LOW PREMIUMS

Waikato Times, Volume 125, Issue 20910, 15 September 1939, Page 2

LOW PREMIUMS

n.i.m.u. insurance REVIEW OF YEAR’S ACTIVITY (Special to Times.) WELLINGTON, Friday. 11 Although costs, both internal and external, have increased very appreciably over the past three to lour years, it is a matter for congratulation that the company is able to continue with its present low rates," states the annual report of lhe North Island Motor Union Insurance Company, to be presented at the eleventh annual general meeting of members on September 27. ” Members of the N.I.M.U. are provided with insurance protection against the hazards of the road at rates which are the lowest in the world,'’ adds the report. " More than 50,000 North Island motorists nominated the company as Ihcir insurer under the Motor Vehicles Insurance (Thiyd Party Risks) Act, 1928. •‘ The total amount returned to rfiembers during the year was £9177 11s lOd. The granting of surplus profit rebates commenced on September 1, 1934, and during the five years the plan lias operated a total of over £30,000 has been returned to members. It was evident that, during the year under review, lhe amount in the profits for distribution reserve would have to be supplemented to allow of the plan being kept in operation until August 31, 1939, and so complete the cycle. To permit of this the directors decided to transfer the sum of £2677 10s lid to the reserve. Naturally the distribution of surplus profits must be suspended in the meantime. “ The net premium income was expanded to a record of £195,940 2s 7d, an increase of £54,817 19s lOd over the figures for 1938. At the end of the financial year the number of comprehensive policies in force was 32,821, being 9853 in advance of the 1938 total, the ratio of increase for the year being 42.9 per cent. Income from investments realised £4 OG3 4s Bd, being an increase of £lOl 18s 8d over 1938 Unexplred Risks “An amount of £27,409, being 50 per cent of the amount of increase in net premium income, has been added to the reserve for unexpired risks. "As from June 1, 1939, the directors arranged that the company’s reinsurance undertakings be altered to provide for a variable premium rate, increasing or decreasing (within set limits) according to the claims experience recorded. As it is desirable that provision be made on the basis of the maximum potential liability under the new plan, the sum of £3366 has been placed to a reinsurance reserve. “ The surplus for the year was £7214 0s Bd, of which £2677 10s lid has been transferred to the profits fox distribution reserve, whilst, the balance of £4536 9s 9d has been added lo accumulated funds. Tlie accumulated funds, consisting of accumulated surplus £36,772 5s 2d, and reserve for unexpired risks. £97,970 Is 4d amount to £134,742 6s 6<j, an increase of £31.945 9s 9d. compared with the figures of the previous year. " The net amount of claims paid and payable amounted to £ll 9,192 8s 7d, the ratio to net premium income being 60.9 per cent, a reduction of 4.8 per cent on the figure for the previous year. " The directors to retire by rotation this year were Messrs. A. Grayson and F. G. Farrell. Auckland, and Mr W. A. O'Callaghan. <oulh Taranaki. Each was re-nominated by the executive of the relative Automobile Association, and 're-elected unopposed."