In the House of Commons on Tuesday Mr. Runciman made
a statement as to the Government's scheme for insurance against aircraft and bombardment risks. A Committee appointed on June 21st to look into the matter formulated a scheme, which the Government are prepared to adopt. They propose that the fire insurance companies should act as agents for the Government in the issuing of policies and the collec- tion of premiums, and in the initial proceedings in connexion with loss assessments. The Committee also reported that it would be necessary to establish a special State Insurance Office to supplement the work of the fire offices acting as agents for the Government. The scheme would deal only with loss caused directly or indirectly by aircraft or by bombardment, and would, as it were, strike out the common form of clause in fire policies, which declares that "This policy does not cover loss or damage occasioned by or happening through invasion, foreign enemy, riot, civil commotion, or military or usurped power."