H.—6a.

Motor-vehicles Insurance (Third-party Risks) Act, 1928. —Figures published by the Government Statistician show that for the first two years of the operation of the Act claims paid and estimated absorbed over 88-5 per cent, of premiums, leaving an exceptionally narrow margin for working-expenses and profit. This margin would be far too low were it not for the special system of administration which was initiated with the active co-operation of this Office. Considering the novel aspects of the legislation and the lack of any previous experience here or elsewhere, the rates fixed in the first instance proved to be singularly accurate, and only small adjustments, which do not increase premiums in the aggregate, have since been found to be necessary. The support given to this Office by motor-vehicle owners continues to be substantial. J. H. Jerram, General Manager.

Revenue Account of the Accident Branch op the State Fire Insurance Office for the Year ended 31st December, 1931. £ s. d. £ s. d. Premiums after deduction of reinsurances .. 102,061 15 1 Free-year bonus on personal accident policies .. 337 310 £ s. d. Claims .. .. .. .. .. 82,561 10 5 Interest .. .. .. 16,316 11 9 Commission.. .. .. .. .. 4,585 16 11 Less land and income tax .. 7,249 0 6 Salaries .. .. .. .. 10,920 0 0 9,067 11 3 Contribution to Public Service Superannuation Fund .. .. .. .. .. 210 0 0 Expenses of management .. .. .. 3,028 3 7 101,642 14 9 Payment to New Zealand Treasury under section 5, Finance Act, 1931 (No. 2) .. .. .. 881 0 0 Further appropriation to Investments Fluctuation Reserve .. .. .. .. .. 7,000 0 0 Reserve for bad debts .. .. .. 500 0 0 Amount of Accident Funds, 31st December, 1931.. 1,105 11 7 £111,129 6 4 £111,129 6 4 Balance-sheet of the Accident Branch of the State Fire Insurance Office as on the 31st December, 1931. Liabilities. £ s. d. Assets. £ s. d. Accident funds, as per Revenue Account .. 1,105 11 7 Government war-loan securities .. .. 94,500 0 0 Outstanding accident claims .. .. .. 39,674 0 0 Other Government securities .. .. .. 54,000 0 0 Government taxes .. .. .. .. 7,249 0 6 Local-authority securities .. .. .. 93,548 5 0 Commission.. .. .. .. .. 595 15 7 Rural Advances bonds .. .. .. 14,425 0 0 Premium and other deposits .. .. .. 363 7 2 Property under agreement for sale and purchase .. 3,980 0 0 Sundry creditors .. .. .. .. 33 13 9 Fixed deposits and at short call .. .. 40,000 0 0 Reinsurance premiums due .. .. .. 121 18 6 Interest accrued but not due .. .. .. 4,687 8 9 Officers' Fidelity Fund .. .. .. 500 0 0 Interest overdue .. .. .. .. 199 0 0 Reserve for unearned premiums .. .. 47,220 13 10 Agents'balances .. .. .. .. 6,259 8 2 Investment Fluctuation Reserve .. .. 16,000 0 0 Sundry debtors, including Motor-vehicles Insurance Bad Debts Reserve .. .. .. .. 500 0 0 (Third-party Risks) Act pool .. .. 38,619 14 4 Reserve Fund constituted under section 6of the Cash in hand on current account .. .. 9,873 4 9 Government Accident Insurance Amendment Act, 1924 .. .. .. .. .. 246,728 0 1 £360,092 1 0 £360,092 1 0 J. H. Jerram, General Manager. 2nd April, 1932. C. B. Redward, Accountant. I hereby certify that the Revenue Account and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby. — G. F. C. Campbell, Controller and Auditor-General.

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