STATE MONOPOLY OF ACCIDENT INSURANCE TO GO

Wanganui Chronicle, 17 November 1950, Page 6

STATE MONOPOLY OF ACCIDENT INSURANCE TO GO

PARLIAMENT BLDGS., La of Workers’ Compensation Insur Accident Insurance Office since IS of general competition among in business.

This change is proposed in the Workers’ Compensation Amendment Bill, which was introduced in the House of Representatives today. It implements a major plank in the 1949 election policy of the National Government. The change is to be made on April 1, 1951. It will then be compulsory for every employer, unless specially exempted, to insure with an insurance company of his own choice. This may be with a private company, a mutual or co-operative association, or the State Fire and Accident Office. Employers who fail to insure are to be indemnified by a Workers’ Compensation Board out of an account to be built up by levies by insurance companies and exempted employers Complete or partial exemption from liability to insure may be granted by the Secretary of Labour to employers with adequate financial resources to carry their own insurance and to Commonwealth shipping companies indemnl tied by the United Kingdom Mutual Protecting Clubs. Appeals from the Secretary of Labour’s decisions may be made to the Compensation Court. A new provision contained in the Bill is to establish a Workers’ Compensation Board to recommend the maximum rates of premiums and rateof commission for insurance agents handling workers’ compensation business. The board will also assist in accident prevention and in the care of Injured workers. Its members will consist of the general manager of the State Fire Insurance Office, one otl Government representative, two representatives of the Council of Fire and Accident Insurance Undeiyvriters' Associations of New Zealand, one employers' representative and one workers’ representative. Levies may be imposed on authorised insurers and exempted employers to provide for the liabilities.and expenses of the board. Another clause provides for the voluntary insurance of workers who are members of the employers’ family, those who are not required to be covered, or who are employed without wages or at reduced prices. INDEMNIFICATION SCHEME. Giving details of the indemnification scheme for uninsured employers, the Bill provides that in cases ot default they will be deemed to be covl.--ed by the Workers’ Compensation Board. In these cases the employer will not pay any premium to the board, but will be required to insure with an authorised company and pay premiums for the whole of the current year. The board will provide compensation for accidents happening before the employer insures, but if he fails to take out a cover within 14 days, or such further time as the board may allow, he will be liable to repay the compensation and all costs and expenses to the board. There are statutory provisions for | the maintenance of adequate records I by employers. In cases where the pay-1 ment •of premiums is evaded a fine may be imposed as well as a penal charge of up to treble the deficiency. The Bill increases from £6 to £6 10s the maximum amount of weekly payments of compensation for both future accidents and those occurring before the Bill becomes operative on April 1. A limit of six years for the weekly payments of compensation for loss of earning power from non-sched-ule industries is restored. An injured w'orker is also to receive additional compensation at a rate of 30s a week for ainy period during which he requires constant personal attendance, and is not being maintained free of charge in a hcspitaL A final clause is designed to remove an anomaly, whereby an estate of a deceased worker still has the right in an action for damages resulting from an accident to include a claim for the deceased’s pain and suffering, for any bodily or mental harm he suffered, and for the curtailment of his expectation of life. Consequential on the Workers Compensation Amendment Bill the Insurance Companies Deposits Amendment Bill vas also introduced. This requires the insurance companies undertaking workers’ compensation business to make deposits, in the form of approved securities with the Public Trustee. The deposits were previously made in cash, but the change to securities will relieve the Public Trustee of investment problems. The Minister of Labour (Mr Sulliavn) said that the Workers’ Compensation Board would make representations to the Minister to fix the maximum premiums to b? charged. There was nothing in the Bill that . would prevent companies from accepting the risks at lower rates. In that way it was hoped to introduce the competition that was good for everyone.

Bill To Bring That Business Back Into The Competitive Field

ast Night (PA). —The monopoly ranee held by the State Fire and 949, is to be abandoned in favour nsuranee offices for this class of