PREMIUMS PAID FOR ACCIDENT INSURANCE

Bay of Plenty Beacon, Volume 14, Issue 47, 5 October 1949, Page 7

PREMIUMS PAID FOR ACCIDENT INSURANCE

(Special to Beacon) Wellington, Tuesday

Speaking on the Estimates in the House of Representatives, Mr W. Sullivan (National, Bay of Plenty) said that despite the contention that the State Office would be able to handle accident insurance more efficiently and cheaply than the private companies, experience 'had shown that many business people were paying a greater amount in accident insurance premiums than formerly. One business man who previously paid £47 a year was paying £B4. His employees were put into different classifications with a consequent increase in the premiums. One electric, power board was paying an additional £4OO annually. The Hon H. G. R. Mason: “The question of the classification will be reviewed by the office. Every possible relief will be given that can be given by classification.”

Mr Sullivan said that that showed the position was not reviewed as it should have been in the first instance. Another electric power board was paying an additional £IOB a year. A lime company was paying a premium of 120 s per cent against 60s previously. The Opposition did not object to the State conducting an accident insurance business but it should be under a competitive system. The Hon T. H. McCombs: “What is the date of the hon. gentleman’s information?” Mr Sullivan said- it was quite recent, May 24, 1949. Mr Mason: “Obsolete.” Mr Sullivan said that the alteration in the premiums was made only by the pressure of the publicity given the extortionate charges. The whole situation amounted to extortion by compulsion. Business people were forced to submit to the dictates of a Government Department, and they had no redress whatever. Experience over a long oeiiod of years showed that they would be much better off under a competitive system.