HC Deb 13 April 1939 vol 346 cc2-4
Mr. Arthur Greenwood

(by Private Notice) asked the President of the Board of Trade when it is proposed, in the interest of the trade of this country, to bring into operation the peace-time scheme for the war risks insurance of cargoes which was mentioned in the statement of the Chancellor of the Exchequer on 31st January?

The President of the Board of Trade (Mr. Oliver Stanley)

The Government intended to include the scheme referred to in a Bill to be submitted to the House at an early date. However, in accordance with an understanding reached with the marine insurance market, I was advised, on Tuesday last, that the underwriters had arrived at the conclusion that it was necessary immediately to increase rates, in some cases substantially. Such an increase was, in the view of the Government, likely to give rise to those difficulties in our overseas trade which, as indicated in the Chancellor's statement, the Government were anxious to avoid. The Government, therefore, decided to put into force immediately, pending legislative sanction, a provisional scheme for the re-insurance of the market in so far as concerns King's Enemy Risks on cargoes destined for discharge in or shipped from the United Kingdom. This course has not only prevented a general increase in the existing rates of premium on such cargoes, but has made possible some reduction in them. Moreover, some of the present conditions of war risks insurance policies will be modified to the advantage of traders. A copy of the provisional scheme will be laid before the House in a White Paper as soon as possible. This scheme may still be subject to some slight amendment in detail in the negotiations now proceeding with the insurance interests.

Mr. Greenwood

In view of the somewhat irregular procedure which the right hon. Gentleman is pursuing, can the House take it that there will be legislation at the earliest possible date to regularise it?

Mr. Stanley

Oh, yes, undoubtedly.

Mr. Bellinger

May I ask whether the scheme which the Government propose to inaugurate will be on the same lines as that adopted in 1914, or whether private enterprise in the shape of underwriters are going to underwrite those risks, and then the Government are going to find some means of paying extra profit on those premiums?

Mr. Stanley

That is quite a different point. The scheme of 1914 was a scheme for insurance during wartime, and our present plans are that during wartime a similar scheme should be adopted. This is a scheme for re-insurance of those risks in times of, perhaps, tension but when there is no actual war.

Mr. Graham White

Will the wider scheme to which the right hon. Gentleman refers cover the risk attaching to vessels under construction?

Mr. Stanley

That falls into the question of dealing with the insurance of commodities, which will form part of the general Bill dealing with war insurance which we hope to produce at the earliest possible date.

Mr. David Adams

Will the scheme apply to the hulls of vessels which have been carrying such cargoes as it is proposed to cover?

Mr. Stanley

This particular scheme refers to cargoes.

Mr. Kirkwood

Will this involve the men as well as the ships? Are they going to be insured if anything should happen to them?

Mr. Stanley

They will be insured, but not under this scheme.