WAR RISKS

Wanganui Chronicle, Volume 83, Issue 27, 3 February 1939, Page 8

WAR RISKS

INSURANCE PLAN

SIR JOHN SIMON’S OUTLINE EIGHT-POINT SCHEME [ British Official Wireless. ] RUGBY, Jan. 31. The eagerly-awaited statement of Sir John Simon, Chancellor of the Exchequer, on compensation and insurance in connection with war risks was made at the end of question time in the House of Commons to-day. The Chancellor's announcement covered:— (1) Compensation from the public funds in respect of death or serious injury involving disablement of civilians, caused by air raids or other warlike action. (2) Compensation for death or injury suffered by the personnel of the mercantile marine in war.

(3) A scheme for compensation for damage to private properly. (4) A plan for the reconstruction of essential property in emergency. (5) A comprehensive scheme for the insurance of hulls against marine war risk. (6) A scheme for cargo insurance. (7) A. scheme to cover goods between ship and warehouse. (8) A scheme for insuring essential stocks in the hands of importers, manufacturers, merchants, and retail-

Community Liability. In the course of a long statement. Sir John*Simon discussed the great difficulties presented by these problems and explained the reasons for the different solutions proposed in different cases. He made it clear that Ihe Government accepted the general principle that Joss or injury arising from enemy action ought not 1o be treated as the concern of individuals but must be regarded as falling on the community as a whole, and as a proper subject of compensation from public funds. Damage to all property could not be covered on the insurance principle, nor was it possible to assume immedidate liability for compensation from the public funds. His solution was for compensation on a rising scale compatible with the circumstances of the country after the end of the conflict, but providing for full payment up to a certain limit of loss, with a graded rate thereafter. In the case of commodity‘stocks and marine risks, it was essential to ensure the flow of necessary supplies, and that was the object of the arrangement proposed.