ATIONAL INSURANCE BILL. 
 
 BY 
 
 J. H. WATTS. 
 
 3/= net.
 
 THE LIBRARY 
 
 OF 
 
 THE UNIVERSITY 
 
 OF CALIFORNIA 
 
 LOS ANGELES
 
 \
 
 THE 
 
 NATIONAL INSURANCE BILL.
 
 BY THE SAME AUTHOR. 
 
 THE 
 
 ASSURANCE COMPANIES ACT, 1909. 
 
 ANNOTA TED, 
 
 WITH AN 
 
 INTRODUCTION AND INDEX. 
 
 1 910. Price 6s.
 
 THE 
 
 NATIONAL INSURANCE BILL. 
 
 WITH AN 
 
 INTRODUCTION AND NOTES. 
 
 BY 
 
 J^ JH. WA TTS^ 
 
 OF THE INNEB TEMPLE AND THE SOUTH EASTEEN CIECUIT, 
 
 Author of'^'^ The Assurance Companies Act, 1909." 
 
 LONDON : 
 
 STEVENS AND SONS, LIMITED, 
 119 & 120, CTIANCKRY LANE, 
 
 1911

 
 CO 
 
 
 NATIONAL INSURANCE BILL. 
 
 INTRODUCTION. 
 
 £^ The long expected and much talked of Sickness Insurance 
 tu Bill has at last, after numerous jDostponements, been in- 
 >. troduced into the House of Commons, and I do not think 
 < it is overstating the case to say that the principle of State- 
 E help to insurance contained in the Bill has been warmly 
 approved and welcomed by all parties in the State. 
 Unionists as well as Radicals have vied with each other 
 in their welcome and appreciation of this principle of 
 the measure, and it is on points of detail and administra- 
 tion that criticism has been directed. 
 
 The Bill is divided into tAvo parts— the first dealing 
 I' with sickness under the comprehensive name of " National 
 Health Insurance," and the second with "Unem- 
 ployment Insurance." I venture to think that it is a 
 cj pity that these two subjects, which are surely quite dis- 
 cs tinct, should not have been dealt with in separate Bills, 
 for their inclusion makes the Bill very long and cumber- 
 some, and each part, moreover, is under the control of 
 a separate minister, the Chancellor of the Exchequer 
 being responsible for the conduct through the House of 
 the Sickness portion, while Mr. Sydney Buxton has charge 
 of the Unemployment section; and as the provisions of 
 ^ the Bill in respect of each portion are so numerous and 
 g complicated, and afYoct so many and often conflicting in- 
 2 tcrests, it has been impossible for members of the House 
 of Commons to adequately discuss the Bill during the
 
 2 NATIONAL INSURANCE BILL. 
 
 second reading debate. The Bill was introduced into the 
 House on the 4th May, and passed its second reading, 
 without a division. The Bill will now go into Committee 
 of the whole House early in July, and the Government 
 are going to make every effort to get the Bill passed 
 before the end of August. 
 
 The Bill applies to the whole of the United Kingdom, 
 and dealing first with the part relating to sickness insur- 
 ance, the Bill is intended to effect as wide an insurance 
 as possible of the working population against sickness and 
 breakdown, by providing "for insurance against loss of 
 health, and for the prevention and cure of sickness." 
 
 All workers, whether married or otherwise, between the 
 ages of sixteen and sixty-five, whose earnings do not 
 amount to more than £160 per annum are to be compelled 
 (with a few exceptions) to come within the provisions 
 of the Bill by insuring against sickness. The exceptions 
 are certain casual labourers, commission agents who work 
 for more than one employer, municipal and civil servants 
 who have retiring pensions, while soldiers and sailors in 
 the army and navy and school teachers are to be provided 
 for under special schemes. 
 
 Workmen are to contribute 4:d. per week (women 3d.). 
 Emj^loyers are to contribute 3^. per week for each Avork- 
 man they employ, and the State 2d. Where the workman 
 over twenty -one does not earn more than 2s. 6d. a day, 
 and does not receive " board and lodging," he is to pay 
 less and his employer more, as follows: — 
 
 Where wages are not more than 1-s. 6d. a day — 
 
 The employer is to pay 6d. (for women id.) per 
 
 week . 
 The workman is to pay Id. per week. 
 Where wages are not more than 2s. a day — 
 
 The employer is to pay 5d. (for women 4:d.) per 
 
 week . 
 The workman is to pay 2d. per week.
 
 INTRODUCTION. 6 
 
 Where wages are not more than 2s. 6d. a day — 
 
 The employer is to pay 4:d. (for women 3d.) per 
 
 week. 
 The workman is to pay 3^. per week. 
 
 Where the employed person receives no wages, then the 
 employer must pay the whole amount; 
 
 the State in each case contributing the 2d. — thus making 
 the total of 9d. a week for every workman, and Sc?. for 
 every woman worker. 
 
 The above payments are all compulsory, and are to bo 
 collected as follows: — The employer is to be responsible 
 for the 7d. a week in respect of every workman and 6d. 
 for every woman worker employed by him. Every work- 
 man is to have a card, and the employer is to affix a 7d. 
 or 6^. stamp weekly on such card, and is to deduct the 
 4:d. (or whatever the workman's contribution may be) 
 from the Avorkman's wages. 
 
 This is the compulsory side of the Bill; but there is also 
 a voluntary side. Persons who are earning more than 
 £160 per annum, provided they are engaged in some occu- 
 pation, may join the scheme. They mil, however, have 
 to pay, in addition to the amount payable by compulsorj^ 
 contributors, the amount which employers have to pay, 
 that is to say, voluntary contributors will have to pay 7d. 
 a week, the State contributing 2d. Voluntary contribu- 
 tors, however, to join at the above rates, must be under 
 forty-five years of age and must join within six months of 
 tho passing of the Act. If they are over forty-five, or 
 allow more than six months to go by before they join, 
 then they will have to pay on a scale wliicli will bo 
 arranged according to their age. 
 
 Tho Bill is drawn with a view to its being worked 
 through the friendly societies, and contributors are en- 
 couraged to join one of these societies or oIIkm- " ajiproved 
 societies" to be formed on account ol' I lie advantages 
 Avhich tho Bill lioMs oiil to llioni. For sncli contribulors.
 
 4 NATIONAL INSURANCE BILL. 
 
 however, who do not or cannot join a society on account 
 of their bad state of health provision has been made with 
 the Post Office to receive their contributions. They will 
 be known as "deposit" or "Post Office" contributors, 
 and they will only be entitled to draw sickness benefits 
 up to the amount of the deposits made in their names. 
 
 So much for contributions to the scheme. Now for the 
 benefits . These are divided into minimum and additional 
 benefits . 
 
 The minimum benefits shortly are these: — 
 
 (1) Medical attendance (and medicine) for life. 
 
 (2) Admission into a sanatorium. 
 
 (3) Sick pay of 10s. a Aveek for men and 7s. 6d. for 
 
 women for the first thirteen weeks (calculated 
 from fourth day of sickness), and 5s. in each 
 case for remainder of illness. 
 
 Members over fifty and under sixty who 
 have not made 500 contributions will only re- 
 ceive 7s. a week for men and 6s. for women 
 for the first thirteen weeks, and 5s. after- 
 wards; and if over sixty, such members will 
 only receive 5s. in both cases. 
 
 (4) A maternity benefit of 30s. 
 
 Young unmarried persons under age of twenty-one will 
 receive smaller sick benefits: 5s. for boys and 4s. for 
 g-irls . 
 
 Boys and girls under sixteen will only be entitled to 
 medical attendance and sanatorium treatment. 
 
 The sickness benefit of 5s. a week is to cease at seventy 
 (when the old age pension becomes payable). 
 
 According to the actuarial calculations which have been 
 made, after allowing for the above benefits and cost of 
 administration, and the liquidation of any original deficit 
 in fifteen or sixteen years time, there should remain a 
 margin of 10 per cent. This margin is to be made avail- 
 able for the additional benefits.
 
 INTRODUCTION. 5 
 
 The additional benefits ^vill include such benefits as: — 
 
 (1) Free medical attendance for contributor's 
 
 family . 
 
 (2) Benevolent fund for distressed members. 
 
 (3) Extension of full sick pay to twentj^-six weeks, 
 
 starting from first day of illness, increasing 
 sick pay either in all cases or in cases of 
 married men with large families. 
 
 (4) Convalescent allowances; building and main- 
 
 taining convalescent homes. 
 
 (5) "Pocket-money'" for men in hospital or con- 
 
 valescent homes. 
 
 (6) Additional invalidity or superannuation bene- 
 
 fit, or addition to old age pension. 
 
 (7) An extension of the maternity benefit. 
 
 The societies may grant any or either of the above 
 additional benefits when their funds allow — and it is 
 hoped that as these additional benefits can only become 
 available if the funds are economically administered, that 
 this \\i\\ prove to be a check on malingering, as members 
 will have a common interest in seeing that the funds are 
 not wasted. 
 
 A waiting period of six months has been laid down for 
 the temporary sickness benefit, and of two years for the 
 permanent invalidity benefit. 
 
 Sick pay will not be payable (except by way of a.d- 
 vance) to workmen entitled to compensation for accidents. 
 
 Contributions Avill cease at seventy years of age, and 
 persons over sixty-five when the Act passes will not be 
 taken into the scheme. 
 
 Benefits arc not to be assignable. 
 
 Women marrying and ceasing to be employed within 
 tlic meaning of the Bill, will not be insurofl; but if they 
 bf'como widows and go out to work again, then they will 
 bo entitled to rejoin thf insurance at once, at their former 
 rate.
 
 6 NATIONAL INSURANCE BILL. 
 
 I have given in the foregoing lines a rough idea and 
 outline of the general effect of the Bill; but of course it is 
 necessarily a very short one, as owing to the length of the 
 Bill and its varied and intricate provisions, were I to 
 attempt to fill in all or nearly all the details, this Intro- 
 duction would have to be of inordinate length. I would, 
 however, at this point beg to refer the reader to the 
 "Memorandum explanatory of the Bill" relating to the 
 insurance sections thereof which is printed in Appendix A, 
 and would suggest a perusal of this memorandum before 
 reading the clauses and schedules of the Bill itself. 
 
 Although, as I have said, all parties have welcomed the 
 main principle of the Bill, yet it is only natural to expect 
 that a Bill so novel in its provisions and so far reaching 
 in its scope should arouse criticism from all quarters, 
 and ever since the Bill was introduced, and indeed even 
 before then, the newspapers have been full of complaints 
 and fears, some of them imaginary and some very real, 
 from the many sections of the community who are espe- 
 cially affected. Doctors, chemists, midwives, members of 
 friendly societies and trade unions, collectors and agents 
 for sickness and other insurance societies, have been 
 stirred to their very depths by the introduction of the 
 Bill, and very naturally so, for if their fears are well 
 founded, and unless they can obtain such alterations in 
 the Bill as are necessary to meet their particular needs 
 and requirements, many of these classes of the community 
 will either find their occupation gone or, at any rate, be 
 very seriously affected. Indeed, so great has been the 
 demand either for delay or consideration, that I suppose 
 no Bill of recent times has aroused anything like a 
 similar amount of interest and alarm, and amidst the 
 chorus of qualified blessings from all these sections, there 
 is also to be heard their clear note of determination that 
 the Bill must be altered in this, that, and the other way, 
 before it can possibly be allowed to become law.
 
 PART I. 
 Insurance Commissioners, Health Committees, &c. 
 
 To carry the provisions of the Bill into effect, and to 
 till up the many blanks which are left, insurance com- 
 missioners are to be appointed (clause 41). These com- 
 missioners are to be appointed by the Treasury. No 
 number is mentioned, nor is there any mention as to their 
 qualification for the post, salary, &c. There is to be 
 a central office in London, Avith such branch offices as 
 the Treasury may think fit. The commissioners would 
 seem to have unlimited powers to fill in the extraordinary 
 number of details omitted from the Bill. 
 
 Clause 42 enacts that the commissioners are to appoint 
 an advisory committee for the purpose of giving them 
 " advice and assistance in connection with the making 
 and altering of regulations under this part of the Act, 
 consisting of representatives of associations of employers 
 and approved societies, and of such other persons as the 
 commissioners may appoint." There is, however, no pro- 
 vision or direction that doctors shall be included among 
 the commissioners or on the advisory committee. It is 
 certainly advisable that doctors should be included on 
 both these bodies, and it is to be hoped that the clauses 
 will be so amcndfid. Referring to the insurance commis- 
 sioners, Mr. Lloyd George has since said, " Wo must 
 have a medical expert on the body," and care must bn 
 taken to see that clause 41 is so amended. 
 
 Clause 43 provides that a local health committee shall 
 be constituted in every county and county borough. One- 
 third of the members of such local health committee is
 
 8 NATIONAL INSURANCE BILL. 
 
 to be appointed by the county councils, and must consist, 
 at any rate in part, of members of the local sanitary au- 
 thorities, and sub-sect. (5) provides that at least two of 
 the members appointed by the insurance commissioners 
 shall be duly qualified medical practitioners. 
 
 The local health committee will have to consider the 
 needs of the county with regard to all questions of public 
 health, and to make provision for the publication of in- 
 formation on questions of health.
 
 FRIENDLY SOCIETIES. 9 
 
 Friendly Societies. 
 
 Members of the various friendly societies throughout 
 the country are much exercised as to how they will be 
 affected. Benefits under the Bill are to be distributed 
 through "approved societies" and through a Post Office 
 system, set up by the Government for the benefit of those 
 persons who do not join a society, or are rejected. The 
 following are the conditions which are necessary for a 
 friendly society to conform to in order to become an 
 ' ' approved society " : — 
 
 (1) Absolute self-government. 
 
 (2) Not working for a profit. 
 
 (3) Election of all committees, representatives, &c. by 
 
 the members in accordance with the rules 
 approved by the Insurance Office or regulations 
 drawn up under the Act. 
 
 (4) A mininmm number of 10,000 insured persons 
 
 under the Act (5,000 in the case of Ireland). 
 
 (5) Local as well as central control of arrangements for 
 
 medical attendance and payment of sickness 
 benefit and appeals. For all questions arising 
 under the Act, societies will be required to pro- 
 vide for a final appeal to arbitrators ajipointed 
 by the Insurance Office . 
 
 (6) Giving security by the deposit of sufficient stock or 
 
 in some other way to compensate the Govern- 
 ment for any malversation by officers. 
 
 (7) Keeping separate accounts lor the State schemo. 
 
 (8) Complying with the provisions and rcquiromcnts 
 
 of tlie Act,
 
 10 NATIONAL INSURANCE BILL. 
 
 Any society which satisfies the above conditions may 
 become an approved society, and it will not be asked to 
 apply any of its existing funds for the purposes of the 
 new scheme. All the great friendly societies and trade 
 unions will be able to comply with these conditions. 
 They will still remain independent and will have the right 
 to accept or reject members. If a society has not 10,000 
 members, it may join with another society, or societies, 
 in order to make up the requisite numbers . 
 
 The existing funds of the societies, which remain under 
 their own control, will in time be expended in discharge of 
 various authorized benefits— and the new accumulating 
 funds are to be invested by the National Debt Commis- 
 sioners, who will credit the societies with interest thereon, 
 but taking the interest to be allowed at 3 per cent.— this 
 is about 1 per cent, less than the so:cieties at present 
 obtain. Members and officials of the great societies do not 
 like this, and they and their predecessors, who have built 
 up these societies which have done such a gTeat work in 
 the past, naturally view with alarm the partial loss of 
 their administration by this losing of the financial control 
 of their funds in future, and the loss of interest will, of 
 course, make a verv material difference in the scale of 
 benefits %vhich would have been otherAvise available for 
 their members. Against this, however, they must set the 
 2d. a week which the State is now to contribute for every 
 member. The Manchester Unity of Oddfellows have 
 passed a resolution asking the Cliancellor to make such 
 amendments "as will enable the societies to continue the 
 work of investment which in the past had so much to do 
 with their success." 
 
