Tonners and Chinamen
These are both obsolete forms of early reinsurance. Both are technically unlawful, as not having insurable interest, and so were unenforceable in law. Policies were typically marked P.P.I. (Policy is Proof of Interest). Their use continued into the 1970s before they were banned by Lloyd's, the main market, by which time, they had become nothing more than crude bets.
A "tonner" was simply a "policy" setting out the global gross tonnage loss for a year. If that loss was reached or exceeded, the policy paid out. A "chinaman" applied the same principle but in reverse: thus, if the limit was not reached, the policy paid out.
Read more about this topic: Marine Insurance
Famous quotes containing the word chinamen:
“Would I if I could by pushing a button would I kill five
thousand Chinamen if I could save my brother from
anything. Well I was very fond of my brother and I
could completely imagine his suffering and I replied
that five thousand Chinamen was something I could not
imagine and so it was not interesting. One has to
remember that about imagination, that is when the
world gets dull when everybody does not know what
they can or what they cannot really imagine.”
—Gertrude Stein (1874–1946)