A voyage policy, as its name implies, is one which insures a vessel from one port to another, as from New York to Marseilles.
A value policy is one which fixes a definite value on the property that is insured, while an open policy is one where the value is to be determined when ascer tained.
A floating policy covers vessel or vessels, however propelled, and insures the goods as soon as they are shipped. The details of each shipment, when received by the consignee, are reported to the insurer and the premiums are paid. This last type of policy is espe cially for the use of importers who order goods a long time in advance of shipment, and who very frequently do not know, before the goods arrive, that they have been sent forward.
22. Rates.—In every large marine center there is a board of underwriters that is charged with the gen eral oversight of the business. Many of the rates are made'by the board in a cooperative manner. In the present disturbed condition of maritime affairs these boards are holding daily sessions because the informa tion received is frequently of such a nature as to make it advisable to change rates to some part of the world almost daily, if not oftener. Whether or not the rates are folloWed by all of the companies, they are a valu able guide to the underwriter.
In the summer of 1916 the normal rates from New York City, not including any risk of war, were as fol lows for a certain day: England and France 15¢ Portugal %7o Spain %7o Italy %% Greece 1% Norway, Sweden and Denmark—not beyond Malmo Stockholm Archangel from 5 to 10% South Africa via Suez China and Japan Australia 3/4% San Francisco via Panama 45 West Coast of South America %70 Buenos Aires The war schedule, or additional, charges in all of these eases would be a very substantial addition to these rates, dependent upon the particular conditions that might apply on the day when the policy was taken out.
23. Settlement of settlement of losses in marine insurance is a distinct occupation. The per sons who settle the losses are known as "average ad justers." The work, which calls for great skill, ranks as a highly developed specialty.
24. Rates on the St. Lawrence in surance rates on the St. Lawrence route have been the center of controversy for many years. The typical complaint may be judged by that of the president of the Canadian Manufacturers' Association, in 1916, who then alleged unfair treatment by insurance com panies in the matter of rates. He stated that the fact is capable of ample demonstration that Norwegian shipping, thru the system of mutual marine insur ance which has been in effect for many years, has coy ered all risks, including those of British North Amer ican and St. Lawrence trading, with an average premium rate of slightly less than 5 per cent, and that this has prevailed, not for one year or a few years, but over a p9riod of more than a decade.
This rate is approximately one-half that charged a similar type of shipping when engaged in like traffic, by Lloyd's and British marine underwriters on ves sels engaged in British North American and St. Law
rence trade.
This difference in the cost of marine hull insurance is practically a profit in itself, and when there is added to. it a very great difference in the cost of cargo insur ance, as compared with the United States Atlantic ports of Portland, Boston, New York, Philadelphia and Baltimore, these differences run up into large fig ures. A mutual insurance scheme on lines somewhat similar to that of Norway might be brought about by a marine insurance board or corporation on which would be represented the Canadian government, the shipping federation and a representative of the com bined boards of trade of Halifax, St. John, Montreal, Toronto and Winnipeg. The experience of Norway and other countries that have adopted a mutual sys tem of insurance and the rates of premium which ex perience has shown to be necessary over a period of years, might be taken as a basis for a plan of this character.
One essential would be that all steam vessels en gaged in the coasting or foreign trade, built to Lloyd's British Corporation or Bureau Veritas classification, be eligible for, and compelled to take out, marine in surance to the extent of not less than 75 per cent of the vessel's value—the premium being variable, as regards the age, character and equipment of the ship. All Canadian tonnage could be grouped to, say, three or four scales of classification for insurance purposes —all government vessels engaged in lighthouse, patrol and such services to be included.
On the other hand, the marine underwriters say that the business of the Norwegian clubs is done wholly in the English marine insurance market, and that Canadian marine underwriters therefore are not directly interested in the question. The Canadian Manufacturers' Association has, had this question be fore them for a long time; some years ago a deputa tion went to England and thrashed the matter out with a committee of Lloyd's, and apparently came back satisfied.
Here is the opinion of Mr. E. W. S. Morren, a marine underwriter interested in the Canadian terri tory: The majority of Canadian shipping out of the St. Lawrence is made by regular line steamers, on which the rate is low even with the additionals charged for British North American waters. The comparison with rates charged by Norwegian clubs is not a fair one, as they write only Norwegian-owned vessels, and rates are based on the underwriting results of each vessel, and they even charge additional premiums for the use of British North American ports during certain parts of the year. If the Norwegian club rates are so advan tageous to shipowners, it would be rather interesting to learn why so few Norwegian vessels trade in the St. Law rence and British North American waters. It would appear that the only Norwegian vessels trading are those in the coastwise coal trade and the West India trad'; only a very few are in the transatlantic trade, and these carry full cargoes of grain.