 Each society mil have to keep separate accounts for its 
 dealings under the new scheme, and these accounts are to 
 be subjected to a Treasury audit. The assets and lia- 
 bilities of every branch are to be separately valued every 
 third year at the instance of the insurance commissioners. 
 When the valuation shows a surplus leave will be given
 
 FRIENDLY SOCIETIES. 11 
 
 for the distribution of one or any of the authorized " addi- 
 tional benefits."' The cost of administration, it is feared, 
 will be much more (possibly some 20 per cent.) than under 
 the very economical administration and vast amount of 
 honorary services which have been the rule in the friendly. 
 
 societies. 
 
 Another thing- members of the existing societies do not 
 like is this : In the past these societies have consisted of a 
 brotherhood of men draA\Ti together by the ties of thrift 
 and good fellowship; they were a selected body of men 
 consisting of the pick of their class. Now all this is to be 
 changed, for now every one is to be compelled to insure 
 against the rainy-day; and although the societies are free 
 to reject any proposing member, yet the members fear 
 that the result of the Bill will be that the societies will be 
 swamped by new members, and new members of a lower 
 calibre than the present ones. 
 
 "Unity," the organ of the Foresters, Oddfellows, and 
 kindred societies, makes a vigorous onslaught on some of 
 the proposals of the Bill: — 
 
 "Mr. Lloyd George is acting contrary to the spirit of 
 the Truck Act in compelling- employers to withhold from 
 their workmen part of the wages duo and giving in place 
 something different. 
 
 " No one has asked for compulsory insurance. 
 
 " The Bill Avill mutilate, and in time annihilate the 
 spirit of voluntary self-help, which has ever been tlie 
 proud delight of the friendly societies. 
 
 " If there is one class more than another which needs 
 insurance it is the casual labourer. He represents the class 
 that is outside the scope of the Bill. 
 
 " If there is one class more than another which least 
 needs outside aid it is tlie engineerin<r trade, specially 
 chosen to be aided by the State. 
 
 " The Government intend to try to do what the friendly 
 societies gave up years ago as unjust, unsound, un-
 
 12 NATIONAL INSURANCE BILL. 
 
 scientific, and leading to financial disaster — charging one 
 uniform rate. " 
 
 A criticism of some imj)ortance on the i^roposed work- 
 ing of the National Insurance Bill has been made by the 
 Hearts of Oak Benefit Society. This society has over 
 300,000 adult members, an annual income of £724,000, 
 and a reserve capital of four millions. It is the largest 
 centralised society in the United Kingdom, and only two 
 friendly societies of any kind stand higher in membership 
 and financial strength. It pays its members sickness 
 benefits of 18s. a week, but the member has to pay his 
 own doctor out of this amount. 
 
 The Hearts of Oak Society, while heartily in agreement 
 with the principles of the Bill, objects to the compulsory 
 establishment of local committees — one committee for 
 every 1,000 members, and a committee for every isolated 
 district which contains 250 members. 
 
 Mr. J.N. Lee, the president, explains that hitherto ail 
 the administration of the society has been worked from 
 London; that no member has ever complained about the 
 arrangement; and that the new system would require the 
 setting up of about 500 committees, at a cost of £25,000 
 a year. 
 
 The reply in effect is that the scheme is to be essentially 
 democratic. Societies which manage their business 
 economically will get the benefit of their savings. Socie- 
 ties which do not must bear the deficiency. 
 
 It is the individual member who either receives the 
 advantages or suffers the loss. A member cannot fairly 
 be asked to pay for losses occasioned by bad management 
 over which he has no control. And the State is offering 
 advantages worth much more than the cost of running 
 local committees. Therefore it seems obvious that the 
 Chancellor of the Exchequer will ask the Hearts of Oak 
 to submit to the general rule, but see, however, my note 
 to clause 21.
 
 FRIENDLY SOCIETIES. 13 
 
 There is little doubt that the feeling of members of 
 friendly societies is hardening against the scheme. The 
 fact that the Chancellor of the Exchequer first of all 
 consulted with some representatives of some of the 
 big societies and submitted portions of his scheme to 
 them, coupled with the sympathetic tone of his speech 
 on introducing the Bill, won widespread favour from 
 the members of the various societies, even among those 
 who had always been hostile to the compulsory prin- 
 ciple, but a closer study of the Bill is revealing its 
 many defects, and the penalising nature of many of 
 its clauses. If, also, as a result of the doctors' agitation 
 the friendly societies are to be deprived of the control 
 and management of the medical benefits, this growing 
 feeling of disappointment Avith the Government proposals 
 will be intensified. 
 
 The Medical Association principle by which local 
 branches of friendly societies have combined together for 
 medical benefit purposes has become so general in pro- 
 vincial towns that any scheme of the Bill Avhich will 
 render such association impossible in the future will be 
 resented by the members, who desire to continue this 
 system of medical benefits; and if, as a result of the Bill 
 as at present drafted, together with the modifications 
 which must bo introduced to satisfy the doctors, the con- 
 trol of the medical service is to pass out of the hands of 
 the friendly societies even for their present members, this 
 may bring to a head the growing hostility which is becom- 
 ing manifest against the Bill. 
 
 It Ls a very moot point whether the Government have 
 Ixicn wise in fixing the momborsliip of an approved 
 society at so high a number as 10,000, for in spite of the 
 advantage of that idea, yet as a matter of fact the smaller 
 the society, the greater knowledge each member should 
 have of his fellow members; as in the case of local credit 
 pocicfifis, oarh man was in a position to go bail for his
 
 14 NATIONAL INSURANCE BILL. 
 
 fellows, and this will be the best, and indeed the only 
 way of stopping- malingering. 
 
 Many of the smaller societies are strongly object- 
 ing to being absorbed or compelled to amalgamate. 
 Audible expression of discontent on this point was 
 given at a preliminary conference of small societies and 
 their sympathising larger brethren held at the offices of 
 the Rioyal Standard Society, Grreat Ormond Street, and 
 among those present were representatives of the United 
 Patriots' Benefit Society (28,000 adult members and 
 8,000 juveniles), and the Eoyal Oak Benefit Society, 
 which has a total membership well above the required 
 strength . 
 
 The scheme as revealed in the Bill was discussed at 
 considerable length, and the officials present constituted 
 themselves a committee for the prosecution of a cam- 
 paign in defence of the smaller societies. With this 
 object, it was decided to call a conference of all societies 
 in Greater London and the home counties for the purpose 
 of protesting strongly against the 10,000 limitation and 
 the obligation to establish local committees. 
 
 The organisers of this defence movement take a serious 
 view of the situation so far as the small friendly societies 
 are concerned. They fear that the Bill, as it stands, 
 threatens the majority of these bodies with annihilation; 
 and they contend that the work they have already accom- 
 plished among the working-class population makes them 
 worthy of a better fate. 
 
 " But why should not tlie principle of amalgamation 
 be resorted to?" the representative of one of the more 
 influential of the small societies was asked. 
 
 " We have no liking either for amalgamation or federa- 
 tion," he replied; "and that is probably the feeling of 
 most of us. It is true that, unless something is done, 
 and done quickly, the days of most of us will be few 
 after the national scheme has been launched; and that
 
 FRIENDLY SOCIETIES. 15 
 
 it is going through both Houses of Parliament at an 
 early date° admits of little doubt. Both parties are 
 favourable to the principle, and the country is obviously 
 inclined to have the experiment tried. But many of 
 the eenti-alised societies possess advantages they would 
 be loth to part with, and the possibility of losing these and 
 theii- identity together by amalgamation will, we hope, 
 induGB them to fall into line for the purpose of a common 
 
 protast." 
 
 Take the case of such a society as the Eoyal Standard 
 Benefit Society, Avhose membership is something like 
 2,000 below the requirement of the Bill. It is contended 
 on behalf of this society that, with an annual income of 
 nearly £24,000 and a capital of £135,000, it should be 
 quite as acceptable for the purposes of the national 
 scheme as any of those societies which come up to the 
 10,000 standard of membership. 
 
 A difficulty in reference to so many of the smaller 
 societies, however, is that a great number of them 
 are financially unsound, and Sir J. Whittaker has 
 pointed out the importance of Government supervi- 
 sion of funds in order to secure solvency. He urges 
 that a large number of branches of friendly societies 
 are at present financially unsound, and really insol- 
 vent, and that how to deal with malingering was the 
 over present difficulty of friendly societies. While 
 public health wa^ improving everywhere and the death 
 rate diminishing, sickness claims were increasing. That 
 to prevent malingering there must be close personal and 
 interested supervision, for societies found that the greater 
 the benefits the greater tho sickness! 
 
 One thing seems very certain, cither we niust work 
 this Bill through the approved societies as in the P.ill. 
 or else it must be worked through a vast system of bureau- 
 cratic inspectors, as in (Jermany, and then it would bo 
 raufh more difficult to stop malingering tlinn by using 
 the machinery of th<- societies.
 
 16 NATIONAL INSURANCE BILL. 
 
 There is ,one fact greatly in favour of the present 
 members of the friendly societies which has been rather 
 overlooked, namely, that the Bill frees a part of the 
 accumulated funds of the societies. Members have been 
 paying into these societies for years, and so accumulat- 
 ing a great reserve credit to be drawn upon in the hour 
 of sickness. The State now comes forward and under- 
 takes that responsibility, and so a large proportion of 
 these funds which have been accumulating are set free. 
 The total of such amounts thus set free must be very 
 great, seeing that in one society alone— the Oddfellows 
 — the reserve funds so freed are 3| millions. The 
 Chancellor of the Exchequer estimate the funds of the 
 friendly societies and trade unions which will be so freed 
 at 12 millions. 
 
 For amendments desired by the friendly societies, see 
 Appendix C.
 
 SLATE CLUBS, DIVIDING AND COLLECTING SOCIETIES. 17 
 
 Slate Clubs, Dividing and Collecting Societies. 
 
 The effect of this Bill is to prevent these societies 
 coming into the scheme. They divide their funds 
 periodically among their members, and so run counter 
 to clause 18 (2) (ii). The Chancellor of the Exchequer 
 informed the committee of friendly societies' representa- 
 tives that the scheme was to be worked through societies 
 of their type, and that it was not right for societies to 
 come in which had never taken up the question of sickness 
 insurance. 
 
 A special meeting of the executive of the National 
 Federation of Dividing Societies was accordingly held 
 to consider the position, which is an exceedingly serious 
 one for them — for if the Bill were passed as framed, and 
 in accordance with the above expression of opinion of the 
 Chancellor's, it would most probably mean the extinction 
 of the majority of these societies, many of which have 
 done a good work in the past. It was said at this meeting 
 that 385 societies, with a membership of 360,000, were 
 affiliated, but that tons of thousands of members would 
 be unable to secure admission to any "approved" society, 
 on account of ill-health, and that they would have there- 
 fore to become Post Office contributors. It was decided to 
 take stops to constitute an association of societies, as pro- 
 vided for in the Bill, \\hich should include all the mem- 
 bers of each afliliatod society, who would bo compelled to 
 become members of an "ap])roved" society. 8uch an 
 association wouhl, it was hoped, probably include from 
 200,000 lo 250,000 members. Even this remedy, bow- 
 <;ver, would still leave some 100,000 to 150,000 out iji 
 the cold, so that those men wlio had given ovidenoos of 
 their thrift in the past would be comjjclled to join in the 
 
 w. c
 
 18 NATIONAL INSURANCE KILL. 
 
 throng- of thriftless and out of health people for 
 Avhom only the Post Office scheme is left. 
 
 The secretary of the National Association of Eegistered 
 Friendly Societies wrote to Mr. Lloyd George pointing 
 out the hard case of the dividing societies, and in his 
 replj^ the Chancellor of the Exchequer says: — "lam 
 anxious that the dividing societies should be qualified as 
 approved societies for administering the health insurance 
 scheme, and the Bill has been framed with that deliberate 
 intention. It is contemplated that a dividing society 
 should be able to establish a separate section to administer 
 the benefits provided by the scheme, but should maintain 
 absolute freedom to continue its existing work unimpaired 
 and unaltered in all other respects if it wishes so to do. 
 I may add that when the Bill reaches the Committee stage 
 I shall be glad to make any amendment which in the light 
 of discussion may appear necessary to remove all doubts." 
 
 A conference was then held between the Chancellor of 
 the Exchequer and Mr. Kockliff, representing the 
 National Association of Eegistered Friendly Societies, 
 and the National Federation of Dividing Societies, and 
 the outcome of the conference was that important con- 
 cessions were promised to the dividing societies. 
 
 Among them, it is understood clause 18 is to be 
 amended so as to make it clear that dividing societies 
 are entitled to approval, and clause 55 will also be amended 
 to make it clear that these societies are entitled to continue 
 to deal with the ordinary funds as at present. 
 
 The Bill is also to state expressly that an approved 
 dividing society need not amend its existing rules as 
 regards its ordinary funds so long as it adds rules govern- 
 ing exclusively the State section which each apj^roved 
 society must possess. 
 
 This change of front has given great offence to the 
 big friendly societies. At the special meeting of the 
 Ancient Order of Foresters the Chancellor of the Ex- 
 chequer was plainly accused of breach of faith; his speech
 
 SLATE CLUBS, DIVIDING AND COLLECTING SOCIETIES. 19 
 
 on the second reading was quoted, and he was told that he 
 had now absolutely thrown the friendly societies over- 
 board. They have been in negotiation with him for two 
 and a half years, and during that time he has always 
 told them frankly that he was going to eliminate "rotten 
 dividing and collecting societies and clubs," and they now 
 'contend that he has absolutely departed from that pro- 
 mise. They complain that they have been sold, and that 
 the Chancellor has broken faith with them. The follow- 
 ing resolution was unanimously carried: — "That the ex- 
 pressed opinion of the Government to include collecting 
 and insurance companies and dividing societies as approved 
 societies under the National Health Insurance scheme 
 was a direct attempt to open competition against properly 
 constituted benefit societies which must have a detrimental 
 effect upon them, and that the meeting strongly protested 
 against such bodies being utilized against societies which 
 had always worked for the payment of sickness benefits." 
 
 (.2
 
 20 NATIONAL INSURANCE BILL. 
 
 Additional Benefits. 
 
 The approved societies will have to deal with the con- 
 tributions and benefits as provided under the scheme, 
 according to their regulations and rules . There will, how- 
 ever, be a Government valuation and a Government audit, 
 and projjer books of accounts will have to be kept by the 
 societies in connection with all the amounts received under 
 the State scheme. The Attorney-General said the object 
 of the framers of the Bill in leaving the matter to the 
 societies was that they might have every inducement to 
 administer funds efficiently and with a due regard to 
 economy, and particularly that they should keep a watchful 
 eye on the evil of malingering. If the balance sheet at the 
 end of each triennial valuation shows a surplus, this sur- 
 plus may be applied to the additional benefits which are to 
 be granted to members of the society . The benefits are cir- 
 cumscribed by Part II. of the Fourth Schedule, but they 
 are not to be dealt with in the way that the society may 
 desire, except in the selection of a particular benefit which 
 the society think should be given. It would not be open 
 to give a death or a funeral benefit at the end of the year, 
 but the society may take one of the other benefits 
 mentioned in the schedule. Those who are managing the 
 society, as well as the members, will have every interest 
 in administering the funds well, because to the members 
 will go the additional benefits which may be paid out of 
 the funds. If, on the other hand, there is a deficit, the 
 society will have to make it good either by a levy on its 
 members, by reducing the benefits, or by postponing 
 them . If a society, for example, does not keep a watch- 
 ful eye on malingering, or is too easy in the distribution 
 of its benefits, the members of that society will be called 
 upon to make up the amount..
 
 EXCESSIVE SICKNESS. 21 
 
 Excessive Sickness. 
 
 There is provision in the Bill (clause 46) to deal with 
 the question of excessive sickness arising in any particular 
 locality, and so adversely affecting a large number of 
 members of approved societies in that district. Whether 
 such excessive sickness is due to the insanitary condition 
 of the neighbourhood or to the insanitary state of a fac- 
 tory, the result would equally be that a deficit would fall 
 on the members of the local societies. To remedy this, 
 powers are given to the local health committees to hold 
 inquiries. If as the result of such inquiry such excessive 
 sickness is found to be due to bad housing, insanitary con- 
 ditions, &c. the cost of such sickness is to be repaid to the 
 approved societies and the health committee by the local 
 authorities, and they can pass on to the owners of insani- 
 tary property the whole or part of such levy. 
 
