INSURANCE POLICIES

Evening Post, Volume CXII, Issue 84, 6 October 1931, Page 7

INSURANCE POLICIES

FOREIGN SHIPPERS ADJUSTMENT NEEDED LONDON, sth October. The "Daily Telegraph" says that the abandonment of tho gold standard has caused foreign shipowners and merchants' to ask that their policies in sterling be converted into a currency less liable to fluctuation. Thus a Swedish policy for £10,000 will yield only £8000 at present if converted into kroner. There are many requests to cancel existing sterling insuranco in order to convert the policies into tho United States dollar. Lloyds and other insurance authorities, however, have been in consultation, and they recommend that, if existing'policies in sterling are cancelled, a pro rata return of premium in sterling should be allowed for tho unexpired portion of the risk, and that any replacement of policy should be made in the currency of the nation of the assured party. Thus a German shipowner who cancels his policy will be able to replace it with a policy in marks, but not dollars or francs. If tho assured party's own currency depreciates the • task of the assured is to make the necessary adjustment by taking out supplementary insurances.