Although aJ-l policies provided deductible clauses for personal 

 injury and property damage, the average deductible amount for the 

 former clause during the period increased from $628 to $677 and 

 for the latter clause from $2it-2 to $272. The percentage of 

 policies providing coverage for maintenance and cure of the 

 owner on board remained the same. 



3. Comparison of insurance cost between areas . In terms 

 of gross premium and considering vessel size, the cost of protec- 

 tion and indemnity insurance is the highest in New England. The 

 average gross premium for the 1950-5^ period was $1,7^0 per policy 

 and $210 per crew member. The Gulf Area comes next with $527 

 average gross premium per policy and $128 per crewman. Protection 

 and indemnity insiirance is least expensive in California with only 

 $526 average gross premium per policy. No direct comparison can 

 be made in terms of premium per crevnnan because indications are 

 that in California, premium is not determined on the basis of 

 crew size. An approximation can be reached by dividing average 

 gross premium by 8.9^ the avereige reported size of crew on board 

 insured vessels (table A-2, California in Appendix A). During 

 the five-year period, premiums for protection and indemnity in 

 California averaged about $59 per crewman. 



In terras of the coverage index, the three areas occupy 

 similar positions. On the average, for $10,000 of insurance 

 protection a New England owner paid $157> an owner in the Gulf 

 Area $l46, and a Calif omian only $32. However, the vmfavorable 

 position of the New England o\mer is substantially improved be- 

 cause of other relatively favorable contractual terms. The average 

 deductible amount for personal injury and property damage was only 

 $217 and $208, respectively. In the Gulf Area the amount for both 

 clauses was $i*01, almost twice as large as in New England, ■vriiile 

 the deductible amount for personal injury in California was $658 

 and for property damage, $253. Also, only 51 percent of the New 

 England policies provided for deductibles and 58 percent for 

 maintenance and cure of the owner on board. These percentages 

 were as much as 88 percent for the former clause and only 5 per- 

 cent for the latter in the Gulf Area and 100 percent and 5 percent, 

 respectively, in California. 



When emphasis is put on the gross premium and coverage index. 

 New England occupies the first position with the highest cost for 

 protection and indemnity, followed by the Gulf Area and California. 

 When the other contractual terms are emphasized, particularly the 

 high personal injury deductible, California seems to occupy the 

 first position, followed by the Gulf Area and New England. In terms 

 of percentage rise in the over-all cost of insurance, California 

 runs first with New England in the second position. 



55 



