WAR DAMAGE

Wairarapa Times-Age, 4 June 1943, Page 2

WAR DAMAGE

INSURANCE PREMIUM RATE. MAY BE REDUCED AT CLOSE OF YEAR. (By Telegraph—Press Association.) WELLINGTON, This Day. No reduction has yet been made in the war damage insurance premium rate, but the Minister of Finance, Mr Nash, in his Budget speech in the House of Representatives last night announced that there was every prospect of a reduction being made at the close of this year. As we have been fortunate enough to have had practically no calls upon the war damage fund the question has arisen as to whether the time has come to reduce the annual premium of 5s per £lOO of insurance value, he 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 have, therefore, decided to make no change at present, i but to reconsider the matter at the*

close of. this year when, if all goes well, there is every prospect of a reduction being made in the premium rate. Insurance premiums could be considerably reduced presuming there was no damage by war, while making provision for earthquake losses for which insurance should be available, if necessary backed by the State. When the fund is no longer required as insurance against war damage, it will bo very valuable as a reserve for the relief of those who in the future may suffer losses from earthquake or other major disaster.