 I must say T do not like these provisions. They fire 
 too drastic and novel to include in a Bill of this kind, 
 they make it controversial, and it is overloading the Bill 
 to insert provisions in it for a reform of the machinery of 
 the Public Health Acts. 
 
 tERENc , 
 
 ^ . -^ /■ 
 
 1 J 
 
 ■\y<
 
 22 NATIONAL INSURANCE BILL. 
 
 Doctors. 
 
 Directly the Bill was introduced and received amidst an 
 almost universal chorus of applause, there was one class 
 who not only did not welcome it, but who from the first 
 condemned it in no uncertain way. Before other people 
 had had time to examine its provisions and discover its 
 various defects, the doctors throughout the country rose 
 as one man against what they consider its injustice to 
 themselves . The Chancellor of the Exchequer made tlie 
 unfortunate remark that it "was not a Doctors' Endow- 
 ment Bill," and the entire profession, smarting under a 
 sense of annoyance and injustice, seem determined that 
 rather than submit to the terms first offered, they would 
 absolutely refuse to have anything to do with the Bill! 
 As without them the Bill would be a dead letter, Mr. 
 Lloyd George has offered to meet them in some respects, 
 but they are still far from satisfied, and it is absolutely 
 certain that something more will have to be done, both 
 to remove the sense of injury under which they are smart- 
 ing, and also to recompense them in a measure more ade- 
 quate to their position, talents, and hard work. 
 
 The scheme when the Bill was first presented was that 
 doctors were to attend all contributories for the sum of 
 4s. 6^. a year each, exclusive of medicine. (The basis 
 on which the actuaries have worked the scheme is that 
 6s. per annum is allowed for each person: 4s. 6d. of 
 which is to go to the doctor, and Is. 6d. for drugs, &c.) 
 The contributories include all workers who are earning 
 not more than £160 per annum, and all manual workers, 
 even though their earnings are more than £160; and, of 
 course, the doctors are to attend all these workers not only 
 •when they are picked lives, such as the societies would
 
 DOCTORS. 23 
 
 ]7ass, but also all those whose health was so much under 
 par that the societies would refuse to admit them, and so 
 they would be forced to become deposit contributors 
 through the Post Office system. In addition to the fore- 
 going the doctors are also to attend all those who cared to 
 become voluntary contributors, so that, as Mr. Lloyd 
 (Jeorge said he intended his children to join, and that as 
 even such a personage as the Governor of the Bank of 
 I'^ngland was eligible, it means that should the latter 
 choose to pay Id. a week he will be entitled in future to 
 medical attendance free! Is it any wonder that the 
 doctors kicked? 
 
 Under the Bill also medical benefits are to be admin- 
 istered through the friendly societies, and the doctors 
 complain that their experience of the societies in the 
 past has not been such that they care to continue to serve 
 under thorn under the greath' extended objects of the 
 Bill. They complain that the ti*eatment of the societies 
 has often been harsh and arbitrary, and that they will 
 not render themselves liable to similar treatment in the 
 future. 
 
 To go back to the amount of the doctor's fee. Doctors 
 have been in the habit now for many years of attending 
 members of the friendly societies at a rate of so much 
 per annum, including medicine. This flat rate has varied 
 in different places, and although 4.s. a year, including 
 medicine, has boon the rate in many places, in somo 
 localities it has been lower, while in many it has been 
 much hierhei'. For instance, in an industrial town like 
 High Wycombe, the rate has been G.s., and 8s. if the mem- 
 lx)r lives over three miles away; 05. has also been a very 
 usual ratr, while in some places the rate is as high as 
 S.5. ^d. And it is n curious fact that the Government 
 have been paying 8.9. G^. for their Post Ollice em- 
 y)loyees! In the Durham and Northumberlnnd colliery 
 district*; I understand the rate is as high as 135. for a 
 pingh^ man, and lO.s. i\d. for n man ;iiid his family.
 
 24 NATIONAL INSURANCE BILL. 
 
 While, however, this flat rate of payment has been the 
 general rule with societies, there are exceptions; for in- 
 stance, the National Deposit Friendly Society does not pay 
 on this flat rate system, but allows 2s. 6d. per visit, or 
 Is. 6d. if the patient attends at the doctor's house, and 
 Is. for medicine without attendance. This society, by 
 the way, has the lowest sickness rate, and it is said that 
 here malingering is practically unknown, the reason pro- 
 bably being that under this system a member takes his 
 sick pay out of his own deposit. 
 
 But whatever the rates may have been in the past, they 
 were accepted by the doctors under very different cir- 
 cumstances to those which will prevail under the Bill. 
 In the first place the rate paid Avas for medical ^.ttend- 
 anoe on picked lives; now the attendance is to be on all 
 contributors, however poor their state of health may be. 
 In the next place, most of the doctors took this small 
 flat rate for club members as an addition to their ordinary 
 practice. They often did it from charitable motives, 
 knowing that in manj' instances it did not pay them, 
 and of course they often did it as a start while they were 
 working up a connection. Now, however, they will not 
 be able to continue to accept anything like the pre- 
 vious rates, because in many practices the Bill, owing 
 to the high wage limit and voluntary contributors, will 
 cover j)ractically all their jMtients. Especially will 
 this be the case in poorer and working class districts, 
 so that the doctor will then have no private practice 
 left to recompense him for the small flat rate. The 
 third reason is that whereas in the paist doctors have 
 only attended club members at these small rates, euch 
 'members being priucipall}^ drawn from manual labourers, 
 now they will have to attend all employees earning up to 
 £160 a year, and all manual labourers, although they 
 may be earning far higher wages than this, and in addi- 
 tion they will have to attend any man who earns his 
 living, from the Governor of the Bank of England or a
 
 DOCTORS. 25 
 
 Cabinet Minister downwards! So that the Bill offers the 
 option to these richer patients (to whom the doctors have 
 looked in the past to recompense them for the nominal 
 amount the}" have rece,ived from the labouring classes) 
 to have thejr medical attendance in the future at the 
 same nominal rates as club members. 
 
 Another objection is that if the societies in any par- 
 ticular towm nominate two or three doctors, what is to 
 become of the other practitioners in the town? The 
 majority of their former patients will now be swept into 
 the scheme, and these doctors will be left to starve ! 
 
 Another very serious consideration is the value of prac- 
 tices. Doctors have in many instances paid large sums 
 for their practices. Under the Bill these values will dis- 
 appear. If a doctor is o,ne of those apj^ointed by the 
 societies, it is only a personal appointment; he cannot 
 sell the value of this connection (though in the past the 
 practice has been to assess the value of such appoint- 
 ments), l)ccause there would be no guarantee that his suc- 
 cessor would be appointed. While as for the value of the 
 practices of those doctors who were not appointed, the 
 value of many practices, especially in industrial districts, 
 would be entirely gone, because the patients would have 
 been transferred to the society's doctors; hence the doctors 
 owning such practices would not only see their income 
 diminish or disappcnr under the Bill, but the ])rico they 
 had paid for such practices Avould also be lost. 
 
 Under these circumstances it is not surprising that 
 doctors from all parts of the country have boon Avriting 
 to the papcirs every da,y since the Bill Avas introduced, 
 complaining of its provisions affecting their profession, 
 and pointing out the hardships to which tlioy would be 
 subjectfxl, aJid showing the loss they would sustain, both 
 as to in(5om<! and the sale value of tlioir practices. 
 
 1 !ij)j)<'n(l only one of the hundreds of letters I have read 
 as a siiniplo of those expressions of the doctors' feelings.
 
 26 NATIONAL INSURANCE BILL. 
 
 " Sir, — Is our profession going to sit still under this 
 iniquitous scheme and be robbed of capital and income? 
 I for one will not believe it. We as a body, solid to a 
 man, must demand: 
 
 " 1 . A wage limit (say 35s. a week) for those insurable 
 and eligible for medical attendance. 
 
 "2. No persons over this income, whether servants or 
 masters, to be eligible to join — i.e., no volun- 
 tary members. 
 
 " 3 . Pay for work done and not remuneration by capita- 
 tion fees . 
 
 "4. No management by the friendly societies. 
 
 " By standing solid we can get our terms. It does not 
 appear to have struck politicians, but as the scheme stands: 
 
 " 1. Everj^one with an income under £160 is compelled 
 to join. 
 
 "2. Anyone earning an income even of £10,000 — a 
 colliery proj)rietor, a brewer, a farmer, a bishop, 
 a wholesale merchant, a member of the legal 
 profession or of the Stock Exchange — can by 
 paying 7d. a week receive 2d. from the State 
 and enjoy sick benefits and medical attendance 
 at the rate of 6s. per annum; while a poor 
 widow, left with an income of £200 per annum 
 and a family, does not partake of those benefits. 
 Surely she can hardly be classed as one of Mr. 
 George's 'idle rich.' 
 
 " Our profession has been exploited in the past in many 
 ways — to enumerate a few: 
 
 "1. We have to sign death certificates free of charge. 
 
 "2. We are constantly being asked for school attend- 
 ance certificates, many of us 500 a year or more, 
 for which weget no pay, though by our granting 
 them the school authorities get their grants.
 
 DOCTORS. 27 
 
 "3. Now that the examination of school children is 
 
 an established fact, we get all manner and sorts 
 
 of things sent to us, with no remuneration 
 
 offered or provided for by law. I myself have 
 
 had twenty-two cases sent for operation in a 
 
 fortnight. 
 
 " These are some of the injustices we suffer from, and 
 
 now are we 'to turn the other cheek'? It is time we 
 
 stripped off the gloves and made a fight to a finish. 
 
 United we shall not lose. Unless Mr. George will grant 
 
 our demands, framed on some such scale as I have drawn 
 
 up, let us as a body absolutely decline to have anything 
 
 to do with his scheme in its present form. I am all for 
 
 helping the poor, but I am not in favour of being ' robbed 
 
 by the rich.' If we stand firm wc can wreck the Bill, as 
 
 there are not the ' blacklegs " to do the work. 
 
 " I am not at all sure that it could not be argued that the 
 provisions of the Bill are illegal as interfering between 
 two contracting parties, and also interfering with vested 
 interests. Anyone who put £2,000 or £3,000 into a prac- 
 tice and who has been expecting to realise that amount 
 in the future cannot now count upon getting anything 
 at all. I understand that the depreciation in capital will 
 be anything from six to twenty millions. 
 
 " I ap])eal to all members of our profession to stand 
 firm, show a front unbroken, and, unless Mr. George gives 
 us our just terms, which, after all, are not exorbitant and 
 only mean a living, not a fortune, let us decline to have 
 anything to do Avith the scheme and so render it useless." 
 
 iS'umerous meetings of protest have been held lluouiih- 
 out the country passing such resolutions as the few 1 
 append as exam])les: — 
 
 "Tiiat the Godalming and District .Meilicai .Society 
 views will) thf! gravest api)i(!hension the linancial loss to 
 medical practitioners which will b<^ caused by the 
 Insurance Bill should it hrcomc law iji its present form,
 
 28 NATIONAL INSURANCE BILL. 
 
 and appeals to the British Medical Association, as com- 
 prising the largest number of members of the profession, 
 to take prompt and energetic measures to safeguard the 
 interests of the profession. 
 
 " We pledge ourselves to resign any friendly society 
 appointment for medical attendance which we at present 
 hold, and to decline any similar appointment which may 
 be offered, if required to do so by the British Medical 
 Association." 
 
 A largely attended meeting of members of the Fulham 
 branch of the British Medical Association unanimously 
 carried resolutions demanding alteration in the Chan- 
 cellor's proposals. 
 
 A meeting of doctors of the Liverpool district 
 unanimously passed a resolution declaring that no scheme 
 of insurance would be satisfactory unless it contained pro- 
 visions for an income limit, free choice of doctor, the latter 
 responsible to the State, and adequate remuneration. 
 
 And in the many hundreds of meetings held, the 
 unanimous objection of the medical profession has been 
 chiefly directed against: — 
 
 The proposed payment of a fee of 6s. per insured 
 patient per annum. This 6s. includes about Is. 66?. 
 for drugs and appliances . 
 
 The abolition of the patient's choice of doctor. 
 
 The control of doctors by the friendly societies. 
 
 The absence of a wage limit above which no worker 
 should be entitled to the State medical benefits. 
 
 The British Medical Association has been besieged by 
 its members to protect them and the profession generally 
 against the Bill, and since the Association has taken up 
 the cudgels on their behalf, thousands of new members 
 have joined the Association for the sole purpose of en- 
 deavouring to make their protests more effective. There 
 can be no doubt but that the profession is stirred to its 
 very depths.
 
 DOCTORS. 29 
 
 A special meeting- of tlie Council of the Royal College 
 of Surgeons of England has been held to consider the 
 National Insurance Bill so far as its proposals concern 
 the medical profession. The Council recognize that an 
 efficient national insurance scheme would prove of great 
 advantage to the country, and are in sympathy with the 
 aim of the proposed Bill to provide for insurance against 
 loss of health and for the prevention and cure of sick- 
 ness. The benefits conferred by the part of the Act 
 (section 8) essentially demand the judgment and assist- 
 ance of the medical profession, and the Council decided 
 to draw the attention of the Chancellor of the Exchequer 
 to certain matters which are regarded as of the utmost 
 importance by the members of the medical profession. 
 
 The Council express the opinion: — 
 
 (1) That the administration of the medical service 
 
 should not be placed in the hands of the 
 friendly societies, insurance societies, or other 
 associations of a similar character. 
 
 (2) That the medical jDrofession ishould be repre- 
 
 sented by members of the medical profession 
 on all committees or bodies in whose hands 
 the administration of the medical service is 
 placed. 
 
 (3) That the pei'sons insured, whether voluntarily 
 
 or by compulsion, should, as far as practi- 
 cable, be free in their choice of the medical 
 practitioner to attend them. 
 
 (4) That persons, whose incomes average more than 
 
 £100 per annum should not be permitted to 
 receive medici] bejidil under the scheme. 
 
 (5) That, although it is not yet possible to express 
 
 an opinion on the remuneration which has 
 been suggested for medical service, on account 
 of the uneortainty which still }>revail.s re- 
 garding the relative amount to be apportioned
 
 50 NATIONAL INSURANCE BILL. 
 
 to attendance and to materials, no attempt 
 should be made to force upon medical men 
 a service which is not sufficiently well paid 
 to yield a jDroper remuneration for the labour 
 entailed . 
 
 " For some years past the length and costliness of the 
 medical curriculum have made it increasingly difficult 
 for persons to enter the medical profession. The in- 
 comes made hj many practitioners are wholly inadequate 
 to recompense them for all this cost and labour; and 
 any scheme of medical insurance, therefore, which 
 threatens to diminish these small incomes will, in the 
 opinion of the Council, be fraught with serious conse- 
 quenoe in the future, both to the public and to the medical 
 profession." 
 
 In communicating these resolutions to the Chancellor 
 of the Exchequer, the Council stated that they were in 
 accordance with the views of the great majority of the 
 FelloAvs and members of the College, that the members 
 of the medical profession have never been more united 
 in f eelingr than they are in relation to the matters referred 
 to, and that they looked forward to making a further 
 communication upon points of importance in connexion 
 w^ith hospitals and medical education. 
 
 On the 31st May and 1st June a gi-eat special repre- 
 sentative meeting of the British Medical Association was 
 held in London for the consideration of the Bill. The 
 meeting was so representative and important that the 
 Chancellor of the Exchequer thought it wise to attend the 
 meeting and discuss the scheme with the members. 
 
