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film. We accept the contention of the Fire Insurance issociation that in the strictest sense the observance of the regulations is no concern of theirs but rests with the owners and godown-keepers, but we consider that in their own interests a realignment of their classification might

be of advantage.

80. The classification above applies only to premises in non-Chinese

ownership. Premises in Chinese ownership have a different tariff, The

premium rate here depends on whether the godown is to be used for the

storage of goods not excluded by a special warranty. A list of these

goods is also shown in Appendix 4, and it will be seen to be a simplified combination of the "hazardous/extra-hazardous" classification used for

European-owned places of storage and is referred to in the Appendix as

"Chinese Hazardous". It suffers from the same shortcomings as the list

of extra-hazardous goods. In addition to this simple dual classification

of places of storage, there is a further classification into premises

not used for domestic purposes or premises partially used for domestic

purposes. The highest premium is charged for storage "without warranty"

in the latter class of premises. As the storage of many of the goods

excluded by the warranty in premises partially used for domestic pur-

poses is absolutely prohibited by the Dangerous Goods Regulations, the

acceptance of insurance in these cases might be construed as encourag-

ing breaches of the law. We recommend that the Fire Insurance Assoc-

iation, of which we understand the vast majority of companies engaged

in this class of business are members, should recommend to its members

that they refuse to quote a rate of insurance for storage without war-

ranty in premises partially used for domestic purposes. We consider

that the provision of a legal requirement to this effect is not a prac-

tical proposition. We realise that refusal to grant insurance cover

will not prevent storage of dangerous goods in buildings partially used

for domestic purposes, but it would go a long way towards making it

less attractive.

81. We understand that the Fire Insurance Association is now examining

its dual system of tariffs for Chinese and non-Chinese owned places of

storage, with a view to producing a unified tariff. We consider that

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