FARMERS’ FIRE INSURANCE

Otago Witness, Issue 4030, 9 June 1931, Page 72

FARMERS’ FIRE INSURANCE

ASSOCIATION’S ANNUAL MEETING. The annual meeting of. the Otago Farmers’ Union Mutual Fire Insurance Association was held on Tuesday- morning. The chairman of directors (Mr John Clarke) presided. The balance sheet showed that assets amounted to £118,527, the net profit for the year being £277. The chairman, in moving the adoption of the statement of accounts and balance sheet,. said that during the past year the country had passed through the travail of the worst slump in living memory. Never before had the bottom literally dropped out of every primary produce (with the exception of gold), and never before had a slump been so world-wide and far-reaching in its effects. There remained the consolation that although the primary producers in New Zealand had undoubtedly suffered, they were better off than the primary producers in other parts of the world. New Zealand had also much to be thankful for in that it had a stable Government which had sought to meet the economic situation in a way- which had done much to enhance New Zealand credit in the eyes of the world. It was pleasing to him to have to report that the association had again had a most successful year, despite experiencing the heaviest amount of fire losses during the 26 years of its existence. The fire losses for the year totalled the heavy figure of £8979 Bs. One inference which would doubtless be drawn from the statement which he had just made would be that there was more than a coincidence in the fact that the severity of the slump was responsible for the severity of the fire losses. It had been said, rather significantly, that all fires are either due to “ lack of care or lack of cash.” It might interest shareholders to know that the causes surrounding every fire had been most closely investigated, and in only one case had the association bad reason to suspect foul play. So many fires had occurred during the first two months of the year under review that the directors had deemed it advisable to reinspect every risk on the books of the association in the light of present, values, and with this object in view its outside men had entirely concentrated upon inspections. The job was not yet completed, but by far the greater portion of the risks in the South Island had been reinspected, and, where necessary, reductions in cover had been made and reinsurance adjusted. The result was that the shareholders had the assurance of the directors- that the association’s affairs had never been in a more sound position than to-day. Despite reduction in cover and a 10-moiiths’ halt in the canvassing for new business, it was more than pleasing to note that the assets now stood at £118,527 18s 2d (an increase for the year of £8566 6s 6d), and the liabilities at £126 3s 2d.

The association’s average premiums were, at the present time, considerably under those of tariff companies, and it was its aim and object to make further reductions whenever it was in a position to do so without affecting the stability of the association. With reference to a growing tendency which had been evident of late, where farmers, through stress of circumstances, had had to consider every method of curtailing expenditure and had decided that insurance was one of the charges which they could temporarily

cut out. A noted British authority hau described fire insurance “as one. of the most important functions of busin'ss. On it rests the whole of our credit system," and he said, further, “take away fire insurance and credit would become paralysed.” Fire insurance was the security which a property owner had against serious loss through fire, and in these hard time should not be lightly neglected. Before deciding to let their policies lapse he urged farmers seriously to consider whether if. was fair to themselves or to their families to take upon themselves the risk.

Accident claims showed a decrease of £684 Is 4d during the 12 months under review, but he regretted to state that the number of small claims show an alarming increase, and the reduction in the total was entirely due to the absence of heavy claims of a serious nature. The association s experience during the last year bad brought it to the conclusion that many employers did not realise that accident premiums could only remain at their present low level so long as employers assisted the various companies to limit the liability to cases which actually came within the scope of the Workers’ Compensation Act. There was evidence to show that many employers took the part of the men and deliberately endeavoured to bring the accident within the scope of the Act, and the association appealed to all its members to do their utmost to discourage this growing tendency. Owing to the economic position of many farmers, the wages bill had been severely curtailed, and the association could look for a heavy decrease in its accident premium income. This, it had every reason to believe, would be offset bv a Steady increase in fire insurance business. Lhe branches at Christchurch and Invercargill were now firmly established, and the business there reflected steady progress. The steady increase in the fire income at both branches gave every reason for satisfaction. During-the year, at the speaker s request, the directors had ap--9° nted Mr AC. Leary as deputy chairman, and the chairman considered their choice a very happy one. Mr Leary combined the qualities of a successful farmer and an able man of

In conclusion, the chairman stated that a e tt association was well served by its staff and that it would be hard to find a better team anywhere. With regard to th e general manager, Mr A. C. Cameron, ie ir m - lg "I he had not spared himself.. m furthering the business of the orgamsation. The chairman expressed the greatest admiration for his ability and capacity for work. Mi- A. C. Leary, in seconding the motion, expressed the opinion that the associations policy in confining its business to the South Island was sound He 1 1 growth of the three New Zealand fire insurance associations in New Zealand-Taranaki, Wellington, and Otago —s-iying that Otago had reason to be proud of its position. Much of the associations success was due to the very capable managers which it had had. Ihe motion was carried. The retiring directors— Messrs A. C. Lea [ y and 9-Overton—were re-elected. ihe appointment of auditors and their EdlSt'™,"’"’ ,e,t in h “* rf »f l !i? Va J- de ? ded , tha t the remuneration of the. directors should be the same as tor the previous year.

Votes of thanks were accorded the directors and the staff.

. replyiD S on behalf of i J I t J lat lr \ no case h ad a settleweeksbeTn held Up for ? 10re than three nrnn kJ u e case a che< l ue for about ,W£j? d .- bcen l ent to a farmer on the day follow ing a fire on his property, ’ .The ’ trying to - e hmiaate red tape and settle claims as quickly as possible.