Page 3 Advertisements Column 4

Timaru Herald, Volume XLIII, Issue 3608, 24 April 1886, Page 3

Miscellaneous. THE NEW ZEALAND GOVERNMENT. LIFE INSURANCE ASSOCIATION. MISLEADING COMPARISON. THE Equitablo Insurance Society of the United States has published a statement comparing the costs of new buisinesß with tho New Pbbmiums received. Tho public are warned against accepting the comparison as a statement showing tho true cost of the business. It is Misleading because the New Premiums of the Equitable are mostly Annual, while those of tho Government Insurance Association are chiefly Quabtbbly and Montblt. The NewPremiums of the Government for 1884 represent m (£10,387) annual premiums £24,073. According to the summary of the business of Australasian Lifo Offices, published by the Australasian Insubance and Banking Record, m the number for January, 1886 fpage 39, fourth column from end), the New Business of the Government Insurance Association was acquired at a Less Cost Than Any Othbe Australasian Offios. A study of the third' and fourth columns (from end) of tho summary just mentioned will speedily expose the Fallacy of the Equitablo method of comparing the cost of the new business. The Equitable comparison, moreover, does not allude to the commission paid for collecting the renewal premiums. Tho amount expended by tho Equitable during 1884 for collecting £1,698,776 of renewals was £100,812, or nearly Six Pbk Cent (Government slightly over Two Pee Cent). Tho method of comparison adopted by tho Government Insuranco Association is NOT misleading, because both offices value by a method which makes no Allowance for the heavier cost of new business. The Equitable spend nearly Twenty Peb Cent of their total premium income on the Management, while the Government expenses are but slightly over sixteen per cent. The Lapsed Policies of tho Equitablo during the year 1884 amounted to nearly One- Finn of the Insurances m force. The Lapsed Policies of the Government Insurance Association for the year 1885 amounted to Less than One-tenth of the Insurances m force. FURTHER FALLACIES EXPOSED. The comparison made by the Equitable of Subrendebs to New Pbbmuais is farfetched and absurd, as even the veriest tyro m Insurance matters is aware. Emanating from tho Equitable as an official production it is inexcusable on the ground of ignorance. Tho Equitable ought to bo aware that tho cash value of a policy is not merely One Instalment of a premium, but that it is a proportion of the Whole of the premiums paid. It would be equally as absurd to compare the Claims with new premiums. The amount paid for surrenders represents m Annual Premiums on new policies issued during 188 1, £4024. The annual premiums on new policies issued during 1884 amounted to £24,073. This is totally different to what the Equitablo would fain make the public believe. The Equitable have at last boen compelled to admit that they have been misleading the public-, and that near.'y one-fifth of their so-called New Business for the year may bo designated " bogus," not a sixpence of premiums having been received, v policy having been issued for every proposal received, whether the premium was paid or not— a method adopted by no Australasian Office. The statement that the Government Insurance Association substituted an opinion for the real opinion of tho " Australian Insuranco and Banking Record " is not true. In tho first place, it was not An Opinion at all that was quoted ; it was merely a statement of Facts. In tho second place, it was believed that such a reputable journal would not publish such a statement without being duly satisfied that it was authentic. Tho usual precaution was taken of showing the authority by printing the words "Vide 'Australian Insurance nnd Banking Record' for January 1881." Had that course not been adopted, the Government Insurance Association would have been charged with publishing annonymous attacks. We have said it was a statement of facts, and wo repeat that tho " The Equitable has a Tontine, but, stated m Court, m the case of ' Bewley v. the Equitable,' that all the funds belong to the stockholders of that Corporation, and that the policy holders had nothing to sny m the matter of their disposal." Then, as to The Citizen quotation. It was nol, taken directly from that publication. It was extracted from a pamphlet circulated by the Equitable, nnd bearing the names of the Society and of tho manager. The question was merely as to tho investments j and tho fact that we stated that The Citizen was generally " favourable to the Equitable," supported this. As relating to the nature of Equitable Investments, it was deemed advisnblo to emphasise tho sentence. Tho Equitable accuses tho Government of omitting a part of the context, and yet m an official advertisement published m tho Li/ltelloii Times of the 16th February, 1886, tho Equitable, m correcting tho eaid omission, Themselves Carefully Left Out a Portion of tiir Cohtbxt. We now reprint tlio sentence, capitals ing Ibo words omitted by the Equitable : - " The Equitable itself admits that on account of tho greater difficulty of securing remunerative returns on investments, thero will not bo co large profits m time to come, nevertheless, the bonuses are certain to be enormous, and those effecting such policies, And Keeping Them up to the Knd, will not be disappointed. What hidden meaning m those words, "and keeping them up to tho end!" Tho law suits quoted were against offices that had the same conditions m their policies as the Equifcible, notwithstanding all that has been said, tho fact remains that Dbath Through Violation of thk Law is sufficient to render an Equitable policy void. The Equitablo state that they havo never Contested a claim, meaning that they havo never gone to law over a claim, and they desire the public to assume that the Government Have Dons So. The Government have never contested a claim. Doubtless the Equitable, like all other offices, have received unjust claims that have Not been paid. It would be a misappropriation of the Polievholders' money for an office to pay every claim, Irrespective of Its Legality or Justice (as for example tho Howard case m Christchurch) . No reputable offico would do such a thing, and it is presumed that this appellation is applicablo to the Equitable. FURTHER FACTS. Tho average rale of interest on investments obtained by the Government during 1884 was higher than that obtained by the Equitable. Tho Government rale is Rising, while Hint of tho Equitablo is Falling. Tho Actual Results of the Tontine Savings Fund of tho Equitable w.era achieved m the days of HlGn Intrbf.sT. The Mortality m New Zealand At Eacu Age of Life" is Lowke than any other country, as shown by Frankland's researches, and confirmed by other fellows of tho Institute of Actuaries. The public of this Colony should secure the full benefits arising from tho low mortality by insuring m the Government Insuranco Association, whose business is confined to New Zealand. The public aro requested, before insuring, to obtain full information regarding the facts and figures from Agents of the Association. D. M. LUCKIE, •1-22 GG4 Manager. A LL LETTERS or CORRESPOND±X. ENCE intended for tho EDITORIAL DEPARTMENT of this paper, ought to ho ADDRKSSED to the E O ITO R. ADVERTISEMENTS, ORDFKS FOR PRINTING, and all business matters relating to tho office, together with cheaues, &0.. to bo ADDRESSED to the MANAGER. It is particularly requested that NO LETTERS bo directed, cither to the Proprietors or any member of the staff of thin office, PRIVATELY, if tho communications are not of v privule nature, aa delay« ar* lometimee oocoaioued b/ to duic£.