MUNICIPAL INSURANCE

Sun (Auckland), Volume II, Issue 373, 6 June 1928, Page 18

MUNICIPAL INSURANCE

WELLINGTON PROPOSAL A question of some interest to insurance companies was introduced last evening at the meeting of the Onehunga Borough Council, when a letter was received from the Wellington City Council suggesting the establishment of a municipal insurance board for the Dominion. The project is the outcome of a discussion by the Municipal Association of New Zealand, on the question of municipalities carrying their own insurance risks. The assocation proposes the establishment of a municipal insurance fund under the control of a board for the Dominion. A comprehensive scheme is suggested to include fire, accident and fidelity. The letter pointed out that the past 10 years the Wellington City Council has paid in fire premiums £16,113, while claims for losses amounted to only .£1,789.

Over the same period the amount set aside for the council’s own accident fund was £86,791, and claims for compensation amounted to £35,886. Fidelity premiums totalled £621 over the same period, and £694 was paid by the insurance companies in claims. Each municipality is now being asked for similar information to complete a summary to be placed before the executive of the Municipal Association for further consideration. The town clerk was instructed to forward to Wellington the required information.