WAR INSURANCE

Auckland Star, Volume LXXIII, Issue 114, 16 May 1942, Page 5

WAR INSURANCE

DETAILS GIVEN

REPLY TO INQUIRIES

Surprise that the Associated Chambers of Commerce had been unable to get information about war risks insurance, which was to be giving concern to importers, is expressed by Mr. I. Boulton, a director of Thomas Meadow and Co. (N.Z.), Ltd., in a letter to the Auckland Chamber of Commerce. Reference to the matter was made in the Star earlier in the week.

Mr. .Boulton states that several hundred importers and a large number of manufacturers' agents have been kept fully posted on such subjects since the commencement of the war by circular letters, individual correspondence and conversation.

Shipments From Britain

Regarding shipments from the United Kingdom to New Zealand, towards the end of last year the British Government War Risks Insurance Office undertook to insure against loss or damage by enemy action or riots, strikes and civil commotions resulting to shipments while awaiting transhipment for an unlimited period. Previously they limited their liability to 60 days. He believed other insurance media still limited their liability to 15 days. The 8.G.W.R.1.0. rate for this cover was 40/ per cent addition to the water-borne rate.

The letter adds: The 8.G.W.R.1.0. will not insure from warehouse to warehouse, but from manufacturer's warehouse U.K. to on board steamer U.K. port (known as U.K. inland transit risk, for which the rate is at present 10/ per cent). They will then insure from on board steamer U.K. port to on board steamer New Zealand port (known as the waterborne risk, for which the rate is at present 140/ per cent, having gradually increased from 40/ per cent since the commencement of the war). In

connection with the water-borne risk, if same is interrupted by transhipment and covered for the unlimited period, if the goods were lying for even, say, two years the original water-borne insurance remains alive and becomes operative when the shipment is resumed, provided the assured has not taken any action to prevent the reforwarding at the earliest opportunity and to the original final destination; also, that the original terms and conditions under which the insurance was contracted are not interfered with. We believe the banks, in most instances, anyway, are now requiring documents providing for unlimited transhipment cover.

From the moment when the goods are unloaded in New Zealand, the 8.G.W.R.1.0. liability ceases (unless for transhipment) -and thev will not insure the New Zealand inland transit to consignee's warehouse and/or to an inland point. We believe such insurance can be obtained, however, from some insurance companies.

Seizure of Goods by Enemy

Seizure of goods by the enemy is a war risk, and loss recoverable as if the enemy had destroyed same.

Regarding shipments from British Empire ports and U.S.A., about six weeks ago the 8.G.W.R.1.0. agreed to insure unlimited transhipment risks (but excluding riots, strikes and civil commotions) on goods moving between British Empire ports, at the same rate of 40/ per cent, and which previously they were not prepared to do. Even now they will not insure this risk on goods from, say, the U.S.A. Open covers have to be established in London, a number of which we have already arranged, and it is not necessary for the waterborne risk to be covered in conjunction and consignees may still employ whatever medium they have previously done for the latter. If, however, the water-borne risk is required also through the 8.G.W.R.1.0. it is possible to do so. We understand the. United States Government has a scheme to cover various phases of war risks insurance. The waterborne risk on such traffic can be effected through English and New Zealand companies and underwriters.