GOVERNMENT LIFE ASSURANCE LECTURE.

Thames Guardian and Mining Record, Volume I, Issue 121, 28 February 1872, Page 3

GOVERNMENT LIFE ASSURANCE LECTURE.

Mr T. F. McDonogti, travelling SubGotnmissioner to the New Zealand Governnmit Insurance and AnnnitiesDcpartnient, delivered an interesting lecture last evening, at the Academy of Music. There was a good attendance. 11. C. Lnwlor, Esq., J.P., occupied the chair, and introduced the lecturer to the audience. After stating the advantages of “fife assurance generally, the lecturer spoke of the New Zealand Government assurance, and said :

The New Zealand Parliament has passed the very beneficent measure, founded on the Imperial Statute, creating a Government Insurance and Annuity Office, tlio claims of which, to the confidence of the public, I am hereto advocate. The New Zealand Government Insurance Cilice deals more liberally with the assured in respect or surrender of policies and premium than any private office is able to do. This fact will ho evident to everyone when I come to the basis on which business is done in the Government Office, and contrast it with that of several of the recognised private Insurance Companies. Tile Government Office is much more liberal to insurers than private companies can afford to he : In the matter of forfeiture in default of payment, and renewal of policies, on proof of ill-health within six months from forfeiture ; in the non-forfeiture of policy, if death occurs within the 21 days of ("race allowed for payment of picmitun, notwithstanding that the premium lias not lieou paid ; in tiic permission to travel and reside abroad ; in permission to serve in the New Zealand military or naval force during actual hostilities; in the facilities for payment of premiums at any money order office in Great Liitnin, lie--1 and, or anv of the Australian Colonics, on the dates due ; in the surrender value being granted after a contract has extended for three years, cither for whole or part of the contract; in the remission of all fees and postage in effecting insurance ; in the immediate payment of the policy on proof of death ; in the remission of stamp duties on all receipts and instruments under the Assurance and Annuity Act; in the protection of policies, subject to certain limitations, from the law of bankruptcy ; in giving married women the right to effect policies and dispose of the money assured by will, as if single—and, subject to certain trifling restrictions, freeing t'lie money so assured from the debts or control of husbands ; m civi,,,,- facilities for effecting settlements for children, by policy of asshrai.ee, and freeing such policies, to the extent or £2 000, from the claims of creditors. Lastly,’ by enabling a person whose life is assured for a fixed sum at death, to commute the payment for an annuity in favor of some person to he nominated at the time by the assured. Thus _ the second condition, like the first, u in favour of the Government Office. I lie premium asked is lower, and the conditions in the policy arc more liberal than in private offices. lhe moneys received under the Act are kept, in a separate account, the particulars of which must he annually laid before the Assembly. The consolidated revenue is liable for the amount insured, should the special fund not he sufficient. Insurers have therefore the fullest information regarding the transactions ot t ic Commissioners; they have also the public credit pledged to make good their contracts. And what security can private companies give, especially what security can mutual dices offer? None, m comparison with the Government, llip insured pay a higher rate of premium, incur all the risks of the proprietary, have no control in the management, and accept any statement the directory or managing junto may issue. Of late years, howeve, serious loss and much miserv have been occasioned by Hie failure of Insurance Companies. Many homes have been left desolate. r l no provision which the heads of families had mule, with foresight and prudence as tlu-y loudly imagined, l>v insuring their lives for the benefit of their children, was swept away in a moment, too late to repair the evil. How many men died in despair in consequence of the failure of these Insurance Companies it would be impossible to say. iliat t.ie_\ uni) he counted by thousands is ceit.aiii , and I might excite your sympathy by reciting many well-authenticated cases where the failure of Life Insurance Companies overwhelmed families with miseiy, acceleiating the death of kind parents, and plunghelpless and tenderly nurtured children into hopeless indigence. So great was the evil consequent on the liclfiult of Instirance Companies that the British Government felt bound to interfere, and Mr Gladstone carried the Government Life Assurance Act a few years since, under which the State becomes the assurer. There is a state guarantee against failure and loss. The insured possesses the guarantee of the revenue of the United Kingdom, in addition to the accumulated capital of the entire population, for national obligations involve nrivato as well as public property, the latter as direct, the former as collateral security. And when I state, on (lie authority of Mr Gladstone, who adduced the figures, that during the proceeding 25 years of a total of 379 Life Insurance Companies founded in England no less than 328 had failed, or 14 annually, the necessity for the establishment ot a State Life Assurance office will he obvious. Still more so, when the immense sums involved in life assurance business is taken into account, £15,000,000 being paid iu England and Wales. Now, New Zealand did not pass scatheless through the recent defaults of private insurance _ offices. Losses were incurred here, and it is to the credit of the Government that they anticipated the wants of thn country, and founded Life Assurance and Annuities as a permanent department of thebtate, in connection with Dost Office Savings Banks. The lecturer proceeded to contrast Government offices with private companies, and to point out the advantages and security —to the working man especially—to he obtained by taking out a policy in the Government office—which simply meant the office of the people. In conclusion the lecturer said J trust I have made the superiority of the Government office over private ’insurance Companies apparent. There is absolute security, premiums at the minimum rate, and no vexatious or slippery condition 1 ; in the policy. There is no risk from fraudulent officers, or cooked accounts, or depreciated securities. I do not think I need urge j upon any rational being at this time of day the necessity of Life Assurance. In young communities the propoilion of the pioneers who leave riches to their families is relatively small. Therefore, Life Assurance steps in as a substitute. The conditions are such that rich and poor alike can insure on easy terms. 1 trust that what I have said may induce all who hear me to make provision for their families by insuring iu the Government Office iu preference to any other.