Co-Operative Cow Insurance.

Kaipara and Waitemata Echo, 17 July 1914, Page 7

Co-Operative Cow Insurance.

The advantages of co-operation aro slowly but surely forcing themselves on the notice of the farming community, and almost every year sees a new outlet for this great principle. In 1910 there were in England and Wales 22 cooperative cow insurance societies which insured 4,558 cows and calves, and a brief sketch of the lines on which these societies are run may be of interest to the dairy farmers of this country.

The annual premiums, which are generally paid quarterly, range from 4s. to Bs. per cow, the first named being the commonest rate in the larger societies. For calves the usual rate is 3s. a year. In addition to the premiums an entrance fee of 6d. to 9d. per cow and 6d. to 9d; per calf is generally charged.

The next point of importance is the amount the societies pay on the death of an insured animal. In the case of cows the maximum amount payable ranges from £9 to £16. Most of the societies have only one rate of premium, and one rate of payment, but a few have grades of premium, and corresponding rules as to payment. The general p amount paid on calves is from £3 to £5.

Perhaps the most important question in connection with such societies is the rate of mortality to be expected. Figures on this point are available from 17 out of 22 societies. Of the 4,243 animals insured by them in 1910. 94 died during the year, an average mortality of 2.2 per cent, per annum. During 1911, the average mortality was 2.0 per cent., and for calves 3.7 per cent.

According to one year's exper- i ience of 13 societies, they must ex- j pect to pay £8 15s. on 2.2 per cent. j of the animals insured,' and to meet ! this loss they would require a net i income from premiums of 3s. lOd. ! per insured animal. It need hardly \ be said perhaps that the members ■ of these English societies are usually small holders, but under the necessary safeguards there is nothing to ■ prevent the establishment of such societies in this country where they would, if they were to be of prac- j tical service, have to deal with j much larger herds. The large in- j surance companies in England \ which deal in live stock insurance, generally charge on dairy cows a premium of 7$ per cent., which means an annual premium of 15s. ! on an insurance value of £10, com- ' pared with ss. charged by the cooperative societies, some of which' have been in existence for over fifty ; years. This great difference in the . cost of insurance is accounted for j by the commissions, agency fees, '■ veterinary expenses, interest on j capital, etc., which the proprietary j companies have to provide for, and ! the increased death rate in the ani- I mals insured compared with that experienced by the co-operative concerns.