Marine Insurance Policies

Hokitika Guardian, 7 February 1923, Page 4

Marine Insurance Policies

NEW STANDARD THEFT GLAESE. WELLINGTON'. February if. In 1919 and 19li0 pilferage of cargo became so serious that marine underwriters were oaligcd to tonsidei the neuter. It was felt that there was a. certain amount of contributory negli-

gence on tile part ot consignors and consignees, and in the spring ol 1021. owing to an abnormal outbreak of thieving, the underwriters felt compelled in order to delend their position

to cover merchants to the extent- ol to per cent, only on the value of any claims. Later the underwriting position was further strengthened by the decision to apply this 75 per cent, to the shipping value, this latter meaning the prime cost of the goods to the assured plus the expenses of and incidental to shipping, and the charges of insurance, instead of the customary basis for the settlement of claim-. The operation of this 75 per cent, elattee had the desired effect with the various organisations concerned with the handling of goods. Greater care has b"en exercised in the forwarding and delivery of goods, and various other steps were taken to minimise the losses Irani pilferage. A marked diminution has taken place, although the losses are >•1111 considerable in comparison with pre-war experience. Tn view of this Lloyd’s underwriter? have adopted a now standard theft clause for attachment to marine insurance policies.

Ender the new elau-o the policy covers the risks of theft and. or, pilferage irrespective of percentage, but the underwriter’s liability in respect of any goods so lost is not to exceed their shipping or insured value whichever is the smaller. The New Zealand marine underwriters have also adopted the clause . hut with some slight modifications to suit local conditions.