CHAPTER V 



THE C02-2.rERCIAL FISHHIG VESSEL AS AN DISURABLE RIJK 



In the previous chapter, through an examination and discussion 

 of the accident records, an attempt was made to explain the lajrgely 

 unprofitable loss ejrperlence of insurers which contributed to the 

 high cost of hull and protection and indemnity insurance . In order 

 to throw additional light on the adverse loss experience of insurers, 

 the commercial fishing vessel is viewed in this chapter as an 

 insurable risk. 



A crucial question may be raised here: In what ways may the 

 strudture and business outlook of the coniiiercial fishing industry 

 and existing marine legislation have adversely affected the 

 insurability of the risk and therefore contributed to the insurance 

 problem? In on effort to answer this question, the follo't'd.ng topics 

 will be discussed. First, certain structural characteristics of the 

 fishing industry related to the problem at hand; second, the selec- 

 tion of risks among commercial fishing vessels; third, the importance 

 of business conditions in the industry; finally, maritime legislation 

 as a source of the protection and indemnity insurance problem. 



A. THE COMffiRCIAL FISHING INDUSTRY 



1. Lack of identity of interests among vessel owners . The 

 widely diverse national origin of officer personnel of vessels 

 (table A- 11 in Appendix A) largely reflects the liighly diversified 

 cultural background of the vessel o\-mers themselves. But background 

 is not the only factor which fosters the rugged individualism •vrtiich 

 characterizes the average fishennan. From 'he viet/point of vessel 

 ownership, the commercial fishing industry is man by three clearly 

 distinguishable, major groups with different and, to a large extent, 

 diametrically opposed interests. 



Fish processors and dealers represent an important group of 

 vessel owners, parti culajrly in the Gulf Area. Itielr importance is 

 understated in the Gulf Area and California samples because the 

 group may have financial control of a large number of vessels even 

 though the captain may carry the ownership title. The business of 

 running a fish processing plant or fish dealership is the primary 

 occupation of this group. To them, vessel ownership and fishing is, 

 in itself, an activity dominated by their primary business. 



A second group is made up of vessel owners who consider fishing 

 as their exclusive or primary source of livelihood. This group con- 

 sists largely of captain-owners or owners who themselves manage one 

 or a few vessels frequently with the aid of members of their 

 immediate family or of relatives. 



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