‘The Capitulations. What they are, and what effect their abolition will have upon the status of British subjects in Turkey, upon their interests, their liberties and upon British trade generally.’ [‎12r] (23/28)

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to similar insurance policies the world over. In 1906 a project of a special law
was in course. of preparation by the Ottoman Authorities, but it met with so
much opposition from the Embassies of the foreign Powers that it was held up.
Nevertheless, from time to time attempts were made to modify the text and
to obtain the consent of the Foreign Embassies. During 1913 and the early
part of 1914 so much pressure was brought to bear on the Embassies that they
feared that the law might be promulgated without their sanction, thus creating
a difficult diplomatic situation. In view of this a commission was formed of
Embassy and Consular officials seriously to study the question, accept as many
of the Turkish requirements as possible, and to contest only such points as were
flagrantly in opposition to any known law on Insurance. Much useful work had
been done in the matter, and on the side of the Ottoman Authorities better
sense was being shewn when the war broke out and put an end to further
negotiations. It ir of interest to note that this project, known as The Annex
to the Commercial Code,” “ A Law for Insurance Companies,” was not pro
mulgated even during the war period. In its place, it would seem, a few
clauses were added to a law promulgated on the 3rd December, 1914, entitled
" Provisional Law on Foreign Companies (Anonyme) and those whose Capital
is Divided in Shares and on Foreign Insurance Companies.
As regards the first project the main points on which conflict arose was with
regard to ” Valued Policies.” The law laid down that in case of loss the
Companies should pay the sum assured without regard to the value of the
property. This is contrary to the universal law that insurance is an Indemnity
for loss sustained, and not a gambling debt. A further objection was that
property pulled down during the fire was to be paid for by the Companies,
insured or not insured.
The law of 1914 is seriously objectionable in only one important feature,
namely with respect to property pulled down or otherwise destroyed by proper
authority to prevent the spread of fire. The clause is much more carefully
drafted than in the 1906 project. The property must have been pulled down
by proper authority, and the Companies are only called upon to pay if the
building were insured, but the mischievous feature of ” the insured value is
maintained, namely, that the Company concerned has to pay the sum insured
without reference to the actual value of the property at the time of the fire.
Both projects have clauses requiring Deposits, Returns of Amounts Insured,
and various similar meddlesome regulations, which are not impracticable, provided
they are carried out in a spirit of equity and not in a spirit o( inquisitiveness,
and are not used to provide an income to needy officials.
Needless to say the law of 1914 has not been accepted heretofore by
either the British, Italian or French Embassies, as it is in contradiction with
the Capitulations in many respects. It is felt also that any concession made in
respect to such laws inevitably leads to further mischievous demands.
Cases have been known of unsound, or purely dishonest. Companies
operating in Turkey, but their number was never important and measures were
always taken by Foreign Governments to prevent such concerns trafficking
under the privileges of foreign nationality. The public have been safeguarded
by the Insurance Association which does not admit as a member any Company
not of good standing.
The position with regard to the Insurance Law as it stands to-day has
been further complicated recently by a decision of the Grand National Assembly
of Angora, which has ruled that deposits paid by Companies to the Constan
tinople Government (during the war German, Austrian and French Companies
recognised the law and made the required deposit) is not recognised by them,
and that they will require further deposits to be paid to them before permitting
Companies to do business in any district under their control. A further
Nationalist circular intimates that the amount of the deposits indicated in the
law are inadequate, and that they will be increased, and that those concerned
should place themselves in communication with the Angora Ministry of Com