INSURANCE CLAIMS

Hokitika Guardian, 28 August 1930, Page 2

INSURANCE CLAIMS

. ; PRACTICE CRITICISED. ; “AGENTS TO BLAME.” NEW PLYMOUTH, August 21. . A custom of insurance companies in not .paying out the full amount of insurance in cases df destruction b3 r fire was freely criticised when the matter Was introduced at the Chamber of Commerce annual meeting last night. Concent was felt in business circles said the president, over the fact that the amounts paid by insurance companies following an inspection by their assessors were less than the amounts for which the buildings were insured and in respect of which premiums had been paid. If this continued he felt that the companies in the first place should acquaint clients with the amount that they intended to pay out in the event of fire. Such conditions as existed at present were likely to affect lending institutions, which were liable to .serious loss. They diet not know what their security might be worth in tlie event Of fire. The policy adopted was an arbitrary one, with no redress against the insurance companies when it was considered an injustice was done. The most serious aspect the president considered, was that insurance companies continued to collect premiums without an inspection being made of the buildings covered. It had happened that lending institutions had not been hit because they had other securities, but that was not always so. There was a danger to other institutions. Mr S. E. Shaw said that the raising of the subject of insurance was welltimed. The public was not aware that it could not collect on the amount it insured for. The Chamber of Commerce was certainly the proper body to take the matter up. Mr A. S. Clark pointed out that no insurance company wanted over-insur-ance, and mentioned the indemnity principle. It was agreed the trouble lay with agents and not responsible insurance company officers.