INSURANCE OF LIVES

Taranaki Daily News, 8 October 1929, Page 10

INSURANCE OF LIVES

REGULATION OF COMPANIES. Canberra, Sept. 20. The Bill for the regulation of life insurance in Australia, which was introduced in the Senate recently by Senator A. J. McLachlan, Honorary Minister, is undoubtedly one of the riiost important pieces of legislation ever brought forward in the Federal Parliament. The magnitude of the interests involved-can be gathered .from the fact that the assets under the control of the Australian life offices substantially exceed £120,000,000. Senator McLachlan said that the Goyernriient had drawn upon the experience of CO ’years, and if there were a tendency to think the '-Bill leaned' - too much to the side of'undue control it could be said in justification that its ideal was to bring the few weak societies to the -higli level "of the many stitmg ones. “The influence of the failure of a weak Company,” -he said, “is ■out of- alt proportion to the irisignifioance "of the company" itself. It may tend to strike a blow at the whole thrift movement vVheih is so - important in the public interest.” During the second reading debate mention was made by some of the speakers of the ’ mushroom companies which had sprung up in Australia, and in ’his reply Senator McLachlan, said that if the Bill became law they, would have gone a long way toward guarding the community against the operations of companies which had done a great deal of harm to the name of insurance in this country. The main'object was to safeguard the interests .of policyholders, but there was no desire to interfere uriduly with the. operations of the ’highly-creditable companies which were at present carrying on business. For the sake of unifofinity alone, however, it was advisable to have one law which would call for the same statistical returns and impose the same restrictions upon all life offices operating in the Commonwealth. Under this Commonwealth measure the' administration of the law will be entrusted to a Government officer, with' the title of registrar of life insurance. He will have very wide powers in connection with registration and will act as adviser to the Government in auch matters as amalgamation and winding up. He will even have power to initiate proceedings himself in regard to winding up. In vied- of the responsible and technical character of the vvork to be performed, it is provided’ that lie shall be an actuary, and this, it is considered, will be a further safeguard to the interests of the well-established offices, ensuring that nothing prejudicial- will result from the vesting olf such large powers in tlm hands of a single individual. A deposit of £20,000 is to be made for each class of business, foreign companies to pay the same;, but a special concession is made in the case of small, recently-established companies, who may meet the deposit by actual instalments. Any deposit held by a State under any of the State Acts can be made available, if desired, as a deposit for the Commonwealth. —Auckland Herald- correspondent.