38 INFORMATION RELATING TO INSURANCE AND THRIFT 



URUGUAY. 



THE .STATE BANK OF INSURANCE AND INSURANCE AGAINST HAII,. — From the 

 Report and Balance-Sheei of the State Bank of Insurance in igi6. Montevideo. 



Owing to droughts, grasshoppers and frosts the harv^est of 1916 in Uru- 

 guay was bad. The circumstance directly affected the business of the hail 

 section of the State Bank of Agriculture, the development of which is neces- 

 sarily connected with the condition of agriculture. 



This section drew up in the year considered 2044 policies covering a 

 value of $ 1,118,639, ^s against 3867 policies, insuring altogether $2,485,309, 

 issued in ic^i5 



The following table shows the fluctuations of the business of insuring 

 against hail from the year 1912 in which it was inaugurated. 



1912 1913 1914 1915 1916 



Premiums .... 8 47463 $ 93,^73 S 43.271 $ 77.oii $ 35.591 

 Indemnities . . . Jj 8,977 S 27,893 S 10,259 .$ 2,410 $ 3,720 

 Percentage of in- 

 demnities form- 

 ed by premiums 19.22 % 26.77 % 24.63 % 3.13 % 10.45 % 



The bank's propaganda action, exercised directly by the medium of its 

 numerous agents, did not slacken ; but the unfavourable agricultural cir- 

 cumstances, which we have already noticed, paralysed its efforts. In 1915 

 it insured 104,890 hectares (i) but in 1916 the area covered by its policies 

 was only 50,109 hectares. 



The reduction of i per cent, granted in 1905 on tariffs affecting corn and 

 flax was maintained last year. In addition to this reduction and in spite 

 of the far from reassuring prospects which the sowing season opened up for 

 this branch of the bank's business — prospects which have actually been 

 realized — the administrative council thought itself obliged, owing to the 

 damage done to crops by grasshoppers and frost, to add to its policies the 

 following clause, the import of which need not be pointed out : " Agricul- 

 turists whose seeds have been wholly destroyed by frosts or grasshoppers 

 after the issue of the policy will have a right to the reimbursement of 80 

 per cent, of the premitun ". The concession constitutes a remarkable im- 

 provement of insurance against hail : the reimbursement granted in similar 

 circumstances in other countries is notably less. 



(i) I hectare = 2.47 hectares. 



