RAIN INSURANCE.

Press, Volume LX, Issue 18233, 18 November 1924, Page 6

RAIN INSURANCE.

HELPING TO STABILISE BUSINESS. Business pute on its rubbers and carries an umbrella nowadays, we are assured by the "JEtna-izer" (Hartford, Conn.;. If rain may interfere with profits to be derived from some scheduled event, rain insurance, we are told, is now the remedy. This type of insurance indemnifies fo>x loss of income ov expense incurred when it is caused by rain. There are ten different forms, and the amount that may he written varies according to the form used. Overinsurance is carefully guarded against, and every effort is made to eliminate a, semblance of gambling. We r&aA: "The rain contract is one of Indemnity only. It does not cover property damage. The coverage applies only during hours in which the rainfall affects a risk. Th 6 usual period is six to eight hours. The cost increases with the length of the period insured. Most policies insure against a definite minimum amount of rainfall, such as O.lin. or o.2in. falling within a specified number of hours. No policy is issued for less than three consecutive hours. All policy periods begin and end on the hour. Events likely to be completely abandoned may be written under an abandonment form which does not require a measurement of the amount of rainfall. Wherever possible, a. United States Weather Bureau observer is designated to determine the amount _of rainfall. The weather bureau maintains regular firstclass stations in about 200 cities. At all of these stations are in use automatic self-recording rain gauges, which indicate the times and amounts of ramfall. The amounts are tabulated fcr each hour by the bureau as part of the official weather record, which is available for public use without charge. In addition, the Weather bureau maintains co-operative stations in about 4500 cities and towns. These stations are also equipped with standard rain gauges, but, as the latter are not automatic or self-recording, definite arrangements must be made wdth the obS€Pver in advance of the covei ed by the rain insurance policy, in order that he may measure the rainfall, during the policy period. As the co-operative observer receives no compensation from the Government for his-wort, he is entitled to a fee for special services, and this must be paid by the insured. "Where no weather bureau observer is available the company will loan a standard rain gauge if application is made to the Home Office or the_ departmental office having supervision in ample time to forward a gauge by express. In a case of this bind the insured and the 'agent jointly select a competent person to guard and read the gauge. . "Various factors influence the scientific determination of rain liability zones for insurance purposes. The most important- of these factors are the followins: —

"(1) Relative amount and frequency of rainfall.

"(2) Movement an'd direction of rainstorms. "(3) Density of population and wealth.

'.'Rain insurance is limited to the summer half-year throughout most, of tlie.United. States, but.it'can be written throughout the year in the Pacific States. The field is a fertile one. The value rests on the fact that it at least assures a return of the investment' in • the event of rainy weather which more than makes up for the slight reduction in the net. profit of a business enterprise if the sun shines. By removing ail unavoidable risk, rain insurance helps to stabilise business and promote prosperity." ■