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Pee eT ae a ee ee eee ee ° Mutual Protection Provided for Waterfront Employes By Robert C. Hill UTUAL protection at lowered M rates was the primary pur- pose of the Stevedores’ Self Insurance pool, organized in 1929 by a number of employers in the State of Washington. The first annual re- port of this organization shows that what began as an experiment has proved a decided success. Not only have the costs been reduced but im- proved relations with the men have been established. The plan of the Washington steve- dores is unique but its fame has spread to many ports which are de- sirous of following suit. Inquiries have been received from New York, Boston, Baltimore, Gulf ports and the principal ports in California and Oregon. Lloyds, London, is also in- terested judging by a recent com- munication which asks for details of the pool. No immediate expansion is planned by the local sponsors of the pool except that it is intended to cover the ports of the Columbia river dur- ing the coming year. The Stevedores’ Self Insurance pool maintains headquarters at 719 Second avenue, Seattle. D. K. MacDonald, a widely known insurance expert, is trustee. Frank P. Foisie is supervisor of claims, and Frank K. Hitching, of wide shipping experience, is man- ager of the pool office. Started as Experiment Mutual insurance for the stevedor- ing industry is in line with the joint shop plan of employment, which orig- inated in Seattle and has brought peace and order to the Seattle water- front. This plan has been adopted in some other ports, either in whole or in part. Premium rates for covering stevedoring hazards have always been high for it is a dangerous occupation. Past experiences had not always been satisfactory either for the employers or for the men, who naturally have always held the insurance adjuster in open suspicion. When the pooling of insurance was proposed there were many doubters but it was decided to try the experi- ment. It has been more successful than expected and its sponsors are extremely gratified over the first year’s showing. Briefly, the opera- tions of the first twelve months show that a substantial saving in premiums has been effected, the cost being less than two-thirds that of insuring with private companies while results have been satisfactory to everyone. Close contact with the injured man and his family have brought about more cor- dial relations. Particular pains are taken to insure the victim of an ac- cident prompt adjustment of his claim and regular payments due him. The manager frequently calls on the dis- abled workman and he is treated with sympathetic consideration, everything possible being done for his welfare. Consequently the former hostile at- titude of the men towards adjusters and the insurance companies has been removed. Under present conditions injured longshoremen know that they will be given a square deal and in some instances, to their surprise, they have received more compensation than they thought was due them. Close co-operation is maintained with the officials of the United States employes’ compensation act with the © view of giving the worker all that the law allows to the end that he may be back on the job as soon as pos- sible. Between 400 and 500 claims were adjusted, both for death and injury, by the Stevedores’ Self Insurance pool during the year. In all cases where there was a dispute, settlement has been reached without resorting to litigation. The pool began operations July 1, 1929. As their first contribution the member stevedores each paid into the fund one-twelfth of their annual pay- rolls. In subsequent months pay- ments have been based on a percent- age of each member’s payroll, as fol- lows: For compensation insurance; per CLO0. OR DAVTOU souk cases atcereces $9.35 For vessel liability; per $100 of PANT Ol ites escc ine ov er cou ee ene 1.50 For reinsurance (in excess of $5000) Of payroll: c50 3 ccecctices .90 For public liability per $100 of payroll Cee ee meee renee ees ee eee nesses sense eeeessssese® Total DLCMNIM: COSE 250.20. $12.05 This rate shows a substantial sav- ing compared with the cost of insur- ance previously. The former rate to- taled $18.82 per $100 of payroll of which compensation alone cost $14.70. The pool’s annual report indicates that the actual cost of insurance dur- ing the first year’s operations was ap- proximately $8 per $100, which is only two-thirds of the money paid in, thus allowing a very satisfactory reserve and balance after the payment of all claims and operating expenses. Marked savings have also been ef- fected in operating costs. Overhead of liability and ordinary insurances companies average, it is said, about MARINE REVIEw—January, 1931 40 per cent of income. The Self In- surance pool, under its by-laws, is limited to a total outlay of 15 per cent of which 10 per cent is allocated to operating disbursements and 5 per cent is paid to the trustee officer. The success of the pool plan is in- volved in adequate reinsurance for without this protection, the resources of a small group might easily be wiped out by one serious mishap causing several deaths and the in- jury to a large number. The pooling arrangement protects members for in- dividual claims not exceeding $5000 each. Losses greater than this sum are covered by reinsurance to a max- imum of $500,000 placed with one of the most reliable companies in the country. Reinsurance also covers the pool’s losses up to $500,000 if they ex- ceed 90 per cent of income. This fea- ture gives the members of the pool not only full coverage but also se- curity in the event of an unusually serious accident. The first twelve months show that the pool’s losses reached a ratio of only 60 per cent. There were no losses under vessel and public liability and the reinsurance company paid only one claim. Conse- quently the reinsurance company also enjoyed a profitable business in its pool risk. There are stevedoring companies in this state which have worked on the plan of carrying their own insurance but it is claimed their operating costs are higher than those of the pool. The success of the latter organization has been so marked that additional mem- berships are promised as soon as some pending insurance contracts ex- pire. Sponsors of the pool are well satisfied with the figures covering the first year’s business. They believe they have solved a problem that has perplexed the industry for a long time. Not the least important achievement, in their opinion, in ad- dition to reduced premiums, is the fact that improved relations with the working man have been established, for sympathy and justice towards the worker is bringing dividends in the form of confidence and loyalty. Club Rooms Maintained for Ship Officers and Crews NIQUE in dock management is U the service furnished by the East Waterway Dock & Warehouse Co., Seattle, which has fitted up com- fortable and attractive club rooms for the use of ships’ officers and crews. These accommodations are greatly appreciated and have brought the Seattle terminal favorable comment from many other quarters. Masters and seafaring men who have en- joyed the hospitality of the local dock company have broadcast the fact that here they were given courteous consideration. The club rooms are installed in the 49