GOVERNMENT LIFR ASSURANCE.

Evening Star, Issue 3030, 5 November 1872, Page 3

GOVERNMENT LIFR ASSURANCE.

The district of Heathcote returned as its representative in the House of Representatives in the room of the present Colonial Secretary, Sir John Cracroft Wilson. C.8., an estimable man, but whose eccentricities of mind and temper mar his usefulness as a politician. When more than a month ago iu his place in Parliament he tabled a resolution “Por a return showing the names of all persons who have insured their lives in the New Zealand Government Insurance Office since it was opened, the amount of premium paid by each of the insured ; the amount for which each insurance has been effected, and the total liability of the Colony on account of the same,” we thought it such a stupendous piece of folly, if not of downright impertinence, and that the House would so regard it, and ;<hame the mover into withdrawing it. But no, Sir John pressed hj r his return, though at the time it was pointed out to him that it was as extraordinary as it was uncalled for, and that Parliament might with as much propriety ask for a return showing who the shareholders in the several banks in the Colony, with the amount of dividends they have drawn during a given period. This M.P. of undoubted honor and the strictest honesty, as he is fond of telling us, could have no desire to pry into other people’s affairs. His action was dictated by patriotic motives, and resuited from his having heard, not only in New Zealand, but also from what he could not but consider very good authority iu Sydney—that “the New Zealand Government insurance office was doing a dangerous kind of business in this respect, that lives that wore somewhat doubtful had been insured by it at lower rates of premium than would have been exacted by private offices. He had also heard, in Wellington, that individuals who could not get insured in private offices bad been able to effect insurances in the Government office.” Here, then, we have the whole of Sir Cracroft Wilson’s reasons for moving his resolution, and what do they amount to ? Why, that on the strength of having “heard” something on what he believed to be good authority, he had come to the conclusion that the Government were doing an unsafe business. A mere report, it would seem, possibly emanating from persons who had reasons of their own for trying to damage the Government scheme, was enough for the honorable member. We have not yet received the official report of the subsequent debate; but learn from the Lyttelton Times that after the resolution was tabled Mr Gisborne, now the permanent bead of the insurance department, prepared a statement for tho Colonial .Treasurer in reference thereto. “;sir Cracroft Wilson’s motion,” he observed, “would, if carried, violate an honorable, though perhaps tacit, engagement between the Government insurance office and the insurers, that their negotiations and transactions with the office shall be confidential, and would also frustrate every prospect of successfully carrying on the business of the department, for it is not probable thet persons would make proposals with the knowledge that their names and the particulars of those proposals are to be publicly paraded. Even the appearance -of such

a motion on the Notice Paper ia, in a case where honorable confidence is involved, prejudicial. In order to illustrate how careful this department is as to secrecy, I enclose an envelope in use with the word ‘ Private conspicuously marked on it. Such a publication in the case of private companies is unheard of, and the idea of it would 1 o scouted.” All this is as true as it is forcibly said, and. it is to be hoped that no similar attempts will be made to violate the privacy of the department. In another part of his statement Mr Gisborne points out that with respect to the ascertainment of the Colonial liability on account of insurance, it is obvious that the proper mode of arriving at a true conclusion on the subject is, au actuarial investigation and calculation in respect of each policy—a process involving considerable time, labor, and cost. This investigation, be further points out, and accurately, is made by most private companies every five years, and, in the case of a new company, not until about the fifth year of its existence. The Government Insurance Office ia now in the third year of its existence, and Mr Gisborne, with reliable precedents at Lis back, including the English Government scheme, suggests that the actuarial inquiry should not take place till after the close of another year, '['he English Government Insurance Act prescribes, as be notes, that a valuation should be made after the first live years, and afterwards quinquenuialJy. To those opinions and suggestions, wdiich are well-founded and reasonable, he adds a little information of a general character. The department, he says, is progressing favorably : “ The annual incidental expenditure is considerably reduced, and the income rapidly increasing. The arrangement made for securing the investment of the assets as trust funds, and the receipt of compound interest thereon, is an important guarantee of success, The limit of insurance in each case for some time laid down in the department is L 200 0; but before that, a few policies were issued for L3OOO. The very restricted limit imposed in England— LIOO, I think —is no doubt the cause of the failure of success in the Government insurance department there. I have already issued 2060 policies. ” Mr Vogel in replying, told hon. members “ they must guard themselves in that House from lending too ready credence to reports which might be ciiculated by private companies, and which might sometimes reach honourable members through a medium w’hich made it utterly impossible for them to recognise the original source of the reports: and he said that without intending the slightest disrespect to the source from which the honorable gentleman obtained his information.” Mr Vogel had no objections whatever to a thorough investigation ; indeed, he advocated, if we understand his remarks aiighc, tho appointment of an Actuary to make the inquiry after the lapse of the usual time, and if the Legislature should wish, in the meantime, to ascertain how the business of the department is conducted, “ he should be most willing that tho honourable mam her for Heathcote should, next session act as a committee, whose duty it would be to make a full examination and to report as he might consider advisable. A report of that kind might be drawn up without trespassing on private affairs ; and from the honourable gentleman’s known high character, a report signed by him would be very much to the benefit of the institution, as giving to the country assurance that it was being properly conducted.”