(1)The Board of Trade may with the consent of the Treasury make a scheme for compensating—
(a)mariners, for war damage to their effects sustained in the circumstances mentioned in subsection (2) of section three of this Act; and
(b)a person to whom section four of this Act applies, for war damage to his effects sustained in such of the circumstances mentioned in subsection (3) of that section as are applicable in his case; and
(c)persons to whom section five of this Act applies, for war damage to their effects sustained in such circumstances as may be specified in the scheme.
(2)A scheme made by virtue of this section may fix the maximum amount that shall be payable thereunder in different circumstances specified in the scheme.
(3)In the event of the death of any person to whom compensation would be payable under a scheme made by virtue of this section, section one hundred and seventy-six of the Merchant Shipping Act, 1894 (which provides for the distribution of the property of deceased seamen) shall apply to the compensation payable as it applies to the property of a deceased seaman in the hands of the Board of Trade.
(4)In this section the expression " effects", in relation to any person, means any property carried on his person or in the ship in which he is serving or in the ship or other conveyance in which he is travelling, or otherwise accompanying him, at the time when the war damage in question occurs.