A NOVEL SCHEME

Evening Post, Volume CXI, Issue 105, 4 May 1926, Page 4

A NOVEL SCHEME

EDUCATIONAL INSURANCE1

TO PROVIDE FOR A CHILD'S

SCHOOL PEES,

A scheme for insuring children's education against;the risk.of the death of their responsible parent is being canvassed by a body called the Educational Facilities Association, of which the Secretary oflState for .India, Lord Birkenhead, is; president, and Commander Oliver LockervLampson : phairman. This is apparently the -scheme submitted to the _ Conference" of Headmasters last Christmas with inconclusive results. In the circular it is described as " a new, simple, but revolutionary scheme of group insurance." "To every parent (it is explained) who is willing to pay a small 'extra.each term with the ordinary school fee's aii undertaking can be given, that in tjie event of his death the education of the,girl or boy will be continued (subject to the "usual school regulations) without payment of the ordinary boarding and tuition fees." The parent will have to make a declaration of-good health, no medical examination being required. On death "the usual fees will be provided by the school, which will effect an insurance policy for this purpose." The undertaking will not apply if,the .parent's death is ..due to.active hostilisurance extra, Vas it is called, will be at the rate oi. £1 for every £40 paid in boarding and tuition fees. The '.'insurance extra;" aa it is called, will be payable with the ordinary school fees and "must bo paid so long as th.e'pupil remains at the school." . The scheme is attracting a good deal of attention and a good deal of criticism, says the'"Evening Standard." Schoolmasters, on whom the contemplated risk may bear heavily through their own good nature, are not always the most acute men of business; and, though the backing of a member of the Government does not, of course, imply official authority, the circular contains influential names. But it is not very clearly worded. Who is to give "the undertaking" to the parent? Is it the governing body of the sehooJ, or is it the association, oi-.it is the insurance company which is to issue the insurance policy to the school? The premium seems at first sight high, .though the circular says that "the cost is very small in relation to the protection secured." Those responsible for the school, before adopting any such scheme, are bound to ascertain whether the parents are being charged a sum which, is actuarially fair. Parents will no doubt remember that the number of parents who die at , about the age of forty years is'very small as compared with the general death rate. They will also notice that the scheme affords no protection against tho case of financial trouble, a frequent cause of the withdrawal of children from boarding schools. No name of an insurance firm is given in the circular, though the,chairman, Commander Lbc-ker-Lampson, is described in works .of -reference as a member of tho City of London Board of the Eagle, Star, and British Dominions Company. Is the school to choose its own company, or is the association which promotes the scheme or its chairman prepared to. recommend a company? Governing bodies will certainly require moro precise information on all these points before entering into a scheme which is bound at first sight to. attract sympathy with an obviously deplorable, but in practice » Boat infrequent, misfortune, (