 The first question discussed was that of the free 
 choice of doctor. Mr. Lloyd George's reply was: "I 
 have already said something with regard to that in the 
 House of Commons. Personallj^ I am strongly in favour 
 of it. There are difficulties. There are vested rights 
 which have already been created whore doctors have got
 
 DOCTORS. 31 
 
 the care of clubs and patients, who are already regis- 
 tered in those clubs or paying regularly to them. Very 
 often it has been the matter of a bargain and sale of 
 the practice, where the club practice has been purchased 
 on the understanding that those patients are more or less 
 under the care of the doctor of the club. I want you to 
 consider, therefore, first of all, before you come to jan 
 examination of the proposals made with regard to the 
 free choice of doctor, the vested interests which have been 
 created and which exist at the present moment where 
 there arc club doctors with a club practice which they 
 may have purchased. Subject to that, I am on all grounds 
 in favour of a free choice of doctor. I think one of the 
 essentials of curing is that the patient should have faith 
 in his doctor; and you cannot have faith in your doctor 
 if you have doctors thrust on you whom you have not 
 chosen, who for various reasons, most of them unsatis- 
 factory, the patient may not believe in. Therefore, I 
 am myself strongly in favour of the system which I 
 believe exists in two or three towns of this country of 
 setting up a panel on which all qualified medical prac- 
 titioners will be able to serve — not compelled to serve, 
 no doctor will be obliged to take this work— but on which 
 a qualified medical practitioner will be qualified to serve. 
 " I want to make one very important qualification here. 
 If a panel of that kind is to be a sucoass the doctors 
 themselves must exercise disciplinary powers, otherwise 
 it will be a failui'e. It practically means handing over 
 to the doctors in each district the control of the medical 
 arrangements. That involves thai lln' doctors liavo not 
 merely the responsibility of curing llicif |);ilicnts, but 
 they have the responsibility of suppressing touting, un- 
 fair canvassing, and also for chocking ruthlessly the 
 practice of malingering. U inav very well lie tliiit in 
 a district a medical man iimy Iimvc flic r(^])ufation of 
 being free and easy with his patients, and of not being 
 too seveiv upon the?n wlion tlle^ ehiiiii sick pay: iiiul hr
 
 32 NATIONAL INSURANCE BILL. 
 
 may add to the number of his patients by having the 
 reputation of not being too severe upon malingerers. 
 The doctors ought at once to take in hand the pun- 
 ishing of that form of encouragement of malingering. 
 Subject to the medical profession undertaking the respon- 
 sibility lof treating that form of touting, advertising, 
 canvassing, and encouragement of malingering as in- 
 famous conduct in your professional sense, I should be 
 delighted to see a free panel of doctors set up under the 
 care of the local doctors themselves." 
 
 On the question of the abolition of the control of 
 doctors by the friendly societies, Mr. Lloyd George said: 
 " Your chairman has informed me that in your view it 
 will be far better if the whole of the medical service were 
 taken out of the hands of the friendly societies altogether. 
 (Loud and prolonged cheers.) I am not in the least sur- 
 prised at that demonstration, because I must say you have 
 a very legitimate grievance in many respects. It is not 
 merely your grievance ; it is the grievance of the patients 
 as well. I am entirely with you in this— entirely and 
 wholeheartedly with you in this— and if you can persuade 
 the House of Commons to consent to the transfer of the 
 whole of the medical attendance, including maternity, to 
 the local health committees, you will find me an en- 
 thusiastic supporter of that proposal. (Loud cheers.) 
 But you must remember there are two sides to this ques- 
 tion, and that the approved societies Avill not readily 
 resign this power. You have brought a good deal of pres- 
 sure upon me during the last few days, and I want you to 
 transfer that pressure from me to the House of Commons. 
 I am entirely of your view as to this; I do not believe you 
 will ever get a satisfactory medical service until you do 
 transfer it to the local committees. [Mr. Lloyd George 
 here referred to an interview with a deputation from the 
 Hearts of Oak Society.] I am strongly in favour of it for 
 two reasons. One is that you will have representation on 
 the local health committees. The Government appoints
 
 DOCTORS. 83 
 
 oue-fourth of the representatives on the local health com- 
 mittees. We propose to appoint local practitioners, 
 among others to represent us on the local health com- 
 mittees, not, I warn you, merely to look after the interests 
 of the profession, but to look after the interests and the 
 health of the community as well. We shall want you, 
 not as delegates of your profession — you will forgive me 
 for speaking quite plainly — you Avill be there to see fair 
 play to your profession, but in the main you will be there 
 also as exijerts who understand the fundamental principles 
 of health to guide and instruct the committees in really 
 cleansing the land of the foulness which breeds disease at 
 the jjresent moment. You will have to bring pressure 
 to bear upon your members for this jjurpose, and your 
 only hope of getting a transfer to the local health com- 
 mittees, your only safe method of doing it, is by putting 
 yourselves at once into communication each with his local 
 member and getting him to pass an amendment in this 
 sense. May I say anotlier word about the local health 
 committees, if I am not taking up too much of your time? 
 (No, no.) Personally, I am vovy opposed to their being 
 committees of the County Council. I think it is far 
 better they should be independent bodies. However, I 
 should like to hoar your opinion later on upon that sub- 
 ject." 
 
 The Chairjnan: "There is one question on thai. Will 
 the Chancellor of the Exchequer accept the position of the 
 British Medical Association that the machinery of medi- 
 cal benefits can only be adequately and successfully settled 
 by direct arrangeiiiciil Ijotween tlu' iiicdicnl j)rofcssion and 
 the State — that is, th:' insurance commissioners and the 
 local hoaltii committws?" 
 
 Mr. Lloyd (Jeorgc: "That is practically IIk^ same 
 thing. I am strongly in favour of the local health com- 
 mittees arrangement. I fold yon ih.if lln'ir wcii' two 
 reasons why I preferred llic locil IkmIiIi (•(tminil Ices. 1 
 
 W. I)
 
 34 NATIONAL INSURANCE BILL. 
 
 do not mind admitting medical service is probably going 
 to cost much more than I anticipated. I do not want to 
 encourage you to ask for too much. In order to show 
 you that I thought so even when I framed the Bill, let 
 me refer you to a special provision here. You will find it 
 in sub-section (5), clause 14. I propose there that where 
 the fund for medical attendance is inadequate the 
 Treasury and the County Council between them can make 
 up the deficiency. The Treasury is prepared to pay half 
 of any deficiency. That is the first time that the Treasury 
 has come to offer to pay half of the medical charges for 
 curing the jjeople of this countrj^. . . . I do think that it 
 is a great mistake for the jjublic to under-pay any pro- 
 fession, especially a profession which has got the life of 
 the public more or less in its hands. I felt perfectly 
 certain that it was no use making any provision for pay- 
 ment which was not an elastic one, and an elastic one 
 means an expanding one. That is the real elastic of this 
 Bill. This contains all the expanding power. The rates 
 and the Treasury will come to the rescue. You may say 
 that the rates will not. The rates will, and I will tell you 
 why. It is to the interest of the ratepayer to do this work 
 through the health committees, because otherwise he will 
 have to do it through the parish doctor : he gets the advan- 
 tage of the Stat-e paying half if he does it througli the 
 local health committee, and you may depend upon it 
 that if you are well represented, and I am sure you will be, 
 on the local health committee, this measure will put the 
 medical profession, especially in the industrial districts 
 and in the country districts, upon a better and a more 
 satisfactory footing, and, what is more important for you, 
 as I know as a professional man vrho had had to go 
 through the same sort of struggle, on a more secure foot- 
 ing than it ever has been. ' 
 
 .The Cliairman: "Will the Chancellor support an 
 amendment in the Bill to place the whole administration 
 of medical benefits under the local health committees?"
 
 DOCTORS. 35 
 
 Mr. Lloyd C^eorge: " Certainiy. I said so. This is 
 very important. It depends entirely upon the measure of 
 support which you secure for me there. After all, the 
 Government has to consider the interests of the whole Bill, 
 which must not be recklessly endangered; but the Avhole 
 of my support will be for this . 
 
 The Chairman: "The next question is one which is 
 addressed to myself: 'Why has the chairman entirely 
 omitted to announce our absolute refusal to accept friendly 
 society management?'" (Cheers.) 
 
 Mr. Lloyd George: "If by friendly society manage- 
 ment is meant the absolute control by the friendly 
 societies, that is at an end for ever under this Bill. At 
 present the medical profession arc left face to face Avith 
 the friendly societies, there is no appeal; whereas in 
 future the insurance commissioners stand between the 
 medical profession and the friendly societies. The money 
 is paid now to the friendly societies. In future the money 
 Avill bo paid to the insurance commissioners, ajid the 
 friendly societies simply get credit for it. We do not 
 part with that cash except upon conditions which we re- 
 gard as perfectly fair, not merely to the medical profes- 
 sion, but to the patient as well; wliat is still more impor- 
 tant is this, one great grievance against the friendly 
 societies is that they now make a profit out of the doctor. 
 Thoy save the money that ouglit to go to pay the doctor 
 for the purpose of increasing their bcnciits. That we M'ill 
 insist upon their not doing in future. In fact that is the 
 moaning of that clause. It will be part of our responsi- 
 bility, part of our obligation, and our duty under the 
 statuto to see that tbc money w\\u-\\ \vc iiitcjid should go 
 for medical benefits sliall go there and shall not go into 
 the pockets of tlic friendly societies for dislrihiil ion or any 
 other benefits." (Cheers.) 
 
 The jK.'xt poijit was a rosolation of (ho meeting that 
 
 1)2
 
 36 NATIONAL INSURANCE BILL. 
 
 those with au income above £2 per week should be ex- 
 cluded from the medical and maternity benefits. 
 
 Mr. Lloyd George said: — " I am afraid I cannot be as 
 satisfactory in my answer here, but I want you to listen 
 to me. I want you first of all to realise the difficulties. 
 Take, first of all, the industrial classes of this country. 
 You could not impose an income limit uj)on the industrial 
 classes, and I am certain of it." (A voice — Why?) "In 
 the first place, the vast majority of the well-to-do workers 
 are already in clubs — the vast majority but not all. The 
 miners, who are highly-paid workmen, are almost entirely 
 in clubs. I see a gentleman here who has one of the 
 largest and most important practices of that kind in South 
 Wales, and I have no doubt he has been very angry Avith 
 me the last few days, although he is an old friend of mine. 
 Are you going to cut them out? If you do, I do not believe 
 you would get any member of the House of Commons to 
 jjropose it, unless he were a University representative 
 (laughter), and, if you did get a University representa- 
 tive to propose it, I am certain you would not get a 
 seconder. I Avant you first of all to bear in mind that this 
 Bill has to be carried, not through the Treasury, not 
 through the British Medical Association, not through the 
 friendly societies, but through* the House of Commons; 
 and the House of Commons represents, in the first place, 
 something like half a million miners. You could not do 
 it. The same thing applies to engineers. There you have 
 another highly-paid class of workmen, and if you propose 
 to cut the engineers out you could not do it. It is no use 
 asking for a corner of the moon, and that is really what 
 it is you are asking from the House of Commons — a thing 
 that no man in the House of Commons dare get up to 
 propose." 
 
 Dealing with the objection to the absence of a wage 
 limit above which no worker should be entitled to the 
 State medical benefits, Mr. Llovd George said: — " I have
 
 DOCTORS. 37 
 
 dealt with the industrial classes, and now I come to what 
 I regard as much more important, the voluntary insurer. 
 When you come to the voluntary insurer — the tradesmen 
 and those Avhose income is, say, over £160 a year — there 
 I agree that you have a case, and I am quite preisared to 
 consider it. I shall have, of course, to hear and take the 
 opinion of my colleagues, and I shall also see what the 
 opinion is in the House of Commons; because, after all, 
 a minister is only one out of 670. I am quite prepared 
 to consider here an income limit, so that the man who is 
 earning his £200, £300, or £400 a year shall not be en- 
 titled to claim medical services at 6s., 7s., or 8s. a year, 
 or whatever it is. AVith regai'd to the industrial classes, 
 I do not believe you ^\ill ever persuade the House of Com- 
 mons to give an income limit. One reason is, you may 
 get an engineer earning this year £200, but go to him in 
 a couple of years and he is not earning £50, The fluctua- 
 tions are enormous in certain trades. Tlie same thijia: 
 applies even to the miners. At certain times, Avhen times 
 are bad, they are not earning half Avhat they earn at the 
 very best times. 1 Avould ask some of my friends in the 
 ajUiery districts, can they get a single member for those 
 districts who dare in the House of Commons propose to 
 exclude the colliers earning £3 or £4 a week? Of course 
 they could not do it. U I may say so, I am willing to 
 meet you in all things Avhich, 1 will not say are merely 
 reasonable, but practicable, and I am here to do it. But 
 .... I tell you frankly that in my judgment it is abso- 
 lutely impossible to introduce any limit for the wage- 
 earning workers quib' impossible. You Avould not carry 
 it out, but when you come to the vohuitary contributors 
 to the scheme, tliere I agree with you that it is desirable 
 tliere should Ix' an incx)me limit. I will support an income 
 limit with regard to those. 1 think you put it too low, 
 l)ut I am quite willing to consider, and consider favour- 
 ably, any income limit that would exelud(; the voluntary 
 contributors above the income tax limit. Beyond that
 
 38 NATIONAL INSURANCE BILL. 
 
 I could uot possibly at present go, and I am very sorry 
 that we should have cx)me to a jioint ou which we are not 
 in agreement yet." 
 
 The Chairman: " Does the Chancellor of the Exchequer 
 recognise that if the income limit is extended to £160 the 
 average cost of medical attendance must be distinctly 
 greater than if the limit is £100?" 
 
 Mr. Lloyd George: "Yes, I do take that into account, 
 certainly. . . . The only thing I will say is this, that 
 Ave are also entitled to take into account that for the first 
 time you are getting securit}' for payment from a class 
 where you had no security before . " ( " No , no . " ) " What I 
 say you are entitled to take into account when you make 
 your arrangements, and are entitled to press ou the health 
 committees and the insurance commissioners, is that you 
 are for the first time taking into your arrangements a 
 class of persons who up to the present have been paying 
 you a fee for attendance; but I say it should also be taken 
 into account that you are for the first time getting security 
 for payment from another class, not the same class. That 
 does not apjDly to all of you, but I am certain that the 
 country practitioner attends to that class now. I am en- 
 titled, on behalf of the insurance commissioners, to say 
 that for the first time you are getting a guarantee of 
 paj^meut for that class. . . ; I have in the last few 
 dsijs heard of cases of that kind in London where the 
 doctor is never called in except at the last moment, because 
 the friends feel they must have a death certificate. I 
 have heard from the East-end of London and from 
 Fulham that the doctor has only been called in because 
 the friends say, ' We cannot afford to have an inquest ' — 
 when it is too late for the doctor to save the poor wretch. 
 To the doctor in such circumstances the State would for 
 the first time give something when there was nothing 
 before. I appeal to you. You are the great healing pro- 
 fession. Of course your first consideration is the con-
 
 DOCTORS. 39 
 
 sideration of your own homes, I agree. You must see 
 that jou are faiih' treated. No man who is not faii'ly 
 treated can do his duty; but for the first time we aro 
 making an effort to come to the rescue of millions of 
 wretched people Avho cannot afford your assistance at the 
 present time.'" (Cheers.) 
 
 The next question discussed was the objection to the 
 proposed paj-ment of a Hat rate of 6s. per insured patient 
 per annum, this 6s. including Is. 6d. for drugs and appli- 
 ances . 
 
 In reply to a suggestion that the conditions of remu- 
 neration were unsatisfactory, 
 
 Mr. Lloyd George said : " That is a matter of judgment. 
 All I will say about that is, you must remember this Bill 
 does not settle the conditions. The conditions of re- 
 muneration are to be settled afterwards between the 
 health committee, the advisory committee, the insur- 
 ance commissioners, and yourselves. That is the time to 
 fight that question out. I still say that if you attempt to 
 put in a scale in an Act of Parliament you will make the 
 greatest mistake of your lives. Tn the first place, you 
 cannot have a scale whicli is applicable to each district. 
 Each district must l)e considered according to its own 
 conditions. There is also this to be said —if you fix a 
 rigid sc^ale you cannot alter il. and if in times to come 
 you think the rates ought to be put up. h't me tell you that 
 there is only one thing more difficult than carrying an 
 Act of Parliament, and that is to ameiid it." 
 
 The Chairman said the next queslicni was of ronmnera- 
 tioii, both as regards the method and the amount; first, as 
 regards th(> method. They believed that the State which 
 undertook this scheme should \<r |.i i|>;iivii to pay for good 
 services in resj)ect of that scheme, iind Ili;i1, 1 lim'roi'e, the 
 State should li'' prepared lo |)iiy for all services on the 
 scheme of pavment for work done.
 
