130 



THE AGRICULTURAL NEWS. 



Apeil 28, 1906. 



The sclieiue proposed was explained in a circular 

 recently issued by Messrs. Henry Head & Co., from 

 which the preceding rates have been taken, and in 

 which, also, the re.serve or 'franchise' is explained. 

 It is stated that, in case of a claim arisinsr from 

 damage done b}' a hurricane, 'The underwriters 

 would pay onl}' the excess of 5 per cent, on the 

 total value insured on any estate.' As an example, 

 it is stated that on an estate insured for £3,000 no 

 claim would be paid in case of damage by a hurricane 

 unless such damage exceeded £150, and then the 

 amount to be paid would be only the amount of the 

 damage over and above £150. 



It is further .stated that ' the insurance would be 

 subject to average, that is to say, in the event of an 

 estate not being insured at its full insurable value, the 

 assured would bo able to recover only the proportion of 

 the loss that the sum insured bore to the total value 

 of the estate.' This, however, is the customary 

 'average' clause to be found in all marine and similar 

 insurance. 



The reserve or ' franchise ' mentioned above 

 was the subject of discussion at a special meeting of 

 the Barbados Agricultural Society which was held on 

 April 17, for the purpose of discussing the matter of 

 hurricane insurance. At that meeting it was shown 

 that on six estates in Barbados the damage done by the 

 hurricane of 1898 was £100, £143, £150, £145, £95, 

 and £158, respectively, making a total of £851. If 

 the owner of these estates had had them insured at 

 £3,000 each, he would have paid a premium of £45 

 per annum on each estate, according to the scheme 

 now under consideration, while he would have received 

 only £18 in insurance from the entire nuujber. 



It was pointed out by the chairman and others 

 present that this reserve or ' franchise,' as it is called, 

 was too much : and it was further suggested that the 

 rate of 1 i per cent, was too high. 



In reply to these objections, Mr. Head stated that 

 his firm had not intended to offer insurance against 

 small losses, but rather to furnish a j)lan to provide 

 against disasters, and that the rate was now lower 

 than it could be if no franchise or reserve were main- 

 tained. He further stated that he had obtained 

 concessions from his firm in the matter of in.'^urance of 

 estates valued at over £2,000, by being allowed to offer 

 a slightly lower rate of premium. 



When it is I'emembered that there have been no 

 caipful statistics from which the underwriter could 

 learn the exact nature of the risks in hurricane 

 insurance, it can hardly be wondered at that the first 

 plan submitted should not be perfect. The great 



])oint is that matters have now so far progressed 

 that a definite scheme has been submitted for con- 

 sideration. Messrs. Henry Head & Co. seem to be 

 anxious to establish hurricane insurance on an 

 equitable basis in such a way as to be advantageous 

 both to the assured and to the underwriter, and will, 

 no (loubt, be glad to receive suggestions from those 

 interested. 



It must be borne in mind that there is at present 

 no rivalry or competition for this class of insurance, 

 and it nmst be made attractive to the underwriters 

 for them to take it up, in any degree. At the same 

 time it must appeal to planters and others in the West 

 Indies as an investment that will give sufficient return 

 to protect them from loss when hurricanes damage the 

 crops, cultivations, or buildings insured. 



It is greatly to be hoped that planters and others 

 in these islands will interest themselves in this matter, 

 and give their best consideration to the scheme 

 proposed, with a view to making practical suggestions 

 that will tend to remove any difficulties in the way of 

 the working of hurricane insurance. 



The following table of valuations was sent out by 

 Messrs. Henry Head & Co. in connexion with the 

 circular already mentioned. In addition to the values 

 given herewith, a scheme is now in preparation, deal- 

 ing with the insurable values of canes and cotton at 

 diti'erent stages of growth: — 



APPOINTMENT VACANT. 



The post of Agricultural ln.structor, under the Imperiid 

 Department of Agriculture, i.s vacant at Dominica. Candi- 

 dates should be not more than thirty years of age, active, 

 accustomed to ride, and with good experience in practical 

 agriculture, especially cacao jilanting. .Salary £130 per 

 annum, ijuarters free, with £20 for horse allowance, and 

 a small personal allowance, when travelling on duty. Applica- 

 tions, with full particulars as to age and experience, to bo 

 addressed to — 



The Imperial Commissioner of Agriculture, Head Office, 

 Barbados. 



