INSURANCE PLAN

New Zealand Herald, Volume LXXV, Issue 23083, 7 July 1938, Page 20

INSURANCE PLAN

AUSTRALIAN ACT HOW PROVISIONS APPLY FINAL FORM OF MEASURE [from our own correspondent] CANBERRA, June 30 The National Insurance Bill has been passed by the Federal Parliament and the scheme will come into operation on January 1.

The final stages of the bill presented no difficulties. The Houso of Representatives, raised no objection to the restoration of hospital employees to the list of beneficiaries under the scheme — a provision that was rejected on a snap vote.

The passage of the bill means that the National Insurance Commission will be formally constituted. It will consist of Mr. E. Brigden, Mr. E. McVie and

Mr. H. C. Green. Deputy-commissioners will be appointed in each State, and the appointment ol staff' will begin next week. Medical benefits will begin soon after next April. Sickness benefits will become due from next July. Disablement benefits and widows' pensions will operate from the beginning of 1941. Old-age pensions will be payable lrom the insurance fund five years from now. Inauguration o! the Scheme The work to prepare for the inauguration of the scheme will be heavier because the proposal to include insurance companies in the list of approved societies to administer sickness benefits was rejected. Insurance companies would have been able to form approved societies in areas in which friendly societies do not now operate. The first step to create friendly societies will be taken at a conference in Canberra and meetings in the various capitals on July 11. When the scheme comes into operation, everybody who is paid less than £365 a year will have to participate. Workers who receive less than this amount will have to join any approved society which covers the territory in which they live. When the/ enter the scheme they will be given three cards —a contributions card, a medical treatment card, and a contributions record. Each will have spaces for 2(3 weekly contribution stamps. The cards will have to be handed to employers, who will affix the contribution stamp and deduct the cost from wages. Employers will hold the cards until they are filled, and they will then be returned to the approved societies, and the employees will be, handed new ones. Benefits as Finally Fixed The medical attendance card will be sent to the doctor chosen by the insured person and the contributions cards will be retained by the insured person. The benefits as finally approved in the bill will be:—Medical benefits: Free medical treatment and free medicines as ordered bv the insurance doctor. • Sickness Benefit. —20s a week for men; 15s for women; and 5s for juveniles. Disablement benefit: 15s for men; 12s 6d for women. Pensions. —Widows' pension. 12s 6d a week for life or until remarriage if the deceased husband has pnid at least 104 contributions, including 78 in the last three years of his life. Orphans' Pensions.—7s 6d a week until the age of 15 years, with qualifying conditions similar to those applied in the case of widows' pensions. Old-ag? Pensions.—2os for a man from the age o!f 6-5. and 15s for a woman from 00 years. Rates of contribution will be Is 6d for men and Is for women, with a contribution of .an equal amount for employers. Altogether. 1.800.000 people will come within the scheme. -