 40 NATIONAL INSURANCE BILL. 
 
 Mr. Lloyd George: " If you mean that the doctors send 
 in a bill in each case, frankly I think that is impossible. 
 ... If you are going to allow the patients an unlimited 
 right to call the doctor in when the patient likes, and get 
 his bottle of medicine, and that every bottle should be 
 charged for and every attendance charg-ed for, that would 
 break down the scheme so hopelessly that it would be 
 futile to proceed with it. Therefore, I would respect- 
 fully suggest to the meeting that it is far more important 
 for them to fight out, not in the Bill, but afterwards M'ith 
 the advisory committee and the insurance commis- 
 sioners, the scale of the fee which should be allowed." 
 
 The Chairman asked if Mr. Lloyd George had realised 
 that the payment of medical men by capitation fee meant 
 paying them in inverse ratio to the amount of work they 
 did; and that, apart from the amount of the remuneration', 
 under any capitation fee, the majority of the medical 
 practitioners of this country objected strongly, and would 
 in fact refuse, to accept work on contract terms. 
 
 Mr. Lloyd George: " I have an ans\^■er in the words of a 
 medical man; you will find it in the supplement to the 
 Report of the British Medical Association: — 
 
 * On the whole, I consider my position with regard 
 to my clubs satisfactory; I find my members grate- 
 ful. I unhesitatingly condemn the entire club 
 system, as it exists at present, as unsatisfactory both 
 for the patients and the medical men; but I would 
 strongly deprecate any interference with it until some 
 better scheme for universal application has been de- 
 vised. Up to the present, I fail to see that a prac- 
 ticable one has even been suggested. I believe con- 
 tract practice in some form in a district like mine to 
 be absolutely necessary.' 
 
 That really represents my position in the matter. I do 
 not think it is satisfactory. . . . ; but, up to the present,
 
 DOCTORS. 41 
 
 I have not heard a single sug-gestion of an alternative 
 which seemed to me to be practicable.' 
 
 The Chairman: "A number of our members are of 
 opinion that if the system of payment for services 
 rendered be not tried on a general national scale, at all 
 events it should be tried on an experimental scale in cer- 
 tain districts. Is it competent for the members in a 
 locality to impress as strongly as they possibly can upon 
 the local health committees, even to the extent of organis- 
 ing a local medical strike, that such a system should be, 
 in that area, tried?" 
 
 Mr. Lloyd George: "There is nothing in the Bill to 
 prevent the experiment being tried, but I must put in 
 this Avord of caution. Supposing that you had a local 
 health committee for a whole county, you could not have 
 half-a-dozen favoured districts drawing an unlimited 
 amount from the local health committee and getting a 
 sort of Paradise for doctors and patients in that corner of 
 the county to the detriment of the rest of the doctors in 
 the whole of the same community. ... It would be use- 
 ful to have an experiment tried, in order to see whether it 
 is passible to run it; but I would like to see the experiment 
 very carefully tried first before you apply it in a general 
 way." 
 
 The Chairman said that they had been pressed in 
 various quarters and for various reasons to, at all events, 
 mention a minimum capitation grant. He asked whether 
 the duties of medical jjractitioners under the contract 
 wouhl ho clearly defined and all extra service be paid for 
 on an agreed scale. By exti-a he meant sucli as oj)erations, 
 consultations, night Avork, the administratioji of anros- 
 thetics, and mileage. Was Mr. Lloyd George willing to 
 provide that emergencies ol' Jiil kinds should hv excluded 
 from the medical attendance? Would ;iii insured person 
 bo able to claim medical attendance from a doctor belong- 
 ing to an area different from that in which the insured
 
 42 NATIONAL INSURANCE BILL. 
 
 usually resided? Then there was tlie position of the un- 
 married; and also the very important point with regard 
 to diseases due to misconduct in the sense in which that 
 was usually taken. It was suggested that persons suffer- 
 ing from such disease should be excluded from medical 
 benefit. 
 
 Mr. Lloyd George: "Some of the questions descend 
 into details which are very important and which Aviil have 
 to be considered, but upon which I should hesitate very 
 much to express an opinion at this stage. Generally, I 
 may say this : Of course the payment of a specialist would 
 not be included in the capitation fee, and, therefore, if 
 there were consultations, they must necessarily be outside 
 the range of whatever capitation grant is paid. . . . 
 That v.ould not be a burden cast upon the medical man, 
 but the society — or the local health committee, as the case 
 may be — would have to pay that fee. With regard ,to 
 operations, that also I should put in the same category. 
 Most of the serious operations . . . would be performed 
 in institutions, and I can well understand the medical pro- 
 fession insisting upon special arrangements being made 
 for serious oj^erations. That is a matter which you will 
 have to arrange with the local health committee, and 
 with the societies, as the case may be, subject to the 
 approval of the insurance commissioners. I can well 
 understand your charging in these very special cases an 
 extra fee. But there is real danger in allowing what is 
 called 'extras.' ... So that we must very carefully 
 scrutinise the demand for any extras, and not allow too 
 wide a margin for demands of that kind. . . . Mileage 
 is an important thing", but I do not think there should be a 
 fee for emergencies. ... At the present moment, night 
 Avork, I believe, is included in the general contract fee. 
 That is a matter I would rather not pronounce upon . . . 
 until I get the opinion of the medical advisers who are to 
 advise the commissioners. . . . All I ^will say is this,
 
 DOCTORS. 43 
 
 that tlieie will be uotliing in the Act of Paiiiament to pre- 
 vent your demauding a fee for night work. . . . With 
 regard to curing the man who has brought on illness by 
 his own misconduct, . . . Ave had to make provision for 
 this, because it is not merely the health of the man him- 
 self, but it is the health of those dependent upon him, and 
 the health of the community. In fact, it is in the interests 
 of the medical profession as well as the country that he 
 should be cured at the very first possible moment, because 
 you may depend it will come back to the medical profes- 
 sion, and it will come back in the shape of much more 
 serious disease, and, when it does that, the burden is upon 
 vou.' 
 
 The Chairman asked why the Government proposed to 
 penalise the Post Office contributor, and so set up a mono- 
 poly for the friendly societies. 
 
 Mr. Lloyd George: " There is only one thing I would 
 say about the Post Office contributor, and that is that the 
 ().v. basis does not come in in that case. You certainly 
 can not be expected to take people who are already ill at 
 that rate. The reason we thought the 6s. was fair was that 
 you will be getting it for people naIio wore well as well 
 as those who were ill.' 
 
 Replying to the Chairman on the goodwill of practices, 
 Mr. Lloyd George said: " For the moment it will ail'ect 
 o-oodwill; but the moment the medical profession and the 
 Government come to an understanding and it is realised 
 that the interests of the profession will be safeguarded, 
 my own opinion is that the goodwill will be more valu- 
 able, for this reason, that you are offered security for the 
 first time for payment, in the lower ranks of life, for 
 those whom really, at the present moment, you cannot 
 refuse to attend although you know the payment is very 
 precarious. ' 
 
 1 have given the details oi' (liis interview at such 
 lencjth, because 1 imagine everyone must recognise that
 
 44 NATIONAL INSURANCE BILL. 
 
 the scheme depends to such an enormous extent on the 
 g'oodwill and hearty co-operation of the medical pro- 
 fession, and I have given the replies and explanations 
 of the Chancellor of the Exchequer as fully as I possibh' 
 could, because I am very anxious that the case should 
 be presented quite fairly as well from the Government's 
 as from the doctors' point of view. 
 
 The effect of the meeting with Mr. Lloyd George on 
 the minds of the doctors can best be gauged by the 
 opinions expressed at the mass meeting of members of the 
 medical profession which was held the same evening. 
 Dr. J. A. Maodonald proposed the following resolution, 
 which had been carried at the representative meeting of 
 the British Medical Association: — " That, whilst approv- 
 ing the main objects of the National Insurance Bill, and 
 being desirous of co-operating for their attainment, in 
 view of the fact that the present proposals of the Govern- 
 ment are unsatisfactory, it is the opinion of this meeting 
 that the Government should be asked to delay dealing 
 with the proposed medical benefits until satisfactory 
 terms have been arranged with the medical jarofession." 
 
 He said that the following terms Avere to be placed 
 before the Chancellor of the Exchequer as those on which 
 the medical profession would accept service under the 
 Bill: — 
 
 " (1) An income limit of £2 a week for those entitled 
 
 to medical benefit. 
 " (2) Free choice of doctor by the patient, subject only 
 
 to the consent of the doctor to attend him. 
 " (3) Medical and maternity benefits to be ,adminis- 
 tered by local health committees, and not in 
 any respect by friendly societies. 
 " (4) The method of remuneration of medical practi- 
 tioners adopted by each local health committee 
 to be according to the preference of the majority 
 of the medical profession of the district of that 
 committee.
 
 DOCTORS. 45 
 
 " (5) Medical remuneratiou to be Avhat the profession 
 considers adequate, having due regard to the 
 duties to be j^erformed and other conditions of 
 service . 
 
 " (6) Adequate medical representation among the in- 
 surance commissioners, in the central advisory 
 committee, and in the local health com- 
 mittees; and statutory recognition of a local 
 medical committee representative of the profes- 
 sion in the district of each health committee." 
 
 This resolution was carried unanimously, and the six 
 points above enumerated were also accepted, although 
 there was a very large minority who, while they voted 
 in favour of reducing the suggested income limit of £2 
 for the sake of unanimity, were yet strongly of opinion 
 that it should be much further reduced, namely, to 30s. 
 
 vSir Thomas Barlow, the president of the Royal College 
 of Physicians, who seconded the resolution, said they had 
 the gre-atest sympathy with the general purposes of the 
 Bill (cheers), for nobody was more alive than the doctor 
 to the great difKcultics of industrial conditions and to 
 the consideration thai in a healthy nation they got an 
 efficient nation. The terms wliicli Dr. Macdonald had 
 read appeared to him to be eminently reasonable. The 
 real difficulty, as Mr. Lloyd George now understood, was 
 in tiieir relation to the friendly societies. They knew 
 too well how many of their humbler brethren had been 
 put under the heel of tlie friendly societies, and they all 
 intended to claim that tlr-ii- hMinl)lest practitioners, Avhen- 
 cver work of the kind proj)os(Hl was given them to do, 
 should hav<,' a living wage. The other point of difficulty 
 was the voluntary participation in flie ni'^lieal benefits, 
 iiiid in this matter he thought they \\()iil(| ji.ive lo go very 
 warily. VVlid lici- tli"\- were lo lis ;i deliiiili' limil lie did 
 not know, but he believed lli.it in t his diiccl ion IJic Chan- 
 cellor (d" fill' I'lxchequer could he inllueneed.
 
 46 NATIONAL INSURANCE BILL. 
 
 Mr. Butlin, the president of the Rojal College of 
 Surgeons, supported the resolution. He said he regarded 
 the present crisis as the greatest he had ever known in 
 the medical profession. He was deeply disappointed at 
 the interview with Mr. Lloyd George. He spoke charm- 
 ingly. (" Ah!" and laughter.) He answered some ques- 
 tions satisfactorily, he answered others not so satisfac- 
 torily, and on several occasions escaped. (Laughter.) 
 His impression was that the Chancellor did not give waj^, 
 nor give the representative meeting the least hope that 
 he would give way, or that the House of Commons would 
 give way one jot in regard to the rate of wages. In his 
 opinion Mr. Lloyd Greorge w^as still bent on placing the 
 administration of medical relief, or a great part of it, in 
 the hands of friendly societies. ("Shame.") Mr. Lloyd 
 George had given them to understand that the Bill was 
 going to pass by the end of August, and he had said that 
 upon the advisory committee there would be some 
 medical men in general practice. Mr. Lloyd George 
 pointed out that they would then be able to make arrange- 
 ments, but when the Bill Avas passed the arrangements 
 would depend upon the terms of the Bill, and the same 
 modifications could never be made then as could be made 
 before the Bill was passed. In his opinion a very grave 
 crisis lay in front of the medical profession. They were 
 anxious to do what they could to assist the Government 
 in carrying a measure of this kind, but they must see that 
 it did not mean ruin to a large number of men in th.e 
 profession. 'They had suggested at the College of Sur- 
 geons that no person with an income of over £100 a year 
 should participate in the medical benefits. (Cheers.) 
 
 Sir Victor Horsley expressed the opinion tliat the posi- 
 tion of the profession was not one from Avhich they could 
 not save themselves. They had allowed the friendly 
 societies to take uj) a jjosition towards the profession, 
 which self-respecting men ought not to have permitted.
 
 DOCTORS. 47 
 
 (Cheers.) He urged all connected with the profession to 
 join the British Medical Association, and he also recom- 
 mended the signing of the declaration that they Avould 
 not assist methods which they knew to be inimical to the 
 best interests of the nation. (Cheers.) The questions 
 he had put to Mr. Lloyd George had been answered fully, 
 frankly, and dii'ectly, but equally frankly and fully he 
 declared himself against the views of the medical profes- 
 sion on the wage limit. To the question — " Do you accept 
 the position of the British Medical Association — nameh', 
 that the relations of the medical profession to the Govern- 
 ment should be direct; in other words, that the friendly 
 societies should be totally excluded from such relations?" 
 Mr. Lloyd George replied in the affirmative. This was 
 not in the Bill, but it was possible for a united profession 
 to insist that the insertion should be made during the 
 passage of the Bill. (Cheers.) 
 
 This is the position of the matter. I think the doctors 
 are justified in thinking, as so many of them do, that Mr. 
 Lloyd George was not quite frank with them, and that he 
 rather evaded many of the issues. For instance, ^^•hen on 
 the question of taking the Avhole of the medical service out 
 of the hands of the friendly societies altogether, after 
 saying that they had a legitimate grievance, and that he 
 was "entirely and wholeheartedly '" with them in this, he 
 then proceeded to invite them "to persuade the House of 
 Commons to consent to the transfer of the Avhole of the 
 medical attendance, including maternity, to the local 
 health committees," and that then they would find him 
 "an enthusiastic supporter of the proposal"! He is the 
 responsible Minister iji charge of the Bill, and if the above 
 protestations mean anything, surely it is his duty, as it 
 should be his pleasure, to ;iltri' the Bill and carry it 
 through the House. 
 
 The fact remains tlmt thi,- doctoi's me not satisfied. The 
 British Medical Association has sent onl a circular to its 
 nil iiibers asking for an expression of (lieir views oji the
 
 48 NATIONAL INSURANCE BILL. 
 
 policy adopted by the Association towards the Bill. Some 
 20,000 have already replied endorsing the demands of 
 the Association. Nor has the situation been improved by 
 Mr. Lloyd George's speech at Birmingham. His allusion 
 to " this wrangle in the sick-room " was hardly calculated 
 to allay the irritation of men who for generations have 
 been willingly attending thousands upon thousands of 
 these sick-rooms without the slightest hope of any pay- 
 ment or reward! 
 
 I have gone at such length into the question of 
 " Doctors," not only because I sympatliise with them, but 
 also because everyone must see how essential it is to obtain 
 their hearty co-operation, for unless that end is obtained, 
 the doctors have the power to make the Act a dead letter. 
 
 For amendments desired by the British Medical Asso- 
 ciation, see Appendix D.
 
 CHEMISTS. 49 
 
 Chemists. 
 
 I now come to thu criticisms and objections of chemists. 
 At present, although many doctors make up their own 
 prescriptions, many, of course, do not, and the chemists 
 are naturally anxious to know how their interests will be 
 affected. The amount paid to doctors is not to include 
 medicine, &c., but no provision is made for the way in 
 which medicine will be bought and provided. Viscount 
 Wolmer asked the Chancellor of the Exchequer how small 
 chemists could benefit under the Bill if health com- 
 mittees were to buy drugs wholesale and give them out to 
 doctors and patients, and liis reply was that he had no 
 reason to believe that health committees would buy drugs 
 wholesale and dole them out to doctors and patients. 
 
