EMPLOYEES’ INSURANCE

Evening Star, Issue 19893, 15 June 1928, Page 9

EMPLOYEES’ INSURANCE

UNDERWRITERS WOULD OPPOSE ONTARIO SYSTEM [Special to ran ‘ Stab.’] WELLINGTON, Juno 14. Insurance circles think it improbable that tho Government will attempt to place into operation the rccomendation of tho National Industrial Conference that insurance for employees should be adopted on tho Ontario system. If, however, sudi a proposal is mooted it will meet with strenuous opposition. _ “Tho Council of Underwriters lias not vet considered the question because it does not feel that the Government will move,” said an insurance manager, reviewing tho position to-day. “However, if any action is contemplated, it will meet with a prompt response. “The figures for_ 1925 in the Government report on insurance statistics show that the percentage of _ claims to premiums for employers’ liability insurance was 60.89. For 1926 it was 61.05, and though lest year’s figures are not yet out, it is almost certain to show another increase. Tho percentage of other claims to premiums for the same year was 40.64 and 48.17, a clear indication (hat the other forms of accident insurance arc paying tor the .employers’ liability, since wo know that wo cannot administer accident _ insurance :vt a cost of less than 65 to 40 per cent. Add this percentage to those I have given for the claims met , and von will sec that, as lar as employers’ liability goes, there is very little money in it. At the same time, wo have to maintain this service to •satisfy clients, and would not surrender our general accident insurance to the State, as wo might be asked to do if legislation went through, without a St ‘‘lfttlo would be gained by introducing tho Ontario system, save that the employer would be asked to pay more. The system does not appear to provide for any factory with less than four employees, of which there arc quite a number in a small place suck as Non Zealand. It docs not embrace fanners and agricultural labourers, and while the costs of running it are said to bo low, that means little, ior it is run by a Government department, and its costs arc smothered in a. lot ol gencial charges. There are thirty companies operating in New Zealand to-day, and ail have their definite systems ol medical examination, report, and follow up. If the State is to take over this business what will it mean?. Only that this extensive system, which caunot be denied to be giving service, will be destroyed, and another will have to be built up; and built up by people who know little or nothing of the i mining of it. “It is, nevertheless, true (bat 'be State is already competing villi Ik; insurance companies for employers liability. The total premiums paid for this form of insurance in 1926 weie £567,000, <H this, the Govcrnincnteontrollod oti'ec obtained £60.0110, or about 5 per cent.”