The Wairarapa Daily. THURSDAY, MAY 9, 1889. The Mutual Insurance Question.

Wairarapa Daily Times, Volume X, Issue 3200, 9 May 1889, Page 2

The Wairarapa Daily. THURSDAY, MAY 9, 1889. The Mutual Insurance Question.

?he boot of high insurance rates .ppears to Lave pinched the foot of lie ratepayers of the Borough of Sydenham, a suburb of Oliristohurch, iretty severely, for we notice that bo Council of that Municipality lias mssed a resolution in favor of a liil l :eing introduced during the approach ng session of Parliament empower ng Municipal Corporations to under alee fire insunviice within theii espective boundaries on the seountj if their rates, and has sent copie if that resolution to the Councils o he various boroughs throughout tb :olony. The subject:was brought up nforraally, before tue Mastertoi Korongh Council at. its specia neeting on Tuesday, when there wa: iomo discussion upon it, though m wnclusion was come to. As wa minted out, tlio resolution is not i rery bright sample of Muhicipa upidity, yet the proposal is suchai mportant one that it is well wortl ionsidering, We do not pretend ti )e able to say right off that it i; iither feasible or not. There an nany things that might he said ii to favor, and tlio largo majority o ratepayers in Masterton, where tin Insurance Companies have latter); oeen carrying everything their owi ivay with an iron hand, Would, in loubt, be glad to see it inaugurated Tliero are two ways in which it migh be carried out. In the one, eacl borough might do its own insurance md in the other all the boroughs ii the colony could, join together am have one common fund, Thp greates drawback to this is that a centra office with a somewhat oxpensivi staff, would' be'indispensable, Ii either case, insurance might be e'tlie optional or compulsory at a iixei percentage upon the valuation of al buildings. The advantages that av to be derived from mutual fir insurance . are, undoubtedly, ver great. When once the scheme i fairly afloat, the premiums would b very light, as compared with thos which are now demanded by th insurance companies, because th boroughs would not aim atm'akini the largest possible profit out of th business, as there would be m shareholders ajixious to receive %i halt-yearly fifteen per cent dividend The work could be done with bu very insignificant and inexpensiv additions to the present staffs of tli Various boroughs, and the expense would thereiore be -comparative! light. It would be necessary ti create a reserve fund to providi against emergencies that might aris in order to avoid the levy of a specia rate, which, in the case of. a fin involving several .thousands. o pounds,.would .come very heavy i one borough had to meet it, Ash t)i.e case of every scheme in whicl mutual insurance or protection ar involved, the- greatest difficultie svouid be experienced at the begiiv ning, because the credit of biisiiies! people in a borough fhat adopted th proposal wo.uld be seriously affeot,ej

.ft ; .opiild:,iidt< show; that [the'jr underwriters Vwere spaiitl,';andv : be-; cau'se'.tliera wouldbe'some difficulty in raising the; necessary Vfunds 'to, meet. tlieTjolajma in; the-case of a fire.; Once fairly afloat, the schenio would, rip doubt, work fairly enough. Ratepayers, who 'own ho destructible property would, perhaps, object to being rated for such' a purpose. This is a' point which would have to be carefully considered. We'are not prepared to say that such a rate would,be .absolutely unjust, If if were proved so, it might be arranged, to levy the rate on insurable property, such a3 merchandise, furniture, etc., only. Jt must, however, be rememhered that the borough would bo in receipt of premiums which should meet all the claims that are likely to arise. The Borough Council of Masterton will, we trust, give the matter the most careful consideration, if the proposal can be worked into suitable shape, it would confer a great and lasting benefit upon insurers, as the present exorbitant rates would be a thing of the past, and the Insurance Companies' would have to adopt quite a different tariff to do any business in the towns at all.