ANNUITY VALUES

Evening Post, Volume CXVIII, Issue 36, 11 August 1934, Page 13

ANNUITY VALUES

PRACTICE OF JURIES

"What is the present average sum required to produce an annuity of, say, £3 per week for a young man of 23J years of age?" was a question Mr. C.: Gostelow, Government Actuary, was asked in tho Supreme Court yesterday by counsel. • , "The average annuity value on a 4 per cent, basis is £3159," replied Mr. Gostelow. And on a 5 per cent, basis, he said in reply to the Chief Justice, it would be smaller than that. _It would probably bo round about £2600. Counsel asked what %vas the average length of lifo of a man 23* years of ago taking it over a full population. Mr. Gostolow said that on the Now Zealand population it was a little over 451 years. ■Tho Chief justice told counsel at this stage that tho matter had beencarried far enough. Karlier, counsel for the other.side had objected to the nature- of the evidence, ' contending, tliat it was inadmissible unless there was proof that the plaintiff would be unable to work. His Honour said it was ovidenco, but its value was another matter.

When his Honour suggested to counsel for tho plaintiff that ho had gone far enough, ho added that he thought if the matter was taken further it would only bo to the detriment of his case. "Juries as a rulo," said his Honour, "deal with these matters on the basis of their own experience, on tho average life and so on, and they try to be fair. They don't like to have extravagant ideas thrust at them. That is my experience." The matter was not pressed.