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War Damage Insurance of Machinery

War Damage Insurance of Machinery 252 AIRCRAFT ENGINEERING September, 1941 Th e Position as Between Buyer and Seller i n Regard to "Fixed " and "Movable " Plant HER E machinery and plant is sold, with power, water, lifts and elevators, railway The sellers, however, would not be bound to usually on the terms that the seller is and tramway lines and tracks, and parts of a insure the goods under the business scheme, t o carry out the work of installation, plant or of a combination of plant and machin­ where the buyers were placed under any difficult questions have arisen, under both the ery may in certain circumstances also be obligation to repair or replace the goods in the War Risks Insurance Act 1939 and the War " fixed " if they are in the nature of a building event of war damage or where the goods were Damage Act 1941, as to the exten t of the obliga­ or a structure. th e subject of a hire purchase agreement. tions imposed on the sellers with regard to With regard to machinery and plant used in Where the purchasers were under any such insurance against war damage. In many cases, connexion with water, or for example, for the obligation to repair or replace, or were purchas­ moreover, the position is complicated by the ing under a hire purchase agreement, they purpose of heating, cooling, ventilating, lighting, fact that the sellers retain ownership until the would be bound to insure the plant and machin­ draining or supplying water, the fact that such purchase price has been fully paid, an event machinery and plant is used lor the purpose of ery under the business scheme. which may take some little time, or again by manufacturing operations or trade processes And this leads us finally to a consideration of the fact that the machinery and plant is being will not, it seems, cause it to be treated or fixed th e sellers' position under the commodity bought on hire purchase terms. machinery within the Schedule. insurance scheme where they are selling goods One matter which should be determined at Suppose now that a company has entered on hire purchase terms. the start is whether the plant and machinery is into a contract to supply and instal fixed Whether the sellers would nevertheless be " fixed " and as such falls within the schedule machinery and plant on the purchaser's bound to include such goods being sold on hire to the valuation for Rating Order 1927. If it premises. purchase as part of their stock for insurance is fixed, then upon its installation it will become • The machinery and plant will contribute under the commodity insurance scheme would annexed to the land and will form part of the par t of the stock of the company, and it will depend on the business of the buyers and also land itself, for the purposes of Part I of the have to be insured by the company with the other on the number of instalments and the period War Damage Act, 1941. stock under th e commodity insurance scheme. over which the instalments were spread under Any liability under which the seller may have The machinery and stock would continue to the agreement. previously been of insuring the plant and mach­ be so insurable by the company until it had been Thus the sellers would not have to insure inery against war damage under any scheme erected and installed on the purchaser's prem­ under the commodity insurance scheme if the will thereupon immediately cease, even though ises. But upon installation, this liability would buyers did not carry on the business of selling, the seller may under the contract be still the cease, for the machinery and plant would no letting or hiring goods of the kind sold to them, owner. In such an event the plant and machin­ longer retain the character of " goods ", but and if further, the agreement provided for pay­ ery will form part of the land in respect of would become part of the land. ment of four or more instalments, spread over which the contribution under Part I of the War If the company still retained the right of a period of six months or more. Nor, of course, Damage Act, 1941, will be payable, and com­ removal until the purchase price was paid the as already pointed out, would the seller be pensation will likewise be payable in the man­ company would be entitled to compensation under