THE GOVERNMENT INSURANCE DEPARTMENT.

New Zealand Herald, Volume XXXI, Issue 9635, 6 October 1894, Page 5

THE GOVERNMENT INSURANCE DEPARTMENT.

In our issue of yesterday, we gave a summary, by our Wellington cerrespondenb, of bhe Governmenb Life Insurance Bill, now being introduced by the Colonial Treasurer. There is no doubb of the Bid's safe passage through Parliament, and its main provisions will, we doubt not, prove acceptable to the policy-holders of the Insurance Department, as improving the capacity of the department to pay increased bonuses. Hitherto tho law in relation to the investment) of the funds of the department has been thab a sum equal to nob less than onehalf of the total funds was bound to be sunk in colonial or local body debentures, some of which would, of course, bear bub a low rate of interest. By the Bill now under consideration, the department will be permitted to invest in mortgages upon freehold security, any sum up to threeqaarbors of the entire fnnds accumulated. The disposition of the Government according bo this change in the form ot investmenb is therefore evidently in tho direction of putting the Insurance Department into as good a position as possible for dealing with its foods in the manner most calculated to bring profit to policyholders. This is a policy we have always favoured, and are therefore pleased to note the departure now being made. In addition to this provision the limit of loans on freehold security, which was formerly fixed at £5000 to any one person or company, is being raised bo £10,000 ; as in some instances the Department has been precluded from accepting first-class securities offered because the amount required exceeded £5000. On the whole the new law will much improve the position of the Department as a purely business institution.