FIRE RISK

New Zealand Times, Volume LIII, Issue 12609, 20 November 1926, Page 9

FIRE RISK

ON GOVERNMENT BUILDINGS LAST YEAR’S CALLS LIGHT FUNDS HELD BY PUBLIC TRUSTEE By section 133 of the Public Re venues Act, 1926, the Public Trustee has in hand an insurance fund which can . under the Act reach a maximum of £IOO,OOO, and towards which the Government pavs from tho Consolidated Fund £IO,OOO per annum. This has been the practice since 1912. This insurance fund was intended to covcv risks on all Government buildings through the Dominion, but ns in the year 1324 the destruction of several largo city schools made serious inroads into the fund, it Was decided that the Education Department should pay in addition the sum of £IO,OOO a year, praeticnlly thereby covering its own buildings. The policy adopted in the case of a fire is that a claim is made on the insurance fund for the cost of re-erec-tion of a building of the same capacity as that destroyed, and of the same material. If the capacity is greater, or, the material is brick instead of wood, the Education Purposes Loan Account is charged with the extra cost. The present value of buildings covered by the £IO,OOO insurance is approximately £5,000.000. For the year ending March 31st last the insurances paid by the Public Trustee totalled only £SOOO, This was certainly a light year as regards fires, and it is probable this year tha the losses will total at least £IO,OOO. Even so, the damage is covered by 4s per £lO9 which is, of course, a much cheaper rate thaw is offeted by an insurance company.