Wairarapa Daily Times. [Established 1874.] FRIDAY, DECEMBER 6, 1895. MUNICIPAL FIRE INSURANCE.

Wairarapa Daily Times, Volume XVI, Issue 5200, 6 December 1895, Page 2

Wairarapa Daily Times. [Established 1874.] FRIDAY, DECEMBER 6, 1895. MUNICIPAL FIRE INSURANCE.

A Muxicii'Ai, Fire Insurance League lit Invercargill has forwarded a project for protecting (lie dwellers in towns against, lire losses. The proposal is that each municipal ollice shall he ,1 lire insuranco ollice, that the premiums from all of them shall ho pooled in a common fund from which lorses are lobe paid, It is argued that, the profits on tiro insurance aro excessive and that under a mutual scheme of this description lower premiums will result. The special features of the proposal arc outlined as follows: 1. The otlicc of each Municipality shall bo tlia ollice for transacting the business ol Mutual Municipal Insuranco, 2. One or all adjoining Municipalities may join, and appoint one ollice the centre for receiving the premiums awl transacting the business in connection with Insurance ol all the Ilpjieipalities so combining.

3. The « I of administration o( Local Hoards tlwll be paid from premiums; such cost not to exceed per cent on premiums received. ■i, The cost ol maintenance ot a lireprevention nud extinguishing sort ice shall be paid from premiums; the cost not to exceed per centof the premiums received by each Municipality. The organisation aud management of t'jis service shall rest with tho Council.

ii. .Any or all adjoining Municipalities may combine for liro prevention, and the percentage on premiums shall form ono fun.l for the joint protection of tho whole, and he administered by the Central Municipality. 0. The proceeds of tho premiums for lire prevention sha" bo paid into tho Central Municipal account, of Municipalities combining and shall be applied to no other purpose.

7. All liro insurance premiums received by Municipalities shall bo paid to Control Uicc, and all charges on tho premiums as provided abovo bo returned to each Municipality by the Central Office. ' 8, Any insurance company doing lire i business in any Municipality shall pay such Municipality from the premiums tiioy receive per cent., to bo applied to liro prevention only. 9. An anuual valuation shall bo made of all buildings in each Municipality for lire insurauco purposes,

Tlioro nro certain advantages and certain possible drawbacks to a proposal of this character ffhicb rajuivo careful consideration. In tlio first instance it is evident that municipal insurance would modify or break down llio monopoly rates which exist at the present time. On the other hand, if the municipalities (lid not conduct their business prudently they mijjlit get into difficulties, and rates might go up instead of down. There is a reasonable prospect of municipal insurance being ablo to 6avo in tlio items of rent and profits, but this might bo discounted if too much money wero expended 011 fire preyeution. It is obvious that municipalities, instead of doling out assistance to fire brigades from their general funds, would, under the now order of thiugs, take tlio cost out of iiisuranco premiums, and probably they would bo much more liberal with insurers money than they are with tlio ratepayers coin. It past also bo borne in mind, tliat I in conducting au insurance business, [many municipal clerks would be less

skilful than the ordinary run of insurance exports, and for a- time would be at some disadvantage, There would bo a danger of the insurance companies combining to keep all the good risks in their own hands, and to throw all the bad ones on to the municipalities. The project is a good one, but to make it a success the utmost care and vigilance will be essential.