Sxith, it is advisable for the insured ovmer to knov in detail 

 the exact procedure required for reporting an accident and to do 

 everything in his power to present his claim in a manner that vill 

 leave no doubt about the nature of the accident and its true and 

 original cause . 



Seventh, unless a vessel o\mer sets up a reserve to meet 

 damages to his vessel vhich would have been covered if he had 

 carried insurance with a risk carrier, he is not self-insured. A 

 depreciation reserve is not a self-insurance plan unless it pro- 

 vides for meeting damages to the vessel beyond the normal wear and 

 tear of machinery, equipment, and replacement of old scrapped 

 vessels. One serious limitation of a self-insurajice plan is the 

 fact that no vessel owner at present operates a fleet large enough 

 to enable him to self -insure against all insurable risks. Deduct- 

 ibles in a sense aj:e a kind of s'elf-insurance which one-vessel 

 owners may use extensively to reduce the cost of their insurance. 

 It may be to the advantage of fleet operators to have a limited 

 self-insurance plan and to carry excess insurance with a risk 

 carrier. A number of fleet operators can enjoy among themselves 

 considerable advantages by combining a self-insurance plan with 

 reinsurance. 



3. Recommendations to insurers . The fol? jwj.ng recommenda- 

 tions may be of some use to the insurers . 



First, marine surveyors should be paid by the insurer whether 

 the vessel is accepted or not. Otherwise, insurers who do not pay 

 the surveyor's services unless the vessel is accepted are likely to 

 defeat their own attempts to estimate accurately the expectation of 

 loss. . 



Second, establishment of a system for the systematic compilation 

 of hull and protection and indemnity insurance accidents is highly 

 recommended. (For advantages of registration of accidents, see 

 recommendation thirteen to the Federal Government). 



Third, the coverage undeir the Inchmaree clause should be 

 drastically curtailed and, if possible, totally eliminated from 

 the hull insurance contract. It tends to increase the hazard by 

 rewarding the officer personnel and crew for their incompetence 

 or their negligence. 



Fourth, the frequency of small and petty claims in New England 

 and, to a minor degree, in the Gulf Area have contributed substan- 

 tially to losses. It is advisable that the insurers provide deduct- 

 ible clauses in all hull and protection and indemnity insurance 

 contracts and, at the same time, raise the amount to be deducted. 



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