WAR RISK LOADING

Dominion, Volume 33, Issue 1, 26 September 1939, Page 6

WAR RISK LOADING

Hoav Insurance Policies May Bfc Affected VARYING PRACTICE Dominion Special Service AUCKLAND, September 25. Pending decision by tbe head offices of the companies some divergence of practice exists regarding the war risk loading on life insurance premiums. In some cases a war risk clause has been operating in policies taken out since the outbreak of hostilities, but in others the amount of loading has not yet been announced. A number of companies, with head officers in Australia and elsewhere, have not received final advice as to the position. In some cases it was expected that policies taken out from today would be subject to war loading, but the rates were not known. An office which has been applying a war risk clause since the war started has fixed a rate of £7/10/- a year for each £lOO insured in addition to the normal premium. This is the rate which was applied during the Great AVar. The rate eventually- decided upon by the various offices is expected to be from £5 to £7/10/-. Existing policies are not subject to war loading, so that men at present holding them will not have to pay additional premiums, even if they serve abroad.