The owner's lack of knovledge and information . Inability to 

 understeind or misinterpretation of insurance protection, namely, the 

 expected benefits as veil as the obligations arising from a marine 

 insurance contract, is rather the rule than the exception among 

 owners. The owner's inability to even remember the names of the 

 insurance agent and/or company with whom he negotiated his contract (s) 

 is a frequent phenomenon. The following remarks of an intei-viewer 

 about an O'vraer who carried hull insurance on his vessel are typical 

 of this case: "Wasn't sure just what he carried but he said he had 

 some kind with Holcomb." Another vessel owner "never heard of protec- 

 tion and indemnity insurance," and a third "Had been told by other 

 boat owners it wasn't worth protection and indemnity insurance." A 

 fourth owner's response was: "I didnjt realize that there was such 

 insurance (protection and indemnity). I believed that seamen will 

 be taken care of in a marine hospital." Ignorance is not only a 

 reason for not carrying insurance but also for cancelling an insuramce 

 contract. One o'vmer carried protection and indemnity insurance on his 

 vessel for "only two years" and he cancelled his contract because 

 insurance was "too expensive and didn't know what to expect." An 

 owner from the Gulf Area reports that he carries no protection and 

 indemnity insurance on his vessel because "I don't think insurance 

 people will pay claims without law suit--accordlng to what I hear." 



Port of vessel registration . In New England, the proportion of 

 insured vessels is higher in Massachusetts ports and lower in Maine 

 and Connecticut ports than the sample percentage (table 8). The Port 

 of Boston is an exception. Similarly, insiired vessels are concentrated 

 in ports located in the southern coast of the Gulf Area, while the 

 proportion of insured vessels in northern ports is lower than the 

 sample percentage . The tvro CaJLif ornla ports in the north have a 

 much smaller proportion of insured vessels, and the two southern 

 California ports a higher percentage of insured vessels than the 

 sample percentage. This relationship between port of vessel 

 registration and the occurrence of insurance or noninsurance may 

 be spurious to a large extent and the result of a combination of 

 reasons stated above. Nevertheless, the probable influence of 

 traditional or customary ways of doing things in each locality, of 

 imitating a fellow owner or competing with him can hardly be denied. 

 An owner from the Gulf Area remarks that protection and indemnity 

 insuTEince is "not customary in fleet to which this boat belongs." 



Self -insurajice . C^uite a few oimers in the Gulf Area take the 

 view that premiums which they would have paid for carrying either or 

 both kinds of Insurance are more than enough to cover the losses vrfilch 

 they have sustained or they expect to incur. With regard to hull 

 insurance, one owner remarks: "I lost one boat in twelve years. I 

 caji lose one boart every third emd still save money by not taking 



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