Page 3 Advertisements Column 4

Timaru Herald, Volume XLIII, Issue 3619, 7 May 1886, Page 3

Miscellaneous. THE NEW ZEALAND GOVERNMENT. LIFJE INSURANCE AS3OCIATION. MISLEADING COMPARISON. THE Equitable Insuranco Society of tho United Slates has published a statement comparing tho costs of new buißiness with the New Pjiß.Miujta received. The public aro warned against accepting tlio comparison as a statement showing tho truo cost of the business. It is Misleading because the New Premiums of the Equitable ure mostly Annual, while those of the Government Insuranco Association are chiefly Quaktbiily and MoNTnLY. The New Premiums of the Government for 3884 represent m (£10,387) annual premiums £24,073. According to tho summary of the busines of Australasian Life Offices, published by the AUSTJIALiSIAN INSUIIANCE AND BANKING Recoup, m the number for January, 1886 (page 39, fourth column from end), the New Business of tho Government Insurance Association was acquired at a Less Cost Than Any Other Aubtbalasian Ofpiob. A study of the third and fourth columns (from end) of the summary just mentioned will speedily expose tho Fall icy. of the Equitable method of comparing the cost of tho 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 . eollectng £1,699,776 of renewals was £100,812, or nearly Six Pbe Cent (Government, slightly over Two Peb Cent). The method of comparison adopted by the Government Ineuranca Association is NOT misleading, because both offices value by a method which makes no allowance for the heavier cost of new business. The Equitablo spend nearly Twenty Pee Cent of their total premium income on the Management, while tho Government expenses are but slightly over sixteen per cent. The Lapsed Policies of the Equitable during tho year 1884 amounted to nearly One fifth: of the Insurances m force. Tbo Lapsed Policies of the Government Insuranco Association for the year 1885 amounted to Less than One-tenth of the Insurances m force. FURTHER FALLACIES EXPOSED. Tho comparison made by the Equitable of Suhkendeks to New Pbemitjmb is farfotched and absurd, as even the verieot tyro m Insurance matters is aware. Emanating from tbo Equitable as an official production it is inexcusable on tho ground of ignorance. The EquitaHe ought to be aware that the cash value of a policy is not merely Onb Instalment of a premium, but that it is a proportion of tho 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 Phemiuiis on new policies issued during 188 1-, £4024. Tlic annual premiums on new policies issued during 1884 amounted to £24,073. This is totally different to what the Equitable would fain make the public believe. Tho Equitable have at last been compelled to admit that they have been misleading tlio 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 tho premium was paid or not— a method adopted by no Australasian Oflico. The statement that the Government Insurance Association substituted an opinion for tho real opinion of tho " Australian Insurance and Banking Record " is not true. Inthe first place, it was not An Opinion at all that was quoted ; it was merely a statement of Facts. In tho second place, it tros believed that such a reputable journal would not publish such a statement without being duly, 6atiEfied that it was authentic. The ÜBUal precaution was takon of showing the authority by printing tho words " Vide « Australian Insurance and Banking Record ' for January 1884."' 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 we repeat that the " The Equitablo has a Tontine, but, stated m Court, m the case of 'Bewleyv. the Equitable,' that all tho 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 Citizen quotation. It was not. taken directly from that publication. It was extracted from a pamphlet circulated by the Kquitable, and bearing the names of the Society and of the manager. The question wns merely as to tho investments ; and tho fact that we Etatcd that The Citizen was generally " favourable to the Equitable," supported this. As relating to tho nature of Equilab'o Investments, it was deemed advisable to emphasise the sontence. The Equitiiblisjiccuses the Government of omitting a part of the context, and yet m an official advertisement published m the Lyttelton Tim's of tho 16th February, 1886, the Equitable, m correcting tho said omission, Themselves Caeefoli-y Lbft Out a PonTiOtf of the Contbxt. Wo now reprint tbo sentence, capitalizing the words omitted by the Equitable : — " Tho 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 bo enormous, and those effecting such policic, And Keeping Them up to tub End, will not be disappointed. What hidden meaning m those words, " and keeping them up to the end !" The law suits quoted were against offices that had the satno conditions m tlieir policies as the Equitable, notwithstanding all that has been said, the fact remains that Dbath Tnnouan Violation of the Law is sufficient to render an Equitable policy void. The Equitable state that they have never Contested a claim, meaning that thoy have never gono to law over a claim, and they desire tho public to assume that the Government Have Donk So. Tho Government have never contested a claim. Doubtless the Equitable, like all other offices, hove received nn_fu.-t claims Ihnt have Not boon paid. It would be a misappropriation of Ibo Policyholders' money for an office to pay every claim, Trbespective of Its Legality ob Justice (ns for cxamplo the. Howard case m Cbristchureh). No reputable, office would do Biich a thing, and it is presumed that this appellation is npplicablo to the Equitable. FURTHER FACTS. Tho average rate of interest on investments obtiined by the Government during 1884 was higher than that obtained bj r tho Equitable. Tlie Government r:ilc is KisiNO, while that of the Equitable is Falling. ■"''■" •' The Actual Results of the Tontine Savings Fu«d of the Equitable wero achieved m the days of High Inteuest. The Mortality m New Zealand At Each Agb of Life is Loweb than any othor country, ns shown by Frankland's researches, and confirmed by other fellows of the Institute of Actuaries. The public of this Colony should securo tho fu'l 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 tlic Association. I). M. LUCKIE, 1 22 GG4 Manager. ALL LETTERS or CORRESPONDENCE intended for the EDITORIAL DEPARTMENT of this paper, ought to be A-DnnESSED to the EDITOR. ADVERTISEMENTS, ORDFPS FOR PRINTING, and all business matte; b relating :o the office, togother with choques, &0., to do ADDRESSED to tho MANAGER. It ia particularly reqxiested .that NO LETTERS bo directed, either to the Proprietors or any member of the staff of thii , office, nHTATEI/r, if the communication^ ~ ire not of a private nature, a* delays M^* lonietinif » ooewqnjd by $q. a.oi«f .