THE BOROUGH INSURANCES.

Taranaki Daily News, Volume XLVII, Issue 81833, 28 August 1906, Page 2

THE BOROUGH INSURANCES.

" THE LAUGHING STOCK OF THE TOWN." The matter of the insurance of the Municipal Baths camo up at the Borough Council meeting on Monday, when the following letter was received from Mr F. P. Corkill, chief Taranaki agent of the Alliance Assurance Company, dated 14th August: " I am in receipt of your letter of today's date, informing me by resolution of your Council that an insurance of £750 was effected on 30tli Juno last on the Municipal Baths in the Standard Insurance office, in the name of the Taranaki School Commissioners. This is an addition to the amount effected by the Commissioners in your office at a late hour on the same day. The mis-statements m this resolution of the Council very much surprises me. No insurance for £750 was effected on the baths on 30th June last in the Standard Insurance office, and no additional insurance was effected by the Commissioners with this company at a late hour on the samo day. On that date you tendered to the School Commissioners a conditional cover for £SOO in the Standard office, and it was promptly declined by the Board's secretary and returned to you. With the refusal of the Commissioners to accept your irregular cover, the risk ceased. For their protection an insurance of £750 as a sole risk was then obtained from thie company, the rate charged being identical with that shown on the cover note of the Standard office. Some days later you appear (knowing that our £750 policy was in full force) to have made a supplementary proposal for £250 to the Standard office, and this cover was declined by the Commissioners. I decline to note or to permit any additional insurance to the £750 which this company holds. As already intimated to the Commissioners, I would not under any eircumstaneo renew this risk or accept any other in which your council is concerned. Tour methods of doing business (i.e. with regard to the distribution of the insurances! which you have at your disposal) have made your council the laughing stock of those of tho public who are acquainted with the facts, and the Mayor's statement in the Council that this company had charged a higher rate than was offered by the Standard office is both untrue and contemptible."

A letter was read from Mr W. Bewley, agent for the Standard office, quoting (on July 18) a reluced rate of 13s 6d nett, his head office agreeing that the rate of 15s 4d per cent, was excessive.

The Town Clerk read a letter sent by him on the authority of the works committee slating that the insurable value of the building was only £479. The Mayor, referring to his interview with the Commissioners, said there scorned an impression on the Board that the council was antagonistic to the Alliance Insurance Agency. That was not the case. He did object, however, to the ratepayers being mulcted in £2 or £3 through overinsurance and excessive tariff. Cr. Wilson regretted the Town Clerk's letter had been sent. First, it had not been authorised by the Council; and except under special circumstances no letter should be sent until the committee's action had been ratified by the Council. Second, the Council had written that the building eras over-insured at £750, thus merely stultifying itself. The Council had insured the baths for £SOO, and the Commissioners covor was for £750. The Council admitted the correctness of the Board's figures when it incroased its own policy to £750. The time had thus gone for objecting to the amount lot insurance, and the policy must stand. Thirdly, the Council was bound to keep the policy at the tariff rate quoted by the Alliance. They had better " pay and look pleasant," and guard against a repetition of the occurrence,

The Mayor quoted the resolution of last meeting, referring the matter to the committee " to deal with," and contended that power had been given to svrite tho letter. He knew that several agents in the town considered Ids 4d per £IOO was excessive Cr Monica! k supported the Mayor's views, and considered an excessiye rate was being charged. If the commis sioners wanted to help the Council they could apply to the Underwriters' Association, and compel tho Alliance) to refund the excess charged.

The Mayor explained to Cr. Bellinger that before allsfting the in<uranoe, the Works Committee had de. cicled that the company receiving the policy should redu/e the premium.— No action was taken.