(a) rating of coEmercial fishing vessels vrill be based more on 

 loss experience than on other less reliable considerations 



(b) registration vill act as a very strong incentive for the 

 maintenance of a good record on the part of the vessel owner, 

 the captain, and the crewj (c) loss experience will be improved 

 and the operational cost of insurers may be reduced enough to 

 meet the registration cost and, at the same time, result in 

 lower premiums for the insured. 



The above list of recommendations to the United States 

 Government should not be considered exhaustive. The report 

 Itself contains basic information on the insurance problem of 

 the commercial fishing industry which may enable the officisils 

 of the Federal Government to make their own policy decisions. 



2. Recommendations to vessel owners . In their effort to 

 meet the insurance problem vessel ovmers may have a number of 

 suggestions in mind. 



First, payment of premium is not merely a prepayment of 

 expected losses. 



Second, an insurer specializing in marine insurance is likely 

 to give better service than one specializing in another field of 

 insxxrance . 



Third, it is advisable that the insured vessel owner inquire 

 about the underwriter \T±th whom the insi.urance broker intends to 

 place the risk and inquire about the underwriter's standing in 

 the insurance business. 



Fourth, the cost of insurance should not be judged on the 

 basis of the premium alone. Some other provisions of the con- 

 tract may be proved to be equally important and equally costly. 

 The best procedure for an owner might be to inquire about aJJ. 

 the important provisions of the contract, make the deductible 

 amount as high as he can afford, and demand a proportional reduc- 

 tion in the premium. 



Fifth, although "shopping around may be remunerative, it is 

 advisable that after the owner selects his insurance broker and 

 places his insurance with an insurer having long standing and 

 reputation in the market, he should avoid changing insurers as 

 much as possible. Msunderstandings about the terras of the con- 

 tract and the procedure required for reporting accidents are 

 likely to be at a minimum, and the service for the settlement 

 of claims is likely to be better. 



12 



