Oral Answers to Questions — Sea Losses (Compensation). – in the House of Commons at on 9 December 1919.
If the crew are employed and paid by the owners of the vessel, the compensation, including any sums that may be due under the Workmen's Compensation Act, will be administered by the War Risks Association in which the ship was entered at the time of the accident, under an agreement with the Board of Trade.
In the case of vessels not entered in any War Risks Association at the time of the loss, the Liverpool and London War Risks Insurance Association have undertaken to administer the compensation. The owner is not, relieved of any liability to which he may be subject under the Workmen's Compensation Act, and any amounts due under that Act will have to be paid in the usual way. The association, on behalf of the Board of Trade, will see that the total compensation paid, including any amounts so paid under the Workmen's Compensation Act, are in accordance with the scheme.
The arrangements indicated in this circular will not apply to ships the crews of which are employed and paid by the Admiralty or War Office. In such cases any compensation due will be settled direct by the Department concerned with the party entitled, in accordance with the agreements under which the crews were engaged.
The pensions and allowances payable under the scheme are as follows:
Children's allowances are equal to 1/10th pay for each child, with a maximum of £24 per annum or 1/24th pay, whichever be the greater, and with the following minima: £13 per annum for one child, £23 16s. 8d. for two children, £32 10s. for three children, and an additional £6 10s. per annum for each additional child.
The allowance continues until the age of sixteen, but in the case of a child who is an apprentice receiving not more than nominal wages or is being educated at a secondary school, technical institute or university, the allowance may be continued up to the age of eighteen at the discretion of the War Risks Association.
If the disablement allowances under the Workmen's Compensation Act exceed those payable in accordance with the above scale, the allowances under that Act are paid, but, generally speaking, the scheme provides for the payment of disablement allowances in excess of those payable under the Workmen's Compensation Act, and in these cases the payment of the allowances under the scheme will be in satisfaction of all claims under the Act.
In the case of widows, this will be done by calculating, in accordance with the Post Office tables, the amount of the annuity which could be purchased for the lump sum which is payable to the widow and children by way of compensation under the Act. If the amount of the annuity so purchasable be less than the pension payable under the Admiralty Scheme, then the difference will be paid to the claimant as an annuity and the lump sum will be paid into Court.
Upon this basis the amount of pension the widow will receive in addition to the compensation payable under the Act will, of necessity, depend on the age of the widow. The older the widow is the larger will be the annuity that could be purchased with the compensation money, and therefore the smaller will be the pension payable under the scheme.
Officers and engineers earning upwards of £250 per annum are not covered by the Workmen's Compensation Act, and therefore the widow's pension will amount to 1/3rd of their pay plus the children's allowances as set out on page 2. For example, if the officer's pay is £18 a month there will be added a victualling allowance of 3s. a day, bringing the total pay up to £270 a year.