In the three geographiceil gireas (table 7)- Inversely, vessels fishing 

 in waters closer to their home ports have a lower proportion of insured 

 vessels than the sample percentage. The statistics on fishing gear 

 (table 6) and kind of fish caught (table 7) are further information 

 on the same subject. 



One final remark is necessary on this topic. The relation of 

 fishing operations to the presence of insurance or noninsurance is 

 in many respects another aspect of the effect of vessel size, due 

 chiefly to the fact that vessel size is associated with the type of 

 fishing operations. Small boats are likely to be engaged in daily 

 trips or trips of short duration to neeirby fishing grounds; meiny are 

 owned by operators who do fishing on a part-time basis for a limited 

 fishing period. These observations apply to both kinds of insurajice 

 in all three geographical areas and demonstrate again the unfavorable 

 position of a small vessel against a large vessel in regards to cost 

 of carrying insurajice. 



k. Receipts and expectations . 



The significance of gross receipts from fish landings to the 

 whole insurance problem will be discussed further in Chapter V. Here, 

 only the probable relation of gross receipts from fish landings to the 

 incidence of insurance or noninsurance will be taken up. 



During times of curtailed fishing operations and falling receipts, 

 payment of premiums for either or both kinds of insurance for a number 

 of reasons is likely to be felt more than other operational costs such 

 as food, fuel, ice, and supplies. As has already been pointed out, 

 premiiims in contrast to other operational costs, are semi-fixed; i.e., 

 they are incurred irrespective of the duration of fishing operations. 

 In addition, whether premivmis are too high or too low becomes a 

 relative matter dependent upon rising or falling receipts. Further- 

 more, as will be shown later, over the 1950-5^ period premiums rose at 

 times of falling or stationary revenue from fish landings. 



The vessel owner's plight is indicated by the short but frequent 

 comment that insurance protection is "too expensive" or "too much 

 money." The relation of premiums to receipts is well illustrated by 

 the follo\d.ng remark: "Premiums considered too high, fish business 

 is not doing too well." At times of rising costs and stationary or 

 falling receipts the number of marginal and srabmarginal operators is 

 likely to increase, and premiums may make the difference between 

 operating at a profit or loss. "Insurance is too expensive," one 

 owner remarks, "and would nearly eliminate profits." For other 

 owners, premiums mean an addition of existing losses: "Boat is 

 losing money so why add to loss," or "By the time other expenses 

 are met, no money remains for insurance . " 



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