COMPENSATION TO WORKERS

Press, Volume LXXXIII, Issue 25310, 9 October 1947, Page 8

COMPENSATION TO WORKERS

PARLIAMENT

State’s Insurance Monopoly

LIVELY RECEPTION GIVEN BILL

(From Our Parliamentary Reporter.) WELLINGTON, October 8. The Workers’ Compensation Amendment Bill, introduced in the House of Representatives to-day by the Minister of Labour (Mr A. McLagan), promises to be one of the most controversial measures of the session. Mr McLagart’s explanatory remarks were given a lively reception, particularly when he referred to a clause in the bill which gives the State Accident Insurance Office a monopoly of insuring employers against industrial casualties. Many questions were asked about the effect on existing insurance companies. The Leader of the Opposition (Mr S. G. Holland), in a series of questions preceding Mr McLagan’s explanation, inquired if the bill was “just another law to make something else compulsory.” Did the bill make another service to the public a State monopoly, wiping out a further section of the country’s commercial life? Mr Holland said the many people interested by investment or otherwise in insurance companies would be anxious to know what would happen to the companies from which business was to be taken. Staff of Companies

How would the State raise the necessary money? What would happen to the present staffs of insurance companies and to the companies’ buildings? The Opposition as the defenders of the rights of the people, were concerned about the effects of this bill upon the community as a whole. Mr McLagan said the bill made insurance against employers’ liability a monopoly of the State Accident Insurance Office, which charged lower rates than did private companies. The bill made other important imnrovements. It made rehabilitation of industrial casualties a charge on industry through premiums collected, and that was where the charge should rest. The bill introduced a new method of computation and increased the permissible payment from 208 times the weekly earnings to 250 times, with a maximum of £l5OO instead of £lOOO as at present. It increased the proportion of wages for weekly benefits from 66 2-3 per cent, to 75 per cent, and raised the maximum weekly payments from £4 10s to £5 IQs.

Provision was made for supplying artificial limbs, the upkeep of which would be a charge on insurance for three years with a maximum cost of £5O. Minister Questioned

Mr McLagan said insurance cover would be automatic. Every employee would be covered whether his employer took out a policy and paid the premium or not Mr Holland: Will there be any compensation for loss of business? Mr McLagan: Surely you don’t suggest that companies have a vested interest in industrial casualties? Insurance companies had been paid their full measure and overflowing. Mr K. J. Holyoake (Opposition, Pahiatua): Mutual companies will lose half their business.

Mr McLagan said the amount would vary from company to company. Mr J. T. Watts (Opposition, St. Albans): Will the premium be put up? Mr McLagan: You will have to consult the manager of the State Accident Insurance Office. PROVISIONS OF BILL <P.A.) WELLINGTON, Oct. 8. The Workers Compensation Amendment Bill provides that increased compensation benefits will operate from June 1, 1948. Other sections of the bill come into force from the time it is passed, but nothing in the legislation shall apply to claims for compensation or other rights or liabilities for accidents occurring before next June. The bill provides that any deficiency in the Government’ Accident Insurance Account may be made good by advances from the Consolidated Fund or transfers from the National Development Loans Account. To provide for the requirements of the account until May, 1950, temporary advances of up to £lOO,OOO may be made from other State insurance accounts. Rates of premiums payable by employers are to be fixed by regulation. Wage statements are to be furnished by employers. After receiving these the general manager of the State Fire Insurance Office, of which the Government Accident Insurance Office is a branch, will assess the amount of premium payable by employers. Right of Assessment If the estimate of wages which an employer expects to pay is in the opinion of the general manager too low, the general manager may himself estimate wages for the purposes of assessment.

Premiums are to be paid within one month of assessment, and those not paid within that time will be liable to a penalty of 5 per cent Provision is made for objections to

assessments to be heard by a magistrate, from whose determination there is the right of appeal to the Compensation Court on a question of law. The magistrate’s determination shall be final on any question of fact. Any person who evades, or attempts to evade, or makes default in the performance of any duty imposed upon hipi by the bill with intent to avoid payment of any premium for which he is liable, shall be liable on summary conviction to a fine not exceeding £lOO. An employer insured against his liability under the Workers’ Compensation Act may, if a policy of insurance is in force after May 31, 1948. cancel the policy after that date and be entitled to recover from the insurer the relevant part of the premium.

Vocational Training Arrangements may be made for persons suffering serious permanent physical injury to take advantage of vocational training courses and industrial rehabilitation courses. Accidents to workers travelling to and from work shall be deemed to arise out of and in the course of employment if the employer has provided transport, if he has expressly or impliedly authorised a means of transport that is not a public passenger transport service, and if he has arranged with a worker or with any union of which the worker is a member for his transportation and has paid or become liable for payment for it. The conveyance of injured workers to a hospital. to a doctor, or to their homes shall be paid for by the employer. After an accident officials of any union to which injured or deceased workers belonged shall be entitled to view the scene of the accident. Any employer refusing permission for this will be liable to a fine of up to £5O. I