The Waikato Argus

Waikato Argus, Volume V, Issue 313, 12 July 1898, Page 2

The Waikato Argus

GEORGE EDGECUMBE, Proprietor. TUESDAY, JULY 12, IS9S. . -o Wk have received a copy of the Government Fire Insurance Bill. It is one of the most impracticable measures ive ever remember having been called upon to deal with, so much so that it is to us a matter for wonder that any set of sane men could be brought to believe that by its means the objects set forth in the preamble could be accomplished. It reads thus : "Whereas it is expedient to lessen the cost of fire insurance and make better provision for the insurance and protection of property against fire by enabling the Government to undertake the business of fire insurance, and also by providing for the statutory insurance of buildings in certain cases, and the equipment and maintenance of fire brigades." The Bill provides for the management of the business by a Board consisting of five members, to comprise the Colonial Treasurer, the Commissioner of Customs, the manager, and two competent persons not being civil servants, the Governor in Council having the power of appointment and dismissal at any time, all to be paid such salaries as may from time to time be appropriated by the General Assembly. The Bill is not to come into force in the first place until satisfactory arrangements in New Zealand or abroad have been made as to the re-insurance of risks, and until three or more boroughs and three or more counties, having a total population of sixty thousand, containing buildings of a total value of not less than £1,000,000, have adopted the Act. It is provided that the Council of a district may adopt the Act by a special order, such order may be superseded by a poll of the ratepayers, which shall be held on the requisition of not less than fifty ratepayers. The poll is to be taken in the same manner as is prescribed by the "Local Bodies Loan Act, 18SG,' each ratepayer only to have one vote and a majority of votes 10 cause adoption or rejection of the proposal. The cost of the election is to be defrayed out of the general funds of the Council. On the Act being adopted a roll showing owners, capital value, and insurable value, being not more than three-fourths of the capital value, is to be prepared. Every building is to be compulsorily insured for the amount and at the premium fixed by the manager of the Department. If requested to do so the Council is to collect and sue for the premiums in the same manner as rates, but to have the power to deduct cost of collection from the premiums collected If a building is insured elsewhere, the insurance is to stand for twelve months, insurance subsequently to be compulsory with the Government oilic*. Fire brigades are to be established by Councils, and paid for out of a separate account to be called the Fire Brigade Fund, the Borough or County to contribute half the cost and contribution

by fire insurance companies, including the Government to the extent of the other half. We need not quote any more from the Bill to convince the public that it is an absurdity. It is, of course, impossible from an insurance point of view, for the Government otlice to take all the risks up to the full insurable value, more particularly in the streets of towns. The lIJi 11 makes it compulsory to insure only with the State, consequently the State would have to re-insure a considerable proportion of the total risk. This could, of course, only be done with other offices. The premiums, therefore, could only be reduced by the companies consenting to a lower rate than they were previously prepared to accept, and it must be noted that the Bill only comes into force on satisfactory terms being made for re-insurance. The competition between different offices is now sufficiently acute to secure to insurers the lowest rates which experience has established to be practicable if loss is not to b*; suffered. The Bill is the greatest blow at the rights of individuals which has yet been attempted by the Government. A man's house is to be no longer his castle, as the Government insurance agent can invade it at any time and value his stock-in-trade or his household furniture and effects, and compel him to insure them whether he feels inclined or not. If the people of New Zealand will stand this they will stand anything. The temptation to pass the Bill, so far as the Government is concerned, is solely because it would place an immense amount of patrouage in their hands. The higher billets would suit rejected Parliamentary candidates, and so on down to the lowest grade of election touts.