only 13 years in California. On this basis insxirance cost in 

 California is the highest, although it did not rise appreciably 

 daring the period under study, and the lowest in the Gulf Area 

 with New England midway between the two. 



In terms of coverage, the New England owner paid less premiiim 

 on the average per $10,000 of insurance than owners in the other 

 areas. For each $10,000 insurance, a New Englander paid, on the 

 average, only ^k'^6 daring the years 1950 through 195^; an owner 

 from the Gulf Area paid $5-8^ and a Calif ornian $636. The average 

 amount on frrjichise clauses was only $6l3 in New England, but $2,293 

 in California. The average amount on deductible clauses was $456 in 

 California, $409 in the Gulf Area, but only $312 in New England. 

 Only the percentage of policies with full coverage under the 

 Inchmaree clause is much lower in New Englaxid than in Hie other two 

 areas, indicating less protection in this respect. The percentage 

 of policies with exclusions on loss of equipment are close enough 

 so that the differences in coverage between the three areas, in 

 this respect, may not be considered very important. Differences 

 in the content of each clause and other contractual provisions 

 make further comparison of coverage between the areas almost 

 impossible and unnecessary for ovir purpose. 



The sum of this area comparison is that the rise in insurance 

 cost was greater in New England, and less pronoionced in the Gulf 

 Area and California. In terms of premivmi per hvmdred dollars of 

 insurance and on the average, however, the cost for hull insurance 

 daring the five-year period has been higher in California than in 

 the other areas with the Gulf Area probably in second position, 

 closely followed by New England. 



C. PROTECTION AITD INDEMNITY INSURANCE 



1. The cost of insurance in terms of gross premium . 

 Substantial rises in the gross premium for protection and indemnity 

 insurance occurred in New England. The average premium per policy 

 was $l,ii25 in 1950-51 and climbed to $2,5^3 in 195^-55, a rise of 

 78 percent over the five-year period (table 10). The increase is 

 equally significant in terms of gross premium per crew member which 

 rose from $172 in 195O-51 to $291 in 195^-55- The increase was less 

 pronounced in the Gulf Area with gross premiums rising from $^36 to 

 $485, or about 11 percent. These figures for the Gulf Area, however, 

 are not statistically reliable because of the small size of the 

 sample for individual years. California experienced the largest 

 relative increase in gross premium during the period. From a figure 

 of $378 per policy in 1950-51, gross premium increased to $717 in 



53 



