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June, 1941 AIRCRAFT ENGINEERING 161 Th e Provisions of the "Business Scheme" and its Relation to Previous British Government Enactments N addition to the scheme of compensation in obscure. Thus, for example, if a manufacturer covers the period down to the 15th June, 1941, respect of land, buildings and fixed plant and or trader who owned materials put out the the second till the 15th August, 1941, and the machinery which formed the subject of the materials to a sub-contractor, for the purpose third till the end of September, 1941. article published last month, there is a further of having them worked up into finished articles, All the " business assets " insurable under the scheme, called the " Business Scheme ", which th e manufacturer or trader who owned the business scheme must be insured if their value has been introduced by Part II of the Act. materials would be obliged to insure them as exceeds £1,000, and they must be insured for Under this scheme, which must be carefully par t of his stock under the commodity insur their full value. distinguished from the existing commodity ance scheme, since the manufacturer or trader The value for this purpose will be taken as insurance scheme, under which a trader's stock would be in the position of a seller or supplier th e cost of replacement with an allowance for or materials is insurable under Part II of the in relation to the goods. By virtue of the depreciation owing to age, wear and tear and War Risks Insurance Act, 1939, all the business extension of the commodity insurance scheme, the like. It is hardly necessary to add that the assets of a trade or business will be insurable. by Part III of the War Damage Act, the sub goods may not be over-insured, since only their contractor is enabled also to insure such Business assets for this purpose will include, value a t the time of the damage will be paid by materials in his possession to the extent of his all movable plant and machinery—as distinct way of compensation. from immovable plant and machinery which interest in them, i.e. to the extent of the work If the value of the business assets is less than comes within the scheme under Part I of the and labour he has put into them, the value of £1,000, insurance under the scheme will be which he could recover. The firm putting out Act. There will also be included in the business voluntary. And if the value is £100 or less, the materials would not be liable for the work scheme all office and shop furniture and equip insurance may be effected only under the private and labour expended on them by the sub ment. Therefore such articles as patterns, jigs, chattels scheme. The rate of the premium in contractor up to the time of the damage. tools, printer's blocks and the like will be such a case will be only £1 per cent. Furthermore, by reason of the extension of the insurable under the business scheme. But any In the event of under-insurance, the trader commodity insurance scheme by S.74 of the Act, documents owned for the purpose of a business, or manufacturer will be liable to penalties. such as deeds, books, ledgers and the like are the sub-contractor also may now be required to And in addition the policy will be liable to not insurable at all. This is by reason of the insure the materials, a t any rate t o the exten t of " averaging." Thus, if the value of the business definition of "goods " in S.95 (1) of the Act his interest therein, under the commodity insur assets is £5,000, and they are underinsured, for ance scheme. For power is conferred, by S.74 which excludes such documents. example, to the extent of 50 per cent of their of the War Damage Act, 1941, on the Board of In the case of business assets which are not value, i.e. on the sum of £2,500, only half of any Trade to extend the scheme to such cases. But owned but are in the possession of the person loss will be paid. Thus, if insured goods to the before such an extension can take effect, it carrying on the business, as, for example, if they value of £1,000 are destroyed only £500 will be seems that it will be necessary for the Board of are being hired by him or are being bought on paid by way of compensation because the goods Trade to make an Order extending the scheme the instalment plan, such person will be liable were insured for only half their value. in this way. The materials, it should be to include them, notwithstanding, among his I t should incidentally be observed that apart observed, would not come under the " business business assets, if he has agreed with the owner from its extension, by S.74 of the War Damage scheme," as they would be in the nature of t o be responsible for any war damage that Act, 1941, in particular, the commodity insur stock and not of business assets. In cases of may be sustained by the goods. ance scheme remains unchanged, and insurance doubt or difficulty as to whether particular Again, if goods are being warehoused, the of stock if over £1,000 in value will still be com- goods come within the business scheme or warehouseman, who, of course, will not be the pulsorily insurable under that scheme. commodity insurance scheme, the Board of owner of the goods, must include them among Trade would be prepared to consider representa The new scheme under the War Damage Act, his business assets, if he is responsible to the tions, particularly if they were backed by a 1941, replaces the general proposals made by the owner for their safe return even in the event of responsible trade association. Government with regard to war damage. war damage. Otherwise, i.e. if he is not so responsible, a warehouseman may voluntarily Compensation for damage to business assets The business scheme came into operation on insure such goods, bu t only to the extent of his insurable under the business scheme will in the 17th April, 1941, and persons who desire interest therein, that is to say, to the extent of general be paid after the war, and will carry th e necessary benefits in respect of war damage his lien on the goods for his charges. 21 per cent interest in the meantime. tha t may have already occurred or which might Immediate payment, however, will be made I t should be pointed out, however, that the occur by the end of September, 1941, must have distinction between goods which are insurable of claims not exceeding £100 or where there- taken out a policy and pay the appropriate under the business scheme, and those which are placement or repair of the business assets is premium before the 17th May, 1941.* necessary in the public interest. Thus imme insurable under the existing commodities The rate for the period from the beginning diate payment would be made where the busi insurance scheme (under Part II of the War of the war down to the end of September, 1941, ness equipment of aircraft factories were de Risks Insurance Act (1939), as now extended is 30/- per cent, but three policies a t a premium stroyed, though the compensation would be b y Part II I of the War Damage Act 1941, may of 10/- per cent each will be issued. The first required to be applied towards the reinstate in some cases be very fine. And indeed the men t of the damaged goods. provisions of the Act in these respects are very *This date has now been extended to June 15.—EDITOR.
Aircraft Engineering and Aerospace Technology – Emerald Publishing
Published: Jun 1, 1941
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