Stratford Evening Post FRIDAY, SEPTEMBER 12, 1930. SOCIAL INSURANCE.

Stratford Evening Post, Issue 39, 12 September 1930, Page 4

Stratford Evening Post FRIDAY, SEPTEMBER 12, 1930. SOCIAL INSURANCE.

AT a time when it is-customary in most countries for people to rely to an increasing l extent on the, State for the provision of various social services, France has taken a notable step in the direction of social insurance. The scheme is a novel one in many respects, and provides an interesting- comparison with efforts which are being made elsewhere to deal with ever-growing problems of providing for those who have neglected, or have been unable to take care of themselves. It is a matter for comment that France, who has always been backward in social services, should give a lead to the world in an experiment which promises to he watched with unusual interest. While other countries, New Zealand amongst them, have adopted or proposed lo adopt systems of charitable aid which are given the name of insurance, France has actually put into operation a genuine insurance scheme for workers, rovering them aga'nst such nonjpal social ifsks illness, maternity, premature disablement, old age

and death. All these facts are covered under the one policy, so that there is no unnecessary overlapping- of administration. In New Zealand, for instance, to obtain the same provisions that are made under the French scheme, it would probably be necessary for a worker to be protected by a friendly society, the National Provident Fund, an accident insurance policy, and, ultimately, to rely upon the State for an old-age pension. The saving in cost by havingone comprehensive scheme is immediately apparent, and that is the first point which demands attention when considering- this new experiment. Ecpially striking is the fact that, probably lor the first time in '‘history, a scheme of State service has been evolved which is based on the principle of real insurance : there is no suggestion of the “dole” about it, and tbe contributions of the State are negligible. Actually a worker drawing on the fund receives only what be has insured himself for: lie does not rely on charity at all. Another remarkable feature is that unemployment does not enter into the matter, except that provision is made for the contributions of unemployed persons to be paid out of the general insurance fund for a nenod of four months. France is in. the enviable position of having virtually no unemployment, and apparently flm danger of it is regarded as being so remote that it is excluded from consideration in a sebemp wl'i f -b covers nil other possible social difficulties.