i.—9a.

20

APPENDIX. Canterbury Trades and Labour Council, Sir, — Trades Hall, Christchurch, 6th September, 1911. I am directed by the above Council to forward you the following amendments we desire to see made in proposed Workers' Compensation Amendment, and also in the present Workers' Compensation Act. In proposed amendment: That "one pound ' be struck out, and "ten pounds" inserted. The rest of the proposed amendments we agree with. In the present Act: That section 2, " relative" be amended by adding the words " neices and nephews." In support of this, we had a case of great hardship occur here a few weeks ago, when a single man was killed, who had been supporting his neices and nephews. Under the present Act the cause of action died with the man, and the young children were left to the mercy of charity. We trust you will use your influence to have this amendment made. That section 62 (3) be amended so as to provide that where any injury or damage is suffered by a worker by reason of the negligence of any person in the service of the employer, who has any superintendence intrusted to him, the worker injured to be able to recover damages to the full extent of the injuries received. In support of this amendment, we contend that when a employer places a man in charge whose duty it is to give orders or instructions as to how any work is to be carried out the emploj'er should take the full responsibility of any negligent acts on the part of that person. We had a case here a few weeks ago when a serious accident happened whereby one man was killed and two seriously injured, one of them losing his left leg. It was proved at the inquest that gross negligence was the cause of the accident, and yet the employer claims that the negligence was on the part of a fellow-servant, who was in charge of the job, and thus die amount that can bo claimed if that plea is sustained is only £500, while the extent of the man's injuries cannot be assessed at less than £1,000. We trust you will see the justice of this amendment and use your influence to have the same inserted in the Act. I am, &c, James Young, Set interbury Trades and Labour Council. J. F. Arnold, Esq., M.P., Chairman, Labour Bills Committee, Wellington. Accident Underwriters' Association of New Zealand, . Wellington. I lib September, 1911. Dear Sir, — Workers' Compensation Amendment Act, 1911. In accordance with your request, I have now obtained from the twenty-one companies forming the New Zealand Accident Underwriters' Association particulars of the amount of premiums received for risks in connection with the Workers' Compensation Act for the twelve months ending 31st December, 1910, together with the amount of claims paid during the same period, and I hand you statement herewith (No. 1). I also hand you a synopsis (No. 2) of the statements prepared by accident insurance companies for the year ending 31st December, 1910, in accordance with the Accident Insurance Companies Act, 1908. The synopsis has been compiled with the object of showing the ratio of losses and expenses. You will observe that on the whole business of the companies the loss ratio for 1910 amounted to 4878 per cent, and the expense ratio to 36 - 53 per cent. In the statement relating to workers' compensation only'you will see that the loss ratio amounted to 5248 per cent. This class of accident underwriting is less profitable and more costly to manage than the other branches of the business. It is impossible, however, to calculate exactly the expense ratio for the different branches, and I have taken tin' expense ratio as 36"53 per cent. This added to the loss ratio, 5248 per cent., gives the cost of underwriting under the Workers' Compensation Act for the year ending 31st December, 1910. as SO per cent. The margin of II per cent, is so small that it is obviously necessary to increase the rates should the scope of the Compensation Act be widened, and the benefits increased. From the figures obtained from a company transacting a considerable amount of accident business, we learn that the average number of claims for the year ending 31st December, 1910, amounted to 600 per company. Had clause 2of the Amendment Act been in force last year nearly the whole of the margin of 11 per cent, would have been absorbed by medical fees and first aid. Apart from this, the margin of II per cent, is so slender that no reserve can be built up to provide for disasters in mining and shipping risks. No business is sound unless it is conducted on a profitable basis; the underwriters are therefore justified in seeking to obtain an increase in rates, particularly with regard to some of the industrial risks, such as builders and cognate trades. These are at present covered at an unprofitable rate. Irrespective of any fresh legislation, the rates should at once be increased by 10 per cent, to place the business on a sound footing. I trust these figures will supply you with the information you require. I regret the delay in sending them in. This is due to the fact that I have had to obtain them from all parts of the Dominion. T have, &c, ChaS. A. Ewen, Chairman. Hon. J. A. Millar. Wellington.