§ 106. Dr. CHAPPLEasked the President of the Board of Trade whether, under the State insurance war risks, premiums paid on contracts entered into prior to the outbreak of war are properly chargeable to the seller or to the buyer on the contract; and, if the point is open to question, whether he will, by legislative enactment or otherwise, establish the position for the convenience of traders?
§ Mr. RUNCIMANThe war insurance scheme does not profess to determine by whom the cost of the insurance is to be borne or how it is to be distributed. This 171 is left to be settled by the parties concerned, and I have no reason to doubt that it can be so settled on a fair and equitable basis. As at present advised I do not propose to introduce legislation to deal with the question.
§ 109. Mr. LOUGHasked the President of the Board of Trade whether the rates hitherto fixed by the Government brokers for marine insurance covering war risks have been considerably above what was necessary, having regard to the business already transacted and certain to arise as trade becomes more normal: whether the rates originally demanded have been substantially reduced owing to the competition of Lloyd's during the last week or two; and whether, having regard to the national interests that would be secured by the increased importation and export of commodities, he can see his way to fix a flat rate of 1 per cent. for all voyages?
§ Mr. RUNCIMANThe insurance rates fixed by the Advisory Committee under the Government scheme have not, I think, been higher than was necessary. Modifications have been and will be made as circumstances require; but I may point out to my right hon. Friend that the Government insurance scheme for cargoes is not intended to compete with the ordinary insurance market, but to put a limit above which insurance rates cannot rise. He will find the principles upon which the scheme is founded and worked fully stated in the Huth Jackson Report.