 The Chancellor of the Exchequer's proposal is that 
 Is. (id. per week for each sick person should be allowed 
 for drugs, &c. This, however, is strongly objected to by 
 chemists, who .sent a deputation to the Chancellor, object- 
 ing to payment on ;i cupitiition basis, and suggesting that 
 an oflicial schedule of prices should be drawn uj) on tlie 
 basis of wliich medicines should be supplied (o insured 
 patients through any chemist, and not by selected 
 chemists. 
 
 The chemists are very uneasy at Mr. Lloyd George's 
 proposals, but, finding that the portions of the Bill Avhich 
 deal with them arc more nebulous than those affecting the 
 doctors, they preferred at first to adopt a non-committal 
 attitude. Latterly, however, they have taken up a (h-mcr 
 attitude. 
 
 Ah-. J. F. Harrington, president of the Pharmaceutical 
 
 W. E
 
 50 NATIONAL INSURANCE BILL. 
 
 Society, has said that the chief points to which chemists 
 would feel bound to object would be: — 
 
 The tendency that the remuneration of the 
 chemists would be reduced. 
 
 ,The way in which the individual will be unable 
 to select the chemist whom he might prefer to em- 
 ploy. 
 
 The power apparently given to friendly societies 
 to administer medical benefits and their control of the 
 terms, according to Avhich chemists would be em- 
 ployed. 
 
 " The lines on which chemists Avould be inclined to 
 criticise the Bill are very similar to those which have 
 aroused the attention of the medical profession. 
 
 " If the Bill were to go through in its present form, it 
 would mean the loss to retail chemists of some 7,000,000 
 customers, for it would transfer a very large volume of 
 business from ordinary retail trading to the kind of busi- 
 ness which will come under the class of medical benefits . 
 
 "It is very difficult to make any detailed criticism of 
 the measure for everything at present is so nebulous. 
 
 " The action we have taken is to 'wait and see' what 
 the Bill really means to us before we make any public 
 move. 
 
 " We have appointed a sj^ecial committee to consider 
 the whole matter." 
 
 The president said he had no hesitation in saying that 
 the Bill means ruin to retail 25harmacists if it is to be ad- 
 ministered on the lines recently laid down by one who is 
 a member of the Manchester Oddfellows Committee. 
 
 " If we are to be put into the hands of the friendly 
 societies, and they are to arrange terms, and so forth, the 
 retail chemist will be unable to keep his shop oiDen. 
 
 " As a responsible society, however, we have to con- 
 sider the interests of the public as well as our own. 
 
 " And if the friendly societies get the upper hand, there
 
 CHEMISTS. 51 
 
 is, I think, a very real danger that the public interests will 
 suffer. 
 
 " There is a great difficulty in getting the non-pro- 
 fessional public to realise that a professional man has a 
 right to sell his drugs (in this case) at more than the 
 margin of profit which would be fair in ordinary trading. 
 
 " But if this is not recognised, it is clear that in the 
 long run it will be impossible for the public to retain the 
 advantages which it enjoys at present of having profes- 
 sional men to dispense drugs." 
 
 In a way the position of chemists under the Bill is even 
 more serious than that of the doctors, for whereas the 
 doctors have it in their power, if they stand firm, to com- 
 pel the Government to come to terms with them, the 
 chemists are not in so good a position. It would be com- 
 paratively easy for the friendly societies or the National 
 Health Committees to establish large drug depots for the 
 sujjply of medicines to insured persons, and in this way 
 thousands of chemists would find a large proportion of 
 their profitable business taken away from them without 
 any redr&ss. As it would doubtless be to the advantage of 
 the societies' funds to start these depots, the position of 
 chemists is a very serious one, and it is absolutely neces- 
 sary for them to bring all the influence they caoi to bear on 
 the Government, so that they may not br injured by the 
 Bill. 
 
 For amendments desired by the rharmaccutical Society 
 of Great Britain, see Appendix E.
 
 52 NATIONAL INSURANCE BILL. 
 
 Midwives. 
 
 There are some 30,000 women on the midwives' roll, 
 and it is said that about 50 per cent, of the total number of 
 births in England and Wales are attended by midwives, 
 and, of course, the percentage attending the labouring 
 classes is therefore much higher than this. How will 
 midwives be affected by the Bill? It is impossible to say 
 in the form in which it is at present drawn. The 
 maternity benefit of 30s. is for " medical attendance '' and 
 nursing. I doubt if the words in the Bill would cover 
 the fee charged by a midwife, and as I cannot think that 
 the drawers of the Bill intended to take away from the 
 woman her free choice as to whether she shall employ a 
 doctor or a midwife, and as the Chancellor of the Ex- 
 chequer, in answer to a question, said that the maternity 
 benefit was " intended to cover the cost of doctor and 
 midwife where necessary," words must be inserted 
 making it clear that a midwife can be sent for, and paid 
 out of the maternity benefit.
 
 CLERKS. 53 
 
 Clerks. 
 
 It is very difficult to see how the position of clerks will 
 be benefited under the Bill. Every clerk who is not earn- 
 ing more than £160 a year will be compelled to join the 
 scheme. But the clerk is in a different position to the 
 ordinary workman. As a general rule, Avhen a clerk is 
 ill his salary goes on just the same, and his work is cheer- 
 fully divided among his fellow clerks. I am afraid there 
 is grave danger that the application of the Bill to clerks 
 may alter this pleasant state of things. In future, the 
 clerk is to pay his 4:d. a week, the employer 3d., and the 
 State 2d., to insure against a risk which, in the great 
 majority of cases, does not at present exist! But as the 
 employer will be compelled in future to pay at least 3d. 
 a week for every clerk that he employs, he will scarcely 
 continue to pay his clerks their full salary during their 
 absence through illness. The clerk will receive 10s. a 
 week, and free medical attendance, &c., and I am afraid 
 the effect of the Bill in time may be that employers may 
 treat their clerks in the same way as manual labourers, 
 no work, no pay; so the Bill to clerks may mean this, that 
 they may bo 4fZ. a week poorer in good health, and ]jos- 
 sibly a sovereign or more poorer in sickness, while all the 
 time the State will bo paying 2d. a week for every clerk 
 to insure against a risk Avhich is practically non-existent, 
 for whicli interference I should doubt whether the clerk 
 would be grateful! 
 
 The Chancelloi- of the Exchequer has caused the fol- 
 lowing letter to be addressed to a correspondent who wrote 
 to him as to the position of clerks under the provisions 
 of tbc National Insurance Bill: —
 
 54 NATIONAL INSURANCE BILL. 
 
 "Treasury Chambers, Whitehall, May 23, 1911. 
 
 " Dear sir, — In reply to your letter of the 18th instant, 
 I am desired by the Chancellor of the Exchequer to say 
 that he does not see how it is possible for the position of 
 clerks to be in any way prejudiced by the proposals of 
 the Insurance Bill. 
 
 " The benefits provided by the Bill are secured by con- 
 tributions as follows: — (1) The employer pays 3d. a 
 week for every clerk receiving a salary not exceeding £160 
 a year; (2) the clerk himself pays 4J.; (3) a State grant 
 is made of two-ninths of the total benefits. 
 
 " Although it is possible that an employer may claim 
 in future to make a deduction to the extent of the value 
 of his 3d. from the wages he has been used to pay to his 
 clerks during sickness, he would not be justified in making 
 any deduction in respect of the benefits under the Insur- 
 ance Bill so far as those benefits are secured by the con- 
 tributions of the clerks themselves and by the State grant. 
 The position of the clerks must, therefore, be improved 
 by at least the amount represented by the Government 
 grant. 
 
 " The Chancellor desires me also to point out that the 
 clerks will benefit in another way — namely, by being able 
 to share, as members of the societies to which they belong, 
 in the management of the sums contributed under the 
 Bill and administered through those societies, whereas at 
 present the conditions of payment, or the question whether 
 there should be any payment of benefits at all, may rest 
 entirely with the employer. 
 
 " Mr. Lloyd George also wishes me to draw your atten- 
 tion to the fact that clerks in many cases do not now 
 receive as much from their employers in sickness as is 
 represented by the three^^ences which the employer is re- 
 quired under the Bill to pay. In such cases the clerks' 
 position will be improved both by the State grant and 
 by the additional contributions from their employers 
 under the Bill."
 
 CLERKS. 55 
 
 The following letter addressed to The Times seems to 
 accurately present the jaosition of clerks under the Bill: — 
 
 " Sir, — I venture to write to you to draAv attention to 
 the adverse effects the National Insurance Bill will have 
 on the position of clerks earning salaries up to £160 per 
 annum. Those engaged in clerical labour differ so much 
 from those emploj^ed in the various forms of unskilled 
 labour, not only in the conditions in which the}' work, 
 but in habits, instincts, and aspirations, that it is impos- 
 sible that the same system should be suitable to both 
 classes. The main difference lies in the fact that when 
 the unskilled labourer falls ill he usually loses his job, 
 and the pay goes with it; when, however, the clerk falls 
 ill, nine times out of ten he not only keeps his position 
 but receives full pay the whole time. 
 
 " The majority of clerks earning and living on any- 
 thing up to, say, 35s. a week, do not insure. Under pre- 
 sent conditions Avhen they fall ill they continue in their 
 position and, as has been stated, draw full pay, their M^ork 
 being cheerfully done all the while by their fellow-clerks. 
 " Under the new regime, however, conditions will be very 
 much changed. The compulsion on the employer, not 
 only to pay '6(1. per week towards insurance, but to put 
 himself to all the trouble and vexation of filling in cards, 
 is bound to have the deplorable result of loosening that 
 feeling of loyalty between employer and employe which 
 legislation should be careful never to discourage. Apart 
 from this consideration, which is probably the most im- 
 portant in its effect on the body politic, the clerk will 
 gain no actual monetary benefits by his State insurance. 
 In time of illness the employer Avill almost certainly 
 deduct from his clerk's salary the 10s. per week provided 
 by the State, and wore it otherwise a prciiiiiiin would be 
 put on sickness. Thus, in s\)\tv of the premiums paid, 
 the chirk will draw no Ix^nofit except free medical attend- 
 ance, and that he can now obtain for 2d. per Aveek, not 
 only for himself, hnf for \u<- whole family, by joining any
 
 56 NATIONAL INSURANCE BILL. 
 
 parish doctor's club. The position is rather different in 
 the case of the more highly paid clerks earning, say, from 
 'S5s. to £3 per week. At present if they wish to insure 
 against sickness, 8d. per week, as is well known, will 
 give them in many slate clubs 12s. per week during illness 
 for eight weeks, after that 6.s. per week for eight weeks, 
 £8 premium to the wife on death of insured, and £4 to in- 
 sured on death of wife, and a share-out at the end of the 
 year amounting on an average to 25s. 
 
 " Deducting the bonus at the end of the year and 
 spreading it over each week, we find that the insured can 
 obtain for 2d. per week all the above benefits. In the 
 registered slate clubs the subscribers run no risks of a 
 defaulting secretary, and are as secure as they would be 
 through the State. 
 
 " It must not be forgotten that the clerk insuring in a 
 slate club during the whole of his illness draws full salary 
 as well as club benefits. Under the new scheme, for a 
 payment of 4d. per week, the only certain benefit is free 
 doctoring to the actual individual (his wife and children 
 are excluded), and 10s. per week, which, as has already 
 been pointed out, he will not touch. 
 
 "It is true that under Mr. Lloyd George's scheme the 
 insured will draw his sick benefit for a longer time, but 
 the number of cases in which the full sick benefit is neces- 
 sary for more than eight weeks is so small compared with 
 the number of small benefits required that it does jiot 
 seriously affect the position of the average clerk. 
 
 " The importance of a choice of doctor from a medical 
 point of view has already been treated by Dr. Roberts 
 in The Times of the 18th inst., but there is yet another 
 aspect to this question. Pride of independence keeps the 
 best type of worker from applying to the Guardians for 
 sick relief; the same independence of spirit, which is one 
 of our greatest national assets, makes it hateful to the 
 clerk to have his doctor chosen for him, and many clerks,
 
 CLERKS. 57 
 
 who, generally speaking, will bo citizens of the best type, 
 will refuse to have anythi-ng to do with the State doctor. 
 
 " The fate of the older clerks, and, in fact, emplai/es 
 of all kinds, now reaching ages of sixty say, who should 
 be drawing sick benefits will be particularly hard. In 
 most cases their benefit societies will be dissolved, no 
 friendly societies will take them, and they will have to 
 work through the Post Office, where they can draw no 
 money for a year, and all the benefits paid to their old 
 clubs will avail them nothing. 
 
 " While fully recognising how easy it always is to give 
 destructive criticism, I venture to suggest that the above 
 points are of sufficient interest to merit careful con- 
 sideration." 
 
 The Chancellor of the Exchequer on the second reading 
 said that " if clerks wanted to be left out they had but to 
 express a wish in that direction"; and as the decision 
 apparently rests with them it is for them to now consider 
 very carefully whether it will be to their real interest to 
 be included in the scheme.
 
 58 NATIONAL INSURANCE BILL. 
 
 Women. 
 
 The position of women under the Bill is curious. Everj 
 woman, whether married or single, who goes out to work 
 and who is not earning more than £160 a year must con- 
 tribute. If a woman marries and ceases to be employed 
 her subscrij)tion ceases and she is no longer insured, and 
 in fact loses the benefit of the subscriptions she has paid, 
 except for this, that if she at some subsequent period again 
 goes out to work she is allowed to rejoin as if she were at 
 the same age as when she married . If she becomes a widow 
 and goes into employment, she will also be entitled at 
 once to rejoin as if she were at the same age as at tlie 
 time of her marriage. 
 
 The proposition is that there should be two separate 
 funds — one for men and one for women . Everything con- 
 tributed on the women's side goes into the women's fund 
 and they are to receive full benefits therefor. 
 
 The scheme does not appear to be fair to women 
 workers, and many women are complaining of the treat- 
 ment meted out to them. Take an instance of a girl 
 who works in a mill, say, from the age of 15 to 30, and 
 then leaves her work to marry. She will then lose all 
 the payments she has made. It is true that she has been 
 insured during this time, but it is between these ages 
 that there is so little sickness, and in fact she has been 
 paying more during this period than the average amount 
 of sickness warrants, so that she is doubly hit, unless, 
 indeed, she becomes a widow. 
 
 There is also the question as to whether the amount of
 
 WOMEN. 59 
 
 Sd. per week is not rather high for Avomen, seeing that 
 their average earnings are so much lower than men's. 
 
 There is also the national and social well-being to be 
 considered. The economic tendency will be bad, because 
 the scheme will doubtless have the effect of inducing 
 women on marriag-e to continue in their employment, 
 at the cost of comfort in the home, the effect on the popu- 
 lation, and danger to offspring.
 
 60 NATIONAL INSURANCE BILL. 
 
 Sanatoria for Consumption. 
 
 Sanatoria are to be built all over the country for the 
 treatment of consumption. It is proposed to pay a sum 
 of £1,500,000 into a fund, which will provide grants for 
 building these sanatoria. 
 
 Provision is made by which Is. 4:d. a head annually 
 will be available for this preventive side of the scheme, 
 and there is also power to use an additional grant of 
 1^. per head for research purposes. It is hoped by these 
 means to stamp consumption out, as contributors will 
 be able to avail themselves of the benefits of these sana- 
 toria in the early stages of the disease. 
 
 There is some difference of opinion among medical ex- 
 perts as to whether the sanatorium treatment is the best 
 means to adopt for the treatment of consumption, and 
 therefore many people have doubted the wisdom of pro- 
 viding such a large sum to be spent on buildings, but 
 Mr. Astor, on the second reading, pointed out that the 
 criticisms which have been made about spending so much 
 money on bricks and mortar in the erection of sanatoria 
 pre-supposed extravagance in the buildings, and also 
 that they could not be used for other purposes. Ho 
 maintained that it would be possible to use the buildings 
 for other purposes should we ever be so fortunate as to 
 stamp consumption out.
 
 HOSPITALS. 61 
 
 Hospitals. 
 
