THE ASSURANCE SCHEME.

Otago Daily Times, Issue 3364, 16 November 1872, Page 5 (Supplement)

THE ASSURANCE SCHEME.

TO TUB KJJITOK.

Sin—The Report of the Government Annuities Commission recently published, is a document well worth studying. From it we learn that during the past year the Office received the sum of £17,557 19u 2d in promiiium of various sorts, and that the experihCH of management were as follow :— Salaries ... ... A' 1385 7 0 Medical Fees ... 1082 8 6 Commission ... ... ... 1105 3. 3 Advertising ... 1415 811 fieneral Expenses and Printing. 915 3 0 £0503 10 8

The total expenses «o far, therefore, amount almoßt exactly to 37-i per cent, on the amount of huxmcHS done—though if the scheme goes on the per centage will probably diminish. The number of Insurances and Annuities granted during the year was 1328, and the fees for medical examination amounted, as shown above, to £1082 8s o<l, or about £1 5a Cd for each case accepted. Now, with private Insurance Companies, the fee for examination ia £1 la, which is paid by the applicant if the insurance is declined, and even if accepted the insurer pays half, unless the policy is for something considerable. But the Government Insurance Department, it is evident, either shows the medical examiners to charge exorbitant fees, or else it pays the fee on all proposals indiscriminately, whether accepted or not. During the three years tbat this scheme has been afloat it has received in premiums, fines, and interest, the sum of £25,009 15s (id, of which it appears that £10,553 13s Cd, or 40 per cent, has been absorbed by expenses. At all events, the balance on hand on the 30th June last was given as £15,050 Is 9d, a Bmall sum of money being, however, due but not then paid for interest. In exchange for this £15,050 Is 9<l, which is the net proceeds after deducting the £10,55.$ 13s 0.1 paid for working expenses, and in consideration of the faturo payments to be made by insurers, the Colony has become liable for 1770 life insurances, representing a total sum of £058,599 ; for 37 endowments, amounting to £4100 ; and 10 annuities, whose total is £097 15s Sd. The receipts from interest during the year under consideration were as follow :—

Interest actually received ... £541J 0 0 Interest "due 221 0 0 £704 0 0 Of course the receipts from this source will increase as premiums accumulate, but it is noticeable that even in this, the third year of the department's existence, tho amounts paid out on claims are very considerable. Thus- - Assurance Policies paid... £}200 0 0 Annuities paid 32G 2 G £1520 2 0

When the public remember the manner in which this scheme has been started, the fict of several of its competitors having been driven from the field by taxation, imposed for the purpose, and that the general revenue has been made liable for any losses which may arise in the working of the scheme, the interest of the taxpayers in it becomes obvious enough ; arid it may be worth their consideration whether 40 per cent, on the gross receipts is a proper sum for the cost ot management, even allowing for extra expenses of starting. Under this Government scheme too, the premiums charged are less than those required by'private'companies. It ia questionable if that fact is one to justify a moro expensive Hystem of management, and it may be food for thought whether these two features in conjunction are of a reassuring character as to tho chance of the taxpayers generally being called upon to con r tribute towards the £ 6">8,599 for which they arc responsible. liut whatever view the Government may take of this neatly devised scheme, it ia pleasant to think that it yields unlimited satisfaction to those parties in whose interest it has apparently been started—tho gentlemen who have obtained appointments ni connection with it. The Commissioner-is-peculiarly enthusiastic, and speaks of extending its sphere of operations in the following glowing terms :— : < ;

"In anticipation of a stream of immigration into New Zealand, it appears to me of great importance that provision should bo made by law to enable intending emigrants in the United Kingdom to avail themselves of theftovermnent Insurance Acts. Such an arrangement would tend to provide a security! for the permanent settlement of the insured immigrant in the Colony, and a guarantee against his family becoming; in the event of Ins death, a charge upon public or private charity." . ; ; Mr Oisbprne's ardent anticipations of a stream, of immigration may or may not be realised, but Intending insurers may perhaps bethink themselves that whilst private insurance companies have their subscribed capital to fall back upon in case of need, the only similar security the Government can oCfer is a revenue steadily diminishing, and which is already exceeded by expenditure by. something like fifty per cent. —1 am, &c, Master Humphrbv.

Vanity Fair says that f;he private claims of the King of Hanover are in course of settlement, autl his Majesty is in treaty for the purchase of a considerable estate in England, where ho will probably, reside hencefprfch. He will retain the titular rank of King during his life, but the Crown Prince will only imccced to his title of Duke of .Cumberland and Teviotdale.