The Insurance oe Hulls. 
■3 ’ 
trade) will be found in a safe British or neutral port, and will remain there until the) r 
are able to secure fresh insurance against the risks of war. 
8. There are some lines of. steamers which continue to run their own war risk 
insurance, notably the P. and 0. and the Alfred Holt Line of steamers. These vessels 
would probably act in the same way as the vessels insured in the Clubs, at any rate as 
far as voyages to and from Great Britain are concerned. It might, therefore, happen 
that within a very short period after the outbreak of a war in which we were one of the 
belligerents, the movements of practically the whole of the shipping under the British 
flag would be arrested, except, perhaps, in such areas (if any) as were outside the 
possibility of interference by the enemy. 
9. We understand that the chief reason which has induced so many of the ship 
owners of this country to combine for the mutual insurance of their vessels against war 
risks has been the difficulty, if not impossibility, of securing continuous cover for these 
risks in the open market. The extent of this mutual cover was naturally limited to the 
first arrival at a safe port of the vessels at sea on the outbreak of war, and could not 
have been extended on the same terms to voyages commencing 'Iter the outbreak of 
war, as the risks of these fresh voyages would vary considerably 
10. This is a new and important development since the port of Mr. Austen 
Chamberlain’s Committee in 1908, and we have endeavoured to point out its conse 
quences. In any case the action of shipowners in forming these mutual Clubs has 
resulted in the creation of an effective machinery for the control of values and the 
settlement of claims ; and it must be emphasised that this is not a machinery which has 
to be improvised when this country becomes a belligerent, but is in daily use at the 
present moment. And it is obvious that it would be in the interests of the State to 
make use, if possible, of this machinery for the working of any scheme of war risk 
insurance of hulls after the outbreak of war. 
The Insurance of Hulls on Voyages current at the Outbieali of II ay. 
11. The first thing to try and provide for was the completion of voyages current 
at the outbreak of war which would be automatically interrupted un ei ue exi g 
mutual insurance arrangements. Under these arrangements, whic ) are c esci i e 1 
in paragraph 6, the Associations, and through them the shipowners, aie ia ® 
considerable amount of King’s enemy risks on the outbreak of war, a iciig " 
of these risks i» carefully safeguarded by the rules of the Associa ions, an_ 
particularly by the provision that ships are only covered until t ley at me a -iq 
or neutral port which is a safe port for the ship to lie in. M e have no oulK P ’ ‘ , i 
to estimate what proportion of the risks to be run in completing voyages cu _ 
outbreak of war would be the precise equivalent of the risks alrea y c • 
Norman Hill, who is the Secretary of the Liverpool and London \\ ar Risks insu a 
Association, suggested, however, that the Associations might ie m uc 
maximum of 30 per cent, of the total Kings enemy risks °u curren g > 
condition that the State undertook the remaining 80 per cent, o iese n - ■ . 
was quite convinced that shipowners would not be prepare o pay T P, oe 
to cover these additional risks. They would for the most pai ,e . 1 '( nu Jy h , 
freights, and would be under no obligation to run these additiona , ,-l • 
conditions of many bills of lading, they can, on the outbreak o wai, S 
cargo at a safe port, and start on a new voyage, at war rates of fi eig > a '' . ,, 
have been able to arrange their insurance. Failing this, it wou P r0 ^, T adonted 
better to lay up their ships for six or twelve months—a policy t a som Indeed 
in recent years, when they have been unable to obtain remunerative reig ’ i ^ 
we are informed that managers of shipping companies might consu ei insurance 
an obligation to their shareholders not to send ships to sea withou war • > 
and that every mortgage deed or debenture bond has a stipulation o so 
the vessel shall be amply insured. . ,. . - + - n 00 nld 
12. Sir Norman Hill further told us that the Committee of his ^sociatio 
not accept these additional risks without the consent of its mem >eis , an , x Q f 
that this would mean a certain amount of publicity during time o peace, 
which it was impossible to gauge. . „ 
13. We thought it desirable to consider whether any scheme was p itself 
would avoid publicity before the outbreak of war. The only pj an u1j s „ Tin blic 
to us was that the State should, immediately on the outbreak o war, ma • ? p r 
announcement that it was willing to accept 80 per cent, of the King s ene y 
the completion of all current voyages from the time when the cover provi