POGROM DAMAGE

New Zealand Herald, Volume LXXV, Issue 23233, 30 December 1938, Page 12

POGROM DAMAGE

QUESTION OF INSURANCE COMPANIES WILL NOT PAY [from a special corrkspondent] LONDON, Dec. 10 Bankruptcy threatens many German insurance companies as a result of the recent pogroms in Germany. They may bo called upon to pay the damages, estimated nt more than £50,000,000, done to Jewish synagogues, and businesses, in the disorders on November 9 and 10. While, tho Jews have been ordered to make good much of the damage themselves, insurance companies have been ordered to pay over to the Government the sums due to the Jews. Most of the German companies had reinsured with British companies, and lvave now, passed on the claims to them. But the British companies are refusing to pay 011 theso grounds:— • 1. That the damages are claimed under the "civil commotion" clauses, which havo been cut out of most con-' tracts by tho Germans themselves. Even where this clause remains, it is claimed that "civil commotion" cannot occur in an authoritarian State. 2. It is stated that tho British companies can prove that the damage was organised with tho connivance of the Government, and can therefore ho takc.n as an act of sovereignty not coverablo by insuranco. 3. The companies can prove that both the police and the fire department were remiss in their duty, so that the insurance companies were not given that measure of protection by tho local authorities, which is a' condition precedent to such reinsuranco.