THE BURDEN OF INSURANCE

Grey River Argus, 12 May 1944, Page 8

THE BURDEN OF INSURANCE

IMr. Frank Langstone, M.P., during the recent session of Parliament, gave a slbirring address |in which he attacked amd exposed the operations of Big Business in iNew Zealand. JHis exposure of insurance companies ;and the enormous profits they obtained from the people is worthy lof notice. - ' ’ '

Many thousands of wage-earning owners, and instal-ment-purchasers of dwellings, as well as most small business owners., and farmers, have dealings with an insurance company. The total premiums, paid by them amount to millions of pounds annually. As the figures given by Mr. Langstone in his speech show, a big proportion of the money paid in insurance premiums goes into the pockets of the shareholders of the insurance companies. Here is a couple of examples:—“ln the Auckland metropolitan area the amount jof fire-insurance premiums paid in 1941 was £224.247, .and £39,818 was paid tout in claims. In Christchurch, in the same year, £107,315 was paid in premiums, and £17,716 was paid out in claims.’’

But not only on this score were the insurance companies criticised by Mr. Langstone, but of the funds created by the difference between the collected premiums and the disbursements in claims; loans are made to Borough Councils and other local authorities which desire to provide better pater sup-, plies for fire-fighting systems or create other facilities. The local authorities in turn have to levy higher rates in order to meet the interest payments on these loans. This means that the insurance policy holders who have provided the money in the first place are taxed in order that it may be used primarily in the interests of the insurance companies. In the words of Mr. Langstone.—“These bodies have become mere handmaidens of high finance.”

The. insurance companies of this country; as in all capitalist countries, are a veritable burden on the community. Nor are State insurance concerns much better. The latter are too often used by hard-pressed Governments to levy the people through unnecessarily high premiums.

Insurance against fire and other hazards is necessary and desirable in the interests of owners of working-class homes and small business properties. The answer therefore appears to lay in co-operative insurance, initiated by, and 'Carried on with the assistance of the Government. Premiums could then be drastically lowered and varied from time to time according to disbursements, resulting in a big saving both to the individual, and to the community as a whole.

Labour organisations, and organisations of business people and of farmers, could well ’discuss this matter with a view to making representations to the Government to put an end to what Mr. Langstone describes ias “legal (extortion of money from the public” on a large scale, for the benefit of a few privately-owned companies. If the views expressed by Mr. Langstone are shared by other (members of j Parliament on the iGrOvernment side of the House, a .sympathetic bearing, followed By decisive action, should be the result.