PUBLIC RISK INSURANCE.

Shannon News, 25 June 1929, Page 2

PUBLIC RISK INSURANCE.

POWER BOARD TO ESTABLISH ITS OWN FUND. In accordance with notice, Mr T. G. Vincent moved, at the meeting of the Hoiowhenua Fewer lizard on that the Board immediately initiate its own public risk insurance fund,' setting aside therefor from this year's? reserve the sum of £IOO. The nntion was seconded by Mr A Seifert, and after a discussion, was carried. Some information on the subject was supplied by the Secretary (Mr P. \V. Goldsmith), in the course of his report on the proceedings of the Power Board's Secretaries' Conference, held in Wellington from May 22nd to 24th. He stated: "The questions of insurance rates has always been an interesting one at these conferences and the recent conference was no exception. Mr Brown, the managing secretary of the Wairarapa Board, had collected information from some thirty Boards / supply authorities concerning''transactions for the year ended March 31st 1929. For the information of members of the Board, the following returns are submitted:— Total premiums Paid.

Percentage Total claims claims collected, to preni.

"The discussion on the subject appeared to show that the experiences of Boards very widely differed. On the whole it seemed quite evident that in some classes of insurance the Boards could look for further reductions in the rates charged by the insurance companies even if the\ Boards did not as a rule establish their own insurance funds as set out in the Act. "With regard to a Board establishing its . own employees ; accident' or L public risk insurance fund, the amount set aside is limited, for the Act states: 'but no greater sum shall be set asidt in any one year than the amount that at current rates would have been payable for that year in respect of the insurance of workers cmployeed by the Board and in respect of insurance against public risk." "The Conference recommends that application be made to the proper authorities to have these words deleted from the Act. A fire insurance fund under t.he Act may be established without any such restrictions, and if is sought to place employees' accident insurance on the <-ame footing. Boards would then be able to set aside for a start a substantial sum which would make the fund able to meet any likely claim.'' The Chairman (Mi- G. A. Monk) remarked that the information was

rather illuminating. . This Board should have some authority to set aside a larger sum as the nucleus of a fund if it was going to start its own insurance. Any other the d would only be playing with it."" If this Board did' set asid-a a sum> then, if it secured the legislation, it could add to if later. Mr .Vincent pointed out" that the

subject had been fairly fully thrashed out last financial year. He went on to give particulars of Mr Brown's report additional to those suppied by the Secretary. In one. case, relating

to fire insuianee, .the proportion of losses to premiums paid was. 68 per cent, in the year ended March 31st, 1928, and only 20.8 per cent., in the

following year. In the case of accident insurance the respective proportions were 79 per cent and 60.3 per cent. The only case showing an increase was that of motor vehicles insurance, the proportions being 32 per

cent, and 36 per cent. The public risk

insurance in the same citation showed a falling-oft*' in the' proportion from 99 per cent, in the 1927-28 period to 14.4 per cent, in the iollowing year. The Horowhenua ■ Power - Board was already carrying its public risk, but had never insured under that head and had made no provision whatever for losses. In one case the sum in the fire insurance fond ir. 1928 was £6401; contributions and interest for the five vears prior to that were £3BOO, and losses paid £389. In the accident fund the sum in 1928 was £13,782; contributions during the previous five years, £±3,034; claims iud expenses during that period, £4BBI, showing a profit'on The five-year period of over £3OOO. Th. j report did not state what local body this was, but it was not 'a Power Board. Mr C. Blenkhorn said he was not in favour of bringing up almost immediately a matter that had already been turned down by the Board. It seenf vd a very big subject, which could riot be adequately discussed by a meeting such as the present one. If it were allowed to be reopened, he would propose that it be referred to the Finance Committee and given due consideration where it could be, freely discussed and more information obtained; then the Committee could bring down some report to the Board with more details than. at present. This Boara hald to pay about £4OO a year in insurance premiums, and should perhaps give this question more consideration than it had already given it. He would put it to Mr Vincent that the whole mattar be referred to the Finance Committee for review. J

Mr Seifert said he seconded the motion simply because, in the first placs, the Beard had been carrying its own public risk ever since it commenced

to function. In regard to fire, mo and accident Vrisks, the Board had sured.. In the first place he had thouj that it would be best for the Board carry its own risks, but when they c sidered the small amount of gain lative to accident : and motor, risks, thought it would not be wise for Board to carry its own risk.

had a very large reserve fund, carrying only the public risk, it wo be only sharing a part of the risks was running; the rest would be tal by the insurance companies, ai-d thought that, for the time, it Wa4 wise policy for the Board. Mr ."Blenkhorn pointed out that the figures given in the leport, public risk was, with the except of the fidelity insurance, the small and safest for the Board to carry; other figures were very much larger The Chairman: Apparently th-e pi ?ic lisk has had a tremendous rever from what its previous experience w I think the time has arrived when., ;shouldi noft go lany, further wi#h( having some fund for public risk, would not agree to. our taking < own public, risk by establishing a fu if we had not got decent reserves, think that the Board has to insi against public risk, and I am. qu prepared, under the circumstances, support Mr Vincent J s motion. I not know that any very good purpc will be served by sending this back the Finance Commilljee, because - had a pretty good battle—l think came up at two meetings—and unli the Committee has a fresh mcml with new evidence, I do. not think ' will get any further. I think the Boa will be wisu in limiting, its own insi ance to this. If it is referred back, think that the Committee should supplemented with another member, two of the Board.

The Chairman asked Mr Blenkho if, in the event of the motion beij carried, he would move subsequent that further information be obtained Mr Blenkhorn: If you think a m tion necessary.

The motion was carried without o position, and the Chairman stated th an endeavour would be made to g information for Mr Blenkhorn as the possibility of a portion of the r-i; being insured separately.

■■: £ s. d. Fire insurance .. .. 4041 15 0 Accident insurance .. 9072 U 3 Motor vehicles .. .. 2385. 9 5 Public risk .. .. 1130 4 3 Fidelity .. .. . • 275 0 2 £16,904 11 1

Fire Insurance .. 839 15 7 20.8 Accident insurance 5474 0 9 60.3 Motor vahicles .. 879 IS 0 36.9 Public risk .. .. 162'18 0 14.4 Totals .... £7356 12 '4 43.5