1908.] 



Insurance of Live Stock. 



39 



This gives an average of 53 members to each society and an 

 average insurance of £43 to each member. No information is 

 given as to the number of animals insured, but it is evident 

 from the amount of the insurance that it would average three 

 to four each, so that the total number of cattle insured may be 

 estimated at about 1,250,000. The small size of the societies 

 is largely due to the fact that it is considered desirable that their 

 operations should be restricted as a rule to a single commune, 

 experience having shown that small societies are likely to be 

 most successful, as they allow members to see that claims for 

 compensation are not improperly made and also to keep the 

 management entirely in their own hands. 



Premiums and Compensation. — The organization of these 

 societies varies in different districts. In some cases instead of 

 the payment by each member of a fixed premium dependent 

 on the capital value insured, the amount of the losses is shared 

 amongst the members quarterly or half-yearly, the whole 

 business of payment of losses and collection of subscriptions 

 being transacted at one meeting. The French Minister of 

 Agriculture points out that this method has the advantage of 

 being easily understood by persons not well acquainted with 

 co-operative methods, and tends to remove those feelings of 

 distrust which are sometimes found in centres not yet 

 accustomed to insurance or co-operation. Another type of 

 society is that requiring the payment of a fixed annual premium. 

 The members of these associations pay an entrance fee of iod. 

 per animal insured, but this is frequently reduced to $d. in the 

 first year of the society's existence. The annual premium is 

 1 per cent, of the value of the cattle insured, but this may be 

 increased if it is insufficient to meet the demands. Compensa- 

 tion is paid for losses at the rate of 80 per cent., less any sums 

 received for the flesh, &c, of the dead animal. No com- 

 pensation is paid for deaths of animals under three months old 

 or for cows over twelve years old. 



Re-insurance. — The Ministry of Agriculture particularly 

 encourages the formation of federations of the local societies 

 for the purpose of re-insurance. There are now 44 of these 

 unions, embracing 2,200 local societies and representing 

 insurance to the amount of £4,250,000 sterling. The con- 

 tribution made by the local societies amounts to from 2s. to 4s. 

 per £100. 



