UK UNVEILS NEW WAR-RISK ARRANGEMENTS

UK UNVEILS NEW WAR-RISK ARRANGEMENTS

The Britain government has extended reinsurance arrangements for British- owned ships during hostilities involving the United Kingdom.

Transport Secretary Paul Channon announced last week in Parliament that special war-risk cover, which is the supplementary insurance protection on vessels entering war-torn areas, will be extended to all British-owned merchant ships. Previously only ships on the British register were covered.Mr. Channon said he had entered into separate arrangements with 10 British mutual war-risk insurance associations under the Marine and Aviation Insurance (War-Risk) Act 1952 to provide reinsurance against war risks to shipping.

However, the change will not affect British-owned vessels trading in the most important war-affected area today - the Persian Gulf - because Britain is not itself involved in the conflict there.