PROMPT PAYMENT

Otago Daily Times, Issue 27093, 30 May 1949, Page 6

PROMPT PAYMENT

WORKERS’ COMPENSATION

CLAIM BY MINISTER

PA WELLINGTON, May 28. Payment of workers’ compensation had been made promptly since the State took over this class of insurance and there was no more delay than was the case with private companies. This was emphasised by the Minister in Charge of State Fire Insurance, Mr Mason, yesterday, in reply to recent criticism.

“Taking Wellington alone as an example,” he said, “in the seven weeks up to May 20 no fewer than 527 claims were lodged. Of these, full compensation payments have been made to 96 of the injured people, who have now resumed work, 402 are still receiving payments and the balance are under action. The State Fire Insurance office has even met claims on which premiums have not been paid. “Although a number of employers have not yet submitted their declaration of wages they are covered for liability under the Act and in several instances compensation payments have been made in such circumstances.

“ Criticism has also been made that there is no policy issued,” said the Minister. “Under the Act every employer, except* those specially exempted, is indemnified by the State Fire Insurance office against liability to pay compensation under the Workers’ Compensation Act for death or personal injury. As full cover is therefore automatically given on uniform conditions it is unnecessary to issue a separate contract to every employer. The official cash receipt of the State Fire Insurance office, together with the assessment and premium, constitute a certificate of insurance. The process is the same as under the Motor Vehicles Insurance (Third Party Risks) Act, 1928, and the Earthquake and War Damage Act, where no policy is issued. ATTITUDE OF PRIVATE COMPANIES Commenting on the Minister’s reply, the president of the Council of the Fire and Accident Underwriters’ Associations of New Zealand, Mr 11. G. Wiley, said yesterday that the 1947 Workers’ Compensation Amendment Act granting increased benefits to workers became effective in April. 1948. From that time till March, 1949, the private companies’ rates had not increased. The amending legislation also provided for employers’ liability under common law to be insured for an unlimited amount whereas under workers’ compensation the benefits were restricted to a fixed sum for death and for weekly payments to be limited to £5 10s per week for periods of incapacity. “ Had the business been left with the companies, it was intended that, the rates would remain unaltered till March 31, 1950, when the position would have been reviewed in the light of results and the rates revised on a fixed claims cost experience,” said Mr Wiley. He added that the employers, especially the larger industrial concerns, were satisfied to apply to their respective insurers for the additional common law cover which they considered necessary to protect them adequately for any claims they might be called on to pay.