THE WAYS OF INSURANCE COMPANIES.

Waikato Times, Volume XXVII, Issue 2210, 7 September 1886, Page 3

THE WAYS OF INSURANCE COMPANIES.

The following article, which appeared in a recent issue of the Hawke's Bay Herald, will be of interest : — People who injure should make themselves fully acquainted with the conditions by which they are bound. This is true in relation to all forms of insurance, and the majority of insurers need the reminder, for it is questionable whether a tithe ot those who make bargains with insuiance companies ever tiouble to read the policies issued. Perhaps this is conducive to brisk business and another proof of the usefulness of faith as? a means of keeping 1 social airangements in a state of equilibrium, for if policies were more generally road there might be less insurance. An English Judge once .said that insurance as practised was th« gieatest of all marvels to him, as he was convmceol that under no circumstances could any insurer recover from a company who determined to fight the claim, owing to the ".saving clauses" in all policies. This may be an exaggeration, but if; is certain that thero i-. a wide foundation for the hyperbole, and that insmcrs depend more upon the goodwill of insurance companies than upon a stiiut reading ot their policies Fortunately this bon acoord is very prevalent, companies having wisdom enough to recognise the fact that litigation, except in transparently fraudulent casts, would soon kill insurance altogether. A case that has recently occuned in Napier enables us to give a pertinent lilnstiation of the contention that ins neis should know the term-, of the bargains they make. When the Napier Voluntear-, went to the Easter emcamp inent a number of them took out policies in a society called the Accident Indemnity Company. One of those who took out policies was Mr F. Tankard, garrison bandmaster, who in return for a premium paid to a Napier agent received an mtenm receipt purporting to insure to him £250 in case of death by accident, and £5 por week for 13 weeks in the event of disablement by accident. He met with an accident, badly spraining his ankle, and gave notice of his intention to claim under the terms of his policy. In return he received a suggestion that he .should name a sum for which h^ would be willing to release the company from liability. He consulted the doctoi who was attending him as to how long it would be before he returned to work, and received a certificate that he would be disabled foi ten weeks at the least. He consequently agreed to take £~0 :\s a quittance for all liabilities. The company considered that an excessive claim, and caused another doctor to examine Mr Tankard. The examination took place about five weeks after the first one, the result of which was borne out by the second doctor certifying that Mr Tankard would be di-abled. four or five weeks longer. Later he was asked to sign a paper releasing the company from liability on payment of £13 10s, but very naturally let used to do so, consulting si solicitor instead. By this time, after ten weeks' disablement, Mr Tankard had returned to work, and had received a "policy"' in addition to the leceipt fiist obtained. The general conditions contained nothing particularly objectionable, but stamped across the bottom in small type was the following:— "Any thing herein contained to the contrary notwithstanding the said company shall not be bound to pay to the insured in case of either temporary total or temporary partial disablement a greater sum per week than three-fourths of the amount earned by the insured immediately prior to such disablement." It was also provided that in case the insured was not earning wages at the time of disablement, the weekly payments should not exceed three-fourths of the average wages of the class to which the insured belonged. There is not much fault to be found with the provision itself, which is doubtless found a necessary one, but there is room for complaint in the fact that Mr Tankard was not informed of the condition when he j insured ; consequently he paid a premium ! entitling him to receive £."> per week in case of accident, although the agent presumably knew that no matter what accident the insured might meet with he would nut receive the sum insuied per week unless earning £0 13s 4d per week when the accident occurred. The solicitor consulted by Mr Tankard communicated with the company, and the result was an offer of £27, double the amount first offered, and at the rate of £2 14s per week, or threefourths of Mr Tankard's wages at the time of the accident. This, which was little more than half the sum he thought he was insuring for, was accepted, but had hn known of the limiting condition at the time of insuring, he probably would have paid only a proportionate premium. The case is one of interest to the public, and sharpens the point of the contention we commenced with— that all insurers ought to make themselves fully acquainted with the terms of their contracts with insurance companies.

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