BIG NEW LINER

Evening Post, Volume CXXIII, Issue 20, 25 January 1937, Page 18

BIG NEW LINER

INSURANCE COVER Insurance history has been made by the completing of the building risk insurance on the new Cunard-White Star sister ship to the Queen Mary, says the "Daily Telegraph." The total amount of the building risk to be insured is £4,500,000. Of this no less than £3,760,000 has been covered at Lloyd's and with marine insurance companies. This is easily the largest sum 1 for which any vessel has been insured by private enterprise. The amount placed on the Queen Mary for building risk was £2,720,000 Her full sea risk insurances in the open market totalled £3,000,000. Ninety per cent, of the amount insured on the new liner is placed at Lloyd's and with London marine insurance companies. The remaining 10 per cent, has been placed in Liverpool, Glasgow, and the more important foreign markets. The next step will be for the insurance brokers to give the Board of Trade a certificate of the amount placed in the open market. Thereafter the necessary formalities will be carried out to enable the balance of the value to be insured by the Government under the Cunard Insurance Agreement Act. The Government share of the insurance will total £740,000. This is less than the Government insured the building risks on the Queen Mary. The insurance both in the open market and with the Government is placed on the standard builders' risk clauses of the Institute of London Underwriters. By special agreement the risk of war is being included, although last September a market agreement was made to exclude war risks from all insurances on ships under construction except British and United States naval vessels. The rate of the insurance is 30s per cent, for a period of three years. The policy can be extended if necessary at_ a rate of 6d per cent, per .month.