WAR RISK INSURANCE

Evening Star, Issue 23699, 5 October 1940, Page 10

WAR RISK INSURANCE

GOVERNMENT SCHEME TD COVER HULLS COASTAL SHIPPING ONLY [Per United Press Association.] WELLINGTON, October 5. In consequence of urgent represents* tions made by the owners of .vessel* trading in New Zealand waters regarding the high cost of war risk insurance on hulls, the Government has decided to institute a local war risks insurance scheme for hulls only, and regulations giving effect to this decision are now; issued under the Emergency Regulation Act. Making this announcement, Mr Nashi said the scheme is compulsory fpr all home trade ships engaged in trading solely between New Zealand ports, except for such ships as may, by reason of their value, or for other special consideration, be specifically excluded bjj direction of the Minister of Power is also taken to accept insurances on other classes of ships engaged in the coastal trade, which do not come within the compulsory provision. All insurances are to be for the full value, hut the maximum sura for which cover may be given on any ship is £70.000. Masters of insured ships must be British subjects, horn of British parents, but there is power to dispense with this provision. Following the lines of the war risk insurance scheme operated in the United Kingdom, the period of each insurance is to be for 80 days. For the first period the premium is fixed at 10* per cent., but this may be altered for subsequent periods. _ . Mr Nash said all premiums are to be credited to • the Marine Insurance (War Risks) Fund, and all claims will he paid from that fund. If there is a deficiency it will be made up from the war expenses account, which is also to receive any credit after - all claim* against the fund have been settled.