The Sun.
London, England, 1821-11-03 00:00:00

FIRE AND LIFT INSURANCE.

The prudential. act of providing against the
calamity of FIRE, and the still greater and more
certain calamity which a family suffers by the
death of its chief supporter, is becoming so gene-
ral, that it is necessary the public should be en-
abled to estimate the relative merirof the schemes
which are offered to their choiee. These schemes.
vary from each other in their minister details, but
it appears that they are all reducible under one
or other `of the four following heads
Contributionship, or Union Societies; in these so-
cieties, those who desire Insurance, club toge-
ther : by their deposit of premium they raise a
fund, out of which they indemnify themselves,
but each man is individually liable, in his whole
property, for any deficiency that may occur. If
there be a surplus of profit, they divide it ; and
this they.ought to do wholly, an 4 at short inter-
vals; for the members for the time being,who run
all the risk, ought to have all the profit, when
there be any. Any reserve of what they win
would be a sacrifice of their property to benefit
a succession of strangers, who took no part in
their risk. But, dividing in this way, a partial
run of tosses sooner or later creates a deficiency,
whence it is that societies of this kind seldom
last many years, before they break up through
litigation, disappointment, and insolvency. To
obviate these objections, COMMERCIAL COMPA-
NIES have taken up Insurance as. a business—
they offer large permanent capitals in guarantee
of their engagements—they take all the risk and
all the profit—the first consideration, security,
is, effectually accomplished on this plan, but the
attraction of a return is wanting. A third prin-
ciple has been elicited by modern ingenuity in
these societies ; it is that of making all the
shareholders insure to a certain amount, at all
times, whether they have real occasion to insure
or not. This is a certain yviy of creating a busi-
ness for an establishment, which otherwise might
have nothing to do : the appearance of business
pleases the unreflecting, with the shew of profits
arising out of their own needless sacrifices. But
so far as the compulsion has effect, it is a last-
ing embarrassment and loss to the sharehol-
ders ; for if a shareholder be in want of an in-
surance, he will naturally prefer his own office,
without compulsion, provided its plan be equally
as beneficial, and, it be as well conducted as
others ; but if he have no want of an insurance,
it is ridiculous for him to compel himself to incur
the- expellee*. As well might a company of apo-
thecaries be formed under a condition that each
Member should take a given quantity of physic
every day, to create a business. The folly of
this scheme is made apparent by the event. Most
of the Insurance Offices which have been set up
within the last fifteen or sixteen years, have had
the compulsion to insure foisted on their share-
holders, and in consequence the shares in all
such offices have continued at a discount, which
discount, in some instances, has been 60 per
cent. ! others have broken up altogether. The
Members of the Birmingham Life Office, formed
on the above principle, paid the Provident
Life Office, £20,000 to relieve them from the
risks they bad undertaken, and the London
Commercial Life Office paid the same Office
£l,OOO to join it. The fourth principle is
that of combining the attraction of Return of
premium yielded by offices on the Union prin-
ciple, with the more important consideration
of solid security, afforded by offices having
permanent capitals of large amount, in addi-
tion to the fluctuating funds arising from
the premiums. This principle has been ap-
plied by the COUNTY FIRE OFFICE and PRO-
VIDENT LIFE OFFICE, with uncommon ‘Suc-
cess. The original Members formed perma-
nent capitals o ample amount, and all the
members, new as well as old, share the profits
equally, according to their respective contribu-
tions. These offices impose no compulsion on
their members to insure—yet the increase of their
business exceeds all precedent, and their shares
have been as invariably at a great premium, as
the other offices of a similar and more recent date,
have been at a great discount. After all, the cha-
racter and conduct of the management of these
offices is a subject of chief importance to persons
who seek security. There are offices which are
remarkable*for turning claimants round whenever
they can, and for the disgraceful exposures they
have sustained in courts of law and equity, these
ought to be carefully avoided.

TIE X 30,000 MART.—Brsn appears deter-
mined to keep up his celebrity for selling
1230,000 Prizes. Ile sold the
.230,000 drawn
last Tuesday, and is the only Office-keeper that
ever sold Three in one Lottery. In fact, he has
sold more than half of all the
,230,000 Prizes
that have ever been, and whether he sells the
Two now in the Wheel or not, (though it is by
no means unlikely) we think his Offices well de-
serve the name of " THE X 30,000 MART ! ! !"

WARD or CRIPPLEOATE WITHIN.--4D conse-
quence of the death of Mr. EnwXun HEATH, one,
of the Common Councilmen of the Ward of
Cripplegate Within, a Wardmote was holden
yesterday at the Church of St. Alphage, London-
wall, in compliance with a requisition numerously
and very respectably signed. Alderman ltVoon
being out of town, Mr. Deputy VALLANCE pre-
sided at the meeting. The Wardinote having
been duly open, Mr. JOHN Cm I,D, of Alderman-
bury, rose to propose Mr. neon llEttaos, as a
fit and proper person to supply the loss which
the Ward had sustained by the death of Mr.
iILATti, who was seconded by Mr. Tuottow-
coop. Mr. IlttutoN was unanimously elected.