RAIN INSURANCE

Hokitika Guardian, 21 April 1931, Page 2

RAIN INSURANCE

AUSTRALIA GAMBLES ON WEATHER. A FINE-DAY VICTORY. SYDNEY, April 9. Owing to tip. facilities offered by one of the big insurance companies, gambling 011 the weather has become popular in Australia; The latest organisation to benefit by a “rain” policy is the Royal Agricultural s°ciety of Sydney, which took out a covA* for £2,000 in respect of G°od Friday, and won. In fact, it was a' double victory lor the rain ceased early in the. day and the attendance was unaffected. Tile policy provid’d for the payment of £2,000 if 10 points of rain were recorded between the hours of 8 n.m. and noon. Actually 10.) points were recorded between those houus, but all of it before 9 n.m., so the Society had good reason to congratulate itself on the foresight it had shown. From 9 o’clock onwards perfect conditions prevailed. Members of the Society said it “was a shame to take the money.” The premium for the £2,000 cover was £2BO. A similar premium was paid in respect for Easter Monday, when no rain fell. Therefore the Society was in pocket to- the extent of £1,440. The premium rates for such a cover are not arrived at hap, hazardly, but are calculated on the Observatory records over a period of 64 years. In country areas a shorter period is taken into account when estimating the possibility of rain occurring on any given day. proof of the claim consists of a certificate, which is given by the Observatory officials, One of the suburban agricultural societies recently Insured its People’s Day for £SOO, the amount to be paid if 10 points were recorded before 10 ft.m. That amount was duly recorded before 8 a.m. and the company paid up. Now Sunday School picnics and bazaars as well as football and cricket matches, race meetings, and tennis tournaments, have been brought within the scope of this particular branch of the insurance business, and more often than not the insurance company wins. Last week a big bridge party in Sydney was insured against rain, and no rain fell. The amount paid out to th e Sydney Royal Show committee involves the largest sum paid out on a single claim in New South Wales. Victoria holds the record. The Victorian Agricultural Society drew £2,000 from the company on one occasion. Many of the side-shows at the Sydney Royal Show were insured against rain, and they duly collected for the downpour on Good Friday.