TOO MANY CARS BURNED

Sun (Auckland), Volume II, Issue 517, 21 November 1928, Page 1

TOO MANY CARS BURNED

Gangs Said to be at Work Destroying Vehicles for Fraud

INSURANCE ADJUSTER’S BELIEF TO my knowledge there are three gangs at work in Auckland destroying cars by fire—for a consideration. This assertion, astounding though it appears, was made in deep seriousness by an insurance adjuster, who handles a great deal of the motor-car losses by fire in the Auckland Province Figures show that the number of cars burned m Auckland is the highest in the world when considered on a percentage basis.

It is disturbing to learn that a gang of motor-car destroyers may be operating in the city with such care and exactitude in the execution of its nefarious work that its members cannit be apprehended and brought to justice. It is disconcerting, too, to reflect that in Auckland 40 per cent, of motor-car fires come within the category of suspicious outbreaks; 10 per cent, are attributed to deliberate incendiarism; and in 75 per cent, of the fires a direct benefit can be traced to the owner of the Vehicle. These figures, though necessarily slightly elastic in their application, are quoted as a general indication ol the situation in Auckland, and are computed from estimates given by motor men, insurance adjusters, and other students of the swelling calendar of motor-car losses, as well as from actual records taken over specific periods. OVER-INSURED CARS Premiums charged upon motor-cars in Auckland are among the lowest in the world; the fire ratio among lost vehicles is the highest in the world. During last year one insurance company in this city paid out just under £13,000 in car losses, including thirdparty risks, damage by impact, and loss by theft, and of that amount approximately 40 per cent, of the damage was caused by fire. The recognised average fire ratio in normal industrial times is around about 20 per cent, or cars destroyed. In and around Auckland, motorcar thefts have increased enormously during recent months, and many of the stolen vehicles have been discovered on lonely and deserted roads, transformed into heaps of ashes and twisted iron. Many of them were worn out and decrepit, and in over 90 pfer cent, of the fires were over-insured. “What thief wishing for one moment of safe, swift, delightful travel would worry about taking an old car from the stand, when there are plenty of new ones for him to drive in comfort?” asked one insurance adjuster, when ridiculing the suggested genuineness of many motorcar fires. “Yet many of the burned cars are old models, and almost invariably are over-insured.” RATES CHARGED BY GANGS Inquiry into the circumstances attending individual car “burns” reveals that in a great many, cases bundles of ti-tree are discovered beneath the wreckage particularly when the burn has occurred on a secluded road —and an inspection of the remains frequently discloses other evidence of wilful destruction.

“Cannot you get at this gang?” one man was asked. "We know who they are, and we know they are operating,” he replied, “but we cannot bring any proof to incriminate them.” “How much do they receive for this work?” “Anything from £lO to £25 a car. Frequently, of course, it depends upon the success of the owner in his negotiations with the insurance company.” SHORT CIRCUITS CAUSE FIRE Over 200 cars are lost by fire in the Auckland Province in a year. Chief among the causes are backfires in the engine, short circuits in the electrical mechanism, and unknown reasons, and it is estimated that 60 per cent, of the outbreaks are due to faulty electrical equipment, 25 per cent, to gross carelessness, and 10 per cent, of the remaining 15 per cent, to deliberate incendiarism. The fallacy of over-insuring a motorcar, which will be discussed in a subsequent article, impresses itself upon many owners, who discover, after their cars are .destroyed, that the company will pay out only on the market value of the machine, which is fixed by impartial adjusters, working neither in the interests of the company nor of the owners. Prolonged negotiation between the owner and the insurance company—with the adjusters and other experts as arbitrators —often become necessary before claims are finally settled, but in other instances where there are no suspicious circumstances payments are mane within a few hour: of the outbreak.