OBJECTION TO £50 EXEMPTION

Southland Times, Issue 24828, 21 August 1942, Page 4

OBJECTION TO £50 EXEMPTION

Earthquake Insurance (P.A.) WELLINGTON, August 20. Adverse comments on a clause in insurance policies imposing £5O franchise on earthquake risks were made by several members when a vote in the supplementary estimates of £206,500 for earthquake damage was under consideration in the House of Representatives tonight. The Leader of the Opposition, Mr S. G. Holland, said he thought the time was ripe for the Government to state its policy in respect to earthquake repairs. Great hardship was being suffered by many people had insufficient money to meet earthquake damage costs. The Deputy Leader of the House, the Hon. D. G. Sullivan, said ' that while £200,000 had been provided for general expenditure in respect of damage done, the Government would not hesitate to provide adidtional sums should they be required. The Minister of Primary Production for War Purposes, the Hon. W. J. Polson, said that in many instances insurance companies escaped without a penny of liability because no payment was made unless the damage amounted to £5O. He thought the whole question needed investigation. The Minister of Railways, the Hon. R. Semple, said the experience of recent times showed that the insurance companies were escaping a liability they should carry because they were collecting the premiums all the time and earthquakes were infrequent. There should be no £5O exemption. Mr Holland said that earthquake insurance was on the same level as other insurance. It was a question of the premium charged. Mr Sullivan said the whole question might be discussed between the Government and the companies. As far as the State Office was concerned, instructions had been issued for making generous provision in respect to its policies.