§ Mr. SNOWDENasked the President of the Board of Trade whether it is one of 2152W the conditions of the Government aircraft insurance policy that it shall be subject to average on a basis dependent on the proportion the amount of the policy bears to that of the fire insurance policy on the same premises; whether a man who insures for half the amount of his fire insurance policy will only be reimbursed half the loss he sustains through damage done by aircraft; and, if so, whether steps can be taken to give publicity to these facts, so as to prevent misunderstanding on the part of property owners?
Mr. RUNCIMANWhere the property is insured for not less than the sum insured in the fire policy, the aircraft policy is not subject to average unless the fire policy itself is subject to average. As a general rule, ordinary house property is not insured against fire subject to average, and the ordinary householder will therefore, if he insures against aircraft risks for the full value of his fire policy, be able to recover up to that value. If he chooses to insure for less than the fire value, a proportion only of the loss will be recoverable. This condition is printed on all policies issued under the Government scheme, and I do not think that any person taking out a policy under the Government scheme can fail to have his attention drawn to it.