WAR DAMAGE

Wairarapa Times-Age, 1 October 1941, Page 5

WAR DAMAGE

4 COMPULSORY INSURANCE SCHEME LEGISLATION SUBMITTED TO HOUSE. MEASURE OF UNIVERSAL SCOPE. (By Telegraph—Press Association.) WELLINGTON, This Day. Compulsory insurance of property against damage by enemy action or by defence measures is provided for in the War Damage Bill, which was introduced in the House of Representatives yesterday and read a first time. A Wai’ Damage Commission to be established is to consist of the Minister of Finance, who is to be chairman, the Secretary to the Treasury and four other members to be appointed by the Governor-General. A separate account in the Public Account, to be known as the War Damage Fund, is to be established.

Money remaining in the fund after all claims have been settled and all advances repaid is to be applied to granting financial aid to persons who suffer loss or damage through an earthquake or other disaster. The part of the Bill dealing with insurance against war damage states that real or personal property insured against fire shall be insured for the same amount against war damage. The insurance company is to pay a war damage premium, the amount of which is not stipulated, which is to becomei a debt due to the commission. The amount of war damage premium for which any insurance company becomes liable becomes also a debt due by the insured person to the company, and may be recovered by the company. The commission may allow discounts to insurance companies, or may release a company from its liability in respect of a premium irrecoverable from the insured person. The establishment of Adjustment Courts to adjust liabilities in the (jase of war damage claims is provided for. The Court is to consist of a Judge or former Judge of the Supreme Court and two other members. It is particularly stipulated that the Act is to come into force on a date to be appointed by the GovernorGeneral. Another provision is that the Act shall bind the Crown. In reply to the Leader of the Opposition, Mr Holland, who asked if universality was provided for, the Minister of Finance, Mr Nash said: “Right through. When the Bill comes into operation we can take a cover for risks” — Mr Forbes (Opposition, Hurunui): “What about collection of the premiums? Will that wait till damage is done?” Mr Nash: “When the Government decides that the Act shall go into operation it fixes the right for premiums to be paid and existing insurance companies will collect those premiums with their collection of fire insurance premiums. It will not wait till damage is done, but the Government will decide when the Act is to go into operation. When it goes into operation the insurance companies in collecting then premiums will add so much to covet war damage.” ..wn Mr Dickie (Opposition, Patea): Will it be compulsory?” Mr Nash: “When it goes into operation it will be compulsory, but there are so many safeguards and qualifications under the regulations that it would take a half-hour’s second reading speech to explain all the provisions.”