WAR RISK ON WOOL

Evening Post, Volume CXXXIII, Issue 7, 9 January 1942, Page 7

WAR RISK ON WOOL

SHEEP'S BACK TO PROMPT DATE

Amended procedure as to war dam* age insurance on wool from sheep's back to prompt date of settlement has been discussed and is now in operation. The War Damage Commission announces that as a result of a conference with the president of the New Zealand Woolbrokers' Association (Mr. A. E. Mabin), together with other representative woolbrokers and representatives of insurance companies, insurance is to be effected for the estimated total amount of the realisations for the season for a period of six months. The premium is to be calculated at the rate of 2s 6d per cent. (5d per cent, per month for six months) payable in advance. The premium is to be calculated and charged by the woolbroker on the gross amount of the realisation and deducted from the account sales on the basis of 5d per cent, per month or part of a month from the sheep's back to prompt date. At the end of the period of insurance an adjustment is to be" made as to rebates on additional payments of premiums. If at the end of six months wool is still held in a grower's wool shed or not appraised,, further requirements of the Commission will be advised. War risk cover from sheep's back to prompt date does not include wool in transit by sea.

PRESIDENT'S STATEMENT.

The president of the New Zealand Wool Growers' Association, in advices to local* associations, points out that wool brokers and growers have no interest in the insurance of wool after prompt. Growers only pay (at 5d per cent, per month) for the months or part thereof actually covered. * The Commission and brokers at the conference did not approve of any charge being based at per bale. Brokers will open a special account. This will be debited with deposits paid the Commission and credited with premiums collected. All premiums collected will go to the Commission subject to adjustment. No profit will be made by brokers.

There may be some difficulty in ascertaining the date of shearing and this probably will have to be estimated, but brokers should lean towards the Commisssion as the charge is small.

There should not be much wool held on farms after the season ends. Ordinary transit policy (sheep's back to broker's store) will continue to be effected.

Wellington and Napier have advertised that all growers' wool is covered against war damage from sheep's back to prompt at cost of the grower. "This is a safe and wise course," states the president.