STATE LIFE INSURANCE.

Otago Witness, Issue 2983, 17 May 1911, Page 38

STATE LIFE INSURANCE.

STATE OF MONOPOLY ADVOCATED

(From Our Own Correspondent.)

CHRISTCHURCH, ,May 13

The Mayor. (Mr T. E. Taylor, M.P.) told a Press representative to-day that there had "been brought under his notice a case which confirmed his opinion that the life insurance business should be a State monopoly. He said that there had been discussions on life insurance contracts in the House last session, and it was alleged that a great deal of deception had been practised, the premiums being out of all proportion to the financial results when the policies matured. That was stated to be specially marked in connection with certain policies that were tontined since the,session. He had heard a number of complaints from different people who had insured years ago as to the results they had received from their policies, and that morning a woman, the wife of a working man, had waited on

him and stated that she had taken out a policy in 1896. She was then employed in domestic service, and she was given to understand that she would have to pay 6d a week until she was 35 years of age, on the understanding that she would receive £24 when the policy matured. The policy had now matured, and she was offered only £l2 in settlement, after having paid to the company £l9 10s —£7 10s more than the company now offered to give. The company undertook a contingent liability of £24 in the event of her death during the currency of the policy, and no doubt, said Mr Taylor, the company would make a more or less feasible -defence of the transaction, but the whole thing only confirmed the opinion he had expressed during last session—that the time was ripe in New Zealand for making lite insurance a State monopoly. The competitive conditions under which it was carried on in the Dominion at present led to vague and perhaps dishonest promises being made in order to secure business, and the people would be great gainers either by reduced premiums or increased bonuses if the tremendous cost of acquiring new business now borne by different offices, which fouo'ht one another for it, was saved by establishing a State monopoly. Mr Taylor, continuing, said that he favoured the late Sir Harry Atkinson's scheme for compulsory natioTial life insurance. The woman referred to in the case mentioned by Mr Taylor at first thought of contesting. • the matter in the courts, but abandoned the idea when the possibility of losing the money offered in settlement was brought to her attention. The woman was confident that the sum mentioned to her when she took out the policy that would be payable to her when it matured was £24. The policy was not issued to her till a long time after her proposal was accepted, and it contained

a provision that if the weekly payments were in arrears for eight weeks the policy would lapse. Right up to within nine weeks of the maturing of the policy she was waited upon for her payments, and when the policy matured she was informed that it had lapsed owing to the non-payment of premiums. Upon threatening to take legal proceedings she was offered £l2 in full settlement, and this she accepted, and so made the best of a bad bargain.