FIRE BOARD INSURANCE.
PROPOSAL TO ESTABLISH ITS OWN FUND.
After brief discussion the Horowhenua Power Board decided on Tuesday to postpone consideration of a proposal to establish its own insurance fund.
A motion was moved by Mr T. G. Vincent, following upon a report by the secretary (Mr P. W. Goldsmith) to the effect that the Board establish its own fund of insurance against public risk, accident and damage to vehicles. Mr Vincent said the secretary bad gone to considerable trouble t > obtain figures and statistics and had placed the matter in a very fair way before the Board. The speaker thought members of the Board were agreed that it was opportune for them to initiate some form of .insurance. If they took their , own risk in all cases except fire, they would have a yearly income of £3OO. While they had been immune from ,serious* accident in past years, that Jdondition might fiiot always obtain. If the scheme had been initiated earlier in the history of the Board they would have had a considerable sum in reserve to-day that would have been available in case' of accident. From the secretary’s report he saw that 27 accidents were reported to the Public Works Department in twelve months by the various power boards. Of these, 13 (nearly 50 per cent.) were public risk accidents. The Horowhenua Board was to-day carrying its own public risk. Of those accidents, six were fatal, four coming under the head of public risk. For the accident cbver the Board was paying £2OO, that was for 50 per cent, of the risk. Insurance companies generally,, with a heavy overhead cost, were paying very nice dividend? and piling up reserves, and must be engaged in a very lucrative business. It would be all to the good if the Board carried its own risk. Mr W. E. Barber seconded the motion pro forma, stating he was not altogether in line with the Board carrying the whole of its own insurance. * Mr A. Seifert said that at the outset be was more favourable to the proposal than at the present time. The thing that commended the scheme was the desire to saye a certain sum annually, but he considered the sum so saved was small compared with the extent of the risk the Board would be * taking. They might go for years without serious accident and then have two or three. If they had started at the beginning of the Board, they would have had £ISOO as a reserve by now. As it was they had to start from nothing. Mr E. S. Morse also considered the risk was too great to take compared with the likely return. They did not know when they would have a crash and they would lose the whole of their, reserve. The risk was not worth taking. . . Mr A. J.- Petherick said that, on the face oflhe secdetary’s report, the prospect was very favourable. The difficulty was that they might have an abnormal season and storms which would exhaust their fund. Mr C. Blcnkhorji said that although the occupation that the Board carried on was hazardous than the average, that slibuld not debar them from establishing the fund contemplated. He felt - that the extra care taken by the staff, knowing the nature of their' employment, more than counteracted the risk. Their business was a large and increasing one and it would be distinctly to their advantage to 'take the risk themselves. Accidents might happen, it was true, but to say that as an answer was not getting, the Board anywhere. They had a very competent Engineer and staff and that should encourage them to establish their own schemq. The chairman (Mr G. A. Monk) said that it was snot often he was unable to give the Board a lead, but he would say frankly that he had not been able to come .to a decision on the matter. At the back of his mind was the thought that Power Board work was more dangerous than that of other local bodies. When he had almost made up his mind, he read where some silly fellow strained up a telephone wire until it touched an 110,000-volt power line —and he did not get killed. When things like that were done one hesitated very much to take risks. He suggested that decision be deferred for another month to enable fuller consideration to be given. What would incline him to favour the scheme w r as that the Board had accumulated certain reserves, but if the matter went to a vote at present he would have to vote against it. If the motion was deferred for a month they anight find out how many other Boards were taking their own risk! Throughout the district the lines crossed hundreds of fences, many of which had never been earthed by the owners, and they never knew when a line would come down and kill a few animals, though lie did not want to be pessimistic. Mr Seifert said it might be advisable for the Board to join up with half-a-dozen other Boards in , taking their own insurance. The effect would be that every claim would be considered impersonally, which was not always possible when a Board’s officers had to decide upon claims from its own staff. t
Mr Blenkhorn asked whether it would not be possible to insure for half the amount and carry the other half, much in thd same way as fire underwriters re-insured a heavy risk.
Mr Vincent pointed out that at the present time the Board was carrying 50 per cent, of the risk and was quite prepared to carry it.
Decision wai held over till next meeting.
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https://paperspast.natlib.govt.nz/newspapers/SNEWS19290222.2.26
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Shannon News, 22 February 1929, Page 4
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952FIRE BOARD INSURANCE. Shannon News, 22 February 1929, Page 4
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