PRIMARY PRODUCTS

Wairarapa Times-Age, 23 December 1938, Page 7

PRIMARY PRODUCTS

COMPREHENSIVE INSURANCE CONTRACT.

THREE YEARS’ RENEWAL. Discussing marine insurance on dairy produce, the annual report of the Primary Products Marketing Department states that all butter and cheese exported from New Zealand and purchased by the department is protected by a comprehensive insurance contract, which covers the produce till 30 days after arrival in the United Kingdom. The contract also covers the cream and milk which is made into butter and cheese intended for export, and which is identifiable as such, from the time such cream and milk is received at the factory till the produce is placed f.o.b. ocean steamer. Till the cream and milk arc manufactured into butter and cheese, the cover is against fire risk only. The department pays the insurance underwriters’ flat rates covering the complete risk, and charges to dairy factory companies the portion of the premium which represents the risk up to f.o.b. ocean steamer. • Practically all the important insurance interests in the United Kingdom have a share in the contract, and British insurance companies as distinct from Lloyds take approximately two-thirds of the total risk and Lloyds underwriters one-third. The contract expired on August 31, 1938, and was renewed for a further term of three years at reduced inclusive rates as follows: — Butter, 4s 3d per cent; cheese 4s 3d per cent. "These new rates," states the report, "show a decrease from the previous rates of 13.7 per cent in the ease of butter and 22 per cent in the case of cheese, and represent an annual saving in insurance premiums ol £9OOO. It is a condition of the contract that the department will maintain its present system of supervision and inspection of storage and loading in New Zealand, transport to United Kingdom, and unloading into port stores. The portion of the premium which represents the risk, up to f.o.b. ocean steamer, and which is charged to dairy factory companies, is as follows:— Butter, 0.565 d a box; cheese, 0.935 d a crate.