SHIPPING RISKS

Otago Daily Times, Issue 24422, 7 October 1940, Page 9

SHIPPING RISKS

COASTAL TRADE SERVICE SPECIAL WAR INSURANCE SCHEME TO COVER HULLS (Per United Press Association) WELLINGTON, Oct. 5. In consequence of urgent representations made by the owners of vessels trading in New Zealand waters regarding the high cost of war risk insurance on hulls, the Government has decided to institute a local war ricks insurance scheme for hulls only, and regulations giving effect to this decision are now issued under the Emergency Regulation A.ct. Making this announcement, the Minister of Finance (Mr W. Nash) said the scheme is compulsory for 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 by direction of the Minister of Finance. 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, but the maximum sum for which cover may be given on any ship is £70,000. Masters of insured ships must be British subjects, born of British parents, but there is power to dispense with this provision. . Following the lines of the war risk insurance scheme operated in tne United Kingdom, the period of each insurance is to be for 90 days. For the first period the premium is fixed at ios 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 be 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 claims against the fund have been settled.