INSURANCE ON SHIPPING.

Taranaki Daily News, 8 January 1916, Page 2

INSURANCE ON SHIPPING.

RISKS BY SUEZ ROUT& RATE NOW 5 PER CENT, NO CHANGE FOR ATLANTIC. The rate for extra insurance against war risks on hulls, cargo, and freight of shipping .trading through the Suez Canal has been raised from 3 per cent, to f> per cent. The rate for this class of insurance on 'hipping through the Mediterranean lias been increased considerably lately. About the middle of September it was advanced from 15s to 20s per cent., subsequently to 2 per cent., and on Deeembe, 111 to :'> per cent. Now it is 5 pei cent, for both homeward and outward voyages. The liigh rate is due to the serious Toss of shipping caused by enemy submarines recently. Very little cargo from New Zealand is carried through the [sues route.

The cost of extra insurance against war risks was practically prohibitive during tlio first, few weeks of hostilities, tlio rate being quoted at as. high as 20 guineas per cent. This situation was relieved by the insurance scheme intrcv ibiceil by the Imperial Government, uliich fixed 5 per cent, as the maximum rate. The quotation stood at that figure while (ierman warsliips remained at liberty, but when the seas were cleared by the British Navy the rate was quickly reduced. When the Ccrmans announced theii submarine '•blockade" of Hie North Sea in February last the rate for ship, ping trading; between the United Kingdom and Australasia waa fixed at 2 per cunt. Rising conlidence on the part of underwriters in iho ability of tile navy to protect shipping from danger has been reflected in several reductions in the rale of extra insurance. For some time tin- premium on shipping trading via. the Cape of flood Hope and Cape Horn has been 25s per cent. Tins rate for the Pacific is only 5s per cent.

A largo volume of business is transacted by insurance companies in New Zealand iu furnU'smg iover on shipments against damage by acts of the enemy. Very little cargo'is shipped from the Dominion without thi* protection. As a matter "f fact, (lie leading hanks require this precaution to be taken in respect of shipments oh which they are asked to make advances, In the'aggregate, the sums paid in war insurance during the past few months amount to several thousand pounds.