MODEL INSURANCE CALCULATIONS 535 



The sum of 134 francs being the capital to insure to guarantee the reserves on one hec- 

 tare, that corresponding to the whole forest will be 134 X 80 = 10,720 francs, or, in 

 round figures, 19,700 francs. 



(3) Roots. The cost of planting 1,000 plants may be estimated according to regional 

 costs at: 



Francs 



Purchase of 1,000 plants 10 



Transport, planting, and accessory expense 14 



Total 24 



5,000 plants per hectare will be sufficient to reconstitute the forest supposedly 

 entirely destroyed. It results, therefore, that the expense per hectare will be 24 francs X 

 5 = 120 francs and that for the 80 hectares of the forest, the capital to be insured in 

 view of the guarantee will be 120 francs X 80 = 9,600 francs. 



(4) Litter. The necessary expense for covering the soil with 1 kilogram of azote 

 can be valued locally as follows: 



Francs 



Purchase of manure yielding 1 kilogram of azote 1.50 



Transport, spreading, and necessary expense 0.50 



Total 2.00 



The average weight of the litter per hectare is 40 quintaux capable of furnishing 1 

 kilogram of azote per quintal or 40 kilograms of azote per hectare. It therefore follows 

 that the expense per hectare will be 2 francs X 40 = 80 francs and that for the 80 hec- 

 tares of the forest the capital to be insured will be 80 francs X 80 = 6,400 francs. 



The total capital to be insured will then be: 



Francs 



Coppice 11,200 



Reserves 10,700 



Roots 9,600 



Litter 6,400 



Total 37,900 



III. CALCULATIONS OF THE ANNUAL INSURANCE RATE 



(1) Charcoal is manufactured. 



(2) The forest has no fire lines, divisions, or brooks capable of stopping fire. 



These two factors increase the insurance risk each to the extent of 0.05 per cent or a 

 total of 0.10 per cent, which gives a final figure of 0.50 + 0.10 = 0.60 per cent. Apply- 

 ing this 0.60 per cent rate to the capital to be insured, it yields an annual rate to be paid 

 of 37.9 X 0.60 = 22.74 francs. 



A fire burns 3 hectares of the forest of which 2 hectares is coppice aged 8 years and 

 1 is hectare coppice aged 10 years 16 oaks and 60 beech and miscellaneous of circum- 

 ferences between 0.51 and 1.10 are destroyed. Half the stumps have been killed by 

 the fire. Two-thirds the litter is destroyed. 



IV. CALCULATION OF THE DAMAGE CAUSED 



Francs 



(1) Coppice. 2 hectares aged 8 years, worth 2 X 97 francs = 194 

 1 hectare aged 10 years, worth 1 X 125 francs = 125 



Total . 319 



