ACCIDENT INSURANCE BRANCH OF THE GOVERNMENT INSURANCE DEPARTMENT. (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1917.

Appendix to the Journals of the House of Representatives, 1918 Session I-II, H-08a

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Session 11. 1918. NEW ZEALAND.

ACCIDENT INSURANCE BRANCH OF THE GOVERNMENT INSURANCE DEPARTMENT. (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1917.

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

Government Insurance Office, Wellington, 18th July, 1918. 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, 1917, together with the Revenue Account and Balance-sheet. The gross premium income amounted to £22,115, and, after deducting reinsurances, to £22,058. The claims were £9,270, a decrease of £1,429 as compared with the previous year. The gross return from interest was £5,091, as compared with £4,665 in 1916. Owing, however, to increased taxation, the net return in 1917 was considerably smaller than that of the previous year. The funds at the end of the year amounted to £29,212, an increase of £9,223, while the Reserve Fund constituted under section 20 of the Government Accident Insurance Act, 1908, remained at £62,597. The total assets at the end of the year amounted to £113,983. During the year the Branch's holding of war bonds was increased by £10,000, the last instalment (£2,500) of its 1916 subscription having been paid over, and a further amount of £10,000 having been applied for. Of this last-named amount £7,500 was paid into the Treasury prior to the 31st December, 1917, and the balance early in the current year. In addition to completing this 1917 subscription the Branch has already this year taken up a further sum of £6,000 in inscribed stock under the War Purposes Loan Act, 1917. An actuarial investigation into the experience under the Workers' Compensation Act in New Zealand for the past six years is in hand, and when complete the rates charged for this class of business will be carefully revised. In this connection it may be mentioned, as was indicated in the last annual report, that when the Reserve and Accident Funds have increased to £100,000, which will shortly be the case, a further general reduction in the rates of premium will be considered. J. H. Richardson, Government Insurance Commissioner.

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Revenue Account of the Accident Branch of the Government Insurance Department for the Year ended 31st December, 1917. & 8. d. £ s. d. Amount of Acoident Funds, Ist January, Claims .. .. .. .. 9,269 14 9 19.17 .. .. .. .. 19,988 12 6 Commission.. .. .. .. 2,644 17 7 Premiums .. .. £22,114 15 4 Salaries .. .. ..' .. 2,647 0 0 Less reinsurance pre- Expenses of inanagoment .. .. 723 14 11 miums .. .. 56 11 9 Amount of Accident Funds, 31st Decem22,058 3 7 ber, 1917 .. .. .. .. 29,21114 9 Interest .. .. £5,090 16 7 Less land and income tax .. .. 2,640 10 8 2,450 5 11 £44,497 2 0 £44,497 2 0 0 Balance-sheet of the Accident Branch of the Government Insurance Department on 31st December, 1917. Liabilities. £ Si J. Assets. £ S- Qi Accident Funds, as per Revenue Acoount 29,211 14 9 Debentures issued under authority of the Claims admitted (proofs not yet oom- Finanoe Aot, 1915 .. .. .. 10,000 0 0 pleted) .. .. .. .. 9,000 0 0 War Bonds issued under authority of Commission.. .. .. .. 165 15 6 the Finance Act, 1916 .. .. 10,000 0 0 Premium and other deposits .. .. 81 9 7 Inscribed Stock authorized under the Reserve for unearned premiums .. 9,927 0 0 War Purposes Loan Act, 1917 .. 7,500 0 0 Investment Fluctuation Reserve .. 3,000 0 0 Mortgages on property .. .. 69,800 0 0 Reserve Fund constituted under sec- Overdue interest .. .. £110 8 2 tion 20 of the Government Accident Outstanding interest due but Insurance Act, 1908 .. .. 62,596 10 2 not overdue .. .. 127 17 9 Interest aocrued but not due 1,204 2 11 1,442 8 10 Agents' balances .. .. .. 677 11 2 Sundry accounts owing .. .. 799 1 5 Cash in hand and on current account .. 13,763 8 7 £113,982 10 0 £113,982 10 0 Government Insurance Department, Ist March, 1918. J. H. Richardson, Commissioner. W. B. Hudson, Secretary. Audited and found correct. Robert J. Collins, Controller and Auditor-General.

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