GOVERNMENT LIFE INSURANCE BILL.

Globe, Volume XXIV, Issue 2541, 31 May 1882, Page 3

GOVERNMENT LIFE INSURANCE BILL.

1 fFBOM THE WELLINGTON, May 30. This Bill repeals the Government Insurance and Annuities Act of 1874. It vests the management of the Government Insurance Department in a Board, which is incorporated under the name of “Government Insurance Department Board.” As will be seen from the 4th and following sections, it consists of five persons to be nominated by the Governor and two to be elected by the policy holders. The nominated directors are to hold office for three years or any shorter period. Of the elected directors one goes out of office every year,but is eligible for re-election. As the colony is jiable for the contracts of the department, it was thought well also to increase the influence of the Government on the Board by vesting the appointment of chairman, who has a casting vote as well as an original vote, in the Governor. The Board has no power to alter the payments, or, indeed, to affect the pecuniary interests of policy holders, otherwise than it may of course indirectly do by injudicious management of investments, &o. It is proposed to give each policy holder of a policy for £2OO or more, which has been six months in eiistenca, one vote and one only at meetings and also to give as wide a choice of directors as possible, by requiring no pecuniary qualifications greater than the holding of a policy for over £2OO. The Board will have very much the tame powers as the present Commissioners have. That in appointing the removing officers it will be free from Ministerial interference, and it will not bo subject to a preaudit of its accounts, though subdivision 2 of part 4 provides for a stringent post-audit by the audit office. The officers and servants of the Board will not for any purposes be under the Civil Service Acte, and will therefore have no rights to compensation or pensions. Section 32 enables the business of the department to be extended to accident and sickness insurance. It is proposed by section 42 to fix the remuneration of the Board at, eay, £SOO a-year divided according to attendance. Part 2 contains the powers of the Governor-in-Council, which are practically the same as those in the existing Acts, sbto that it is thought desirable to limit the powers of ordering the discontinuance of any class of business, or the fixing a maximum or minimum amount for insurance, by giving Parliament an opportunity of preventing Orders in Council on the subject coming into force. The financial year of the department is to be made to end in December instead of June, as at present. This is done in order to enable the accounts, &0., to bo ready for Parliament on its meeting. The Board will have full control of its Bank account, but part 4 contains penal clauses to prevent careless or improper dealing with the funds. The guarantee of the Government is contained in section 53, and is in the same form as at present, though power is given to the Colonial Treasurer to recoup the consolidated fund by Belling the securities of the Board. An express power of inspection of the Board’s books, papers, &3., by section 60 is given to the Colonial Treasurer. A number of alterations in the forms of the accounts and reports to be laid before Parliament have been made, but such alterations are all in the direction of affording more information. Some alterations have been made as to the distribution of surplus profits. The Board is first allowed to conduct the quinquennial investigation by its own actuary, and the Governor in Council may then conduct an independent investigation by another actuary. He may then order a divi. sion of the profits, either according to the report of the Board’s actuary, or according to the report of the actuary whom he has appointed. Parliamentary control is reserved by requiring the Order in Council to be laid before Parliament for thirty days, and giving Parliament the opportunity of forbidding its coming into force. The power of investment has been extended by allowing of loans on first mortgage of freehold laud, and also subject to the Colonial Treasurer’s consent, of the purchase of premises for the Board’s business. A number of prohibitions as to the settlement of policies and other matters, the benefit of which may fairly be extended to other companies, have been kept out of the Bill, and inserted in the Life Assurance Policies Bill,