LIFE ASSURANCE.

Evening Star, Volume VII, Issue 1915, 25 June 1869, Page 3

LIFE ASSURANCE.

Tlie following condensed report of Mr Vogel’s speech on the above subject is taken from the Wellington Independent :— Mr Vogel moved that this House recommends to the Government to introduce a measure providing facilities for the purchase of Government annuities, and for assuring payments of money on death. The great objects to be sought for in life assurance were the greatest amount of assurance at the least possible cost, and these conditions could be only met by the Government taking the matter in hand. The lion, gentleman pointed out the measures in this direction which had been adopted at home. There was good reason to suppose that many of the existing English Assurance Companies are in a very unsound state, and there is no means of ascertaining that siich is the case or not. English and other companies desirious of carrying on business in the Colony might be compelled, as foreign companies were in New York, to invest a certain ■".mount of money in the country. Still 110 security could be equal to that which woiuJ be afforded by the State taking the matter in hand itself. It would be justified iii doing so by the fact that it was of the "highest public importance to encourage habits of industry and frugality amongst the bulk of the population, and, in order to avoid future pauperism, to encourage them to make provision for their future necessities. There were limits within which this principle should be confined. The rule adopted at home was a sound one, and they should not allow children’s lives to be insured. He did not say it would encourage infanticide to do so, but it might render parents careless of children’s lives. The plan adopted by some Assurance Offices of receiving premiums to be repaid with compound interest, in a lump sum, upon the child attaining a certain age, might be advantageously adopted. The hon. gentleman pointed out different ways in which the principle of life assurance and granting annuities might be carried out. The only way in which life assurance could be made general amongst the working population was by the Government undertaking it. The success of the .Post Office Savings Banks was a proof of the confidence the working classes had in the security offered by the Government. They were fortunate in having no vested interests to deal with, as the foreign companies

could not be said to have any vested interests in the Colony. The Government could offer better terms than the English companies could, as they had a higher rate of interest to go upon, and lighter chai'ges, for they might employ their large staff of officials in the woik. It might be made the basis of a large financial scheme. Eor thirty-seven years the premiums would accumulate, and no better investment of the money could be made than in the public debt of the Colony. Power might be given to issue, in cases where required,, one year’s Treasury bills in payment of the assurances. This would have the effect of throwing a future liability upon those who come after us; and it would not be unfair to do so. By buying up the colonial securities, the Colony would be relieved from paying interest upon them, and would be only liable to pay a fixed sum at the end of a period of time. This sum would be paid on account of expenditure which was really incurred on acccount of the future population. He did not advocate the Government carrying on the business of assurance at a loss, but did not believe there was any fear of loss being incun’cd. Indeed the Government would be able to offer better terms than the companies. This scheme might be used as a great engine for the colonisation of the country, as superior advantages would be offered to immigrants for the investment of their savings. As to the fear of personation, the Government had greater facilities for preventing this than companies. Photography might be advantageously used to prevent this. As to selection, the Government would have no difficulty in making a sufficiently close one. He wished to see the assurance offices established in the country districts more especially. Those hon. members who might support this measure might leave a more permanent mark on the history of the country, than any course which they might adopt in regard to the present difficulties. The hon. gentleman at the close of a lengthy speech sat down amidst loud cheering. The Hon. J, Hall complimented the last speaker upon the able manner in which he had brought this important subject before the House. He (Mr Hall) almost entirely concurred in his remarks. The subject had already engaged the attention ®f the Government, who had applied to the Home Government for information as to the principles and conditions upon which the annuities are granted and the manner in which the system is worked. The hon. member could not ask the Government to do more than say they were willing to accept the resolution as it stood, and leave it to themselves, or any future Government, to give it effect in some well-conditioned measure. The Government could work the insurance offices cheaply, as they had agencies all over the country ; and by adding this to their other duties, they would be enabled to pay a better class of officers in the country districts than they were enabled to do at present. The Government would endeavor to bring down a bill next session. Mr Vogel, in his reply, expressed a hope that the Government would bringdown a bill this session, as the House could only be asked to assent to the principle of the measure, and the Government must work out the details. The motion was carried.