The Newberry herald. [volume] (Newberry, S.C.) 1865-1884, 1882-04-06
About Insurance.

About Insurance.
In another column is an editorial
article from the Abbeville Press ana
Banner on the subject OF insurance.
The occasion for the article is seen
in the extract from the HERALD that
precedes it. With this, or any 9TH
er particular case, we have nothing
to do. The transaction between
Henry Kennedy and the Queen In
surance Company is not matter
of public concern, but their own
private business. And whether the
Queen is attempting to beat" Ken
nedy out of money that it justly
owes him, or whether Kennedy =
trying to get what his contract with
the company does not enhtle him
to. are matters for Kennedy and the
company to settle between them
selves.
Now. as to insurance in general.
Ne a. not agree with the Press d"d
BdnncT, that insiIance 4cAnr;ipies
should be compelled always 20 pay
the full amount na.:ita IL the
policy. An insurance company
does not promise uncondltion
ally, in case an insured house IS
burned, to pay the full amount
mentioned in the policy. On the
contrary, the company promises to
pay only the actual loss, up to Ger.
tain amount fixed by the policy:
Every fire policy provides that the
insurance shall be subject to the
following conditions ~ the
amount Of loss or damage 10 be
estimated according to the actual
cash value of the property at the
time OF the fire, and (2) the amount,
at the request of either party, to be
submitted to arbitration: each par.
ty to choose an arbitrator, and these
two third and the award of any
two, IN writing and under oath, is
to be binding as to the amount of
the loss. These conditions are wise
and proper, whether considered
from the standpoint of the insur-
ance company or from the stand,
point of the general public Insur-
ance, as it is, is not always safe
thing to community, the protec
ton to the community being too
often in inverse ratio to the protec-
ton to the insured. And if insur-
ance companies were compelled to
pay the full amount mentioned in
the policy, without regard to the
actual value of The property burned,
the danger from fire might become
fearful. So that public policy, as
we'll as right and justice, requires
that the measure OF payment should
be the actual loss. Courts and ju-
ries would 0ot consuit thu public
good were they to make the burn
ing OF houses, whether accidental
OF otherwise, a profitable transac-
ton.
But it is said the insurance COM
pany should 10: be allowed, after 8
house is burned, to gainsay its val
ue. In such 3 case the insurer has
paid more than necessary upon his
insurance but it may be his own
fault. He izes tie amount; he is
supposed to know the value OF his
" property better than others !;
and be is told in lis policy that if
h;s house be burned be will get
only lis actual value The record
OF insurance companies is almost
unrarying that whenever anything
ike fair value is put on a house
the full amount is paid without
question or cavil. We venture to say
that if ecerybody would pat the
same value on his property when
he goes 70 insure it as he does when
be returns it to the Auditor for
taxation. or anything like the same,
there would be very little trouble
in adjusting the loss, and it would
not require particularly "shrewd''
men 10 do it either.
Il is TO the interest OF the public
that excessive fire policies are not
paid : it is to the interest OF private
individuals not to pay excessive
premiums Oh insurance.
The Abbe7ille Nsd;um says:
:.Bsyard is s monarehist By nature,
and can have no sympathy with the