bJo. 4(1921) FISHERIES OF NORWAY I 



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interested is to ensure that the rules be framed soundly, both for 

 the protection of the members and in the State's interest, as the 

 re-insurance by the State through the Fisheries Department of such 

 insurance is a scheme contemplated and under investigation 

 The rules are most simple. They provide for a gear insurance 

 section in a boat insurance mutual society already in existence; 

 the accounts of the new section are to be kept separate, and 

 the benefits are to be extended exclusively to the members of the 

 boat section only. Gear without the boat may not be insured. 

 As further precautions against fraud, which is the stumbling block 

 generally to gear insurance, the gear is to be inspected annually 

 before the opening of the fishery — for the present, herring nets 

 and the accessory gear alone may be insured — and of the value 

 so assessed, not more than two-thirds may be insured. The 

 premium to be charged was still under discussion when I left 

 Norway ; it was tentatively put at 3 per cent. In addition 

 to this each member on admission to the society pays a small 

 sum (not yet settled) on each net and on each cable with its acces- 

 sories of buoys, etc. ; these sums will probably be fixed at 20 to 30 

 ore (2^ and 3^^ annas) and Kr. 2 50 (Rs. 2), respectively. It is 

 still doubtful whether this gear insurance will be taken up largely. 

 Mutual trust is essential to its success, and as the opportunities to 

 practise fraud in regard to claims for the loss of old nets are 

 many,, the temptation to do so is so great, that even among 

 associations of men noted for their exceptional honesty there is 

 distinct hesitancy about embarking upon this new scheme of gear 

 insurance. 



Apart from the mutual insurance of their boats, there are few 

 •^o-operative societies in operation. At the same time the need for 

 outside capital to enable new and better boats to be built has been 

 urgent for many years ; to meet this demand the Government as 

 far back as 1889 established a loan fund for the purpose of assist- 

 ing fishermen to purchase boats and fishing gear. This fund 

 which became known as The Old Sea-Fisheries Fund, was commenced 

 with an original capital of Kr. 200,000. This was gradually 

 increased to Kr. 3,950,000. 



Interest on loans was fixed at 3 per cent per annum (subsequently 

 reduced to 2/^ per cent) ; loans were repayable in 10 or 15 years. 

 Security was given in mortgages on the vessels and gear and in 

 insurance policies ; loans were granted up to three-fourths of the 



