THE GOVERNMENT LIFE INSURANCE DEPARTMENT.

Clutha Leader, Volume II, Issue 108, 4 August 1876, Page 6

THE GOVERNMENT LIFE INSURANCE DEPARTMENT.

The Financial Statement recently made by the Premier will go far to relieve the apprehensions of many of our fellow-citizens who have, with com- 1 mendable prudence, effected insurances on their lives in the New Zealand Go-* vernment Insurance Office. A comparison of the premium rates charged by the department with those of private companies, show a difference of from 15 to 20 per cent, in favor of the Government. But it was, not unnaturally, urged against the department, that bearing in mind this low rate of premiums, together with the fact that the institution was still in its infancy, aud that the necessarily heavy expenses of its initiation and establishment would have to be deducted from the gross income of the department during the first five years of its existence, it was very doubtful whether any profit whatever,/ would be realized on its transactions during that period.

All doubts on this subject, however, should le now fairly dispelled. The gentlemen to whom the accounts have been submitted, are, we believe, actuaries in high standing in the Insurance world, and the result of their examination is, that they find a surplus or profit of over £12,000. We are aware that it is not intended, at present, to divide any portion of this profit amongst the insured, since the Government Insurance and Annuities Act, 187*4, expressly provides that the first investigation, with a view to division of profits, shall be made as at 30th June, 1880* But we cannot close our eyes that it augurs well for the amount of bonuses to be received by policy-holders in four years' time, thafc such a result of the past operations of the department should have been obtained.

The guarantee of the colony renders every policy-holder perfectly sure that at his death the payment of the insurance money to his surviving relatives is secure, and he derives a great satisfaction from the knowledge, that although life is uncertain, and may terminate at any moment, and from the most unexpected cause, he has been enabled, without any great sacrifice on hig part, to make a provision for those who may have to mourn his premature decease. To heads of families this should commend itself most strongly. None who have not already made ample provision in this or some other direction, should neglect tho present opportunity of doing what is to them a positive duty ; while those who are free from family responsibilities will find life insurance the safest, and not the least profitable, mode of investment for their surplus income. We understand that Mr Baker, the travelling agent for this department for the Nelson District, has already, during his short stay in this city, been instrumental in inducing a goodly number to take the necessary steps to effect an insurance, and trust that many others will follow their laudable example. — l Nelson Colonist' July 15, 1876. J