FOREIGN INSURANCES

Rotorua Morning Post, Volume 1, Issue 37, 6 October 1931, Page 3

FOREIGN INSURANCES

(Press Assn.-

unoerwriters asked to convert sterling pqlicies PROBLEMS FOR ASSURED

— By Telegraph — Copyright).

Rec. Oct. 5, 11.20 p.m. LONDON, Monday. The "Daily Telegraph" says the abandonment of the gold standard has caused foreign shipowners and merchants to aslc that their policies in sterling be converted into a currency which is less liable to fluctuation. Thus, a Swedish policy for £10,000 will only yield £8000 at present, if converted into the kroner. There are many requests to cancel existing sterling insurances, in order to convert policies into the U.S.A. dollar. Lloyd's and leading insurance companfes, however, have been in consultation and recommend that if existing policies in sterling are cancelled, a pro rata return of the premium in sterling should be allowed for the unexpired portion of the risk and that any replacement policy should be made in the currency of the nation of the assured. Thus, the German shipowner who cancels a policy will be able to replace it by a policy in marks, but not in dollars or francs. If the assured's own currency depreciates, it will rest with the assured to make the necessary adjustment by taking up supplementary insurances.