INSURANCE COMPANIES ANNOYED.

Otago Witness, Issue 2862, 20 January 1909, Page 82

INSURANCE COMPANIES ANNOYED.

THE GOVERNMENT CRITICISED. (Fnoji Our Own Correspondent.) AUCKLAND, Jtnuary 15. The mcyEgers of the insurance companies here feel very sore over the mining trouble. "It means." declared the monnger of one company, " that by coming to the rescue and indemnifying the State Depiitm&nt for any loss uikUt clau.-e 10 of the Workeis' Compensation. Act the private companies aie placed under a distinct disadvantage and injustice. It ib doubly uufair when it is understood that the consolidated funds of the country will he- used for that indemnification. You take these risks, and we indemnify you, the Prime Minister says, but where can the money come from to back that guarantee except out of the consolidated fund? The private companies are not prepared to accept the iif>k of insuring againct pneumoconio.Ms unless the mon submit to a medical examination, and that is tantamount to forcing the mining risl'is of the j Dominion. The pnvatc insurance cor.i- ! panics aie aKo taking bteps to ligi-tcu the i pos-Ition fur their j-oluv holdeic,." The I manager in question added: "By u^eing { them of their -curi?nt policies v h?revei" desir&d vie leahse that the position i:> foiced upon the mine-owners by the Go-\ei-nm?;.t. and w-e are not goia 0 ' to make tl'.s position wois-e for them by withholding the unearned premiums alieady paid." Another manager said : " It i.s int*ves>tinging to try and estimate what covering 1 the cos! of )>neumoconio.-i.s alone ii Lke-lv to be to th-e -consolidated revenue. A I ' difficulty presents it-elf in making this j ' computation, but ns-nunin^ that only 1 ] ( per cent, of the miner; in the Dominion ; contr. ct the di.<e'i-e eidi year the i<i*ult would appear to be that' for every 100 , ' men enijiloverl m mm ; n^ the anniril v<age* • ' paid would \\o\\i out at. sny, £15,000 per j annum. On" per cent, cf tin* amount (for a pnenmocoiiiosM,-. ritk) equ.tl- £150. Against ihi^- jjieni.um for pneunioroniosjs foi 100 m*n t)io C)i:--o!idated revenue wi'l he li«.b'« for £500. It mpy be t.ikcn for crnnte i thr.t 1 per rent, i-, far too low an ci/iim.,te of the men like!" to contract the d'j=ea.-e e^ch year, so that the liability of £500 for c.icii 100 men pjr year mar be ' re._',a-ded a-> a leal liability." Ihe diffeieuce between the premium icvepue a-id the liubihty of £500 bt.-ii.L- £350, it will i icadily l>e sf>en that for every 100 men 1 there will be nn ;mnual W.s «f £350. '< For 1000 men. therefore, t'.e W<* would be £3500. foi 10.000 men £35.000. ar>d a* ! tlnne .-ire .<-aid to be 13.000 miner? in New | Zealand tl.e annual 1 ->>.-, m.iy be t;iken 1 at no te.^ tl:nn £45 500. Tliii conclusion, it mibt be lcmembeitdj * anhed at alter ]

; » taking- credit for the premiums received for the risk of pneumoconiosis. These • figures will probably be found to be an ■ underestimate of the true position. In the opinion of the insurance men it is . generally to be expected that all the miners in the Dominion affected ' : with chest troubles at the present moment will take immediate steps to ■ ( arm themselves with medical certificates. certifying that they are suffering from pneumoconiosis. It may also be taken for granted that in view of the possibility of Parliament being asked to delete the disease from the provisions of the act at its next sitting, miners now affected will make strenuous efforts to establish a legal claim under the act before it is amended." He also stated ( that his company had decided to transact no mining business so long as the present act remained in operation and included I the risk of pneumoconiosis, and he had j good grounds for believing that none of the other accident insurance companies , would transact mining business for the same icason. "We feel that it is most unjust that ! the Government should thus assist its . own department by backing it up with the general funds of the Government," said the manager of one of the private companies to a Herald reporter to-day. "Of course, the Government will not extend the same privilege to us, and as I we are not going to take the risk as reI gards pneumoconiosis it simply means I that Dretty well the whole of the business will go off our books and into the hands of the Government. We strongly resent the attitude of the Government. It is unfair competition — most unfair." On being asked how the insurance companies were dealing- with their clients, ihis gentleman replied that they are raising as few difficulties as possible. They recognised that the position had % j been thrust upon the mining companies, J who in many cases must go to the j Government office for the insurance. 1 This insurance the companies were quite j prepared to facilitate. The Prime Minister had asked the employers and em- ' ployees to meet him in the matter as far as possible, and the insurance companies I were helping the employers by refunding any unearned premiums. It was further I stated that the business which the private insurance companies stood to lose hy the action of the Government would run into several thousand pounds. It might only be a temporary loss, but the companies would have to fight to get that business back. They were still united in saying they would not take the risk in respect to miners' complaint. The main reason for this was that they did not know the degree to which the 9000 or 10.0 CO miners in the Dominion might be affected by the disease. WELLINGTON, January 15. The accident instirance companies state definitely that they are not prepared to carry the risk of pneumoconiosis for an extra premiuni of £1 per cent, unless they receive the same indemnity given to the Government Accident Insurance Department.