Although reputable and progressive insurance companies endeavor to take insurance to the people, it is extremely difficult for their representatives to cover the very large national field with personal calls to place before everybody information regarding the various types of insurance which are available and which are really necessary to the individual.
1. Farmers Insurance
The primary producer is faced with losses from many sources beyond his control, and if such losses occur he needs finance readily available to replace his hard-earned assets, and to maintain his income.
Most of these losses are insurable and the prudent man accepts his insurance expenditure as a must, and protects himself as fully as he can.
Insurance is available for your buildings and their contents, your machinery and plant, tractors, cars and trucks and your sheep, cattle and horses.
If you travel for holidays you can cover your baggage. Your statutory obligations in regard to workers’ compensation and motor car third party insurance are provided for, and last but not least, there is you.
There is no workers’ compensation for you, but if anything happens to you, your family will suffer, as well as yourself.
Therefore if you are wise you will cover yourself with a personal accident and sickness insurance.
2. Fire Insurance
It is quite general these days for buildings and contents to be insured against fire, but it is not always true that they are insured adequately. Further, it is quite frequently the case that some building is left out of the insurance, particularly when it has been erected since the policy was first taken out.
The rates for premium for farm and station buildings and their contents vary according to the type of material used in their construction and the purpose for which they are used, but in all cases you will find that they are quite moderate.
As regards your home, there is a more comprehensive policy available known as the houseowners’ and householders’ policy.
Under this type of policy your home will be protected against the risks of fire, explosion, lightning, thunderbolt, earthquake, burglary, aircraft and leak age or overflowing of water devices and pipes.
The contents of the home would be covered against the same risks with the additions of larceny and theft and accidental breakage of mirrors (not hand mirrors) and storm and tempest.
Some people insure their fences against fire all the year round, while others only insure them in the seasons when there is a great deal of dry feed about.
If you effect a policy and renew it from year to year, you might avoid the embarrassment which sometimes arises when a policy is sought at the last minute, when the bush or grass fire is near at hand.
With this type of policy it is necessary for you to insure for the full value of that part of the fencing which you desire to insure, as otherwise in the event of a claim occurring you will only be entitled to recover a proportionate part of the damage done.
It is important to remember that the rate for insurance of fencing is the same for the full year as for any selected portion thereof.
Livestock policies are available for the insurance of pedigreed sheep, cattle and horses against death from various sources, including the sicknesses which are peculiar to the animals.
The grazier, however, usually only insures his most valuable beasts against livestock risks, and the rest of his animals against fire only.
Here again the insurance should be effected for the full value of the animals, or the peak value which they are likely to reach during the period of the insurance.
None can say when a fire is likely to occur, and therefore to be sure of receiving the full amount of loss, the grazier should provide himself with an adequate policy.
It is quite common for people to think of grass fires only when the feed is tall and dry, and therefore they ask the insurance company to take out the cover for three months only.
As this is the danger period of the year, the companies charge 1 percent more for an annual policy, than for one which continues for three months only.
Should sheep be injured in any way as the direct result of fire and need to be destroyed for humane reasons, the loss is covered by the policy.
5. Crop Cover
For the farmer there is the combined fire and hail insurance policy to cover his crop. If taken out in good time it covers the insured from the time that the crop comes into ear until it is stripped, or until January 15 in the next year, whichever is the earlier.
A very efficient and scientific method of loss assessment has been evolved, so that if any grain is knocked from the heads by a hailstorm, the farmer received complete indemnity.
In the event of fire occurring, for instance from the use of a tractor, the assessment presents no difficulties.
To meet the requirements of the grazier, a special type of policy is used to cover wool, known as “Sheep’s Back To Store.”
The scope of cover in this policy is very wide and the insurance commences from the time the sheep are shorn and continues until the wool enters the broker’s warehouse.
The policy is particularly valuable to the producer, as it relieves him of the risk of almost any accidental loss of or damage to wool from the time shearing commences.
6. Baggage Insurance
Have you ever thought of the value of the personal effects, clothing, etc., which you take away with you on holidays, and how easy it is for some part of your luggage to go astray.
A baggage insurance policy will cover you against almost any loss which can occur during travel or while you are at any hotel, boarding house and the like. The premium is not great. In this case also full value must be insured so that the full loss can be recovered.
Workers’ compensation insurance is a compulsory insurance, and every employer must provide himself with a policy which covers him against his liability under the Workers’ Compensation Act, in regard to his employees, and also his liability at Common Law.
This latter amount may be increased at the request of the insured. Any employer who has not provided himself with the statutory policy is liable to a heavy fine.
7. Personal Insurance
There are three main types of personal accident insurance policy:
- Personal accident.
- Personal accident and specified sicknesses.
- Personal accident and all illnesses.
The protection is available to anyone who is liable to meet with an accident or sickness which will cause him financial loss if disabled even temporarily.
Workmen and employees have protection under the Workers’ Compensation Act insurance, but even they are not covered 24 hours a day.
A personal accident insurance policy will cover the employer 24 hours a day, and it can be effected for any capital sum or weekly benefit decided upon by the insured and considered by the company to be reasonable.
Policies are normally restricted to persons between the ages of 18 and 60 years, but many companies increase the age limit in certain cases.
8. Car Insurance
A comprehensive motor car insurance policy protects the owner of the vehicle against loss of or damage to the vehicle by fire, accidental damage or theft, and against his liability to third parties for damage done by the car to their property.
Legal costs are also covered and medical expenses incurred by the injured driver himself can be provided for by an extension of the policy.
Every motor car owner is compelled by law to obtain a third party policy before his motor vehicle can be registered.
This special policy covers up to an unlimited amount the insured’s legal liability to members of the public for personal bodily injury caused by the insured car.
This class of insurance has been very much in the news of recent years, and some very large awards have been made by juries.
It is to be wondered how a private individual faced with one of these very large claims against him could ever hope to pay it without his insurance policy. As a result of the very large awards for injuries, the rates of premium for this class of insurance, which are fixed by the authorities, and set down in the various State Acts, have continued to rise over the years and there does not seem to be any prospect of this rise being halted.
9. Other Liabilities
Apart from the legal liability which devolves upon every motor vehicle owner, every person, and particularly those who are carrying on any business, be it that of a primary producer or anything else, has a liability to members of the public over injuries which may be caused as a result of the carrying on of such business.
Every person must use due diligence to see that he does not injure any other person by his negligence, and if he does he is liable to compensate the injured party.
This liability can be covered by a public liability policy at a remarkably cheap premium, and in view of the damages which have been awarded by the courts, this insurance is essential.