The Patea Mail. PUBLISHED WEDNESDAYS AND SATURDAYS SATURDAY, MAY 12, 1877.

Patea Mail, Volume III, Issue 218, 12 May 1877, Page 2

The Patea Mail. PUBLISHED WEDNESDAYS AND SATURDAYS SATURDAY, MAY 12, 1877.

Fuom remarks made by the Hon. W. Fox in lute speeches, and from letter and correspondence sent by him to a Wellington newspaper, it would appear tliat he is bent on effecting reform, in one particular, in the Now Zealand Government Life Insurance scheme. Failing to effect reform, Mr Fox is hopeful that an English company, offering more favourable terms to temperance people, will be induced to open brandies in the colony, as a rival establishment. He says: “ Some time after the establishment of the Government Life Assurance office in the colony, I observed that, in calculating the rates of premium, no allowance was made to total abstainers as compared with moderate drinkers. Knowing that there were offices in London (one of them with a very largo constituency), which drew such distinction, with a result very favorable to abstainers, I brought the fact under the consideration of my then colleague, the Commissioner (Mr Gisborne), and suggested that a similar course, should he pursued in the Colonial Assurance office. Among other arguments in favor of the suggestion, I urged that it was most unjust towads abstainers to charge them a rate calculated on lives of loss value than their own ; that it was, in fact, making them pay part of tbc premium of the moderate drinking insured.” Though the hon. gentleman took considerable trouble to obtain and furnish information in support 01 ms view ot me case, nc failed to get. the temperance section recognised. On bis late visit to England, Mr Fox applied, to the Actuary of the United Kingdom Temperance Provident Instation, and to the Manager of the Whittington Life Assurance Company, for information as to the working of the Temperance section, in the respective companies. The former, a large and influential office, has been in business over thirty years, and is regarded as One of the soundest in England. The latter, which is an old established office, commenced the separate section for total abstainers in the year 3862. In the temperance address lately delivered by Mr Fox in Carlyle, figures were quoted to show results in favour of the temperance section as against the general section, of insurance societies. . Whilst in the temperance section the actual claims for a number of years had fallen considerably short of what had been expected, in the general section the actual claims had been largely in excess of what had been expected. The manager of the Whittington company. (Alfied T. Bowser, Esq), quotes from the company’s policy valuation reports from 1866 to 1875, in proof of the higher value of lives in the temperance section. At the valuation in 1866, the report stated that “ the assurers in the temperance section will bo glad to hear that in consequence of the low rate of mortality in that section their share of the bonus will bo 6 per cent, larger than the-other policy holders.” At the next valuation in 1869, the bonus was 14 per cent, more in the temperance section than in the other. In 1872 the same difference was made, and in the division of the year 1875, the bonus “was at the rate of £2 8s in the temperance, section, against £2 2s in the general section, or 14 per cent, higher.” Ralph P. Hardy, Consulting Actuary of the U.K.T.P.1., in a letter referring to this subject, after explaining that separate accounts are strictly kept for the assurance effected upon the lives of abstainers and upon the lives of the general public, and entering into details as to the maimer in which it is done, concludes as follows : “ The published accounts have for many years past shown the Actuary’s computations of the expected and actual mortality in each branch ; and a comparison of these figures will fully account for the more profitable results shown by the temperance section. The superior character of the business- contained in the temperance section is further evidenced by the fact that both the proporportion of the risks lapsed and surrendered each year, and the average of the same, are less than in the general section. Putting all those facts together, I think tho case of the abstainers is proved by the experience of the ‘ United

Kingdom Temperance and General Provident Institution;’ and tliat the principle of abstinence bears its fruits not only in the blessing of a greater vitality, but in the higher exercise of the social virtues of unselfish prudence.” Prom the evidence adduced, there can be little doubt bub there arc good grounds for agitating tho proposed reform. That, however, is a small matter, and may be looked upon in the light ot a party question. There are said to be 10,000 teetotalers in the colony. If the proposed reform is effected, it will do much towards popularising the Government Insurance scheme with the particular class who will bo benefitted. What, is , of far more importance to the Colony at large ami to the Government is, that the mode of effecting insurances should be simplified and made attractive. In spite of the touting of Government Agents,and the industry with which sensational tracts with startling titles are distributed, the business done by the Government office is trifling to what it ought to be. In tho annual report which was presented to Parliament in September last, it is stated that 1,980 proposals were received during the year, of which 501 were declined or not completed. The number and prying and impossible-to-answer nature of many v of the questions put to persons offering themselves for insurance, and references to friends or family connections, retards business. The best class of insurers—conscientious people who are cautions about entering into any contract —are appaled. They are fearful of committing themselves, as some statement, made in good faith, may afterwards prove to be erroneous, and endanger the policy. Were life insurance general—pauperism and appeals to public charities, would be unheard of and almost impossible. To read the tracts which are circulated, and listen to the glib-tongucd agents, it would be imagined nothing was easier or more satisfactory than to effect an insurance on one’s life. Experience proves it to be fur otherwise. The proportion of declined or not completed policies compared to the number of proposals received is evidence of something wrong. There should be less questioning and fewer conditions. The test point should be in the medical examination. Only thoroughly qualified conscientious practitioners should be engaged. On their examination should lives be classed as good, bad, or indifferent. We hope the Hon Mr Fox, whilst agitating for the special reform desired by teetotalers, will also agitate for reforms which will help to popularize the Government Insurance scheme with the public at largo, and so encourage habits ot thrift in the people and aid in preventing the growth of pauperism and the necessity for charity institutions in this colony.