INSURANCE POLICIES.

New Zealand Herald, Volume LXVIII, Issue 20864, 5 May 1931, Page 10

INSURANCE POLICIES.

RESTRICTION UPON TRANSFER THE QUESTION OF EXCHANGE. GENUINE MIGRANT NOT AFFECTED No official information is available in Auckland regarding tho cabled statement that two leading Australian life insurance companies will refuse to allow further transfers- of policies to London, but the opinion of the authorities is that tho step has been taken to protect the companies against what might become lieavv exchange charges.

All companies, as far as can be gathered, pay policies in the currency of the country where they arc held and transfers of policies from one country to another is almost as common as the migration of people. When a policy-holder changes his country of residence his policy is transferred and even if it is an endowment policy almost due, it is paid in the currency of the new country without any charge, should the exchange be against the company, for in practice such costs more or less balance themselves. The inference to be drawn from the cabled statement is that the fear of inflation in Australia is causing policyholders to ask for a transfer to England to make sure of tho face value of the policy, or in tho case of endowment policies to avoid exchange or the benefit of the high rate uport its return to Australia.

As far as New Zealand is concerned the Australian companies doing business here keep their New Zealand funds hero and pay claims without reference to Australia, and they, make it clear that no restrictions are placod upon normal transfers to other countries provided they are bona fide. "But," said one manager, "if we had reason for believing that a person with an endowment policy just due was simply going on a trip and wished to draw in London to save himself exchange then we would have to consider the matter. The genuine migrant has nothing to worry about." A case recently occurred where a New Zealand man with some funds in Australia wished to buy an annuity tVre but payable in New Zealand. This was declined, perhaps for similar reasons to those which had brought about the new restrictions upon transfers. In such a case the annuity must be bought here. Very few conditions apply to the average life policy to-day. In former years some companies in England had restrictive conditions as to residence within certain latitude, but "no restrictions regarding foreign travel, residence or occupation" governs the typical English policy to-day. The same applies to the policies of Australian companies. The only conditions attaching to the ordinary policy of the A.M.P., for instance, affect those engaged professionally in aviation or in submarine operations. Even the restriction concerning war service is now cut out.