HC Deb 22 May 1884 vol 288 cc996-7
MR. O'DONNELL

asked the President of the Board of Trade, If he has any information of the existence of a practice among underwriting and insurance companies to any large extent of affording undue facilities for the over-insurance of ships with a view to the increased premium thus obtainable; whether the over-insurance of ships, especially of ships of a markedly unseaworthy character, can, according to the information of the Government, take place to any large extent without the connivance or culpable negligence of underwriting companies operating with a view to excessive premiums; and, whether he will undertake to complete the Bill before the House by restrictions upon the facilities which may now be possessed by underwriting and insuring companies for tempting the owners of unseaworthy ships to effect excessive insurances for the sake of the high premiums obtainable upon such over-insurance?

MR. CHAMBERLAIN

In the first of these three Questions the hon. Member appears to impute to the Underwriting and Insuring Companies the practice of affording undue facilities for the over-insurance of ships. All I can say is, that I have no information of the existence of such a practice. With regard to the second Question, it cannot, I think, be to the interest of the Underwriters knowingly to insure ships of a markedly unseaworthy character; but it is, in my opinion, almost impossible for them to exercise such a supervision over ships as to prevent over-insurance altogether. As regards the third Question, I am not aware of any temptation to owners to effect excessive insurances, except that offered by the law in connection with valued policies on ship and freight. The Merchant Shipping Bill before the, House imposes heavy penalties on Underwriters who effect void insurances, and I do not think that any further provision is necessary.

MR. O'DONNELL

Has the Board of Trade no information as to whether Underwriters continue to offer facilities for over-insurance?

MR. CHAMBERLAIN

I am not aware that Underwriters do offer facilities for over-insurance of ships, knowing them to be over-insured.