FROZEN MEAT.

Gisborne Times, Volume XXVIII, Issue 2742, 22 February 1910, Page 2

FROZEN MEAT.

THE INSURANCE QUESTION

. A matter which provoked considerable discussion at the recent Frozen Meat conference was that of insurance, and the subject is capably dealt with in the annual review issued by Messrs. IV. Weddel and Co., of London, which has just come to hand. This well-known authority says:— The issuing of frozen meat against “all risks” lias proved to be such unsatisfactory business for underwriters, that, in addition to charging higher rates, they have combined to formulate- a. new set of clauses on terms much less favorable to meat importers than hitherto, and not in accord with the actual needs of the trade.

The whole subject of meat insurance is ripe for revision. In the early days of the trade the risks of damage were so great that common prudence constrained shippers to insure against “all risks.” The practice becomes a trade custom, and has lingered long after any real necessity for it remains.

So soon as the rates for insuring chilled beef from America became prohibitive, owing to heavy 1 losses through, damage, shippers thence had to undertake their own risks, and, in consequence,. amended their working arrangements. Similarly, if Australian freezing works and ship-owners were now to be put more on their mettle and made to realise the damage arising from any cause other than an accident at sea or a breakdown of machinery could not be recovered from underwriters, there would doubtless be an overhauling of .methods such as would tend ultimately to reduce damage to a nominal figure. So long ns the trade, is kept in leading strings through relying upon artificial methods, provided by insurance, to avoid loss arising from carelessness or ignorance, damage will probably continue to exist. Necessity alone will compel traders to take the drastic steps needful to suppress all damage. —apart from more accidents. The principle of differentiating risks (by charging additional nremiums under certain conditions) introduced somewhat hesitatingly into the new clauses, is a step taken in the right direction by underwriters; but until each freezing works, ship and store, with its methods- of transit, is separately rated on its merits the full advantage of discriminating premiums will not be secured. The best risks continue to “carry” the worst, and must do so to the detriment of the former so long as the premiums are “averaged” as arbitrarily, as is the case. In the inattcr of administrative details the new clauses are causing needless friction. While importers arc dissatisfied with the present arrangements, underwriters are by no means content with their experiences, and are inserting short-dated options.' in the new covers, instead of leaving them in force for a year, as formerly.