any obligation to insure the goods under ner provided by Par t I. in the form of a portion of any value payment the business scheme, for they would be goods tha t was made. Thus, if, while the seller still retains an subject to a hire purchase agreement. It interest in the machinery and plant (because Bu t suppose now that the machinery and would be open to the sellers of course to insure for example, he is unpaid, and is still the plant was not of a " fixed " character. the goods voluntarily under the business owner, or because a hire purchase agreement is I t would seem that upon installation, the scheme, to the extent of the value of their still in force), war damage should occur, the machinery and plant would cease to be "goods" interest therein. seller would be entitled to a portion of the within the " commodity insurance scheme " The value of the sellers' interest would be value payment that the War Damage Com­ bu t that they would still be " goods " for the determinable according to the following for­ mission might determine to make in respect purpose of the " business scheme." If, there­ mula: of the whole property. This right the seller fore, the sellers still enjoyed ownership in the would enjoy under S.46 (4) of the Act, because machinery and plant, even after installation, he would have the right of removing the then it would appear that the sellers might be machinery and plant if he were unpaid. liable in certain circumstances to insure the Thus, if the cost price of the whole article is same, under the business scheme; for the In some cases it may be difficult to determine £500 and the Hire Purchase Price is £750 and machinery and plant would constitute goods, whether machinery and plant comes within th e Instalments paid amount to £100, the value which though not in th e possession of the sellers the Schedule. The test clearly is not whether of the sellers' interest at that date would be were owned by them in the course of their the machinery and plant is rated or is rateable. business (see section 60 (1) (b) of the War Generally the machinery and plant which Damage Act). fall within the schedule are used in connexion (1224) Aero - an d Hydrodynamics LIST OF SELECTED TRANSLATIONS WAGNER , H. ...The Provision for Taking up (1220) SIMON , H. Longitudinal Forces in Thin ...Aerodynamics of the Fuselage. MULTHROPP APPLICATION for the loan of copies of Walled Cylindrical Shell (L.F.F . Vol. 18. No. 2/3. translations mentioned below should be Structures. (L.F.F., Vol. 13, 29-3-41, pp. 52-66.) No . 9, 1936, pp . 293-308.) (1226) addressed to the Secretary, Ministry of ...Resistance Coefficients of Com­ ECKERT, B. Aircraft Production (R.T.P . 3), Thames House, Theor y of Warfare PFLUGER, F . mercial Type of Wire Grids. (1223) (L.F.F . Vol. 18, No. 4, Millbank, S.W.1, and copies will be loaned as ...Vulnerability of Aerial Targets. BORSANI, D . 22-4-41, pp . 142-146.) far as availability of stocks permits. Lists of (L'Ingegnere, Vol. 18, No. 5, (1234) 1940, pp. 369-374.) selected translations have appeared in AIRCRAFT KURLE , E. ...Numerical Calculation of the (1225) Mutual Point of a Wing. ENGINEERING since September, 1938. ...Estimation of Aircraft Distance SXEHLI , R. H. (L.F.F . Vol. 17, No. 9, With the help of Binoculars. 20-9-40, pp. 257-266.) (Flugwehr und Technik, Vol. LIS T No, 36 2, No. 10, Oct., 1940, pp. Aircraf t and Accessories 226-227.) (1228) (1219) (1232) ...The Influence of the Mack HTORTH , N. ...Towed Gliders. (Flugsport, Vol. WOLLF, H . , A....Soun d Location of Invisible KUIILEN KAMP Number on the Efficiency of 33, No. 1/2, pp. 10-15 and Aircraft. (Z.V.D.I., Vol. 85, Airscrews. (L.F.F. Vol. 18, 35-37.) No . 17, 26-4-41, pp . 393-400.) No . 2/3, 29-3-41, pp. 67-69.) Structur e Miscellaneou s (1227) (1218) (1233) BKODE , K. ...Dornier D.O. 18 Flying Boat FOHLBUSCH , H . ...The Loading of Circular Frame ACKERET, J . ...Closed Circuit Aerodynamical Fitted with B.M.W. 132 Air- WAGNER , W . Members in Shell Structures. KELLER , C. Heat Engines. (Hot Air Tur­ cooled Radial Engine. (Luft- (L.F.F. , Vol. 18, No. 4, bines.) (Z.V.D.I., Vol. 85, wissen, Vol. 7, No. 12, Dec., 1940, pp. 420/422.) 22-4-41, pp . 122-127.) No . 22, 31-5-41, pp . 491-500.) http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Aircraft Engineering and Aerospace Technology Emerald Publishing

