RATES FOR WAR RISKS

Southland Times, Issue 23793, 15 April 1939, Page 7

RATES FOR WAR RISKS

SCHEME TO PREVENT INCREASE SHARP RISE REPORTED IN SYDNEY (United Press Assn.—Telegraph Copyright) (Received April 14, 7.40 p.m.) LONDON, April 14. The president of the Board of Trade (Mr Oliver Stanley) said in the House of Commons that he had decided immediately to enforce a provisional scheme for the insurance of cargoes to and from the United Kingdom against war risks. The scheme is intended to prevent an increase in insurance rates. Mediterranean cargo insurance has been increased from 10/- to 40/- per cent.

Following Mr Stanley’s statement Lloyds’s announced substantial reductions in premiums on shipments under war risks. A pool is at present being formed. The pool will consist of underwriters and marine insurance companies arid will reinsure war risk insurances on cargoes to and from the United Kingdom. It will become operative immediately. Simultaneously, revised rates for shipments not insured under the pool provide for an additional 20 per cent, on voyages to the Mediterranean and Baltic and a new minimum rate for New Zealand and Australian shipments not covered by the pool of a half crown per cent. A message from Sydney states that war risk insurance rates to and from Australia rose sharply this afternoon, according to cable advices. Rates on the Suez route are up 466 per cent. For example the rates from the United Kingdom or the Continent to Australia via Suez rose from 7/6 yesterday to 35/- per cent, today and Australia to the' United Kingdom or the Continent, via Suez, 10/- to 40/- per cent.

HOMEWARD AND OUTWARD CARGO

The council of the Fire and Accidents Underwriters Associations reports substantial increases in war risk rates for homewards and outwards cargo. The new rates for homeward-bound cargo via the Panama Canal and Cape Horn are 20/- per cent, and via the Mediterranean 40/- per cent.; and for outward cargo via Cape Horn or Panama 15/- per cent., and via the Mediterranean 35/- per cent. The old rates from New Zealand to the United Kingdom via Cape Horn, the Suez or Panama were 10/- per cent., and from the United Kingdom to New Zealand via the same routes , 7/6 per cent.