INSURANCE.

Nelson Evening Mail, Volume II, Issue 150, 29 June 1867, Page 2

INSURANCE.

TO THE EniTOR OF TIIE 'NELSON EVENING MAIL.' Sir — It is but seldom that I spend an evening in town, but wheu I chance to do so, I almost invariably find the Evening Mail on the tea-table ; and should it not arrive in good time, there is a great outcry in consequence, all being anxious to get the latest news, and I am glad to find your paper is so much prized, and that it has got so good a circulation. On looking over the new advertisements in our local papers fbr this month, those parties who are holders of fire policies are reminded, that the renewal premiums must be paid on the 24th by 5 o'clock, p.m., otherwise such policies become void ; and knowing how very few parties these notices apply to, I am desirous of drawing the attention of those who are not insured, to the propriety of insuring something, however small a sum on them. House property, or lives, or both, is therefore on the subject of insurance generally, and other matters akin to it, that I now wash to address 'you, and in doing so, I beg it to be understood, that I am not .so conversant with Fire and Life Insurance, as with Marine, and I muy here state that the latter branch was only undertaken by three of theabove named offices when 1 left London in 1844. Some other offices, howeve*-, were in existence which confined their operations entirely to Marine Insurance. So great however, has the business in this branch increased in London^ much of it coming from the outposts, that the private underwriters at "Lloyds," can take but a small portion of it; and other offices, for that branch alone, have been established from time to time, but their increase is very limited in comparison to the Life and Fire" Associations, aud Life (only) Assurance Societies, which bave become very numerous, and all are now apparently doiug a large and profitable

""" " ' "■■iimiwi— i hi ■»■■» ri m ii 'i miiSm"; business, a most favorable sign that the" good people in oui- fatherland are becoming more prudent andpi-ovident. The Question now is, are we, in the colonies, equally so? I trow not; we think not of disasters; we aro full of hope; and not knowing in this new life of ours what distress really ' is, we go on satisfied with the abundance of to-day, and expect that to-morrow will be equally if not more so. Troubles however will come; we have had one very disastrous fire already, aud by great goodluek escaped another a few weeks ago, when the whole block between the Wakatu, inclusive to Mr Hounsell's store, most likely would have been one heap of ashes in a few hours. However careful we may individually be, we cannot answer for our neighbors' or our servants'. carelessness. To meet such disasters, I say to every housekeeper, even if occupying a detached house (witness the fire at Mr N. M'Rae' s Benhopai, the other week), insure a something on house aud furniture (a choice of offices invite you), and the premium after all is but a trifle. When a fire does occur, the first question put is, are any lives lost? and the next, was the party insured? and if so, the reply always is, how lucky; if otherwise, it is, poor fellow.) we are sorry for him and his family. The Fire Offices, I must say, are very liberal as well as quick in settling claims on them, nor are they, dog-in-the-manger-like, willing to take all they can get in the shape of premiums, and not expect losses; far from it. A good fire or two brings them business; and, without knowing it for certain, I can well suppose that the different agencies in Nelson had a considerable increase to their business after the latei fire in Bridge and Collingwood-streets. If it is therefore highly prudent to insure a sum on one's house and furniture, which after all may not be burned, how much more necessary and provident it is to open a policy on one's life. If we escape a loss by fire, it is no use blinking the question, we know man's fate; sooner or later, we cannot escape death; all must pay that penalty; and every one, the bread-getter, who has another or others dependent on him, ought to provide for their fu f ure wants by insuring his life; and the sooner, that is, the younger, he begins the smaller the premium. I may here state that a party insuring his life has thre6 modes of doing so open to him, viz., that of doing a simple sum, say of £100, or any other amount; or doing a sum with a guaranteed bonus, or participating in the whole profits, which some Life Assurance Societies share with the members. In order to be better understood by the uninitiated, I may as well give in figures, the following examples of the different modes of insuring as noted above. If a simple assurance for £100 is taken out at 25 years of age the premium will be, according to the table bef ore me, £l 17s 8d annually. If for a guaranteed bonus, and a policy for £100 is also taken out at 25 years of age^ the premium wili be £2 3s lOd annually, and in 10 years the policy will represent £108 15s 10d; or if the life died between these periods the policy wiil be added to at the rate of 17s 7d per annum. These rates vary very slightly in different offices. Where the whole profits are participated in, and I have the bonus-table r of the Scottish Equitable before me, I find that the premium on £100 at the age of 25 is stated to be £2 6s 6d yearly, viz., supposing the sum of £1000 was insured, say on thei Ist March, 1860, the policy with accumulations will be worth £1091 10s 4d ou the Ist March next year. Wbat I recommend to our rougher sex, is equally applicable to your fair readers^ whose lives let me inform them, are better risks for an office to take, as it is found by experience, they live on an average louger. Many a lady, who has au annuity which dies with her, in order to provide for some loved one who may be dependent upon her, will most probably insure her life, so that at her deathj that loved one is provided for. The question of annuities,, however, is rather foreign to my present subject, which I must return to, and under the head of Marine Insurance, as an old underwriter, I would not recommend any party, shipping oh importing goods, to run too large a risk on any single bottom, for if the venture will not afford to pay for insurance, and a profit of at least 10 per Cent., it is a very poor one* Some merchants, who have very large, I may say immense and varied transactions, divided over many bottoms, run their own risks, or a fixed proportion of them ; and so do also mauy of the large steamship companies. They however open an insurance account in their ledgers, credit-

1 1 1 M _M»M____W_M_____M-— -MM __■_■—— -____—-lll_l-IPH ■»________— P ing that account for the premiums, and debiting it with the claims and losses. If my brother man, the honest horny listed sons of toil, is unwilling to insure his life, and many think they are going to die, if they do so, or make a will, let me recommeud him to join some benefit society, or invest in the Savings Bank, -until the sum has reached the maximum deposit ; he ought to keep no idle money by him, for ifc may be lost, or stolen, or frittered away if once broken in upon, or lent to some presuming friend on questionable security, and lost. I fear that I am trespassing largely on your limited space for correspondents, but this letter would be incomplete if I did not notice that societies of a mercantile and very beneficial character have been in operation for, I believe, from 20 to 25 years. I am alluding to "Guarantee •Societies." These are a great boon, for without them many a worthy man, who by his ability and steadiness has brought himself on in the world, would be prevented from the want of " backers," from taking au appointment, where security is required. These Societies by various referees being satisfied as to the moral character, etc., of the applicant, take his premium annually, and thus become his bondsman. This obviates applying to relatives, and friends, and such societies are a great benefit to Government officials, bankers, and mercantile clerks, etc. ... In conclusion, let me say that if a man cannot leave a great name at his death, he ~can, if chooses, leave a good one; he can let it be said that in his life he acted prudently, and at his death he did not leave his family all but paupers; and it will be fortunate for him and for us, if, in trying -to insure so much of this world's good things, we would endeavor not to forget to insure that place in eternity for which so great a sacrifice and premium has been paid for us. I am. &c, James Mackay. Drumduan, 26th June, 1867.