WAR RISK COVER

New Zealand Herald, Volume LXXII, Issue 22225, 27 September 1935, Page 12

WAR RISK COVER

DAIRY EXPORTS RATE TO OPERATE SOON BOARD'S GENERAL CONTRACT RENEWAL AT A SAVING Tho New Zealand Dairy Produce Board has been advised by its underwriters that in accordance with the terms of its insurance agreement, protection against war risk cannot in tho meantime continue without extra premium. The following arrangements have been made:—Butter graded prior to September 30 and cheeso graded prior to October 21 will be covered against war risk without additional premium whenever shipped. Gradings of butter and cheese on and after those dates will be subject to additional premium as follows: —If shipped by tho Port Bowen or tho Mataroa, Is per cent; if shipped by the Tongariro or tho Fordsdale, Is ."3d per cent. The premium for war risk for departures after the Fordsdale will bo mutually agreed upon by tho board's London office and the underwriters at the date of departure from tho Dominion of each vessel carrying dairy produce. Terms o! Contract The board has renewed its marine insurance contract for a further three years from September 1 on terms which show an annual saving of about £IB.OOO on tho last contract rates. For shipments to the United Kingdom tho new premium rate for butter is 4s 6d per cent, against 6s 4d previously, and for cheese, 4s lid per cent, against 7s. The contract protects the produce against "any risks whatsoever" from the time of receipt at the factory, during manufacture, whilo in factor}', during transit to grading store by road, rail or water, and continues tho protection until 30 days after date of final discharge in the United Kingdom. Milk and/or cream is protected from receipt at factory against fire risk only. Earthquake risks are covered, but should damage be caused by a further earthquake, the underwriters reserve the right to charge an additional premium for earthquake risk thereafter. Produce Sold Locally All butter and cheese intended for export is covered under the contract, but produce made expressly for local sale is not covered. Butter or cheese intended for export, but which is subsequently diverted to local use, is covered " until it is withdrawn from stores. The present premium for this risk is Is 3d per cent for the first 30 davs, plus 6d per cent additional for each 30 days or part thereafter. All premiums are payable in London and are charged to the London agent or consignee of the factory upon the arrival of the steamer carrying the produce. There is a difference in valuation for insurance purposes in the case of consignment and f.o.b. sales.