Wairarapa Times-Age THURSDAY, JUNE 24, 1943. AN INSURANCE PROBLEM.

Wairarapa Times-Age, 24 June 1943, Page 2

Wairarapa Times-Age THURSDAY, JUNE 24, 1943. AN INSURANCE PROBLEM.

the last meeting of the Trust Lands Trust it was observed by Mr K. Krahagen that the public should know for its own protection that if a fire occurred following an earthquake there was no coverage (i.e., under a fire insurance policy) and other members observed that the matter was important from the point of view of the public. This is true and the position all the more needs attention since no comprehensive insurance cover is at present available, at all events in the ease of dwellings, on terms which can be regarded as reasonable.

As has been noted on other occasions, earthquake insurance is of little value to the average home-owner on account of the condition imposed that no compensation shall be paid in respect of the first £5O worth of damage. This means that no insurance cover is obtainable for the only damage likely to be caused to dwellings and other small buildings even by a fairly severe earthquake. In the event, however, of a building of this kind being destroyed by a fire directly attributable to an earthquake —a possible but on the whole not very probable contingency — a fire insurance policy also would be inoperative. The owner would be compensated only if he had taken out comprehensive earthquake insurance as well as fire insurance.

The Minister of Finance (Mr Nash) stated in the House of Representatives recently, as he was reported, that in his opinion provision could be macle for earthquake insurance at a considerably reduced rate, which would be available to everybody, and if in the long run the premiums were insufficient to cover the cost, then at that point the fund would be backed by the State. It would be better still if policies could be issued giving protection against either fire or earthquake damage (which of course would, include damage from fire caused by an earthquake). This of necessity would mean an appreciable addition to the fire insurance premium, but the addition presumably need not be excessive.