534 



APPENDIX 



APPENDIX L 

 MODEL INSURANCE CALCULATIONS OF DAMAGE BY FIRE 1 



Forest under working plan with an area of 80 hectares, treated in coppice-under- 

 standards with a rotation of 20 years divided into 20 felling areas with an average area 

 on the ground of 4 hectares. 



1. OBJECT INSURED 



(1) The coppice, composed of oak 0.3; beech 0.2; hornbeam 0.4; miscellaneous 0.1; 

 whose ages vary from 1 to 20 years. 



(2) The reserves, but only including the oak, the beech, and the miscellaneous trees 

 with circumferences between 0.51 meters and 1.10 meters at 1.30 meters above the soil. 



(3) (L'Ensouchement) root systems. 



(4) Litter. 



It is agreed that the rate of interest to be used in calculations shall be 3-J- per cent. 



II. CALCULATIONS OF THE CAPITAL TO BE INSURED 



(1) Coppice. The net average value of the stand 20 years old is 300 francs per hectare. 

 The value per hectare capable of giving a revenue of 300 francs every 20 years is given 

 at the rate of 3i per cent: 

 1 



F = 300 X 



20 - 1 = (By using the 3d Cotta table) 



(1035) 

 F = 300 X 1.01 = 303 francs. 



From this value per hectare should be deducted the value V per hectare calculated 

 by the formula: 



V = 303 francs (1.033 n 1), where n = the age of the growing stock or, employing 

 the first Cotta table, 



V 1 , or a value of a hectare aged one year 303 X 0.03 = 9 francs 



V w , or a value of a hectare aged 10 vears 303 X 0.41 = 124 francs 



V M , or a value of a hectare aged 20 years 303 X 0.99 = 300 francs 



Total 2,802 francs 



In the example just given, each of the 20 felling areas with ages 1 to 20 years have a 

 surface of 4 hectares. It therefore results that the total value of the coppice, that is to 

 say, the amount to be insured, will be 2,802 X 4 = 11,208 francs, or, in round num- 

 bers, 11,200 francs. 



(2) Reserve. The oak and beech with circumferences between 0.51 and 1.10 meters 

 are divided into three classes according to the table which follows (resulting from former 

 stocktaking and valuation) indicates the composition and the average value per hectare : 



See p. 288 for discussion. 



