Page 3 Advertisements Column 4

Timaru Herald, Volume XLIII, Issue 3609, 26 April 1886, Page 3

Miscellaneous. THE NEW ZEALAND GOVERNMENT. LIFE INSURANCE ASSOCIATION. MISLEADING COMPARISON. THE Equitable Insurance Society of the United States has published a statement comparing tho costs of new buisiness with the New Pbbmiums received. The public aro warned against accepting the comparison as a statement Bhowing the true cost of the business. It is Misleading because the New Premiums of the Equitable are mostly Annual, while those of the Government Insurance Association are chiefly QtrAßTEßivr and Jlomthlt. The New Premiums of the Government for 1884 represent m (£10,387) annual premiums £24,073. According to the summary of the business of Australasian Life Offices, published by the AUSTBALABIAN INSUBANOB AND BANKING Recobd, m the number for Jannary, 1886 (page 39, fourth column from end), the New Business of the Government Insurance Association was acquired at a Less Cobt Than Any Otheb Austbalabian Offiob. A study of the third and fourth columns (from end) of the summary just mentioned will speedily expose the Fallacy of tho Equitable method of comparing the coet of the new business. The Equitable comparison, moreover, does not allude to the commission paid for collecting the renewal premiums. The amount expended by the Equitable during 1884 for collecting £1,698,776 of renewals was £100,812, or nearly Six Phb Cent (Government slightly over Two Pee Cbnt). The method of comparison adopted by the Government Insurance Association is NOT misleading, because both offices value by a method whioh makes no allowance for the heavier coßt of new business. Tho Equitable spend nearly Twbhty Pkb Cent of their total premium income on the Management, while the Government expenses are but slightly over sixteen percent. The Lapsed Polioies of the Equitable during the year 1884 amounted to nearly One- fifth of the Insurances m force. The Lapsed Policies of the Government Insurance Association for the year 1885 amounted to Less than Onb-tenih of the Insurances m force. FURTHER FALLACIES EXPOSED. The comparison made by the Equitable of SUEBENBEBS TO NEW PBEHIUMS is farfetched and absurd, as even the veriest tyro m Insurance matters is aware. Emanating from the Equitable as an official production it is inexcusable on the ground of ignorance. Tho Equitable ought to bo aware that tha cash value of a policy is not merely Onb 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 Pbemiumb on new policies issued during 1881, £4024. The annual premiums on new policies ießued during 1884 amounted to £24,073. This is totally different to what the Equitable would fain make the public believe. The Equitable have at last been | compelled to admit that they have been misleading the public, and that nearly one-fifth of their so-called New Business for the year may be designated " bogus," not a sixpence of premiums having been received, a policy having beeu 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 tho real opinion of the " Australian Insurance and Banking Record " is not true. In the first place, it was not An Opinion at all that was quoted ; it was merely a statement of Facts. In the second place, it was believed that Buch a reputable journal would not publish such a statement without being duly satisfied that it was authentic. The usual precaution was taken of showing the authority by printing tho words "Vide 'Australian Insurance and Banking Record ' for January 1881." Had that course not been adopted, the Government Insurance Association would have been charged with publishing annonymous attacks. Wo have said it was a statement of factn, and we repeat that the " The Equitable lias 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 policyholders had nothing to say m the matter of their disposal." Then, as to The Citixen quotation. _It was not taken directly from that publication. It was extracted from a pamphlet circulated by the Equitable, and bearing tho names of the Society and of the manager. The question was merely as to the investments ; and the fact that we stated that The Citizen was generally "favourable to the Equitable," supported thiß. As relating to the nature of Equitable Investments, it was deemed advisable to emphasise the sentence. Tho Equitable aceuies the Government of omitting a part of the context, and yet m an official advertisement published m tha Lyttelton. Times of the 16tk February, 1886, the Equitable, m correcting the said omission, Themselves Cabefuixy Lbft Out a Portion of the Context. We now reprint the sentence, capitalising the words omitted by the Equitable :— " The Equitable itself admits that on account of the greater difficulty of securing remunerative returns on investments, there will not be so large profits m time to come, nevertheless, the bonuses are certain to be enormous, and those effecting such policies, And Kebpino Them up to the End, will not be disappointed. What hidden meaning m thoso words, "and keeping them up to the end 1" The law Buita quoted were against offices that jhad the same conditions m their policies as the Equitable, notwithstanding all that has been Baid, the fact remains that Death Thbouoh Violation of the Law is suffioient-to render ao Equitable policy void. The Equitable state ,tW they have never Congested a claim, meaning that jtbey have never gone to law over a claim, and they desire the public to assume that the Government Have Done So. Tho Government have never contested a claim. Doubtless the Equitable, like all other offices, have received unjust claims that have Nor been paid. _ It would bo a misappropriation of the Policyholders' money for an office to pay every claim, Ibbbspectivb of Its Legality ob Justice (as for example tho Howard case m Christchurch) . No reputable office would do such a thing, and it is presumed that this appellation is applicable to the Equiftjible. FURTHER FAOT9. The •ar<arage rate of interest on investments obtained ibjr the Government during 1884 was higher than <tk*t obtained by the Equitable. The Government rate is Rising, while that of tho Equitable ; is Falling. The Actual Rs6uv.T3 of the Tontine" Satingb Fund of d&ie Equitable were achieved m the days of Sfo» Intbbest. The Mortality m New Zealand At Each Age -os Life is Loweb than any other country, ac shown by FranklandJs .researches, and confirmed by other fellows of the Institute of Actuaries. The public of this Colony should secure tho full benefits arising from the low mortality by insuring ,iv tho Government jjiisurance Association, whose business ,is confined to New Zealand. The publio are requested, before insuring, to obtain full information regarding tho facts and figures from Agents of the Association. D. M. LUOKIE, 4-22 664 Mantigqr. ALL LETTERS or CORRESPONDENCE intended for tho EDITORIAL DEPARTMENT of this paper, ought to b« ADDRESSED to the EDITOR. ADVERTISEMENTS, ORDERS FOB PRINTING, and all business matteis relating to the office, together with cheques, &c., to ha ADDRESSED to the MANAGER. t It is particularly requested that NO KSTTERS bo directed, either to the Proprietors or any member of the staff of this office, PRIVATELY, if the communications »re not of a private "nature, as delaysar* «om«tim»i occ»sion*d by »o doing.