The Daily News. TUESDAY, MARCH 22. STATE INSURANCE METHODS.

Taranaki Daily News, Volume LII, Issue 345, 22 March 1910, Page 4

The Daily News. TUESDAY, MARCH 22. STATE INSURANCE METHODS.

In yesterday's issue we published a report of a discussion at the last meeting of the Taranaki Provincial Executive of the Farmers' Union regarding efforts being made by the State Fire Insurance Department to divert to itself business from the Farmers' Mutual Fire 'Association. A good deal of vehemence characterised the remarks of the various speakers, who passed a somewhat violently-worded resblution "protesting against tiie extraordinary methods oi the State Fire Insurance Department, and to resent the Department's underhand endeavors, by the improper use of confidential information, and by misleading suggestion, to steal the business of the Farmers' Mutual Insurance Association." The "stealing" comes about •by the issue of a circular 'by the district manager of the State Department to fanners holding mortgages from the Government. The circular is ingeniously worded, and suggests that it is necessary to insure in the Government Fire Office when money has been borrowed from the Advances to Settlers Office. Mr. Maxwell, in bringing up the matter, instanced the action of the Premier in refusing to give the members of the House information relating to the recent alleged irregularities in the Land and Income Tax Department, for the reason that it would he an immoral and improper thing to. disclose the private business of those doing business with a Government Department, contending that the same observance of confidence should be shown by the Government's Lending Department. The cases, however, are not parallel. Whilst information regarding income and land tax is and should he of a strictly confidential nature, it is open to anyone, upon paying the customary fee, to search the deeds of any property for information regarding mortgages. Hence the State Fire Insurance manager or any other insurance manager or agent could quite legitimately obtain particulars 'tor purposes of their business. We do not know how the State manager obtained the information alluded to by Mr. Maxwell. Most likely it came from the Advances to Settlers Office. Our present purpose is to show that it is open to the State insurance manager, or anyone else, to secure the information he did through another channel, and without doing anything illegitimate or taking advantage of the position th<i manager occupies as an employee of the Government. We can therefore see little in the complaint that there has been a breach of confidence by the Advances to Settlers Department or the State Insurance manager. It is, however, another matter for the manager to make what appears on the surface to be a mandatory demand upon the settlers "for their insurance. It is not an unusual practice for moneylenders to insist on fire policies being taken out by mortgagors in specific fire offices. The lenders occupy the box seats, and the mortgagors have no option but to comply. But we do not like the condition. Mortgagors, especially to the Government, should have a free hand in the placing of their insurance, and we join issue with Mr. Maxwell in objecting to the Department's practice. At the meeting mention was made by one speaker or the State Fire Department being run at a Joss. To this we would say. is it desirable that the State should close up its fire insurance branch? We are sure most people would be sorry to see this done. According to the returns, the Department has so far cleared itself, and that is all that the country wants it to do. It has achieved it? purpose, namely, the reduc. tion of premiums, in many cases by a hundred per cent., and the insurers of the Dominion are reaping the benefit—a benefit that they are not likely to forego. Much good has been done by the ventilation of the subject by the Farmers' Union, but we believe if the resolution had been more leasonablv worded and less acrimony shown, the desired object would have been attained just as easily and probably more effectually.