REPORT OF THE EARTHQUAKE AND WAR DAMAGE COMMISSION ESTABLISHED UNDER THE EARTHQUAKE AND WAR DAMAGE ACT, 1944, FOR THE YEAR ENDED 31st MARCH, 1949

Appendix to the Journals of the House of Representatives, 1949 Session I, B-11

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1949 NEW ZEALAND

REPORT OF THE EARTHQUAKE AND WAR DAMAGE COMMISSION ESTABLISHED UNDER THE EARTHQUAKE AND WAR DAMAGE ACT, 1944, FOR THE YEAR ENDED 31st MARCH, 1949

Presented to Both Houses of the General Assembly Pursuant to the Provisions of the Earthquake and War Damage Act, 1944

Wellington, 10th June, 1949. In accordance with the provisions of section 23 of the Earthquake and War Damage Act, 1944, the following report, with a statement of accounts, is presented for the year ended 31st March, 1949 : (1) There was no change in the personnel of the Commission during the year. Twelve meetings of the Commission were held. (2) The following is a comparative statement from 19th December, 1941, when the War Damage Act came into operation. As from the Ist March, 1944, earthquake insurance was included in the scheme :

Period 19th Twelve Twelve Twelve December, Months Months Months 1941, to 31st Ended 31st Ended 31st Ended 31st March, 1946. March, 1947. March, 1948. March, 1949. Income — £ £ £ £ Premiums 4,598,027 410,065 494,938 540,704 Interest 278,333 94,860 129,957 129,591 Outgo— Claims 1,600 1,779 7,917 12,876 Salaries 12,861 2,162 2,493 2,643 Other working-expenses 5,104 2,166 1,410 1,665 Discount to insurance offices 17,567 9,965 11,843 13,573 Cost of exchange adjustment Nil Nil Nil 339,525 Surplus 4,839,228 488,853 601,232 300,013 Total of fund 4,839,228 5,328,081 5,929,313 6,229,326 Ratio per cent, of working-expenses to premium 0-391 1;055 0-789 0-797 income exclusive of discount to insurance offices

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(3) Three hundred and forty-three claims on the Fund were lodged during the year, as compared with four hundred and one in the previous year and one hundred and thirty-four in the year before that. Earthquake damage was claimed for in localities from Coromandel to Invercargill. Again the most damaging shock occurred in a rural area, where buildings are mainly of wood. Earthquake shocks which resulted in numerous claims are listed as follows :

(4) The total of the Fund amounts to £6,229,326, including overseas investments of £(N.Z.)1,805,600, after deducting the cost of exchange adjustment between New Zealand and Great Britain. (5) In pursuance of the policy of the Commission to obtain reinsurance against severe loss, negotiations in London have been completed for an excess loss contract of £4,656,000 at a rate of ss. per cent., covering loss in any part of the Dominion. Practically all companies operating in New Zealand participated. The total is less than was aimed at, but it is hoped that continued negotiations will eventually provide a satisfactory extension. (6) The Commission again expresses its appreciation of the work carried out by the Secretary and staff during the year. J. H. Jerram, Deputy Chairman.

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Kate. Location. Modified Mercalli Scale Bating. 1 Number of Claims. 23rd May, 1948 North Canterbury Force VII 239 28th December, 1948 Wellington area Force IV 18 10th February, 1949 Southern North Island and Northern Force VI 40 South Island |

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EARTHQUAKE AND WAR DAMAGE FUND (Under Earthquake and "War Damage Act, 1944) Income and Expenditure Account for the Year Ended 31st March, 1949 £ . s. d. £ s. d. , £ s. d. Premiums, less returns and reinsurances .. .. 540,704 6 9 Claims paid and outstanding .. .. .. 12,876 8 11 Interest .. .. .. -• 150,992 18 0 Salaries and overtime .. .. .. . . 2,643 2 3 Less premium and costs incurred in Superannuation subsidy . . . . . . . . 43 9 2 purchase of Imperial stock .. 21,402 Oil Fees of Members of Commission .. .. .. 307 15 0 ■ ■ 129,590 17 1 Expenses of management .. .. .. .. 1,313 17 9 Discount allowed insurance offices .. .. .. 13,572 6 6 Amount written off investments (alteration in exchange rate) 339,525 0 0 Balance transferred to Earthquake and War Damage Fund .. .. .. .. .. .. 300,013 4 3 £670,295 3 10 £670,295 3 10

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EARTHQUAKE AND WAR DAMAGE FUND— continued Balaxoe-sheet as at 31st March, 1949 Liabilities Assets £ s. d. £ s. d. £ s. d. £ s. d. Balance of Earthquake and War New Zealand Government stock .. 4,270,000 0 0 Damage Fund as at 31st March, 1948 5,929,313 6 1 Imperial stock .. .. .. 1,805,600 0 0 Net income for year ended 31st March, 6,075,600 0 0 1949 .. .. .. .. 300,013 4 3 Cash in Public Account to credit of Earthquake and Earthquake and War Damage Fund War Damage Fund .. .. .. .. 34,247 0 6 as at 31st March, 1949 . . .. 6,229,326 10 4 Interest accrued but not due .. .. .. 34,738 3 7 Claims outstanding .. .. .. .. 1,192 0 0 j Premiums accrued but not due .. .. .. 95,546 0 3 Discount due on accrued premiums .. .. 2,388 13 11 . Sundry debtors .. .. .. .. .. 1,153 5 3 Premium and other deposits .. .. .. 8,377 5 4 £6,241,284 9 7 j £6,241,284 !) 7

Note.—In the balance-sheet, New Zealand Government .stock and Imperial stock have been included at par value. 3rd June, 1949. T. L. Seator, Secretary. I hereby certify that the Income and Expenditure 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.— J, P, Rutherford, Controller and Auditor-General,

Approximate Coat of Paper.—Preparation, not given ; printing (1,288 copies), £9 10s.

By Authority: B. E. Owen, Government Printer, Wellington. —1949,

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