The Evening Star. PUBLISHED DAILY AT FOUR O'CLOCK P.M. Resurrexi. SATURDAY, APRIL 26, 1879.

Thames Star, Volume X, Issue 3178, 26 April 1879, Page 2

The Evening Star. PUBLISHED DAILY AT FOUR O'CLOCK P.M. Resurrexi. SATURDAY, APRIL 26, 1879.

It is well known that of late there has been a considerable amount of competition among the Insurance Companies doing, business on the Thames, and the tame has been the case in Auckland. It would be well to ''consider this question of cheap rates of insurance, and its bearing upon the present commercial state of the community, and the future of this township. In a previous article upon this subject, we remarked that while it was quite right, from a business point of view, to insure against loss by fire, there was JQst a possibility that such might be overdone, and hinted at the probability that that course was being carried out on the Thames. It has been stated that a person remarked some days ago, if such and such a building of his were on firo he would not attempt to extinguish it, except there was a probability of the fire spreading and injuring hi^peighbor'a property; because it woultf-p-iy hinr better, to have ife burnt down, as ji was insured foe an amount larger'than any purchaser would give for it. That insuranco agents are taking larger amounts upon buildings than their present market Talue, is very generally known, and there is good reason to believe that such statements as mentioned above have been made. House property on the Thames is at present very low in value, and it would without doubt cost a much greater sum to replace a building burnt down then it could be sold for; therefore, while the owner insuring his property above its value would gain by the destruction of the building, the insurance company could not save anything by adopting the alternative of reconstructing it, and would probably pay over the amount of the risk. Such, a mode of doing business is to a great extent offering a premium to unscrupulous persons to fire their premises, after having insured them for any sum above their market value, If this were only a matter between the insurance company and its clients, it might be a question very well left to the parties interested to .settle but as a great many persons do not insure, in many instances from a want of means to do so, the firing of one house in a town in which the buildings are principally of wood, and constructed close to

each other, may result in untold loss to a great number of innocent persons, and be a public calamity. That there is a.feeling of this kind in the township may be easily ascertained, and tho way insurance business is at present conducted induces all who can afford to insure tb» do so, as a protection against a fire that may happen any clay. There was a great deal of truth in the statement made years ago that the high rate of iusurance preserved the Thames From destruction by lire. Under such circumstaucos as we have stated, it is of the utmost importance in the first place, that means should be provided and at hand, to prevent the spread of fires — the possession of a good water supply, and the services of experienced men in our Eire Brigades. The latter we have, and as far as a portion of Grahamstown is concerned, the experience of the last fire proves that water in abundance is at hand for fire extinguishing purposes; but that part of the town from Albert street to. the end of Shortland is totally without a supply of water sufficient to arrest the progress of a fire, if . the statement of those in authority is to be depended upon. Our statement has not been coutradicted that there is at present nut mo,rc than two inches of-water, passing through the,pipes at present-laid iv *fte portion of the town mentioned, from Albert street to Grey street, Shortland. Such being the case, it is time our local authorities paid attention to the sub*, ject, and if there is shown any dilatoriness on their part, the residents in Shortland should see to the matter. Now to look to the relative positions of the insurer and the company accepting his risk. It is not generally known that while insurance companies may accept premiums upon a larger amount than the value of' the building or stock insured, it doss not follow that they can be compelled to pay more than the actual value of the. loss sustained by tho insurer, upon whom the onus of proof of loss lies. Insurances Companies protect themselves by a number of stipulations and conditions, the true bearing of which is seldom understood by the insurer. The following is one of the usual conditions upon which policies are granted by Insurance Companies, and from it may be seen how easily such Companies might refuse to pay over the amount insured, or repudiate altogether their liability :—

All persons insured with this company who shall sustain any loss or damage by fire must forthwith give notice thereof in writing to the company or its agents, and deliver, ■within; fifteen days after such fire, a particu'ar account of their loss, in iuch form as the company may require, and of the salvage, and give particulars of any other insurances on the same properly; and must make solemn declaration of the truth of the claim before Bonie Justice of the Peace, and further produce their boots of account, papers, vouchers, and suoh other evidence as the company may reasonably require, and in default thereof, no claim shall be recoverable under this policy. And if there appear any misstatemenfc of facts, fraud, overcharge, imposition, or false declaration, or if the fire shall have happened by the wilful act, means, or connivance of the insured or claimants, ■ all right whatever to Recover under this policy shall be forfeited. No profit of any kind shall be included in any claim ; and this company reserves to itself the option to pay the amount of loss, when proved and ascertained, within sixty days thereafter, or to make good the same by reinstatement or replacement, in whole or in part, and the insured shall furnish, if required, certified, plans and specifications of the buildings to be reinstated, but in the event of such reinstatement being prevented by any Act for regulat-; ing the alignment of streets, construction of buildings or otherwise, the company shall only; be liable for such an amount as would, but for Buch Act, be sufficient to procure such reinstatement; • : - ' '

Our telegrams of late mentioned several instances in which Insurance Companies have refused to pay over the amount insured, and while the belief is held that a majority of the fires are the work of incendiaries, such a course is sure to be adopted, and every advantage taken by the Companies of the stipulations upon which the policies were granted. Looking at the matter from such point of view, it Were well that insurers should study their position, and be careful in allowing themselves to be led to pay premiums upon amounts larger than they would probably receive, were the risks injured by fire.