Chapter 26. To amend an Act entitled “An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department, ” approved September second, nineteen hundred and fourteen, and for other purposes
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CHAP. 26.— An Act To amend an Act entitled “An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department, ” approved September second, nineteen hundred and fourteen, and for other purposes. June 12, 1917. [[S. 2133](/us/bill/65/s/2133).] [[Public, No. 20](/us/pl/65/20).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, War Risk Insurance Bureau. Vol. 38, p. 711, amended. *Post*, 398.
That the first section of the Act entitled “An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department,” approved September second, nineteen hundred and fourteen, is hereby amended to read as follows: " Bureau established in Treasury Department. Director.“That there is established in the Treasury Department a bureau to be known as the Bureau of War Risk Insurance, the director of which shall be entitled to a salary at the rate of $5,000 per annum.
” " Sec. 2. Vol. 38, p. 711, amended. That section two of such Act is hereby amended to read as follows: " “Sec. 2. To insure American vessels, etc., against war losses. That the said Bureau of War Risk Insurance, subject to the general direction of the Secretary of the Treasury, shall, as soon as practicable, make provisions for the insurance by the United States of American vessels, their freight and passage moneys, cargoes Personal effects of masters, etc., added.shipped or to be shipped therein, and personal effects of the masters, officers, and crews thereof against loss or damage by the risks of war, whenever it shall appear to the Secretary that American vessels, shippers or importers in American vessels, or the masters, officers, 103or crews of such vessels, are unable in any trade to secure adequate war-risk insurance on reasonable terms.
“The Bureau of War Risk Insurance, subject to the general Insurance against loss of life, injury, etc., of crew.direction of the Secretary of the Treasury, shall, as soon as practicable, make provisions for the insurance by the United States, as further provided in section three a, of masters, officers, and crews of American merchant vessels against loss of life or personal injury by the risks of war, and for compensation during detention followingCompensation during capture. capture by enemies of the United States whenever it shall appear to the Secretary that in any trade the need for such insurance exists.
” " Sec. 3. That there is hereby added to such Act a new section, to be known as section two a, to read as follows: " “Sec. 2a. That the Bureau of War Risk Insurance, with theReinsurance of vessels, etc., of friendly nations. approval of the Secretary of the Treasury, is hereby authorized to make provisions for the reinsurance by the United States of vessels of foreign friendly flags or their cargoes, or both, when such vessels or their cargoes are insured by the Government of any country which is at war with an enemy of the United States; and, further, to reinsureReinsure American vessels with allied Governments. with the Governments of any countries which are at war with an enemy of the United States American vessels and their cargoes.*Post*, p. 897.
Vol. 38, p. 711, amended.” " Sec. 4. That section three of such Act is hereby amended to read as follows: " “Sec. 3. That the Bureau of War Risk Insurance, with thePolicies and premiums authorized. Rates. approval of the Secretary of the Treasury, is hereby authorized to adopt and publish forms of war-risk policies and to fix reasonable rates of premium for the policies which it is authorized to issue under this Act, which rates shall be subject to such change to each port and for each class as the Secretary shall find may be required by the circumstances.
All proceeds of the aforesaid premium and fromProceeds from premiums and salvage. salvage which have been or are hereafter received shall be covered into the Treasury of the United States to the credit of the Bureau of War Risk Insurance, and in addition to all other appropriations made under this Act are hereby permanently appropriated for theReappropriated for losses, etc. purpose of paying losses and return premiums accruing under this Act.” " Sec. 5. That there is hereby added to such Act a new section, to be known as section three a, to read as follows:
" “Sec. 3a. That whenever it shall appear to the Secretary of theOwner to insure master, etc., against loss of life, etc. Treasury that the effecting of such insurance is desirable in the national interest in the case of vessels engaged in any trade, the owner of every American merchant vessel engaged in such trade shall insure the master, officers, and crew of such vessel against loss of life or personal injury from war risks as well as for compensation during detention by an enemy of the United States following capture.
“Such insurance shall be effected either with the Bureau of WarManner of insurance. Risk Insurance or in insurance companies, and on terms satisfactory to the Secretary of the Treasury. “Such insurance shall provide, and the Bureau of War RiskPolicies authorized. Insurance is authorized to write policies so providing— “(a) In case of death, permanent disability which prevents theDeath, permanent disability, etc., payments. person injured from performing any and every kind of duty pertaining to his occupation, or the loss of both hands, both arras, both feet, both legs, or both eyes, or any two thereof, for the payment ofComputation of rates. an amount equivalent to one year’s earnings, or to twelve times the monthly earnings of the insured, as fixed in the articles for the voyage (hereinafter referred to as the principal sum), but in no caseLimit. shall such amount be more than $5,000 or less than 41,500;
“(b) In case of any of the following losses, for the payment of theSpecified disabilities. Rates. percentage of the principal sum indicated in the following tables: “One hand, fifty per centum; “One arm, sixty-five per centum; 104 “One foot, fifty per centum; “One leg, sixty-five per centum; “One eye, forty-five per centum; “Total destruction or hearing, fifty per centum; Other losses.“That the Bureau of War Risk Insurance may include in its policy undertakings to pay specified percentages of the principal sum for other losses or disabilities; and “(c) Rates during detention after capture.
