Hit Or Miss Insurance Premiums

Chronicle (Levin), 1 June 1949, Page 3

Hit Or Miss Insurance Premiums

The use of hit or miss methods ir tixing the amount of premiums, with out due regard for proper classificatior of employees, appears to be the maii complaint of manufacturers with th( operation of the State monopoly oi workers' compensation insurance. Some premiums, even conceding that the State gives complete cover against liability at common law — previousl,-v this cover was available at extrs charge — are considerably higher. On the other hand, manufacturers in different industries find their premiums lower. But it is the apparent' disregard of the varying degrees of risk entailec in occupations that concerns manufacturers. A survey, in the form of a questionnaire, has been taken by the Wellington Manufacturers' Association. As with most similar undertakings, not all manufacturers who received the questionnaire bothered to return it, or perliaps they were too busy to answer the four or five questions submitted. Again, the non-return of the form might indicate satisfaction with the premiums being paid. No Discrimination. One conclusion reached is that there are definite anomalies in some industries where the State is levying blanket rates oVer all ,classes of employees, regardless of individual work. -For instance, in the furniture trade the new rate is 35s for every £100 of wages for cabinetmaking and joinery. In the past the payments were 20s for packers, 9s 6d for polishers and cabinetmakers, 14s 3d for cabinetmaking apprentiees, and 42s for machinists. The premium pay-out bv one firm has increased from £135 to £220. A more startling example is that of k company employing 44 persons making iron and steel goods. The mechanics, apprentiees, storeman-packer, and driver-packer are now each rated at 45s per cent. — the rates used to be 23s for mechanics, 34s 6d for apprentiees, 13s for storeman-packer, and 13s 3d for driver-packer, all plus 12| per cent. for extra cover against common law liability. Pumice manufacturers and conerete workers are now classlfied the same as plasterers at 30s per cent., where previously plasterers were 30s per cent. and the pumice and concrete workers only 10s. Many of the pumice and concrete workers do not use any machinery. Calculating premiums on the same wage basis as in the past, there has been an increase of approximately 12^per cent. in th6 cover for cement workers. The rates are illuminating. Builders and elect'ricians in the industry now cost 90s per cent., as against 46s per cent. before, the rate for stevedoring on vessels has increased from 260s tc 300s, for stevedoring on wharves from

120s to 140s, and for general cement work from 60s to 90s. Some Rates Down. A commerciai printing and stationery establishment is among. the undertakings in which the rate has fallen. The rate for factory employees used to be 9s 6d per cent., less 4 per cent. allowance for holiday pay, plus 124 per cent. for cover 'against common law liability. The rate, ineluding common law protection, is now 9s. Factory and delivery workers in aerated water and cordial/ manufac? turers were rated at 31s 3d in the past, and the new rate is 25s. The rate .'for workers engaged in making confectionery is now 32s Od instead of 35s. Complaints of anomalies in various industries have not been overlooked, and the Grovernment is now sending out inspectors to inspeet factories and to reclassify workers if it is warranted. Another, but less pressing grievance, is that no allowance is made by the State for annual holidays. Premiums tare based on wages paid for 52 weeks, although for at least two weeks a year there i? no danger of a person being injured in the course of his employment. Private insurance companies used to make a deduction of 4 per cent, Manufacturers feel that the State should have taken a line on the exist- ' ing commerciai rates before the rates being charged by the State Fire Office were fixed. They regret, too, that lack ' of comptition means lack of flexibility in rates — insurance companies used to eliase business, they say, with competifcive rates", especially where there were good rc.ords of freedom from claims.