 The effect on hospitals is a matter for serious considera- 
 tion, and any opinions on what its effect on our system of 
 voluntaril}^ supported hospitals will be must, of course.. 
 be speculative and problematical. Doctors will naturally 
 be inclined to send operations and bad cases to the hos- 
 pital, and the whole question A\ill have to be very care- 
 fully considered. Now that large employers of labour 
 will have to contribute so largely for sick benefits it is 
 only natural to suppose that their contributions to 
 hospitals, which have been so generous in the past, will be 
 curtailed; and although to counterbalance this, power is 
 given in clause 17 for approved societies to contribute to 
 hospitals, no such power is given to health committees. 
 I venture to think this should be given, because very 
 possibly the greatest need for hospitals will be felt b}' 
 those who are not members of the societies, namely, the 
 deposit contributors. 
 
 On the effect of the scheme on hospitals, Mr. Lloyd 
 (xeorge said: "The great curative institutions arc volun- 
 tary institutions in every sense of the tonn, and we do not 
 propose to exercise any control over them. We propose 
 to leave them exactly as they are in that respect. All we 
 propose is that the health committees and the approved 
 Bocicties shall have the power to subscribe to those institu- 
 tions; but what use will be made of those subscrij)tions is 
 entirely a matter for those governing bodies of the institu- 
 tions themselves. If we begin tcJ lay dow]i conditions of 
 that kind, that would practical!}' mean taking over the 
 control ourselves. We do not jtroposc (hat; Avhether it 
 Avill ever come to that is another matter. And may I add, 
 because it is not only ver^ interestinj?, but it is verv
 
 62 NATIONAL INSURANCE BILL. 
 
 relevant, that since the insurance came into operation in 
 Germany, private benefactions to the hospitals have 
 doubled. 
 
 " The sanatoriums," Mr. Lloyd George explained, " are 
 for the treatment of tuberculosis or such other diseases 
 as the Local Government Board Avith the approval of the 
 Treasury may appoint. It has been represented to us 
 that we ought not to confine treatment in these sana- 
 toriums to tuberculosis, and it ought to be possible to 
 treat other diseases of the same kind there, and if the 
 members of the medical profession think that these insti- 
 tutions can be made useful for other purposes we have 
 left it open for them to be utilised for the cure of other 
 diseases as well." 
 
 Mr. Austen Chamberlain goes so far as to think that 
 the Bill as it stands will make almost inevitable the even- 
 tual assumption by the State of the cost of the hospitals 
 of the country. I venture to think that such an event 
 would be so deplorable that every effort should be made 
 to so alter the Bill that this will not be rendered necessary.
 
 POST OFFICE CONTKIBUTOKS. 63 
 
 Post Office Contributors. 
 
 They get so far as sickness benefits are concerned 
 what they themselves pay plus what their employer 
 and the State pays— but no more. When they have 
 exhausted the amount standing to their credit, there 
 is no more for them to draw; and the obvious criticism is 
 that this is thrift — not insurance — and seems contrary to 
 the whole scheme of the Bill as expounded and explained 
 by the Government themselves; and if these men owe their 
 position mainly to their own bad health, this surely is the 
 very class which the Bill professes to help. 
 
 I would suggest that it might be possible to take from 
 each society a contribution and apply it for the aid of 
 deposit contributors, and if a certain ratio were taken 
 from each society it would enable the scheme to become 
 an "insurance" one for those poor people whose health 
 is under par, as well as for their more fortunate brethren 
 who on account of their good health will be accepted by 
 the societies.
 
 64 NATIONAL INSURANCE BILL. 
 
 Collectors and Insurance Agents. 
 
 This is a most deserving and hardworking body of men 
 who have perhaps done more to encourage thrift through- 
 out the country than any other class. What is their posi- 
 tion under the Bill? It is very difficult to say until fur- 
 ther particulars are given, but I very much fear they will 
 be sadly hit! They have been promised by the Govern- 
 ment that they shall be treated with consideration; and 
 the Attorney-General has said that there is nothing to 
 prevent their coming into the scheme, and that it would be 
 to their interest to do so; that to secure their services 
 would be an advantage to the societies, to trade unions, 
 and everybody concerned, and the Government would have 
 the benefit of their knowledge and experience. This is 
 all very well, but there is at present no provision for this 
 in the Bill. 
 
 Another thing collectors and agents have to fear is this: 
 many of them collect for sickness and death risks; sick- 
 ness, of course, goes with the Bill, but the Attornej'- 
 General says there is no need for the fears that have arisen 
 in their minds that there would be any interference with 
 their death insurance system; that there need be no 
 apprehension of the kind, that there is nothing in the Bill 
 to do with death payments. This is, of course, quite true, 
 but I fear it is small comfort. The masses from whom 
 these collectors and agents giet their living have only a 
 certain small amount to spend on insurance, and now they 
 have to contribute for the purposes of the Bill, thej^ will 
 have little or nothing to spare for insurance against death 
 risks. I cannot help thinking, therefore, that collectors 
 and agents of the great industrial life insurance societies 
 will be very hard hit by the Bill, and every effort should 
 be made to recompense them by giving them adequate 
 positions in the administration of the scheme.
 
 IRELAND. 65 
 
 Ireland. 
 
 Ireland (as usual) is to be differently treated to the 
 rest of the United Kingdom, and special clauses are in- 
 serted in the Bill to apply to Ireland. It is claimed by 
 Irish members that, owing to the majority of the popu- 
 lation of Ireland living under rural conditions, the rate of 
 sickness is much lower there than in Great Britain, there 
 will as a consequence be a smaller demand on the insur- 
 ance fund, and that, therefore, the contributions should be 
 lower. I am informed that the Chancellor of the Ex- 
 chequer has promised to consider this question, and the 
 Irish members are confident they will get some modifica- 
 tions in this respect — for, as an Irish member said to me, 
 " We are generally successful, because we know what we 
 want! " 
 
 w.
 
 t)6 NATIONAL INSURANCE BILL. 
 
 Distress, Execution, &c. for Rent to be Illegal while 
 Tenant is in Receipt of Sick Pay. 
 
 Clause 51 is a very drastic and novel proposal, and, I 
 venture to think, should never have been included in a 
 National Insurance Bill. It is not well drawn, but on 
 the face of it it really looks as if it will bear the construc- 
 tion that the person to whom rent is due must not take 
 any proceedings to recover the rent while the tenant is in 
 receipt of sickness benefit, even though such period ex- 
 tends for the space of a whole year, under a penalty of 
 £50. 
 
 This clause, apart altogether from the equity of the 
 thing, would prove a terrible hardship to many small 
 holders of weekly property — they have often bought some 
 little property out of their savings and have retired on 
 their little rents — and why such people should be so de- 
 prived of the fruit of their thrift and economy I entirely 
 fail to see. Nor can I see why the tenants should have this 
 relief at the expense of their landlords. It is a Health 
 Insurance scheme, and not a Rent Relief Bill. If the 
 Government really wish to give such relief and think it 
 should be one of the provisions of the Bill, then the relief 
 should come out of the funds of the scheme and not out of 
 the pockets of often poor and deserving holders of weekly 
 property. To deprive such owners of rent while at the 
 same time they are left to pay rates and taxes, strikes me 
 as being iniquitous! The effect of such a clause would 
 have a very harmful effect on weekly property. Values 
 would fall and mortgages be called in, and the condition 
 of building societies would be rendered very precarious. 
 Tt is not right to do one's charity at the expense of some- 
 one else — but that is what this clause does.
 
 DISTRESS, EXECUTION, ETC. FOR RENT, ILLEGAL. 67 
 
 Two suggestions have been made to remedy this — -one 
 laeing that any loss the landlord maj^ sustain should be 
 refunded by the Treasury, and the other that the loss 
 should be debited to the society of which the tenant is a 
 member. 
 
 There is also another aspect of this clause. Many 
 people think that the clause as drawn might be held to 
 hit others besides landlords, and that any other creditor, 
 the little shopkeeper for instance, would bo prevented 
 from taking any proceedings to recover a debt owing to 
 "him by the tenant. The wording should be altered so 
 as to make it quite clear what is intended. 
 
 I venture to hope the clause will be radically altered 
 or dropped; it is overburdening the Bill and, on account 
 of its controversial nature, will naturally impede its 
 progress.
 
 68 NATIONAL INSURANCE BILL. 
 
 Attitude of the Socialists and Labour Party. 
 
 The Socialists and Labour Party seem to view the Bill 
 with suspicion, even though ail do not go so far as - a 
 member of the Fabian Society who said he viewed "with 
 suspicion a measure which received hearty support from 
 the Tory Party! ' One point in the Bill which is re- 
 garded as an important defect is that there is no differ- 
 ence in the incidence of contribution between the town 
 and country resident. 
 
 Mr. Barnes, while promising the support of the Labour 
 members for the second reading, nevertheless made it clear 
 that unless important alterations were made in the Bill 
 it would not secure their full approval. In fact, the posi- 
 tion taken up by the Labour Party will depend on what 
 happens in Committee. They have already put down 
 amendments to postpone the sickness part of the Bill, so as 
 to give precedence to the unemployment section, to substi- 
 tute voluntary for compulsory insurance, and to make the 
 contribution of the three parties — employer, workman, 
 and State — a uniform sum of 3d. per week. 
 
 Mr. Snowden goes further than many of his fellow 
 members on the Labour side. He says: "I think the 
 discussion, so far as it has gone, has proved conclusively 
 that the Bill is impossible in anything like its pres.ent 
 form. It is not only unworkable, but it would give rise 
 to an immense amount of irritation and opposition. Vast 
 numbers of those Avho would be compulsorily insured 
 under this Bill, as it is now, stand to gain nothing practi- 
 cally from it, although they are to be compelled to pay." 
 Mr. Ramsay Macdonald calls the Bill superficial and 
 challenges one of the three principles involved in it — that
 
 ATTITUDE OF THE SOCIALISTS AND LABOUR PARTY. 69 
 
 of the employer's liability to eoutribute. He would prefer 
 to leave the employer out and rest on the two other prin- 
 ciples — compulsory thrift and State support; but he is 
 willing, however, to accept the employers contribution 
 temporarily as a sort of necessary evil, and like some other 
 members of his party, he would alter the relative shares 
 of the other two and make the State pay more and the 
 contributor less! 
 
 Members of trade unions feel that the probable effect 
 of the Bill will be to increase the numbers and power of 
 the friendly societies, and correspondingly to depreciate 
 the trade unions, unless, of course, trade unions qualify 
 as approved societies. They think that the financial pro- 
 visions of the Bill may prejudice the lighting effective- 
 ness of trade unions, and they want to secure that trade 
 unions paying friendly benefits shall receive equal rights 
 with friendly societies where the payment of these bene- 
 fits is concerned. 
 
 They object to the encouragement given to employers' 
 sick and superannuation clubs, and would like to liave 
 them completely taken out of the scheme, the reason they 
 give being that the difficulty of securing democratic con- 
 trol is almost insuperable! I very nmcli doubt if the 
 beneficiaries wall see eye to eye with the Socialists and 
 Labour leaders on this point, however. 
 
 The Executive Council of the Social Democratic Party 
 has passed the following resolution:^ — 
 
 " While supporting the principle of national insurance, 
 this executive cannot but regard this measure as an 
 attempt to make the working class itself bear the burden 
 of ameliorating some of the worst results of the capitalist 
 system, instead of saddling the cost u])0ii the master class. 
 With regard to the details of the monsiin! the Executive 
 Council reserves fuller criticism for the iiioiiniit, but is 
 opposed to any direct payments l)cing iiiadi' l)y workmen 
 from their already scanty earnings; and even if workmen 
 •were prepared to accept the principle of dirorl payment.
 
 70 NATIONAL INSURANCE BILL. 
 
 the scale laid down in the Bill is manifestly unjust, and 
 must be seriously amended before the Bill can be in any 
 way acceptable to the people." 
 
 They do not want to see shop clubs multiplied, because 
 such a course would weaken trade union organisation. 
 
 Mr. Barnes has said they could not agree to clause 18 
 because it would prevent their funds being used in the 
 future as they had been in the past. He also says that 
 the scale of benefits under the Bill is lower than the 
 scale paid at present by trade unions ; but I doubt if this 
 is cori;ect. 
 
 I suspect that what they really fear is when workmen 
 have to subscribe for the benefits under the Bill, that then 
 they will have less to spend on contributions to the trade 
 unions. 
 
 As the Attorney-General has pointed out, it is not 
 possible to hand over State money or employers" money to 
 a trade union without securing that this money should not 
 be used as a war chest against the employers. Money 
 under the State scheme must be kept separate from the 
 friendly society's funds or the trade union funds, and 
 there must, of course, be a Government audit of the appli- 
 cation of the State monies. 
 
 It is said that the insurance scheme in Germany has not 
 hurt the trade unions there. 
 
 The Executive Council of the Social Democratic Party 
 has issued, a statement criticising the scheme, in which 
 they state that the provision for sickness is totally in- 
 adequate and that the contributions are excessive.
 
 THE UNIONIST PARTY. 71 
 
 The Unionist Party. 
 
 The Unionist party are strongly in favour of the prin- 
 ciple of State help to insurance contained in the Bill, 
 and are very anxious to see a good measure passed, and, 
 indeed, it will be largely owing to their expressed inten- 
 tion to do all they can to improve the Bill, and not to 
 oppose it, that the Bill is likely to become law. It is,, 
 however, on questions of details that their criticisms are 
 directed, and anyone who has had anything to do with 
 insurance knows how important the details are. These 
 details are fraught not only with the success or failure 
 of the scheme, but their effects on the friendly societies 
 are far-reaching. 
 
 Mr. Worthington Evans (who has been appointed 
 chairman of the large committee of Unionist Members 
 who are collecting information as to the hardships which 
 the Bill may entail on different classes of people) pointed 
 out in his speech on the second reading, some of the defects 
 which the Unionist party feels the Bill contains. He 
 l)ointod out that although the Bill would put a large addi- 
 tional charge on employers, whicli in big concerns would 
 no doubt fall on contracts, yet in smaller businesses he 
 felt confident that the Bill would make a real difference 
 in employment. In slack times there would arise in the 
 mind of the small employer whether it would not be better 
 to close down instead of struggling on and hoping foj- 
 better times. To remedy this, he suggested to the Govern- 
 ment whetlK-r it would lie possible to arrange a method 
 under whicli thi! contributions of (employers slioiild b(^ 
 j)aid out of profits. 
 
 Another (|ue8tion Mr. Worthington Evans raised was,
 
 72 NATIONAL INSURANCE BILL. 
 
 can the large numbers driven into the scheme be kept 
 there? The actuarial report gave 882,000 as the number 
 in the deposit contributors class who, from the beginning, 
 were unable to join in any approved society owing to ill- 
 health, and the Chancellor of the Exchequer had said that 
 about 5 per cent, of the members of friendly societies 
 fell out annually owing to inability to continue their con- 
 tributions. These 882,000 persons unable to join societies 
 would probably be swollen to about one and a half mil- 
 lions. The extent of the increase would probably depend 
 almost entirely on the attitude of the friendly societies. 
 If the societies were adverse to a large number of men 
 being suddenly driven into their ranks, a great many 
 more would be obliged to seek refuge among the deposit 
 contributors. Mr. Worthington Evans pointed out that 
 no one on the Government side of tlie House has yet 
 had the pluck or hardihood to defend the provisions of 
 the Bill relating to deposit contributors. He jDrophesied 
 that they would be known as the D.C.s, or downcasts! 
 Two and a half weeks' sickness benefit at 10s. a week was 
 all they would obtain after fifty-two weeks' contributions ! 
 Is Parliament justified in driving some million and a half 
 workmen — probably more — into the scheme, and then only 
 giving them such a miserable benefit? Were not some of 
 them better provided for by private methods of insurance 
 which the Bill would kill? He offered to show the Govern- 
 ment a long list of dividing societies which already in- 
 sured some one and a half millions of people, who were 
 getting for an average cost of 2d. or M. a week benefits 
 four or five times as large as the Government proposed 
 to give to deposit contributors. It was said that dividing 
 societies were unsound, that the younger paid for the older 
 — but that was exactly what happened under this Bill; a 
 sum of £807,000 a year was being taken from persons 
 under sixteen years of age and put into the insurance fund 
 to equalise the benefits given to the older members, and 
 probably up to thirty years of age j^eople svould pay more
 
 THE UNIONIST PARTY. 73 
 
 than the market value of the benefits to which they were 
 entitled. 
 