In case of detention by an enemy of the United States, following capture, for the payment during the continuance of such detention of compensation at the same rate as the earnings of the insured immediately preceding such detention, to be determined in substantially the same manner as provided in subdivision
(a)of this section. Aggregate limited.“The aggregate payments under this section in respect to any one person shall not exceed the amount of the principal sum. Payments restricted.“Payments provided for in this section shall be made only to the master, officer, or member of the crew concerned, except that a payment for loss of fife shall be made to the estate of the insured for distribution to his family free from liability of debt, and payment on account of detention by an enemy following capture shall be made to dependents of the person detained, if designated by him. Time limit far presenting claims.“No claim under this section shall be valid unless made by the master, officer, or member of the crew concerned, or his estate, or a person designated under this section, within two years after the date on which the President suspends the operations of this Act in so far as it authorizes insurance by the United States.” " Sec. 6. That there is hereby added to such Act a new section to be known as section three b, to read as follows: " “Sec. 3b. Insurance if owner neglects. That in the event of failure of the owner of any vessel to effect insurance of the master, officers, and crew of such vessel prior to sailing, in accordance with section three a of this Act, the Secretary of the Treasury is hereby authorized to effect such insurance with the Liability of owner, penalty, etc.Bureau of War Risk Insurance at the expense of the owner of such vessel, and the hitter shall be liable for such expense and, in addition, to a penalty of not exceeding $1,000. The amount of such premium, with interest and of the penalty and of all costs, shall be a lien on the vessel.” " Sec. 7. Vol. 38, p. 711, amended. That section five of such Act is hereby amended to read as follows: " “Sec. 5. Advisory board established. Duties. *Post*, p. 898. That the Secretary of the Treasury is authorized to establish an advisory board, to consist of three members skilled in the practices of war-risk insurance, for the purpose of assisting the Bureau of War Risk Insurance in fixing rates of premium and in adjustment of claims for losses, and generally in carrying out the Compensation.purposes of this Act; the compensation of the members of said board to be determined by the Secretary of the Treasury, but not to exceed $20 Additional members for death, etc., claims.a day each, while actually employed. He is likewise authorized to appoint two persons skilled in the practices of accident insurance for the purpose of assisting the Bureau of War Risk Insurance in the adjustment of claims for death, personal injury, or detention; the compensation of the persons so appointed to be determined by the Secretary of the Treasury, but not to exceed $20 a day each, while Determination of disagreements by admiralty courts.actually employed. In the event of disagreement as to the claim for losses, or amount thereof, between the said bureau and the parties to such contract of insurance, an action on the claim may be brought against the United States in the district court of the United States, sitting in admiralty, in the district in which the claimant or his agent may reside.” " Sec. 8. That there is hereby added to such Act a new section to be known as section five a, to read as follows: 105 " “Sec. 5a. No claim agent or attorney shall be entitled to receiveRestriction on paying for services by attorneys. any compensation whatever for services in the collection of claims against the Bureau of War Risk Insurance for death, personal injury, or detention, except when proceedings are taken in accordance with section five in a district court of the United States, in which case the judge shall, as a part of his determination and order, settle and determine the amount of compensation not to exceed ten per centum of amount recovered, to be paid by the claimant on behalf of whom such proceedings are instituted to his legal adviser or advisers, and it shall be unlawful for any lawyer or other person acting in that behalf to ask for, contract for, or receive any larger sum than the amount so fixed.” " Sec. 9. That section seven of such Act is hereby amended to readVol. 38, p. 712, amended. as follows: " “Sec. 7. That for the purpose of paying losses and return premiumsAppropriation for paying losses, etc., increased. accruing under the provisions of this Act there is hereby appropriated out of any money in the Treasury of the United States not otherwise appropriated, the sum of $50,000,000.” " Sec. 10. That section eight of such Act is hereby amended to readVol. 38, p. 712, amended. as follows: " “Sec. 8. That there is hereby appropriated, for the purpose ofAppropriation for Bureau salaries and expenses. defraying the expenses of the establishment and maintenance of the Bureau of War Risk Insurance, including the payment of salaries herein authorized and other personal services, and for the purchase of necessary books of reference, periodicals, etc., that may be paid for in advance out of any money in the Treasury of the United States not otherwise appropriated, the sum of $250,000.” " Sec. 11. That section nine of such Act is hereby amended to readVol. 38, p. 712, amended. as follows: " “Sec. 9. That the President is authorized whenever in his judgmentSuspension of Act when necessity ceases. *Post*, p. 898. the necessity of further war insurance by the United States shall have ceased to exist to suspend the operation of the Act, in so far as it authorizes insurance by the United States against loss or damage by risks of war, which suspension shall be made, in any event, within four years after the passage of this Act, but shall not affectOutstanding claims not affected. any insurance outstanding at the time or any claims pending adjustment. For the purpose of the final adjustment of any suchContinuance of Bureau. outstanding insurance or claims, the Bureau of War Risk Insurance may, in the discretion of the President, be continued in existence a further period not exceeding three years.” " Sec. 12. That the Act entitled “An Act to amend an Act entitledFormer amendments repealed. Vol. 39, pp. 514, 1131. ‘An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department,’ approved September second, nineteen hundred and fourteen,” approved August eleventh, nineteen hundred and sixteen, and the Act entitled “An Act to amend an Act entitled ‘An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department,’ approved September second, nineteen hundred and fourteen,” approved March third, nineteen hundred and seventeen, are hereby repealed. Approved, June 12, 1917.