War Damage Insurance of Machinery

Aircraft Engineering and Aerospace Technology , Volume 13 (9): 1 – Sep 1, 1941

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0002-2667
DOI
10.1108/eb030821
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Abstract

252 AIRCRAFT ENGINEERING September, 1941 Th e Position as Between Buyer and Seller i n Regard to "Fixed " and "Movable " Plant HER E machinery and plant is sold, with power, water, lifts and elevators, railway The sellers, however, would not be bound to usually on the terms that the seller is and tramway lines and tracks, and parts of a insure the goods under the business scheme, t o carry out the work of installation, plant or of a combination of plant and machin­ where the buyers were placed under any difficult questions have arisen, under both the ery may in certain circumstances also be obligation to repair or replace the goods in the War Risks Insurance Act 1939 and the War " fixed " if they are in the nature of a building event of war damage or where the goods were Damage Act 1941, as to the exten t of the obliga­ or a structure. th e subject of a hire purchase agreement. tions imposed on the sellers with regard to With regard to machinery and plant used in Where the purchasers were under any such insurance against war damage. In many cases, connexion with water, or for example, for the obligation to repair or replace, or were purchas­ moreover, the position is complicated by the ing under a hire purchase agreement, they purpose of heating, cooling, ventilating, lighting, fact that the sellers retain ownership until the would be bound to insure the plant and machin­ draining or supplying water, the fact that such purchase price has been fully paid, an event machinery and plant is used lor the purpose of ery under the business scheme. which may take some little time, or again by manufacturing operations or trade processes And this leads us finally to a consideration of the fact that the machinery and plant is being will not, it seems, cause it to be treated or fixed th e sellers' position under the commodity bought on hire purchase terms. machinery within the Schedule. insurance scheme where they are selling goods One matter which should be determined at Suppose now that a company has entered on hire purchase terms. the start is whether the plant and machinery is into a contract to supply and instal fixed Whether the sellers would nevertheless be " fixed " and as such falls within the schedule machinery and plant on the purchaser's bound to include such goods being sold on hire to the valuation for Rating Order 1927. If it premises. purchase as part of their stock for insurance is fixed, then upon its installation it will become • The machinery and plant will contribute under the commodity insurance scheme would annexed to the land and will form part of the par t of the stock of the company, and it will depend on the business of the buyers and also land itself, for the purposes of Part I of the have to be insured by the company with the other on the number of instalments and the period War Damage Act, 1941. stock under th e commodity insurance scheme. over which the instalments were spread under Any liability under which the seller may have The machinery and stock would continue to the agreement. previously been of insuring the plant and mach­ be so insurable by the company until it had been Thus the sellers would not have to insure inery against war damage under any scheme erected and installed on the purchaser's prem­ under the commodity insurance scheme if the will thereupon immediately cease, even though ises. But upon installation, this liability would buyers did not carry on the business of selling, the seller may under the contract be still the cease, for the machinery and plant would no letting or hiring goods of the kind sold to them, owner. In such an event the plant and machin­ longer retain the character of " goods ", but and if further, the agreement provided for pay­ ery will form part of the land in respect of would become part of the land. ment of four or more instalments, spread over which the contribution under Part I of the War If the company still retained the right of a period of six months or more. Nor, of course, Damage Act, 1941, will be payable, and com­ removal until the purchase price was paid the as already pointed out, would the seller be pensation will likewise be payable in