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Hokitika Guardian, 3 October 1932, Page 4

In the annual report of the State Eire Insurance Office it is stated tnar contrary to the charge made sometimes, the office not only pays income tax but according to the published returns of the Government Statistician, lias paid for years past more in. tax than any other fire insurance office. In 1931 the amount of tax paid, £26,152, constitutes a- record, and is in addition to the levy under Section 5 of the Finance Act, 1931, to which other insurance companies are not subject. The report shows a reduction in premiums from £221,909 in 1930 to £216,007 in 1931. Claims amounted to £113,009. compared with £90,090 in 1930. The underwriting account showed , a. loss of £7695 on account l of the ,decision to make ex gratia- 'payments to policy-holders whose property was destroyed by fire resulting from the Hawke’s Bay earthquake, hut who had no legal claim against the office. The surplus of £39,187 was derived from income from Investments. As for reserves, continues the report, economic conditions as well p,s toe risks attaching both to business' of fire and (earthquake confined to one country indicate that it ■will be necessary to continue to add' to them as far as is possible. On a steady adherence to this policy also rests the best (safeguard for the pcf.iev against increases in rate®. In reply to criticism regarding the present system of indemnity insurance the general manager .points out that if policies after a fire wore worth the full amount of the insurance irrespective of the value of the destroyed property, a very strong incentive would he given to dishonestly inclined people to make a. profit* by procuring fires.