Sky Insurance

Before automobile and airplane accidents crowded railroad wrecks off front pages ticket agents did a good business passing out $5,000 insurance policies, covering death and disablement and good for one day's travel, at 25-c- apiece. Now, so phenomenally safe are railroads, fewer riders bother to insure. But air travelers with no such feeling of security are anxious to insure beyond their ordinary life insurance, and insurance groups have long pondered what rates they could make to obtain this potential new business. Last week, Air Transport Association of America announced a new $5,000 policy for airline travelers, roughly similar to railroad insurance, and at the same price, 25-c-.

Available after January i, the new policies will cover death, or disability by loss of hands, feet or eyes for a fixed sum, $5,000, at a rate of 25-c- for each four hours flying time during specified trips. Each policy is good for seven days, covers stopovers, delays, alternative transport by rail or steamer and airline conveyance to and from airports. Only hours actually in the air, according to the airline's schedule, are counted in fixing the rate. Slightly under the general rate, Newark-Chicago insurance costs 25-c- and any transcontinental flight, $1. Policies will be handled by ticket agents at counters of all airlines, one of the selling features being the record time and ease of handling--two signatures on the ready-made form, ten seconds of time and the passenger is insured.

Behind the policy is Associated Aviation Underwriters who, with United States Aviation Underwriters and Aero Insurance Underwriters, specialize in air-travelers' insurance. Big difficulty of actuaries was to obtain a broad enough base for computing risks because although airlines roll up countless millions of ''passenger miles" only about 350,000 individuals actually fly each year and of these barely 5% take extra air insurance at present rates. Nevertheless, U. S. Bureau of Air Commerce charts show that while eight years ago airplanes flew 125,000 miles, today they fly 1,050,000 between accidents and 7,330,000 miles between fatal accidents. That insurance companies can now bet $5,000 to two bits against a passenger being killed or crippled on a flight of some 800 miles, is one of the best pieces of publicity which U. S. airlines have ever had,

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