WAR RISKS.

Auckland Star, Volume LXIX, Issue 229, 28 September 1938, Page 13

WAR RISKS.

HIGHEST SINCE 1918.

MARINE INSURANCE RATES.

RISE FROM 6D TO £3. Rising sharply again yesterday, marine war insurance rates have reached the highest level since the close of the Great War. Just under a fortnight ago they were first raised from the nominal 6d per cent for goods passing through the Panama Canal, and have now reached 60/ per cent for goods shipped from New Zealand to England and 40/ per cent for the outward trip by the same route.

These rates, which are regarded all over the world as one of the best barometers of the likelihood of war, are fixed by the London marine underwriters, who are in closest touch with international developments.

On the Suez route the rates are still higher, and have exceeded those ruling during the Abyssinian War. Risks on goods carried between England and Australia or New Zealand through,the Suez have risen to 100/ per cent, both homeward and outward. On the Cape route the new rates are 40/ per cent outward and 00/ homeward.

Quotations are subject to cancellation on 48 hours' notice, and insurance companies are exercising this right in respect of goods awaiting shipment in New Zealand, so that they will be subject to the new rates. The Napier Star, sailing from Auckland to-day, the Port Hunter, leaving on Saturday, and the Ruahine, due to leave Wellington tomorrow, will be affected.

All goods carried by sea are usually insured against war risk, but shippers are not obliged to insure them, nor are insurance companies obliged to accept the risk. During the Great War it was impossible at times to obtain such insurance. The highest rate during the war was 20 guineas per cent.