5. An inverse relationship between loss experience for hull 

 insurance and fishermen's gross receipts was found in New England 

 and to a lesser extent in the Gulf Area. Although the data in 

 California fail to show such an inverse relationship, the close 

 association between the occurrence and severity of accidents and 

 economic conditions elsewhere throws abundant light on the long 

 run forces which underlie the insurance problem. The importance 

 of moral hazard differs from area to area and from port to port, 

 but its probable presence is confirmed every^/here by vessel oimers 

 and insurance people alik^ . The vessel owner clearly tmderstands 

 the close association between economic conditions in the industry 

 and the hull insurance problem. Declining income results in 

 declining maintenance of his vessel. His business outlook is a 

 pessimistic one. Although government assistance is welcomed by 



a large majority of owners and suggestions for measures to improve 

 safety standards, rating, and adjustment of claims are numerous, 

 the general concensus is that nothing short of measures to improve 

 economic conditions in the industry can alleviate the hull 

 insurance problem. 



6. In contrast, the protection and indemnity insurance 

 problem has its roots on the one hand, in the onerous maritime 

 legislation, especially the Jones Act, which determines the 

 vessel owner's liability and, on the other hand, in the atti- 

 tudes and conduct of labor within the industry, especially 

 organized labor. The paramount importance of existing maritime 

 legislation, especially the Jones Act, as a single and ultimate 

 source of the problem in protection and indemnity insurance did 

 not escape the vessel owner's attention. Pleas for the repeal 

 of the Jones Act and extension of workmen's compensation to 

 fishermen are the most frequently suggested solutions to the 

 problem . 



112 



