LECTURE ON LIFE ASSURANCE.

Tuapeka Times, Volume V, Issue 230, 27 June 1872, Page 8

LECTURE ON LIFE ASSURANCE.

Captaiu .Baldwin, the Travelling of the Government Life Assurance Department, delivered a lecture on "Life Assurance: its History, Principles, and Advantages," in the Athenseuin Hall, Lawrence, >jon Thursday evening last. Considering jLhe severe weather, there was a good Attendance. In the absence of Mr. Pykc, R.M., who was to preside, Mr. John F. Herbert was called to the chair. After introducing the subject by relating some humourous anecdotes, t)y which lie gained the attention of his audience, the lecturer gave a history pf the rise and progress of life assurance ; ji p to the present time, and stated that policies were now in existence to tbe yalue of four hundred millions of money, and that premiums to the Amount of fourteen millions of pounds were paid yearly on the sum insured. The lecturer referred to the tables of mortality which were first drawn up jby Price, and based on the population of' Nottingham, but which, being found incorrect, were supplanted by what are k:iown as the Carlisle tables, upon which calculations for assurances are now based. The lecturer then instanced several cases of private companies which had collapsed during the past few years, principally arising, he said, from expensive and often reckless management. He referred especially to the Albert and European companies. The Albert, he said, was considered a most respectable company. It was paid to have a paid-up capital of one million of pounds sterling. The secretary had but a small salary (£4OO a year), but he managed to bay up for his company some twenty-three other societies He received a commission of five per cent, on all assurances effected, which augmented his salar}' during the existence of the company to the large sum of £10,000 a year. The last prospectus issued congratulated the shareholders on the success of the compary, and a dividend of ten .of fifteen per cent, was declared, when in reality it owed a million of money. With reference to the European Assurance Co., there was hardly a place he went to on bis travels but be met snne one who" bad been insured in it. At Greymouth,. Port Chalmers, Clutha, aud other places, he found several who hid been sufferers by the collapse of fiat company. During the last twenty years no fewer than 328 private companies had succumbed. The lecturer f; ien contrasted the advantages the Now Zealand Government sci enie had over private companies. In introducing a Grovernment Life Assurance Bill to the House of Commons, Mr. Gladstone said that never, during the thirty years of his public life, had he received so many congratulations as be had for bringing forward that bill. Security, the lecturer remarked, was j;he great thing wanted iv insurance ; hence the advantages of a Grovernment scheme, and he believed that accounted for the great success which had attended tbe New Zealand Government project. It had been joined by the |arge mass of the people, and besides, there were scarcely any men of influence who had not insured in it. Some pf its warmest supporters are men who are altogether opposed to the (xovernment policy in other matters. The Government assurance scheme had other advantages besides that of security ; it could be managed cheaper £han any private company. It did not require to build offices aud pay agents, as it had the postmasters of the colony to transact its business. He himself aud two clerks at Wellington are the only paid officers on the staff. .AVhen the Life Assurance Annuities Bill was brought before the Assembly, so favourably was it looked upon that taere was not one dissentient voice. Here the lecturer explained the varipas provisions of the Act, one clause of which deseryes to be generally known, as it is more liberal towards the assured than is generally to be iuund in private companies. It is filus : — If a person should fail to pay liis premiums when due, he is allowed to renew his policy within six months .'liter failure of payment on obtaining v certificate of health from the medical gentleman appointed by the Government. Another very importaut point was elicited from the lecturer's renjarks, namely, policies in the Grovernment office, if at the time they were taken out were endorsed over to any of t'le* insurer's relatives, are free from all processes of law, aud cannot be seized in cases of bankruptcy. After quoting from j:he tables and showing the premiums charged by the Government to be considerably smaller than those charged by private companies, the lecturer explained how these companies managed to pay bonuses. This appears to be done simply by charging a higher premium. On drawing his lecture to a .close, the Captain enumerated several instances that had come under his own pbgervatiou, showing how, by procrastinating for a few weeks or months, people, had gone beyond the reach of placing themselves under the Government scheme, and had left their wives and families in a state of complete Jie^titution. During the lecture Captain' Baldwin related a number of anecdotes illustrative of the subject iv hand, and was repeatedly applauded. " The Rev. Gf. P. Beaumont proposed a c.qt;dial vote qf thanks to the lectyrvr, who, He believed, bad sounded tile death ' knell of subscription lists. He believed that in nine cases out of

during the life time of those who died leaving their wives and families destitute.

The Rev* J. Menzies, in a few welltimed words, seconded the proposition, which was carried with applause. '

Captain Baldwin responded, and moved a vote of thanks to the chairman, which closed the proceedings.