B.—ll

1944 NEW ZEALAND

REPORT OF THE WAR DAMAGE COMMISSION ESTABLISHED UNDER THE WAR DAMAGE ACT, 1941, FOR THE YEAR ENDED 31st MARCH, 1944

Presented to both Houses of the General Assembly \ pursuant to the Provisions of War Damage Act, 1941

Wellington, 20th July, 1944. In accordance with the provisions of section 18 of the War Damage Act, 1941, the following report and statement of accounts is presented respecting the operations of the War Damage Commission for the year ended 31st March, 1944. (1) Mr. W. B. McKenzie, who replaced Mr. 6. E. Brangwin as a member of the Commission whilst the latter undertook military duties, resigned in favour of Mr. Brangwin on the latter's return to civil occupation, and Mr. Brangwin was reappointed on 23rd October, 1943. Otherwise the personnel of the Commission remained unchanged. During the year ten meetings of the Commission were held.

(2) The following statement shows the figures comparatively for each period reported upon since the Act operated : —

(3) By Amendment No. 3 to the War Damage Regulations 1941, the premium rate of ss. per cent, was reduced to Is. per cent, as from Ist March, 1944. The premium income for the year under review thus includes one month at the lower rate. The same amendment — (a) Excluded any security for death duty,; Native succession duty, gift duty, or stamp duty from the definition of the term " mortgage," thus releasing the Crown in connection with such securities from the obligation to contribute to war damage premiums: (b) Amended the obligation of mortgagees to contribute half the premium to the extent that the premium contributed shall not exceed the amount of interest payable under the mortgage for the preceding year, and also limited the right of recovery of premium for which mortgagees have liability to a period of two years after payment of the premium : (c) Extended the right of a mortgagor to recover a proportion of the premium from a mortgagee to any person who is bound to pay the war damage premium under any contract or agreement with the mortgagor. (4) The Earthquake Damage Emergency Regulations 1944-, operating from Ist March, represent a logical development of the principle of collective responsibility for a calamity loss which was expressed in the War Damage Act, 1941. The regulations provide the framework of a national and universal scheme of earthquake insurance the necessity for which has been recognized since the Hawke's Bay disaster in 1931. Prom an insurance point of view the risk of loss or damage through enemy action m wartime has many aspects in common with the risk of loss or damage through earthquake. Neither the locality where the risk is greatest nor the extent of loss can be predicted, and the individual is relatively powerless to protect himself. While it cannot be claimed that war risk to property is yet at an end—and the recent explosion disaster in Bombay is a reminder of one aspect of war risk which is independent of direct enemy actionthe present position in the Pacific war area warrants the hope that the balance in the War Damage Pund provides a substantial reserve at the commencement of the earthquake insurance scheme which it would have taken a very long time to build up out of earthquake premiums alone. The Commission recognizes that as there is no precedent elsewhere for a national earthquake insurance scheme, the regulations may be regarded as experimental. A review of the legislation is in hand at the present time.

, ' ® r Twelve Months Twelve: Months in,, ! C6 o, f' ended 31st March, ended 31st March, V°ioo 1943. .1944. March, 1942. Income-— £ £ £ Premium .. •• •• 877,369 1,611,218 1,423,305 Interest .. • • • • • • • • 1® > 57,46,9 Outgo— Claims . 55 Salaries .. •• •• ■■ 1,018 5,696 2,070 Other working-expenses .. .. ■■ 1,261 919 1,311 Audit fee .. • ■ • • • • • • 120 100 Surplus .. •• •• 87.5,090 1,620,150 1,477,238 Total of Fund . 875,090 2,495,240 3,972,478 Ratio per cent, of working-expenses to premium 0-260 0-418 0-245 income Ratio per cent, of working-expenses to total 0-260 0-413 0-235 income .. fsSm v.gij mm