Government Life Assurance.

Thames Star, Volume VIII, Issue 2833, 14 March 1878, Page 3

Government Life Assurance.

(mohnino hekaid.) It is quite time thai a permanent head was appointed to tho Government Insurance Department.* Since the retirement of* Mr Gisborne, the Commissionpwhip has been vacant, the duties appertaining tb the post having been ostensibly fulfilled by the Public Trustee, but in reality, we believe, by Mr Kuight, the Actuary of the Department—a gentleman entirety, devoid of, 1 that experience which is so' essential for the proper management of a technical department like the ore under notice. There has been some talk nt "various times übout placing thi« department under the control of a Board, and latterly the namoof a busy politician has been mentioned as that of tlio coming Commissioner, but nothing has actually been done. The natural results are accruing. It ia said that the instructions issued from, the head office to the various agents of tho department as to the obtaining of new. business are so urgent that much laxity has crept in with regard: to the taking of " lives " (to use a technical .term), and that, persons who have been unable to get insured elsewhere have found their- applications to the Government Office successful. With the data now available, it is impossible to say how far these rumours nre correct or otherwise. They may be merely the offspring of business rivalry, or they may have solid foundation in fact; but it is undeniable that they do exist, and have been current for a considerable period. The stability of the Government Insurance Department is a serious mailer for the Colony. Whether that department pays its way or not is of comparatively little moment' to insurers, because they have the Consolidated Revenue of the Colony to fall back upon in case of any deficiency ; but to the public at large it is highly important that the department should be conducted on such business principles that it shall not become a burden upon the colonial revenue. Tho liability which the Colon vims already undertaken in this respect is very large. On the 30th Juno last, the outstanding assurances amounted to £2,734,602, and the. amount is, of course, growing year by year. The accounts, when submitted to an actuarial investigation, elicited a.favorable report from the actuaries ; that is -to say, they i considered that, on the whole, the rates charged were sufficient to cover tho in•uranceß, and the suggestions which they made for the improvement of the management have since been carried into effect. It is, however, to be observed that this investigation did not touch the point we have raised. The actuaries could not go .behind the figures presented to them; and it was no part 'of their duty to express an opinion upon the physical value of the " lives" insured. They assumed that policies had only been issued to suitable persons. .And indeed we believe that more care was originally taken in winnowing the applications for insurances than has since been displayed. -The department has strayed from the. path marked out for it. The plea which was used no induce the Assembly to'enter upon what is virtually a mercantile undertaking was the desirability of encouraging habits of providence amongst the working classes, who, it was alleged, as a body eschewed private insurance offices. The prime function of the Government department would be the issue of policies of small amounts, suitable for. persons of limited means, and this captivating argument carried immense weight. No sooner,. however, was the department fairly launched than it entered into a brisk competition with the private offices, sending lecturers all round the country, advertising freely, and instead of. supplementing the efforts" of .private offices', virtually running a race with them. The policy of this proceeding. need' not be criticised just now, but it is plain that if the Government Insurance Department is to do the same kind of business as private offices, it must, to be successful, "be managed on similar principles, and the proprietors of a private insurance office, would not dream of leaving it without a responsible and efficient head for any length of time. We should, however, be glad to see a Select Committee of the Assembly appointed to enquire into tho working of the department, the official reports concerning which have hitherto been taken too much upon trait.