INSURANCE CONFUSION

Taranaki Daily News, 6 October 1931, Page 9

INSURANCE CONFUSION

.DEPRECIATED CURRENCIES POLICIES’ VALUES CHANGE SUGGESTIONS FOR REMEDY MANY SEEK CONVERSION By Telegraph—Press Assn.—Copyright. . Rec. 5.5 p.m. London, Oct; 5. Abandonment of the gold standard has caused, foreign shipowners and merchants to ask that their policies in sterling be converted into currency less liable to fluctuation, says' the Daily Telegraph. Thus, a .Swedish policy for £lO,OOO sterling will yield only £BOOO at present if converted into kroner. There are many .requests to cancel, existing sterling- insurance in order to convert the policies into United States dollars. Lloyds and other insurance authorities, however, have been in consultation and recommend that if exist? ing policies in sterling are cancelled pro rata the return of the premium in sterling should be allowed for the unexpired portion of the risk, and that any replacement policy should be made in the currency of the nation of the assured. Thus a German shipowner who cancels a policy will be able to replace it by a-policy in marks but not dollars or ffa’ftcs. If the assured’s own currency depreciates £he ■ task of the assured is.-to make the necessary, adjustment by taking out supplementary insurances.