MARINE INSURANCE

Dominion, Volume 7, Issue 2263, 24 September 1914, Page 7

MARINE INSURANCE

THE WAR RISK PROBLEM ATTORNEY-GENERAL EXPLAINS^ An explanation, of the position regarding war risks on cargo was given to a Dominton reporter by the Hon.' A. L. Herdman yesterday. "The public, of course, understand that tho usual marine cover, which does not include. 'war risk, , is still effected in the ordinary way with marine offices doing business in New Zealand, just as it was arranged before the outbreak of war," said Mr. Hordman, "but as there appears to be some confusion in the minds of people about the steps which should be taken by exporters of goods and produce from New Zealand to Great Britain to. obtain war risk cover,ppe r haps I had better explain the position briefly. J'First of all: Immediately after the outbreak of war the Imperial Government came to the help of British trade by establishing a War Bisk Insurance Office.. This office has undertaken to issue cover to persons who wish to ship goods from New Zealand Homo. The rate to bo charged by the War Risk Insurance Office is not to exceed £5 ss. per cont., and is not to be less than £1 Is. per cent. The present rate charged is £2 2s. "Secondly: The war risk cover can be arranged quite simply in this way. . An intending exporter can appoint an agent in London. - The. agent can supply.the War Risks Office with the namo of the boat leaving and particulars of the cargo. . Upon this being done the cover is issued, and if the exporter wishes to draw against his shipment the cover can be deposited with his bankers in London, who can advise'their New Zealand office that war risk co.ver is. in their pos"sessipn. . ''<■'..' ■ "I understand that most exporters of produce in New Zealand ship thrortfi merchants and agents who .no doitbt have representatives in London v.ho will bo able to arrange cover. "War risk rate charged by the Imperial War Risks Office on cargo has been £2 2s. per cent, since September 1, and. any alteration will bo immediately notified to the Government. . ; .-"Persons, who (.apparently do not ■understand the presorifc"pb'sition have made it more difficult for the public to understand by constantly repeating the statement that marine insurance institutions have since the outbreak of- the war been charging premiums of £3 35.,. £-1 45., £5 55., up to £10 10s. per cent. No doubt, these premiums have been charged, but they have been charged by marino insurnnco'offices, and not by; tho Imperial War Risk's Office. If expppters have paid these premiums then there must be some special reason for their doing so or they are- stupidly, throwing good money away. The Colo/ trial Office' advises the Government that 'many and large/insurances are daily, being effected, at War Risks InsuranceOffice on goods fronv New Zealand and Australia, and that arrangements are. working smoothly.' These are the very words of a cablegram which we have received. If exporters wish to get war risk cover at a' reasonable rate they should apply to the Imperial War Risks Office. In conclusion, Mr. Herdman said that the New Zealand Government 13 arrangins by means of legislation to assist small exporters . who have no London agent or . who do not ship through New Zealand houses or who cannot well afford to pay the cost of cablegrams backwards and forwards to obtain war risk cover. .