Accident Insurance.

Gisborne Times, Volume VI, Issue 152, 9 July 1901, Page 3

Accident Insurance.

CRITICISM OK THE GOVERNMENT. Tiik Christchurch Press makes the follow ing vigorous attack on the system of Go vernment Accident Insurance :

The compact which was apparently arrived at between the Government and the Accident Insurance Companies to keep up rates of insurance against claims under the Workmen’s Compensation for Accident Act has been of short duration, since we see that one of the companies is already advertising that it is prepared to “go alone "in this matter, it seems not improbable, therefore, that wo may have a merry war of rates from which employers and employees will reap at any rate a temporary benefit. What has happened up to the present is so much at variance with Mr Scddon's promises and prophecies in introducing the Government Accident Insurance Bill that it is almost ludicrous to contemplate. The great argument which the Right Honorable gentleman adduced in support of the Bill was that it would make insurance against accidents very much cheaper than it was before. On the motion for the committal of the Bill on August Ist, 1899, he said that the premiums charged by the companies were “ very high indeed.’ He then continued : “ Guided alono by what is taking place in our own colony, the Government catnc to the conclusion that the time was ripe for introducing this legislation, and for setting the State to work in train with, but apart from the Life Insurance Department; and I believe that this can be done most economically, and I believe I should he within the mark if I say there could be a reduction of at least 25 to i!0 per cent, in the premiums heretofore paid.” What actually took place was that the Government entered into an agreement with thoprivato companies by which the rates were raised in some instances as much as a thousand per cent, on those previously charged. If, as seems likely, they arc to come down now, it is because the parties to that agreement have fallen out, and one of the companies has announced its intention to work on independent lines. Thero is another point on which the Government have laid themselves open to serious criticism. It will ho remembered that they delayed publishing the regulations regarding accident insurance until the very last moment, instead of allowing a reasonable period to elapse between the gazetting of those regulations and the bringing into force of the Workmen’s Compensation for Accidents Act. What was the object of this delay it is impossible to fathom, but the practical effect can very soon bo described. In the first place, it caused both employers and workmen a good deal of unnecessary anxiety and inconvenience. In the second place, it played completely into the hands of the Occident Insurance Companies. While the Government were shilly-shallying and delaying to let the public know what they were going to do the enterprising managers of the companies were busy securing the business, so that when tho Government regulations were at last issued, and the Government canvassers got to work they found that the cream of the insurance was already in private hands. As regards life insurance, we willingly admit that the business of .the Government Department has been very well managed. That they have made such an unfortunate start with accident insurance is, we believe, not the fault of the officers of tho Department, but of the blundering shown in tho political control. It is not a matter for surprise that some people have come to the conclusion that Mr Seddon brought down the Bill ns a piece of political clap-trap—-that he is not very sanguine as to how Government Accident Insurance is likely to turn out, and is by no means overanxious to secure business.