War Damage

Commission Gives a Ruling

WHERE property in Papua and New Guinea is known to have been destroyed, a contributor to the War Damage Insurance Fund is exempt from further obligation to pay war damage insurance premiums. Where property has depreciated, premiums should be based on the depreciated va],pe as assessed by the War Damage Commis sion.

These rulings—which are of great importance to Papuan and New Guinea property owners—were given to the Paci fic Territories Association by the War Damage Commission in a letter dated October 24. 1942.

If an owner is satisfied that his pro perty has been wholly destroyed, he need not renew his contribution. But if he is not certain, he should make further con tributions in case the damage should occur subsequent to January 1, 1943; because, if no voluntary contributions whatever are made in respect of damaged or depreciated property, for future years, the property will not be covered under existing regulations.

The letter from the War Damage Com mission, which is dated October 24, 1942, is as follows: “I refer to your letter of 19th instant, regarding the renewal of premiums where property has been destroyed or damaged.

“In reply, I have to advise that, where property is known to have been lost or to have reduced in value, the contributor should not be called upon to make a con tribution for ensuing years, or the con tribution should be based on the reduced value established by the Commission.

If voluntary contributions are not renewed for future years, the property will not be covered, under the regulations.

“If the owner is satisfied that his pro perty has been wholly destroyed, he will oresumably not renew the contribution.

If, however, he is unaware of the condi tion of the property, he should make a further contribution in case damage should occur subsequent to January 1 1943.

“In any case, where contributions are not paid until some time after 1/1/43, the provisions of the regulations will not extend to the propertv for the period that remains uncovered.”