INSURANCE COMPANIES AND THE STATE

Bay of Plenty Beacon, Volume 12, Issue 18, 3 February 1948, Page 4

INSURANCE COMPANIES AND THE STATE

Sir, —With the Government taking over the Workers’ Compensation Section of the Insurance Companies business, the wage earner is interested to the extent of how this aspect of Socialism will effect him personally. For many years now the Government of the day has determined the amount of compensation that shall be paid to the injured worker by the Companies. If it were now considered necessary to increase the amount so paid, a . simple Act of Parliament only would be called for. Knowing the methods adopted by Government Departments with their passion for form filling, it is most unlikely that the Employer’s Indemnity Insurance business will be conducted in the future with the smoothness, efficiency and satisfaction to all which has characterised it in the past. There have been no complaints from injured workers on the score of unfair treatment by the Companies, nor has there been any red tape or delay in the paying out of claims. In fact, a rather free and easy method of doing business has been in evidence in many cases whereby advance payments have been made to the injured workers on a most liberal basis. One of the factors contributing to the efficiency of the Companies and their prompt settlement of claims has been the existence of that free competition for business between the numerous firms in the Insurance trade. In unnecessary delay in the meeting of a claim should have occurred in the past, loss would have resulted to the wage earner making the claim, and annoyance to the employer. The remedy was to change the firm with whom 'the insurance business was done.

Now, with the consolidation of all the business into the hands of the State, all claims will be dealt with under the well-known. Government Departmental procedure characterised by delay, red tape and lack of the personal touch. The great value of competitive incentive will be lost and the one to suffer

through the monopoly will be the unfortunate wage earner who is waiting for his compensation.

Employees of the Insurance Companies have expressed in no uncertain manner their views on this latest socialist move by the Government. In most cases these men and women have taken jobs in Insurance Offices as a specialised life work. Special training has been necessary and study and experience have fitted the older staff members for more responsible positions and higher pay. Many of these workers will be thr#wn out of employment, and because of their special training will be unfitted for other jobs. Th» State office may take some of these people on their own staff, but many will be forced to look elsewhere for employment. No advantage to either employer or employee can be. detected in this move to place us under the cold, dead hand of the beaucratic State. On the contrary, many valuable features of the past, promptitude, flexibility, efficiency and service will be lost to all concerned. Yours etc., WAGE-EARNER.