THE GOVERNMENT INSURANCE ASSOCIATION.

Evening Star, Issue 6913, 28 May 1885, Page 4

THE GOVERNMENT INSURANCE ASSOCIATION.

The first annual meeting of the Government Insurance Association Board was held at Wellington yesterday evening. Sir Julius Vogel was in the chair, and tke other members of the Board on the platform were Messrs J. C. Gavin (Treasury), R. C. Hamerton (Public Trustee), M. Reid (Soli-citor-General), J. H. Bethune, G. V. Shannon (Governmentnominees), and H. D. Bell, George Fisher, G. S. Graham (elected members). About 200 policy-holders were present.

Sir Julius Vogei, in proposing the adoption of the report, dwelt at length with the figures in the report. Referring to the properties purchased by the Board, he thought no better investments could be made, as they would yield (i per cent, on the capital, while the Association would have office room free. Then, also, the capital value of the properties would increase from year to year. He denied that purchases would reduce the amounts to be distributed as bonuses at, the quinquennium, as such distributions were made on the value of the liabilities and asset.?. Referring to the staff, he said there was no intention to place an officer over the- head of Mr Luckie, but the Board did not feel justified in entering into an agreement with that gentleman, as they were of opinion that at some future time it might be found expedient to obtain' the services of a gentleman who had long experience in an institution of this kind. One’ step the Board intended to take was that of endeavoring to enlist tHe assistance of policyholders in obtaining new business, and it was proposed to offer a small commission to those policy-holders who had placed business in the hands of agents. The Board had dime to tho conclusion to invest the fund in mortgages of real property, and great caution would be exercised in such cases. At present the Board was limited to oO per cent, of the value of the property, but they intended to ask Parliament to extend the limit to two-thirds. They had four classes of securities : Ist, loans on policies ; 2nd, Government securities ; 3rd, loans to local boards on Parliamentary securities ; 4th, loans on freehold properties. The Board also intended to aslc Parliament to allow them to sell annuities out of the Colony. One of the members of the Board was going on a visit to England shortly, and he was empowered to select one or two young men who might ,he willing to join the'institution at a moderate salary. H® next referred to the question of local hoards, and said lie was anxious to have the matter fully ventilated. He explained at length the benefit to be derived front having in each large centre a board composed ol gentlemen who would take an interest in the affairs of the Association. It had been decided by the Board that any motion n the appointment of local boards . or otherwise would be received to-night _Mitlmut.tjie usual notice being given, and the feeling of the meeting would be tested,

and then it was open to any two policyholders to call for a poll on the question, which would be taken on a future day, when holders could exercise the right of vote by proxy. Mr H. D. Bell seconded the adoption of the report. Mr G. Fisher denied that the properties, at all events the Dunedin one, were yielding 0 per cent. The Auckland property was unlit for insurance business, and a large amount would have to be expended on it. He had suggested delay in the of this property until after the annual meeting of the Association, but by the casting vote of the then chairman (Mr Tole) the suggestion was not adopted. He read a statement of figures showing that the Association by investing its money in Government debentures instead of going outside woidd in five years lose upwards of L 50.000 in interest. He considered the Colonial Treasurer should uot occupy the chairmanship of the Board, and when the amendment Bill was before Parliament Uo hoped a change would he made in this direction. He objected altogether to local boards. Mr H. D. Bell asked policy-holders not to believe that the Board were squandering their money. There was no doubt large sums invested in Government securities, hut it was gradually being withdrawn and invested in other ways. -Mr G. S. Graham thought local boards were not required at present. The report and balance-sheet were adopted. Mr George Beetham, M.H.H., moved that local boards should not he appointed. The motion having been carried by show of hands, Sir Julius Vogel asked if any policyholders demanded a poll. Mr Beetham said he did not wish the present meeting to decide the question, and, with a view of allowing policy-holders in distant parts to express their opinions, he demanded that a poll should be taken. It was decided that a poll should bo taken at an adjourned meeting, to be held this day month. The elected members of the Board voted in favor of the motion.

Sir Julius Vogel stated that it was the Board’s intention to do away with the industrial branch of the Institution. Another step that had been decided on -was to increase the rates of premiums to new policy-holders. The latter course had been adopted on the strong recommendation of their actuarial advisers.