The Washington herald., 1920-12-22
INSURANCE FOR.
!, PARCEL POST Is
FILLING A NEED
Operations of Several
Policy Contracts :
Explained.
BY II. c. MEYER.

worth organization would hardly
be impressed by red-fronted five
and ten" stores AS compared with
the local department store its
operations might appear insignifi-
cant. But let the same man catch
his first sight of the Woolworth
Tower n New York, a giant among
giants, dominating the most won
derful skyline in the country. and
he cannot fail to be instantly and
deeply impressed. Even to one who
thinks of the woolworth five and
ten as a national organization. the
vast proportions OF the business
built on nickels and dimes is an
ever-new marvel. Yet the success
Of this undertaking, built on nickels
and dimes, may be accounted for by
the simple formula, Find a univer-
sal need. then satisfy it."
To a large number of agents and
brokers, parcel post insurance is not
impressive. 1t is one of the many
lines which Is not fully understood
and which has been much neglected.
The rapid growth of parcel post in
surAnce and the broad extent of
the yet undeveloped business field.
however, is hardly less striking
than the early chapters of Wool
worth history, and likewise is being
built on nickels and dimes. Its con-
tinued growth will likewise be an
application of the same formula of
satisfying a universal need.
There has been a universal need
for parcel post insurance ever since
the enactment Of the postal regula:
tions Of the United States Govern
ment providing for parcel post ship
ments- The act creating the parcel
post went into eject jan i, 1913
The parcel post plan was instantly
ana warmly evidenced by the fact
that 3s1. .2s4, 500 parcels were mailed
during that year. During 1919 the
number of parcel, post packages
mailed was more than 2.75o,ooo, 900.
THese figures are those given in the
report Of A s Burieson, Postmaster
General
Business shows Great Increase.
with the restoration of business
from q war to a peace basis the
country Is experiencing an era OF
unprecedented Industrial develop
ment-a condition which Is reflected
In the rapidly extending use made
of parcel post facilities Prior to
1913 nearly all mail in cities was
delivered by foot carriers. who also
made collections from street letter
boxes. the weight limit on a single
piece Of mail of any class being al
that time four pounds and the aver
age weight Of parcels being less
than six ounces, while the average
weight of parcels now exceeds three
pounds, with q maximum of seventy
pounds- The delivery of parcel post
mail has been expedited by the ex-
tensive use Of motor vehicles in
making collections and in relaying
bundles Of mail to foot carriers on
their various routes
In view of the tremendous volume
of parcel post mail now handled it
Is easy to appreciate the hazard of
loss. pilferage or damage as apply
ing to those shipments. Concerns
shipping regularly and in consider
able volume realize that they must
figure on such losses and never
more 30 than at the holiday season,
when shipments Increase in volume
and shipping conditions are most
congested- Many concerns know
about parcel post insurance and use
IT. Frequent Inquiries. however, in
dicate that many are not and would
be interested in It.
Covers Many Losses.
from any cause whatsoever (except
as specifically excluded), including
breakage, on property in transit by
parcel post, registered or unregis-
tered mail. addressed to any post
-
tinsntal United States, Dominion Of
Canada, and both United States and
Canadian Alaskas, and can now be
indorsed to provide practically
worldwide coverage. The-insur-
ance covers from the time the prop
erty passes into the custody of the
postoffice for Transmission until the
arrivzl at address of the consignee.
The most popular form of cen
tract, and the one best adapted to
the needs OF the majority of ship
pers. is the so-called certificate
form In connection with the policy
contract are issued books of cou-
pons. or certificates, the assured
paying for these certificates at the
rata of 5 cents each, these payments
constituting the only premiums in
connection with the policy, which is
q continuous form contract good
until the certificates are used.
Securing the desired insurance
under this system Is simplicity it,
self. The certificates or coupons are
issued in check book form, five to
. page When the shipper wishes
to insure a package he merely en-
tsrs on the stub of one of these cou-
pons the name. address. valuation,
date OF mailing. description and
class. Sufncient coupons are then
detacAed to cover the insurabie
value of the shipment and inclosed
in the parcel or attached to the in
Policy for Large shippers.
For the convenience of large
shippers there Is an open or report
ing form Of policy. Under this form
Of contract the assured makes
monthly reports of his shipments
and pays for the insurance on these
shipments 1t an agreed rate. While
the cost Of this form of coverage is
slightly less than the coupon form,
as a general rule this policy Is
adapted only to the use Of shippers
the value of whose annual parcel
post shipments would reach or ex-
ceed s1s.o0o- Owing to the deposit
or minimum premium charged for
the year, the rate itself applying
- the value of the shipments Is
entirely an underwriting PROPOSE
ton and has to be determined ac-
cording to the class Of merchandise
and moral hazard.
Gantz Spoke Here.