FIRE INSURANCE

Hokitika Guardian, 23 December 1929, Page 8

FIRE INSURANCE

RATE increases. WELLINGTON, Dec. 20. “ The proposed increase in the fire insurance rates will in the main apply to risks in the country and unprotected areas, and therelore will barely affect protected areas. The rates on dwellings will not bo affected.” / The above statement was made by the President of the Council of the Fire Underwriters’ Association when interviewed to-day. “ The huge fire waste of the Dominion, which is receiving the consideration of the Government, and which' is estimated by Captain Hugo (Inspector of Fire Brigades) to amount to 2s 6d per capita, has caused very serious losses to underwriters,” stated the 'President. “ Statistics collected by the Government Statistician over the last five years show that certain classes of business risk have been particularly unprofitable. The question of revising the rates on the basis of the Government Statistician’s returns has received very careful consideration, and as an outcome, it has been found necessary to increase certain rates if these risks are to secure insurance protection.” No general increase is contemplated, but special attention has been given to business risks situated in areas where fire protection and water supplies are absent, or inadequate. The figures on which these increases are based were compiled by the Government Statistician from time to time for the purpose of framing a scientificschedule of rates, the object being to adjust rates equitably as between different classes of risks, according to the claim costs disclosed on the rates. The State Fire Office figures are included in the Government Statistician’s returns, and the increase, it is understood, will be observed by that Office. The increases are to take effect from January Ist.