4 
Report on Insurance of British Shipping.—Part II. 
Club policies ceased. But in that case an arrangement for the Associations to take the 
remaining 20 per cent, of these risks would be impracticable. In the first place, 
the members of the various Associations would have to be called together to approve of 
the arrangement. Seven days’ notice of the first meeting would have to be given, and 
a subsequent confirmatory meeting would have to be held. This would take at least 
three weeks, during which time the current voyages of the ships in question would all 
be suspended. Secondly, it would be very difficult to get the whole of the shipowners 
to share these risks equally. The country or countries with which we were at war 
would be known, and the zones which would be particularly dangerous to shipping 
could be easily diagnosed. Those shipowners whose vessels were not going to pass 
through the danger zones would very naturally refuse to share these risks on equal 
terms with those owners whose vessels were bound to pass through the danger 
zones. 
14. The only alternative would have been to suggest that, in order to avoid 
publicity in times of peace, the State should, on the outbreak of war, undertake the 
whole of the King’s enemy risks for the completion of current voyages without premium. 
But this we could not recommend, as it was not in accordance with our terms of 
reference, which require that there shall be reasonable contributions from the owners of 
ships towards the cost of insurance. Besides, such a proposal would not have secured 
Tor the State the advantages of the active and interested co-operation of the Mutual 
Associations, which we consider of the highest importance. 
15. We had therefore to face the fact that any scheme that would secure for the 
State the co-operation of the Mutual Associations in time of war would necessarily 
involve a certain amount of publicity in times of peace, and we came to the conclusion 
that, if there was to be any publicity at all, this publicity had better be complete. 
16. We considered a form of policy for the Mutual Associations to issue, to cover 
the additional risks involved, and a form of policy lor the State to issue, to reinsure its 
share of the same risks. These policies were “voyage” policies, and it was evident 
that the preparation of separate policies to cover these risks on every voyage would 
involve a vast amount of clerical laboui*, and would probably entail the creation of a 
-Government office in time of peace, whose duty it would be to keep a record of all the 
contracts entered into by the State under this arrangement. 
17. We therefore decided to go a step further, and to propose that the present 
standard form of policy of the Associations should be altered so as to include the 
additional risks involved. This new form of policy would run from year to year, just as 
the present policy does, and a list of the policies issued by each Club would be given 
to the State every year. The State would enter into a general agreement with each 
Association, accepting responsibility for 80 per cent, of the King’s enemy losses 
incurred under these policies in the case of a war in which we were one of the belli 
gerents The insurance would remain in force for ten clear days following the arrival 
of the ship at her port of destination. The war risks, other than King’s enemy risks, 
would be covered under the same Club policy, but the Club would alone be responsible 
for these. 
18. The rules of the existing policies of all the Clubs contain provisions in varying 
terms for the control by the Committee or 'Directors of the Association of the move 
ments of the ships insured at times when war has broken out, or is considered by the 
Committee to be imminent. The most comprehensive provisions are perhaps the 
following : “ When, in the opinion of the Directors, special circumstances exist in 
“ regard to the probability of war breaking out, or otherwise, Members or Owners 
“ shall, on the request of the Manager, furnish full information as to the position 
“ and contemplated voyages of all their steamships entered in this class of the 
“ Association. When steamships are making, or about to make, a voyage in or through 
“ seas or waters in which belligerent action or hostilities are taking place, or expected 
“ to take place, Members shall forthwith report every voyage in progress or contem- 
“ plated which is likely to bring any steamship entered into such seas or waters.” 
(Rules of the North of England Protecting and Indemnity Association, 1913-14 
Class III, Rules, No. 21.) 
19. Or again, “ Provided that immediately upon the declaration of war or outbreak 
of hostilities, or as soon as the same can be notified to her, the ship insured shall 
without delay proceed to such British or neutral port and in such manner as the 
Committee by regulations made or specific directions given by them may direct. . . .” 
(Rules of the London and Liverpool War Risks Association. Form of Policv 
Clause 4 (c). ) 
20. It war- however, felt—not only by us, but also by the Managers of those