1. Extent of noninsurance . Noninsurance was measured in 

 number of vessels and in terras of gross tonnage and meirket value 

 of vessel. 



During the five-year period under study, 1950-5^, it vas found 

 that approximately 30 percent of active vessels in New England were 

 not insured for hull and about 32 percent were not insured for pro- 

 tection and indemnity insurance. Noninsurance in the Gulf Area was 

 the highest of all three areas with about 57 percent of the active 

 vessels without hull insurance coverage and 88 percent without pro- 

 tection and indemnity insurance. The extent of noninsurance in 

 California lies between the experience of the other two areas with 

 50 percent of active vessels noninsured for hull and 53 percent 

 noninsured for protection and indemnity insurance. 



In terms of gross tonnage and current market value of vessel, 

 however, noninsurance is less extensive in all three areas. By 

 these terms noninsurance on hull is only 11 and 9 percent respec- 

 tively in New England, 11 and 13 percent in California and 43 and 

 36 percent in the Gulf Area. Similarly low percentages apply to 

 noninsurance for protection and indemnity risk in New England and 

 California, although in the Gulf Area it amounts to 80 percent on 

 a tonnage basis and "jS percent on a market value basis. 



2. Reasons for insurance or noninsurance. A number of 



variables were found to be associated with the occurrence of 

 Insuremce or noninsurance for hull and protection and indemnity. 

 The likelihood that a vessel is insured or not insured because of 

 the presence of one of these variables may be very small or insig- 

 nificant. On the other hand, the greater the number of variables 

 present for any one fishing vessel the greater the likelihood that 

 the vessel will be insured as described in "a" below or not insured 

 as described in "b" , 



a. Variables related to the occurrence of insurance . 



Hull insurance : a relatively new vessel; oil screw of 

 main engine; a vessel with steel hull, well built, equipped and 

 manned; a vessel not captained by the owner or whose captain has 

 no interest or only partlr.l interest in the vessel's ownership, 

 or whose owner operates many vessels; a mortgaged boat; a vessel 

 engaged in a lengthy fishing period and in distant fishing grounds; 

 expected insurance benefits considered greater when the paid pre- 

 mium, especially when payment of premium is considered as a means 

 of overcoming impending financial difficulties; modern business 

 practices accompanied by an understanding of insurance principles; 

 low insurance rates to fleet owners and to owner cooperatives; 

 overinsurance; and the owner's attitude favorable toward the 

 insurance business. 



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