Good Will

The financial editor of The Times (London) commented upon a recent decision of British insurance companies respecting Japan:

"We are able to announce a decision of an unprecedented character on the part of the British fire insurance companies in respect to the damage caused by the great earthquake in Japan of Sept. 1.

"The companies which definitely excluded from their policies in most precise terms all risk of loss or damage by earthquake have not seen their way to pay any claims in respect of risk which was so clearly excepted. The wording of the provision excluding risk of earthquake was, it is understood, submitted to and approved by the Japanese authorities before its issue.

"Were they to have paid the claims in respect to such damage, the wording of the policy conditions would have been set at naught and a precedent would be created which might well have proved disastrous to the conduct of insurance on sound lines.

"At the same time, the British insurance companies, wishing to give a clear sign of their good-will toward those who were insured against the ordinary risk of fire, and of sympathy for those who suffered losses, have decided to return to the insurees a full year's premium. This payment will, in the aggregate, represent a very substantial sum. The form which the return of the premiums will take will probably be that of willingness to cancel the payments due on the policies affected."