THE GOVERNMENT INSURANCE DEPARTMENT.

Globe, Volume XXI, Issue 1749, 27 September 1879, Page 3

THE GOVERNMENT INSURANCE DEPARTMENT.

WELLINGTON, September 20.

The annual report of Mr D. M, Luckis, the Government Insurance Commissioner, is published. The report states that, although there had been a falling away of business during the first six months of the year, yet the business for the whole period shows an increase over the preceding and much more prosperous year. The now proposals received during the year numbered 2767, for the gross sum of £971,461. Of that number 696 were declined, or not completed. The total of new premiums was £25,323 9a 9d. Under the head Claims, he reports that death claims were made during the year under eighty-two life policies, amounting to £30,109. These claims arose through the death of seventy-five persons. This shows a larger mortality than has occurred in the experience of the Department in any former year. At the same time it should be noted that the amount per claim is more than 10 per cent, under the average of preceding years, while the number of policies has very largely increased. Numerous as these deaths have been, they are still considerably below the rate of mortality on which the insurance tables are calculated. One remarkable circumstance in relation to the claims which have arisen is the fact of the total number of deaths of assured persons (seventy-five in all) no fewer than seventeen, or 22 2-3ds per cent, wore caused by sudden and unexpected accidents. Seven of these casualties were deaths by drowning, and five arose from accidents connected with horses. The sums which became payable by the department to the representatives of the victims of these accidents amounted to £6,409, or fully a fifth of the whole amount payable for death claims in the period reported on. The provision made by the persons assured has in many of these cases saved their representatives from the pressure of poverty. Total Business —The policies issued for the nine and a half years during which the department has been in operation number 12,896, assuring the sum of £4,533,733. Of these policies 2582 have been discontinued by lapse, surrender, death of the assured, or otherwise, and there were at the close of the financial year 10,314 existing policies, assuring £3,744,997,

Accounts —The year’s income derived from all sources, including £450 I2s 5d from the Industrial branch, was £133,072 14s lOd, showing an increase of £21,234 13s lid over that of the previous year. The accumulated funds of the department on 30th Juno last amounted to £372,654 14j sd, giving an increase during the period of £79,592 10s 4d. In view of the trade depression already referred to, this increase cannot be deemed other than satisfactory, as showing the continued progress of the department and also the spread of a prudent thrift among the inhabitants of the colony. Tho ratio that the expenses of management for the year, including commission, bear to the premium income shows a reduction of nearly one and a-half per cent, as compared with that of ihe previous year. In his general remarks, tho Commissioner states that it has been his object to extend the sphere of the advantages of the department, and adds that arrangements have been made by which further facilities for assurance have been placed before persons employed on tho railways of the colony and otherwise, many of whom hove promptly availed themselves of the opportunity thus offered for providing for the future welfare of their dependents, and also for securing endowments for themselves in their later years. “ I entertain strong hopes that the steady progress of life assurance —a progress greatly fostered and maintained by tho feeling of security given to tho assured by the inviolable guarantee of the Legislature of the colony—will produce social advantages further reaching in their influence than even the beneficial growth of that provident forethought of which life assurance is both a cause and an effect. Of late years it has been steadily inculcated in the public mind among all classes, and it is becoming now almost universally recognised that life assurance is a duty incumbent on every man who now has or is likely to have persons dependent upon him. When it is generally understood that among the conditions of successful entry into an assurance institution that of a temperate life is a prominent qualification, a further social reform will receive an important stimulating impetus. When it is known that a person of intemperate habits, or having a tendency in that unwholesome direction will seriously imperil, and in most oases actually destroy the chances of his acceptance by an assurance office, there wilt in time, I believe, be induced the practice of a higher self-control, springing from a growing self-respect and from the eacrod claims of domestic affection.

Allusion has been made to the Act of Parliament, by the provisions of which the profits arising from the business of the Department shall be divided quinquennially among the policy holders. The first division of profits will, after an actuarial investigation, take place at the close of the financial year now current, that is to say, after 30th June, 1880, in accordance with the statutory enactment. The attractiveness of such division is not unnatural in view of the charm which greatly attaches to what may be termed speculative gains. With regard to the profits yielded by the Government Insurance Department, there is an element of certainty that should not be overlooked. Prom the very moment of the entrance of a policy holder, he is practically the recipient of an annual bonus in the shape of an immediate saving. This arises from the very low rate of premiums, which in this respect are unequalled by any British or colonial institution of the kind, with one single exception, a Scottish office. In order to illustrate this immediate saving the subjoined figures, referring to Australasian institutions, are copied from an elaborate and instructive table compiled by Mr M. A. Black, the accomplished actuary of the leading Australian insurance company. The table gives examples of the rates of premiums charged by different offices at the age of thirty-five for an assurance of £IOO, for the whole term of life by even annual premiums. The “net premium” is £1 19s ss, being that for a healthy male, According to the table of Institute of Actuaries what is termed the “loading,” as levied by the various offices, and to which special allusion is now made, is set forth in the table given below :

The accounts are certified as correct by the Controller and Auditor-General.

Name of Institution, Premium charged per .£100 at age 35. Loading contriba ted Australian Mutual Provident A a. d. A s. d. Society 2 15 4 0 15 11 Mutual of Victoria 2 14 9 0 15 4 National Mutual (Victoria)... Mntnal Life Association of 2 13 3 0 13 10 Australia 2 12 7 0 13 2 Colonial Mutual of Victoria 2 11 9 0 12 4 Australian Widows’ Fund ... 2 11 6 0 13 1 New Zealand Government ... 2 7 2 0 7 9