The Daily News. TUESDAY. JULY 23, 1901. STATE FIRE INSURANCE.

Taranaki Daily News, Volume XXIII, Issue 153, 23 July 1901, Page 2

The Daily News. TUESDAY. JULY 23, 1901. STATE FIRE INSURANCE.

The State Fir# Insurance Bill, brought down by Qoveraor'g Message and read & first time, states in the preamble that it is expedient te lessen the cost of fire insurance and to make better provision

for the insurance and protection of property against fire by enabling the Government to undertake the business of fire insurance, and also by providing for the statutory insurance of buildings in certain casts and the equipment and maintenance of fire brigades. The Bill provides fer the ertablis'aaaer.t of a St to Fire Insurance Office, administered .y a manager appointed by the Govarnor-in-Csuncil and holding office during his pleasure. Prevision is also made for the appointment of the necessary stiff and for the establishment of branch offiess or agencies. A State Fire Insurance Board is also constituted, consisting of the manager, the Colonial Treasurer, the Commissioner of Taxes, and two competent persons (Dot being members of the Civil Service) appointed by the Governor-in-Council, and this body will regu'ate tbe general conduct cf the business of the office, which is te insure or reinsure against loss or damage by fire insurable property ef all kinds situate in New Zipland. It is provided, however, that the office shall not commence business until the Governor, by notice in the Gazette, declares it open for that purpose, and this will not bs done until 'satisfactory arrangements have been made in New Zealand or abroad as to the reinsurance of fire risks undfr Part 11. of the measure (which deals with the statutory insurance of buildings), and until that part of the Act haß been adepted in three or more boroughs or three or more counties having a total population of 60,000 inhabitants (exclusive cf Maoris), and containing buildings of a total value of not less than £1,000,000 " For the purpose of minimising as far as possible the ri*k of insurance," under another part of the Act it is provided that local authorities and the heads of Government departments must furnish all information in their powe" - concerning any fact or circumsfan in any way affecting the riik of inaurnnce, and power is conferred on any officer or other person authorised by the manager to enter on any building for the purpsse of inspecting it or its contents The measure also sets out that in tha case of builders' risks or other policies for short specified periods of less than a year the premium shall he payable in advance. In every other case it is to be paid annually in advance, and the [ jlicy may, in tbe discretion ef the manager, be cancel'ed

at any time, in which case he must refund to tho pelicy-holder the amount of hii premiums. If the Board at any time reports to the Governor that in its opinion the business of the office should be discontinued, wound up, or otherwise disposed of, he (the Governor) by Or ier-in-Council, msy give such directions as ha thinks fir, and such order is to be binding on the manng r and the Board. If, howevor, such a report is made after P»rliameut has been railed or while is is sitting, tho Governor shall, instead of | making such an Ord-r in Council, l»y (the report before Parliament fev its ' consideration. In order to p'ovide original capital for the office, tW« I Governor-in-Couficil is empowered to raise £250,000, which may, if i' is thought proper, be raised in New Zealand. If that amount is found to be insufficient, such additional sums as are required may b« raised. Thr amount cf interfsij on .dobentures is limi - ' Ito 3g per cent., and provision h made for the creatioo of a sinking fund to be paid over to the Public Trustee, who must report on the state of the fund to Pa-JiamenV Provision is also made for the keeping and auditing of accounts. Surplus profi s are to ■!>e devoted to tha creation of a reserve futd and tha payment of bonuses Part 111. of the measure deals wiih tbe statutory insurance of buildings, and is to apply only in districts where 'his part of the Bill has besn adop'ed, either by a special 0.-der made by the municipal council or by a poll of the ratepayers, carried by a uaaj a-i'y of ths vote? recorded. In ca6es where it is adopted the manager of tho office is r*-' quired, after the gazetting ef the notice, and triennially thereafter, to prepare a fire insurance roll showing io respect to every building, the nam?, occupation, and address of the owner, the capital value of the building, its nominal insurance value (being not more than thre«-fourths of the capital value) its actual msurab'e value, its classification, tbe annual amount of premium, whether it is insured, and, if so, in what office, for what amount, and the date of the expiry of the current policy. The manager may amend the rule when necessary, and bis powe and duties with regard to classificatian of buildings are deanrd, it fceinz pr vided that he may class ai" u irsii"able"aßy building which, in his judgment, is too hazardous a risk to b« taken at all. As s on as ths fire insurance ro'l comes into fone in anv district, every building shall be d.-eni'd. to be injured in tbe State offi- e. in the name of the own t, in a sum equal to the actual insurable valuo us shown on the roll. In regard t< «very building already insured this pr.ivis : on is to apply at the date of tbe expiration of the currant policy, being in no cis i lower than twelve months after 'the r oll comes in'o foroe. If at the expiration of that period a policv has not expired, it shall lie deemed to be cancalled, and the owaer shall be entitled to a proportionate refund of premium from the insuring company. Tha measure also provides that, when requested by the manager, the local body shnll collect, sue for, and recover the premiums in thd same way as rates tre collected, retaining such commission as is prescribed, without affecting the primary liability of the manager whose name appears on tbe toll for all premiums on any building 30 insured. All persons having an insurable interest in the building whev a premium becomes payable »re to be jointly and severally liable for tbe samp, and the person actually paying it shall have a right of oont ibution from all o her persons who are liable. Power is given to the Governor to discontinue tbe statutory insurance of buildings, either as to all, or any specific districts, if ha deems it expedient to do so. General provisions are contained in Part 111 «f the Act. The local bodies of aDy district may and shall, if theGovarnorgo prescribes, sufficiently equip and maintain, to the Governor's satisfaction, one or more fire brigades ; such expenses to bap.ii' out of a separate account, to be called the Fire Brigade Fund, for such purpose rwwy shall be transferred from the country or district fund. The country or district fund shall contribute one half the amount required, and the other half is to be contributed by all the fire insurance offices carrying on busipess in Hew Zealand, including the State Fire Insurance office.