the man­ company would be entitled to compensation under any obligation to insure the goods under ner provided by Par t I. in the form of a portion of any value payment the business scheme, for they would be goods tha t was made. Thus, if, while the seller still retains an subject to a hire purchase agreement. It interest in the machinery and plant (because Bu t suppose now that the machinery and would be open to the sellers of course to insure for example, he is unpaid, and is still the plant was not of a " fixed " character. the goods voluntarily under the business owner, or because a hire purchase agreement is I t would seem that upon installation, the scheme, to the extent of the value of their still in force), war damage should occur, the machinery and plant would cease to be "goods" interest therein. seller would be entitled to a portion of the within the " commodity insurance scheme " The value of the sellers' interest would be value payment that the War Damage Com­ bu t that they would still be " goods " for the determinable according to the following for­ mission might determine to make in respect purpose of the " business scheme." If, there­ mula: of the whole property. This right the seller fore, the sellers still enjoyed ownership in the would enjoy under S.46 (4) of the Act, because machinery and plant, even after installation, he would have the right of removing the then it would appear that the sellers might be machinery and plant if he were unpaid. liable in certain circumstances to insure the Thus, if the cost price of the whole article is same, under the business scheme; for the In some cases it may be difficult to determine £500 and the Hire Purchase Price is £750 and machinery and plant would constitute goods, whether machinery and plant comes within th e Instalments paid amount to £100, the value which though not in th e possession of the sellers the Schedule. The test clearly is not whether of the sellers' interest at that date would be were owned by them in the course of their the machinery and plant is rated or is rateable. business (see section 60 (1) (b) of the War Generally the machinery and plant which Damage Act). fall within the schedule are used in connexion (1224) Aero - an d Hydrodynamics LIST OF SELECTED TRANSLATIONS WAGNER , H. ...The Provision for Taking up (1220) SIMON , H. Longitudinal Forces in Thin ...Aerodynamics of the Fuselage. MULTHROPP APPLICATION for the loan of copies of Walled Cylindrical Shell (L.F.F . Vol. 18. No. 2/3. translations mentioned below should be Structures. (L.F.F., Vol. 13, 29-3-41, pp. 52-66.) No . 9, 1936, pp . 293-308.) (1226) addressed to the Secretary, Ministry of ...Resistance Coefficients of Com­ ECKERT, B. Aircraft Production (R.T.P . 3), Thames House, Theor y of Warfare PFLUGER, F . mercial Type of Wire Grids. (1223) (L.F.F . Vol. 18, No. 4, Millbank, S.W.1, and copies will be loaned as ...Vulnerability of Aerial Targets. BORSANI, D . 22-4-41, pp . 142-146.) far as availability of stocks permits. Lists of (L'Ingegnere, Vol. 18, No. 5, (1234) 1940, pp. 369-374.) selected translations have appeared in AIRCRAFT KURLE , E. ...Numerical Calculation of the (1225) Mutual Point of a Wing. ENGINEERING since September, 1938. ...Estimation of Aircraft Distance SXEHLI , R. H. (L.F.F . Vol. 17, No. 9, With the help of Binoculars. 20-9-40, pp. 257-266.) (Flugwehr und Technik, Vol. LIS T No, 36 2, No. 10, Oct., 1940, pp. Aircraf t and Accessories 226-227.) (1228) (1219) (1232) ...The Influence of the Mack HTORTH , N. ...Towed Gliders. (Flugsport, Vol. WOLLF, H . , A....Soun d Location of Invisible KUIILEN KAMP Number on the Efficiency of 33, No. 1/2, pp. 10-15 and Aircraft. (Z.V.D.I., Vol. 85, Airscrews. (L.F.F. Vol. 18, 35-37.) No . 17, 26-4-41, pp . 393-400.) No . 2/3, 29-3-41, pp. 67-69.) Structur e Miscellaneou s (1227) (1218) (1233) BKODE , K. ...Dornier D.O. 18 Flying Boat FOHLBUSCH , H . ...The Loading of Circular Frame ACKERET, J . ...Closed Circuit Aerodynamical Fitted with B.M.W. 132 Air- WAGNER , W . Members in Shell Structures. KELLER , C. Heat Engines. (Hot Air Tur­ cooled Radial Engine. (Luft- (L.F.F. , Vol. 18, No. 4, bines.) (Z.V.D.I., Vol. 85, wissen, Vol. 7, No. 12, Dec., 1940, pp. 420/422.) 22-4-41, pp . 122-127.) No . 22, 31-5-41, pp . 491-500.)

Journal

Aircraft Engineering and Aerospace TechnologyEmerald Publishing

Published: Sep 1, 1941

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