THE INSURANCE ACT

Manawatu Herald, Volume XXXIV, Issue 1000, 30 January 1912, Page 4

THE INSURANCE ACT

provisions of the MEASURE SUMMARISED,

The utmost confusion exists iu the public mind as to the scope and meaning of the Insurance Act. Mr Worthington Evans, M.P-. who has made a special study of the measure, has given to the Evening Standard the following summary of its provisions ; “Broadly, what the measure will do for an employed man earning 15s aud an employed single woman earning over 15s, if she does not receive board and lodging, or any wages if she does receive board and lodging, may be summarised as follows “The man’s employers will pay yd a week, of which he will deduct qd from the man’s wages, aud the woman’s employer will pay 6d, of which he will deduct 3d from the wages. These contributions will go to the Insurance Fund. “If the man or woman does not join a friendly society, the contribution will be placed to his or her credit at the Post Office. “These benefits will be administered by local health committees iu every county and county

I borough. The insured will be I entitled, so long as the money lasts, to medical treatment and sanatorium treatment, and then, if they ate sick, they can withdraw this money, the man at the rate of xos a week, and the woman at the rate of 7s 6d. It is estimated that if a man contributes for a whole year he will be able to get two weeks’ sick benefit, and the woman about the same. 11, however, they join a friendly society, both will be entitled to medical benefit (that is, doctoring and drugs) and sanatorium treatment ; the man’s wife will be entitled to 30s on her confinement, and so also will the single employed woman, seeing that it is part of the insurance for which she pays. sick benefits. “Then, if sick, after three days the man is entitled to 10s a week and the woman to 7s 6d for 26 weeks if the sickness lasts that length of time, and afterwards, if still disabled, 5s a week as long as he or she is incapable of work. The rates are reduced lor unmarried people under 21 years of age ; they are also reduced iu certain cases for those over 50, whilst those over 65 are not entitled to be insured. Employees stop paying at the age of 70, and no one under 16 is entitled to be insured. There are waiting periods o f 26 weeks belore medical benefit, sickness benefit or maternity benefit is payable, and two years before disablement benfit is payable.

“I have dealt with the manual workers; but, in addition, all those employed persons dependent upon their earnings and having a salary of less than ,£l6O a year must also be insured, and they are entitled to similar benefits and pay a similar rate.

“Then there are the voluntary insurers, whose qualification is that they are in some regular occupation aud are dependent on their earnings for their livelihood, but with this limit —that their total income from all sources must not exceed ,£l6O a year unless they have previously beeu in the compulsory insured class for five years. The volunteers pay —men 7d a week, and women 6d, but iu certain cases married women may have a reduced form ol insurance at 3d a week. THE EATER CHANGES.

“Under ‘contributions’ those people receiving less than 9s a week wages not provided with board and lodging will pay no contribution instead of the id, as originally proposed, the State now paying that amount.' “Under ‘benefits’ the sickness allowance is now payable tor 26 weeks instead of 13 weeks, aud is payable whether or uot board and longing is provided by the employer, Tnis especially affects domestic servants and those ‘living in.’ In the original bill it was provided that the sickness benefit should not exceed two-thirds of the whole wages, but this limitation has beeu struck out, or rather it has been left to the society, which is much the same thing. On the other hand, permanent disablement benefit of 5s a week, which was payable originally whilst - rendered unlit to provide their own maintenance by disease or disablement, is uow payable only “whilst rendered incapable to work by disease or disablement.” “The Government have reiused to allow the sick benefit to be paid from the first day of sickness, as is done by all the big Friendly Societies, but have insisted that the first three days of sickness shall uot be paid tor. The Government have made uo attempt to improve the position of those unable to get into the Friendly Societies or the Trade Unions. These are still to be dealt with amongst the outcasts iu the Post Office. They get uo insurance, but are allowed to withdraw from the Post Office the amounts placed to their credit alter deducting the cost of administration, medical benefit aud sanatorium treatment.”