FIRE INSURANCE.

Taranaki Daily News, 21 March 1922, Page 3

FIRE INSURANCE.

LECTURE TO EMPLOYERS . A lecture, tinder the auspices of the Taranaki Employers’ Association, was delivered at the Soldiers’ Club last night on the subject of “Fire Insurance.” The speaker was Mr. K. Akers, manager of the New Plymouth office of the Phoenix Assurance Co., Ltd. In the course of a very interesting and instructive address, Mr. Akers said that the aim of all insurance is to make provision against the dangers which beset human life and dealings. Referring to fire insurance policies, the speaker pointed out that the premiums paid did not insure the payment of the amount of money mentioned in the policy in the case of a fire unless a loss of that amount was sustained. The controlling principle in insurance law was indemnity and by reference to that principle most difficulties arising in insurance contracts must be settled. The contract is not necessarily one of perfect indemnity, as no underwriter takes the risk of destruction of the property he insures by all perils whatsoever and howsoever arising. As a prudent man he must take a risk he can estimate, as his capital is not unlimited. The market value at the time of the loss must govern all settlement; cost price having no direct bearing on a claim.

Mr. Akers, in dealing with the subject of insurable interest/ said that to acquire such an interest in anything was to be so circumstanced w..-h respect to it as to desire benefit from its existence, or preservation and prejudice or loss from its destruction.

Dealing with the filling in of the proposal form, the lecturer said the nondisclosure of any material facts likely to influence the underwriters in estimating the hazard would have the effect of making the insurance void. The policy also provides that fire must be the proximate cause of loss. In the case of loss by fire there must be actual ignition, not necessarily of the property itself, but of some substance near ter it not intended to create heat. Losses by smoke and water where a fire has occurred are recoverable under a policy, but damage by explosion is not a fire unless there has been a fire in the building. In the case of riots and strikes the underwriter is usually agreeable to incorporate this extra hazard on payment of an extra premium, which, during the last big strike, was an extra rate of 5/- per cent. The loss of rent and of profit, caused by a fire were also direct on, the speaker giving details as to how these were arrived at for insurance purpose.