1928,” says Mir Lewin, “was £56,847 5s 7d, which had grown at the end of the financial year (March 31st, 1929) to £64,627 10s 3d, or an increase of £7780 -Is Bd. The total surplus is apportioned between the two branches, £39,596 7s 4d to the fire branch and £25,031 2s lid to the accident branch. Of the increase in the surplus of £7780 4s Bd, £3501 15s 10d was earned by the accident branch and the .balance of £4278 8s lOd hv the fire branch.

“For record .purposes it is as well to re-state the salient facts regarding the scheme. The accident branch has been on foot for twelve years, while the fire branch has just completed its eleventh year. Originally a sum of £IO,OOO was set aside t't form the nucleus of the fire fund, and if we allow compound interest on this sum for eleven years it would represent a total of £17,100 at the present time. If, therefore, we deduct £17,100 from the existing surplus of £64,627 10s 3d, we get an amount of £47,527 10s 3d to represent the clear gain to the Council as the result of carrying its own accident and fire risks, for a term of twelve years in the former case and eleven years in the latter, a resiil' that speaks for itself. A sum of £IOO per year is debited against the income of the combined account to cover administration.”