TONTINE, POLICIES.

Auckland Star, Volume XXXIX, Issue 183, 1 August 1908, Page 7

TONTINE, POLICIES.

A meeting of Colonial Mutual Life and tontine policy holders, convened by Mr r. J. Mclvor, was held In the Foresters' Hall, Xewton, last night for the purpose of considering "the results of the 20-year tontines, and what steps shall be taken to place the matter before the Government." The Rev. J. Wilson presided.

• The Chairman -aid he understood these tontine policies were no longer issued by the Colonial Mutual Life. The holders of the policies now believed that at the outset ther were misled into believing that they were to get far greater .benefits than many of them had received. They entertained no vindictiveness towards the Colonial Mutual Life in the matter.

Mr Mdvor read a number of letters ifrom tontine policy holders, which, though differing in many details, were unanimous on one point, and that wao that they were all disappointed with the amount of money reverting to them at the expiration of the policy.

Several of those present also gave their experiences, tihe common grievance being that after 20 years they received back less than they had paid into the company. Some stated that, being under the impression that their policy was for a stipulated number of years, they went to the Company's office at tho expiration of that period, and were very much surprised on being told that theirs Tai a life policy. One gentleman stated that he did not know what he was signing -when he took out his policy.

A letter from the head office of the company in Melbourne, which was read at the meeting, stated that tontine policies which were issued in the past insured the holder for a stipulated amount in the event of death during the currency of the policy, and survivors after that period received back the profits, if any. No amount was guaranteed: the company merely, gave an estimate of the profits that in the ordinary course would be made. The main reason for the results under the tontine policies falling short of the estimates was that at the time the estimates were drawn up the Society was earning well over 6 per cent, interest, upon its accumulated fends, but the great financial crisis which swept over Australasia in 1893 reduced the rate of interest to be earned on such securities as were suitable to a prudently managed life office to a totally unexpected low ebb. and the rate of interest subsequently earned had been under 4J per cent.' The letter concluded by remarking that policy holders seemed to forget the fact that their life was insured for a stipulated amount while the policy held good.-

The letter gave rise to considerable discussion, and it was eventually decided that q deputation, selected from the meeting, with Mr Mclvor as spokesman, should place tbe views of policy holders before the Minister for Justice on the occasion o f his visit to Auckland this month.