General Cattle Mutual Insurance Fund. 459 



interest in the life of tlie beast or in arresting- epizootics ; but 

 this is met by restricting the insurance in amount to a definite 

 proportion of the value. 



The Societies have again often, by insuring the life of the 

 animals against Rinderpest alone, rendered it necessary to prove 

 after death that the animal has died of that disease. This is 

 plain enough in certain cases, but in other cases it is attended 

 with insuperable difficulties. It involv^es expense, loss of time, 

 examination by skilled veterinarians, whose decision after all 

 must always be open to dispute, as the diagnosis is in some cases 

 impossible, and in others exceedingly difficult. 



If this refinement were attempted in the insurance of human 

 life the whole fabric would fall to pieces. The insurant would 

 never be sure of his money, the offices would be defrauded, and 

 endless disputes and litigation would arise. Besides, if the 

 principle of insurance is good, it is as good against other 

 diseases, such as Pneumonia and Foot-and-mouth disease, as it 

 is against Rinderpest. Even losses by common diseases fall 

 irregularly : a farmer may lose no cattle for months, or years, 

 and then lose great numbers in a short time. In cattle insurance 

 the large experience which we have in life insurance should be 

 turned to account, and the insured sum should be payable on 

 proof of death by disease within the stipulated time. 



Local Insurance Societies have to encounter another difficulty, 

 which they can only partially surmount by selection. The in- 

 surants have a variety of options which they instinctively exercise 

 against the Societies. The mortality in animals attacked by 

 Rinderpest is about 85 per cent. : to insure 10/. the net premium 

 should be 8/. \0s. Again, the reported mortality among the 

 cattle on farms in which Rinderpest had appeared, had been 

 by late returns (up to January) about 39 per cent : to insure 10/., 

 therefore, the net premium on such cattle at the date of invasion 

 should be 3/. 18a\ per head. But, taking all the cattle of Great 

 Britain, a premium of 8^\ Gf/. a head on existing stock would 

 pay 10/. a head on all the reported deaths by Rinderpest up to 

 May 26th. 



It is evident that, under a voluntary system of insurance, at 

 any reasonable premium, the owners of the cattle on the farms 

 attacked, and of the thousands of farms and places around, would 

 rush to the Insurance Society, while the majority of owners in 

 the distance would stand aloof, and only resort to the Society 

 Avhen the danger was imminent. 



Hence the ruin of all local Societies in districts largely infected 

 is inevitable. Under the circumstances, effectual insurance on a 

 small scale on the voluntary principle is impossible. 



