The Government Life Insurance Bill.

Wairarapa Standard, Volume XIX, Issue 1867, 6 August 1886, Page 3

The Government Life Insurance Bill.

Thi Ministry, in accordance with the recommendation of a Parliamentary Committee, which recently reported on the subject, have introineed a Bill, the object of which is the reorganisation of the Government Life Insurance Othce. As this measure is likely to be passed and as there are many policy holders in the Government Insurance Office resident in the Wairarapa, we now give an outline of its chief provisions. The Bill Jrepeala the Government Insurance Act of 1884, and reenacts the Government Insurance and Annuities Act, 1874. with the exception of certain sections which have become inoperative. It dissolves the Government Insurance Association and the Board, vests the Association's property in the Queen, and its rights and liabilities in the Commissioner. All policies in force are to be subject to this Act. Officers of the dissolved Association are to become Civil Servants at the same salaries as they receive under the Association. It is further enacted that the person holding the office of General Manager uf the Association at the commencement of this Act is without farther sppointment to be the Commissioner under the Act. With lespect to the surplus profits of the Insurance Association it is provided “ If Parliament be not in session when the report is made as to the net surplus profits available for division in respect of the quinquennial investigation now belong conducted, the Governor in Council may direct that such profits shall be divided in accordance with the report, although the report has not been laid before Parliament, and if there should be sny ambiguity in such report, or if any discretion be thereby given to the Association or to the Central Board in respect of the proposed division, the Governor may alter or vary the distribution or provide for such ambiguity or exercise of discretion, iu inch manner as he may be advised. Some important provisions are made aa to the investment of the Insurance funds. Not less than one half of the moneys standing at the credit of the Government Insurance Account from time to time ate to be invested, in accordance with this Act, in securities of the Government of New Zealand, or upon loans to the local authority of any country, borough, road district, town district, liver district, or drainage district in New Zealand, secured by a special rate on property, or partly by such rate and partly in some other manner. Every loan so made to a local authority most be approved by the Governor in Council. Half of the funds may be invested aa folleva (1) Part msy be lent .to holders of policies ; (3) Part may be lent on first mortgage of land in New Zealand held in lee simple io poesession, with or without buildings, but so that no moneys shall be so lent which shall exceed one half of the value •f the property to be mortgaged, as determined by a valuator or valuators to be appointed by the Board hereinafter referred to. The maximum sum to be lent is to be fixed ; and, so far as practicable, applications for loans not exceeding £SOO are to have priority over applications for larger sums. A Board is to be appointed to control the mortgage investments, consisting of the Colonial Treasurer, the Solicitor-General, the Surveyor General, the Property Tax Commissioner, the Public Trustee, and the Commissioner for the time being. It will be seen from the provisions of this Bill that it ia intended to place the Insurance Department once more under the control of the Government. We do not think that the Government has any busine-s to dabble in the business of Lite Insurance, but as they are already engaged in the undertaking, it is better that they should keep it in their own bands than have a perpetuation of the squabbling, wrangling, and divided action which has marked the administration of affairs, under a mongrel and mixed Board of Control, during the last year or two.