War Damage Premium Will Not be Reduced

Taranaki Daily News, 4 June 1943, Page 4

War Damage Premium Will Not be Reduced

No change in war damage insurance premiums is planned by the Government, according to the Budget. Because there have been practically no calls upon the war damage fund the question has arisen whether the time has come to reduce the annual premium of 5s per £100 of insurable value, Mr. Nash said. On March 31 last there was £2,320,000 in the fund, but this sum is very small relative to the value of property covered, and it would not go far in meeting the costs of damage should a raid be made on some of the city areas. The Government has, therefore, decided to make no change at present, but to reconsider the matter at the close of this year, when, if all goes well, there is every prospect a reduction will be made in the premium rate. When the fund is no longer required as insurance against war damage it will be very valuable as a reserve for the relief of those who in the future may suffer losses from earthquake or other major disaster. Insurance premiums could be considerably reduced, presumLng there was no damage by war, while making provision for earthquake losses, for which insurance should be available, if necessary, backed by the State.