WAR TIME INSURANCE.

Press, Volume LVI, Issue 16947, 23 September 1920, Page 8

WAR TIME INSURANCE.

STATE OFFICER'S EXPERIENCE

' 'The Department having always

raado a feature of charging minimum rates of premium and issuing a policy i ree from restrictions, there were no restrictions as to military sorvice in respect of "those who insured before the war; consequently tlie bulk of the war losses had to bo borne without extra premium," states the Government Insurance Commissioner in his annual report. "When the war commenced, persons then insuring were charged an extra premium of 5 /per cent, on tho sum assured, increased for later entrants to 74 per ccnt., which was known to be considerably below the actual cost of tho war mortality. Tho war claims numbered 1756, representing sums assured of £367,514, and of these 1756 claims an extra premium to •-■over the war risk had been paid in 216 cases only, and in the remaining 1540 cases, or 88 per cent, of tho total, no extra premium was charged. 1 "I may say thati the mortality amongst tho oversea forces in the different war years ranged from 8 per cent, to 15 per cent, per annum of the •total force, th© average being about 10 per cent., or considerably in excess of tho Tate charged. The extra premiums were remitted without proof of health ut the close of the war or on tho return of tho assured to New Zealand, consequently an addition to the loss must be made for subsequent extra mortality through wounds and generally impaired health. The claims from influenza (which is more or less attributable to tho war) amounted to about £100,000, and when this is taken into account the total sum paid by the Department to the representatives of policyholders dying from war causes cannot havo been leas than £500,000, an amount giving some indication' of tho importance of the insurance principle in general, and of the operations of tho Department in particular, in the social economy of the country. £1,009,000 has been invested in Goernment securities since the commencement of the war, and it is satis-, , factory that tho Department. hao been able to meet tho largo losses due to tho war, and render substantial aid financially towards its successful conclusion."