ACCIDENT INSURANCE BRANCH OF THE GOVERNMENT INSURANCE DEPARTMENT (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1916.

Appendix to the Journals of the House of Representatives, 1917 Session I, H-08a

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1917. NEW ZEALAND.

ACCIDENT INSURANCE BRANCH OF THE GOVERNMENT INSURANCE DEPARTMENT (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1916.

Laid, before Parliament pursuant to Section 22 of the Government Accident Insurance Act, 1908.

Government Insurance Office, Wellington, 27th April, 1917. I have the honour to submit my report on the business of the Accident Insurance Branch of the Department for the year ended 31st December, 1916, together with the Eevenue Account and Balance-sheet. The gross premium income amounted to £22,378, and, after deducting reinsurances, to £22,350. The claims were £10,698, an increase of £1,607 as compared with the previous year. The gross return from interest was £4,665 Bs. 7d., as compared with £4,407 15s. 7d. in 1915. Owing, however, to increased taxation, the net return in 1916 was slightly smaller than that of the previous year. The ratio of expenses to premiums, exclusive of land and income tax, was 27 - 2 per cent., as compared with 287 in 1915, while the ratio to the total income was 23-3 per cent. The funds at the end of the year amounted to £19,989, an increase of £9,286, while the Reserve Fund constituted under section 20 of the Government Accident Insurance Act, 1908, was 862,597. The total assets at the end of the year amounted to £105,260. Amongst the new investments which have been made during the year may be mentioned the sum of £7,500, which has been invested in Government war bonds. The Branch's total subscription amounted to £10,000, and the balance of £2,500 was duly paid over when the final instalment became payable early in the current year. The investments in the loans raised by the Government locally in 1915 and 1916 now represent a little over 20 per cent, of the total invested funds. On the coming into operation of the Workers' Compensation for Accidents Act, 1900, the rates for this class of business were entirely experimental, owing to the fact that there had been no previous experience of a cognate nature which could be utilized. The experience in New Zealand has been carefully tabulated by the Department's Actuary since the coming into operation of the Act, and the rates have been actuarially revised from time to time as the accumulated data indicated the necessity of a revision of the charges. In 1914 a general reduction in rates was made, and since then further concessions have been granted in various occupations. The funds, however, still show a considerable increase, and it is thought that a further general reduction in the rates should l>e made when the Beserve and Accident Funds, which now amount to £82,585, have increased to £100,000. J. H. Richardson, Government Insurance Commissioner.

Revenue Account of the Accident Branch of the Government Insurance Department for the Year ended 31st December, 1916. £ s. d. £ a. d. Amount of Accident Funds, Ist January, Claims .. .. .. .. 10,698 9 2 1915 .. .. .. .. 10,70- 8 0 Commission.. .. .. .. 2,593 1110 Premiums .. .. £22,878 7 8 Salaries .. .. .. .. 2,690 0 0 /.cis reinsurance pre- Expenses of management .. .. 785 5 8 miums .. .. 28 8 0 Amount of Accident Funds, 81st Decern 22,850 4 2 ber, 1916 .. .. .. .. 19,988 12 6 Interest .. .. £_,665 8 7 Less land and income tax .. .. 957 2 0 3,708 6 7 £36,700 18 9 £36,760 18 9

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Balance-sheet of the Accident Branch of the Government Insurance Department on 31st December, 1916. Lialrilities. £ a> j, I Assets. £ s ,} Accident Funds as per Revenue Aocounr, 19,988 12 6 j Debentures issued under authority of the Claims admitted (proofs not yet com Finanoe Act, 1915 .. .. .. 10,000 0 0 pleted) .. .. .. .. 9,500 0 0 i War Bonds issued under authority of Commission.. .. .. .. 75 9 0 the Finance Act, 1916 .. .. 7,500 0 0 Premium and other deposits .. .. 42 15 0 j Mortgages on property .. .. 77,740 17 0 Reservo for unearned premiums .. 10,057 0 0 Overdue interest .. .. £78 10 0 Investment Fluctuation Reserve .. 3,000 0 0 ; Outstanding interest due but Reserve Fund constituted under sec- not overdue .. .. 243 10 3 tion 20 of the Government Aocident Interest accrued but not due 1,081 4 7 Insurance Act, 1908 .. .. 62,596 10 2 1,403 410 Agents' balances .. .. .. 358 2 5 Sundry accounts owing .. .. 460 17 2 Cash in hand and on current acoount .. 7,797 5 3 £105,260 6 8 £105,260 6 8 Government Insurance Department, 6th March, 1917. J. H. Richardson, Commissioner. . W. B. Hudson, Secretary. Audited and found correct. Robert J. Collins, Controller and Auditor-General.

Approximate Cost of Paper. —Preparation, not given ; printing (1,650 copies), £1 17s. 6d.

Authority : Marcus F. Marks, Government Printer, Wellington. —1917.

Price lid.]