MARINE INSURANCE AND WAR RISKS

Evening Post, Volume LXXXVIII, Issue 58, 5 September 1914, Page 8

MARINE INSURANCE AND WAR RISKS

FAVOURABLE AUGURIES. It is now nearly a month since war between England and Germany began. In the interim there have been many changes, and one large New Zealand trader has been sunk by the enemy. That vessel went down with a considerable amount of meat cargo that was not covered by war risk insurance. The loss will- fall, of course, upon the owners of th 6 cargo referred to. ■ • On 6th ( ,August the minimum' war risk rate on, non-belligerent and British vessels .to and from British and neutral ports was fixed at 10 per cent. Next day, the North Sea being patrolled by German men-of-war, the rate advanced to, 20 pel- cent, on all vessels bound outward and homeward, and 10 per cent, east- of- Suez and the Capo of Good Hope. The Imperial Government on this day f>ut into operation a scheme covering 80 per cent, of war risk 'on the vessels themselves, registered on the books of ceitain groups of indemnity or insurance associations, and covering also 100 per; cent, war risk on cargoes , covered against marine risks by Lloyd's and the British, and other approved companies, and in vessels covered by the Government scheme, the minimum rate was one guinea and the maximum five guineas. On 20th August the Government war risk rate fell three guineas per cent., for by that time it was generally known that .the British fleet had the Germans bottled up anywhere from the Frisians to the entrance to the Baltic Sea. From then _ onwards the sea trade routes have improved in security, and to-day the underwriters' war risk rate is down-to -5 per cent, and 3 per cent, east of Suez; while the Government rate is now down to 2 per cent., both alterations in the rates being most favourable auguries of the maintenance of open sea ways in a reasonably safe condition, considering that Great Britain is at war with a naval Power.