WAR RISK COVER

Dominion, Volume 35, Issue 137, 6 March 1942, Page 4

WAR RISK COVER

Transhipment - Goods For New Zealand UNDERWRITERS’ REPLY “I take it from your letter that some of your members are concerned that the transhipment period of 15 days’ cover under the institute war clauses does not give the cover they require because the goods may be held at a port of transhipment more than 15 days. That is the period of transhipment cover and, as far as I know, it Is not likely to be extended.” This information has been received from the secretary of the Council of New Zealand Marine Underwriters’ Associations by the New Zealand Associated Chambers of Commerce in reply to inquiries concerning the coverage given under war risk insurance to goods awaiting transhipment to the Dominion, particularly at Australian porfs. War risk insurance is a marine cover only, and completely distinct from the War Damage Act now operating for land covers in New Zealand. The statement by the Underwriters’ Association adds, however: “Under the British Government war risk scheme, a 60 days cover is granted for goods awaiting transhipment. This can be extended to an unlimited period at an additional rate of £2‘per cent, provided the extension is obtained before the sailing of the vessel. Father, if the goods covered for ‘unlimited period of transhipment are transhipped at an intermediate port and diverted to a port other than the original port of destination, the unlimited period of transhipment may be continued by payment of an additional £1 per cent. “In reply to your question as to whether the cover holds good only while the goods are in the vessel at a port of transhipment, I would state that the cover continues whether remaining in the vessel arriving with the interest or whether in craft or on shore, subject always to the conditions of the war insurance certificate. The 60 days and unlimited period of cover is obtainable only from the British Government war risk insurance office.

“As to your inquiry regarding goods awaiting transhipment on the Sydney wharf and your taking action with the Government with a view to arranging for Insurance companies to keep the goods covered, I have to advise that companies do not insure against war damage on land. In most British countries legislation has been enacted to provide for the insurance of property on, land, and no doubt arrangements can lie made witli the Australian Commonwealth Government to cover goods in store in Australia awaiting transhipment to New Zealand.”