 Another defect of the scheme Avas the method in which, 
 in connection with liability for medical beneht, the only 
 risk was transferred to the medical man. 
 
 The poor soldiers and sailors, as usual, were to come off 
 second best! All the House knew was that the Govern- 
 ment were going to deduct 2(1. a week from their pay. 
 No benefits were laid down for them in the Bill. The 
 Admiralty and War Office might or might not make regu- 
 lations for some benefits. He would not be satisfied unless 
 soldiers and sailors were treated in the same way as the 
 best men in the approved societies. He regarded the 
 foregoing points as only some among the many which 
 showed how crude and incomplete the Bill was. 
 
 I regard as one of the gravest defects in the Bill the 
 fact that 80 much is left to be settled by the various 
 bodies set up under it. Based as it is on the German 
 system, it is far too bureaucratic in its methods to 
 plea.so English tastes. The insurance commissioners 
 and local health committees in my opinion are given far 
 too mueii power and latitude. There are some twenty- 
 nine regulations and thirty-four restrictions of import- 
 ance to be settled and prescribed, but these main regula- 
 tions and restrictions should hv pul Ix'fore and settled by 
 Parliament and not left for bureaucratic and outside de- 
 cision. But the most serious sin of this kind is clause 57, 
 with its extraordinary provision that " the insurance com- 
 missioners . . . may by order make any appointment 
 and do anything wliich appears to them necessary or ex- 
 pcdionl. . . . and any such order may modify the pro- 
 visions ol the .Vet so far as may apj)car necessary or ex- 
 pcdient for carrying the order into effect " ! This is legis- 
 lation \)\ huroauoracy lun m;id! Why bt; l)()thered about 
 having a rarli;iment at all! Tjet us appoint a few commis- 
 sioners and give them a fre(> h:iiiil liki' Ihis, mikI good-bye 
 to the liberties for which we have been fighting during the
 
 74 NATIONAL INSURANCE BILL. 
 
 centuries. Even the Chancellor of the Exchequer had to 
 admit, when pressed bj Mr. Worthington Evans, that 
 the clause was rather strong! The fact is that this clause 
 will have to be drastically altered; the marvel is that it 
 should ever have been allowed to appear in the Bill as 
 drafted !
 
 ( 75 ) 
 
 PART II. 
 
 Unemployment Insurance. 
 
 The Unemployment portion of the Bill may be regarded 
 as the Cinderella of the scheme, for it has been comiDletely 
 overshadowed by its more showy sister; and while the 
 Sickness provisions have afforded one of the chief topics 
 of conversation since the Bill was introduced, very few 
 people have taken very much interest in the second part of 
 the Bill. Yet these provisions relating to unemployment 
 are of enormous and far-reaching importance, and if they 
 had been embodied in a separate Bill (as I venture to 
 think they should have been) and introduced either before 
 or after a Sickness Insurance Bill, they would have com- 
 manded immense attention and interest. 
 
 I believe this is the first time in the Iiistory of any 
 nation that a scheme of compulsory national insurance 
 against unemployment has been introduced. It is pro- 
 posed to start by compelling all workmen engaged in the 
 building and engineering trades to come into the scheme. 
 These two trades have been chosen because it is in them 
 that the greatest fluctuations in employment are experi- 
 enced. Certainly these industries arc most sensitive to 
 trade depression, and it is claimed tliat they are, therefore, 
 the most suitable for experiment. I agree that these two 
 trades are possibly the two most in need of a scheme for 
 provision against unemployment, but for that very reason 
 they may bo the worst for experimental piiiposcs. 
 
 Excluding agricultural labourers, women and clerical 
 workers, tiic workmen in tho two selected trades, con- 
 sisting as they do of about two and a half millions, com- 
 prise about one-third of" our industrial po|)u]ation.
 
 76 NATIONAL INSURANCE BILL. 
 
 The fund to be formed for the relief of unemployment 
 is to be raised by contributions from workmen, employers, 
 and the State. Employers and workmen are each to con- 
 tribute 2^d. a week for each period of employment of a 
 week or less, and the State is to contribute one-third of 
 the total aznount received from employers and workmen. 
 The State is also responsible in the first instance for the 
 cost of administration, but 10 per cent, of the income of 
 the unemployment fund will be apportioned towards ad- 
 ministrative expenditure. 
 
 Employers may, under clause 70, instead of paying the 
 weekly sum of 2^d. in respect of each workman, com- 
 pound by paying in advance the sum of 15s. for a year in 
 respect of a particular workman, the 15s. to include the 
 employer's as well as the Avorkman's subscription. This 
 would work out that the employer's contribution would 
 only amount to 4s. 2d. instead of 10s. 10^. for the year, 
 but of course the employer is running the risk of the 
 workman leaving during the year. 
 
 The ordinary contribution is to be made by the em- 
 ployer affixing a 5d. stamp to the book belonging to the 
 workman, and the employer will then deduct the 2^d- 
 from the workman's wages. When a workman is unem- 
 ployed no subscriptions are payable. 
 
 The benefits are to be 7s. a week for workmen en- 
 gaged in the engineering, construction of vehicles, and 
 shipbuilding trades when they are out of work, and 6s. a 
 week for workmen engaged in the housebuilding trades. 
 The benefits are to commence after the first week of un- 
 employment, and are payable for a period not exceeding 
 fifteen weeks in any twelve months. In order that a man 
 may get this, however, he must conform to the provision 
 that he can only draw one week's benefit for ever}' five 
 weekly contributions paid by him. This is a very im- 
 portant rule which, while it will not handicap the hard- 
 working and regular labourer, will penalise the lazy and 
 worthless .
 
 UNEMPLOYMENT INSURANCE. 77 
 
 Provision is given to the Board of Trade to vary the 
 above benefits within limits, viz., 6.s. and 8s. per week, 
 and should necessity arise to reduce the period below the 
 fifteen weeks. If necessary, also, powers are given to hold 
 a public inquiry. 
 
 In order to be in a position to receive the benefits a 
 workman must show that he has been engaged in one of 
 the insured trades for twenty-six weeks, he must make 
 application for benefit in the prescribed manner, and he 
 must have been continuously out of work since the date of 
 application. He must be capable of working and unable 
 to get suitable employment, and, of course, he must not 
 have exhausted his right to benefit before mentioned. 
 In addition to the above requirements a workman will be 
 disqualified from benefit in either of the following 
 cases : — 
 
 (1) If he has lost his work through a strike or lock-out, 
 
 for the period the strike oi- lock-out lasts. 
 
 (2) If he has lost liis woi-k through misconduct or has 
 
 thrown up his job without a good cause, for 
 six weeks after losing such work. 
 
 (3) While he is residing outside the United Kingdom. 
 
 (4) If he has been iiuprisoucd. for six weeks after leav- 
 
 ing prison. 
 
 (5) Wliile he is an inniale ol' ajiy public iustitul ion . 
 
 Tlie scheme is to be administered priuciioally tlirough 
 the Labour Exchanges. When a workman loses his em- 
 ployment h(! is to take his duly stamped l)Ook to the 
 nearest exchange, and lodge liis book witli the exchange 
 and claim benefit. The decision as to the amount of 
 benefit (if any) that ho is entitled to draAv, will rest with 
 an "insurance ofiiccir," and the workman will be <Mititl(Ml 
 to draw such w(!f;kly benefit (for tho period to wliicli he 
 may be (mtitlcd to it) so long a.s ho remains out of work
 
 78 NATIONAL INSURANCE BILL. 
 
 and attends to sign a register daily during working 
 hours. 
 
 If a workman is dissatisiied with the decision of the 
 insurance officer, he may appeal (with no expense to him- 
 self) to a " Court of Referees " consisting of equal repre- 
 sentatives of employers and workmen, with an impartial 
 chairman. In case the Court of Referees differ from the 
 insurance officer there will b© an appeal to an umpire 
 to bo appointed by the Board of Trade. 
 
 The foregoing is a short epitome of the general provi- 
 sions of the scheme. The two main underlying prin- 
 ciples on which it is based are: — 
 
 (1) That provision for unemployment, whether tlirough 
 
 insurance or in other forms, must not be such 
 as to create unemployment, and should, if pos- 
 sible, tend to diminish it. 
 
 (2) That compulsory provision for unemployment 
 
 should bo accompanied by arrangements for pro- 
 curing and encouraging voluntary provision. 
 
 In reference to the first principle, the provision for un- 
 employment through insurance is closely linked up with 
 the machinery established some time ago for diminishing 
 unemployment — namely, the Labour Exchanges. When 
 a workman claims benefit on account of unemployment, 
 the Labour Exchange will automatically register him as 
 an applicant for employment, and if the exchange can 
 find him suitable work, he must take that work instead 
 of drawing benefit. He will no longer be held to be 
 " unable to obtain suitable employment." It is hoped 
 by this means to greatly increase the efficiency of the 
 Labour Exchanges, because it will bring to them all the 
 unemployed workmen in the insured trades, and will en- 
 courage employers to go to the exchanges for men, because 
 they will know the men will necessarily be there. 
 
 The burden of providing benefit is thrown upon the
 
 UNEMPLOYMENT INSURANCE. 79 
 
 employers, workmen and the State, in such a way as to 
 give each of those parties an interest in diminishing un- 
 employment. 
 
 The benefits receivable under the scheme are not 
 guaranteed by the State. But in the event of severe de- 
 pression of trade, the Treasury is to make an advance to 
 tide over the period while the fund is exhausted. Should 
 the Treasury have to come to the assistance of the fund, 
 the Treasury may require a temporary modification in 
 rates of contribution, benefit, &g. 
 
 If it is found that, over a period of years, the rates of 
 contribution are either too high or too low, provision is 
 made for a periodical revision of rates, and, if necessary, 
 also that there should be a differentiation between different 
 trades and branches of trades, according to the unem- 
 ployment recorded in them. It is, in this way, made to 
 the interest of employers and workmen to reduce un- 
 employment, with a view to obtaining a reduction or 
 avoiding an ijicrease of contributions when a revision 
 takes place. 
 
 There are a number of specific provisions inserted in the 
 Bill with the idea of encouraging regularity of employ- 
 jnent or diminishing burdens on the fund: — 
 
 (1) By the Eighth Schedule the minimum contribu- 
 tion of 2^d. each is required both from em- 
 ployers and workmen for ever}/ separate period 
 of employment of a iveek or less. Thus casual 
 workmen and their employers have to paj^ more 
 frequent contributions than the regular work- 
 man and his employer. 
 
 (2j ('lause 70, us before mentioned, provides that an 
 employer, instead of paying the ijd. every week 
 as it becomes due on account of each particuliir 
 workman, may pay \-')s. in ii(i\;iiice to cover any 
 particular workman lor a your. The em))loyer 
 is still entitled to deduct the 2ld. jxt week IVoni
 
 80 NATIONAL INSURANCE BILL. 
 
 this workman's A\ages, and so the enijDloyers 
 contribution will only come to 4.9. 2d. instead 
 of 10s. lOd. for the year. 
 
 (3) Bj clause 71, when a workman reaches the age of 
 
 sixty (or fifty-live, if he has given up his trade) 
 he may get back from the unemployment fund 
 such amount of his own contributions as are 
 greater than the benefits he has drawn from the 
 fund, with compound interest at 2^ per cent. 
 
 (4) Clause 72 provides that when, in a period of trade 
 
 depression, the workman is put on short time, 
 then the contributions of employers and work- 
 men may be remitted altogether. This is to 
 encourage employers to keep all their men work- 
 ing short time rather than to dismiss some and 
 perhaps keep the otliers working full hours. 
 
 (5) By clause 73 (1), where a workman is engfaged 
 
 through a Labour Exchange, the exchange may 
 make an arrangement with the employer to 
 undertake on his behalf the whole duty of keep- 
 ing and stamj^ing the insurance books, and they 
 may treat all the successive periods of employ- 
 ment of the same or different workmen engaged 
 through the exchange as a single continuous 
 period of employment of one workman. This 
 will encourage employers to use the Labour Ex- 
 changes, because an employer by so doing may 
 pay according to the amount of labour he has in 
 fact used, even though the employment has been 
 discontinuous and though he has not always had 
 the same man . Also a workman engaged through 
 an exchange by one or more employers with 
 whom an arrangement has been made will be 
 allowed to pay a single contribution per Aveek, 
 however many separate engagements he has had . 
 
 (6) Clause 74 (1) enacts that any workman who is con- 
 
 tinually unemployed through lack of skill or
 
 UNEMPLOYMENT INSURANCE. 81 
 
 knowledge may be required to attend a course 
 of teclmical instruction, and if he refuses to 
 attend or does not profit by the instruction, thib 
 may be taken into account in considering what is 
 suitable employment for him. 
 It is hoped that the combined effect of these provisions 
 will give a substantial advantage both to the employer 
 and workman in respect of regular work as compared with 
 casual employment. The discrimination seems to be jus- 
 tified on actuarial and equitable grounds, by the saving to 
 the unemployment fund which results from the diminu- 
 tion of claims for unemployment benefits. 
 
 While the compulsory part of the scheme is limited at 
 present to the engineering and building trades, power is 
 given by clauses 77 and 78 to the Board of Trade to 
 extend it to other trades. 
 
 It is estimated that the Bill will at once compel some 
 2,421,000 workpeople of eighteen years and upwards to 
 come within this compulsory insurance against unemploy- 
 ment. The membership of trade unions in the insured 
 trades at the end of 1909 was 462,288, of whom about 
 350,000 belonged to unions providing unemployment 
 benefits. Thus roughly two millions more will be insured 
 under the Bill than were previously insured. 
 
 Provision is made for the continuation and encourage- 
 ment of existing forms of voluntary insurance against un- 
 employment. Clause 79 provides that an association of 
 workmen in the insured trades which gives unemployment 
 benefits can make arrangements with the Board of Trade 
 whereby its members may draw the benefits under the 
 Bill through the association, instead of through the Labour 
 Exchanges, and the association will then claim from the 
 Labour Exchange the amounts so drawn by its members; 
 in otber words, the association thus becomes the channel 
 for the distriljution of the benefits given under the Hill 
 to its own members. The association will, ol' coui'se, be 
 quite frcf to distribute among its members any furihpr 
 
 \V. G
 
 82 NATIONAL INSURANCE BILL. 
 
 benefits in addition to those payable under the Act, and to 
 give such further benefits for such periods as its own 
 rules provide. Members of such association -vvill only be 
 subject to the rules of their own association, and will be 
 able to draw their benefits in one lumj) instead of having 
 to attend at the Labour Exchange for one portion and at 
 the loffices of their association for the balance. For in- 
 stance, |Supposing a workman engaged in one of the en- 
 gineering trades by the rules of his association is entitled 
 to 5s. a week unemployed benefit, he will be entitled to 
 draw 12s. a week from his association, leaving them to 
 get the 7s. from the Labour Exchange. 
 
 To encourage economical distribution in the associa- 
 tions, and to encourage the provision of benefits beyond 
 the amount payable under the Bill, it is also provided by, 
 clause 79 that the repayments to an association under this 
 clause shall not exceed two-thirds of what it has itself 
 expended . 
 
 So far all these provisions of the Bill have only had 
 reference to giving unemployment benefits in the "in- 
 sured trades," namely, the engineering and building in- 
 dustries, but by clause 80 there is provided a means of 
 encouraging and assisting workmen in every trade to in- 
 sure against unemployment. By this clause the Board 
 of Trade may repay (out of moneys to be provided by 
 Parliament) to any "association of persons not trading 
 for profit" which gives unemployment benefits a sub- 
 sidy of one-sixth of the amount (up to a maximum rate of 
 12s. per week) they have expended on such benefits. 
 
 JOHN H. WATTS. 
 
 5, Pump Court, Temple. 
 June, 19n.
 
 NATIONAL INSURANCE BILL. 
 
 ARRANGEMENT OF CLAUSES. 
 
 Part I. 
 
 National Health Insurance. 
 
 Insured Persons. 
 
 Clause. 
 
 1. Insured persons. 
 
 2. Exemptions. 
 
 Contributions. 
 
 3. Contributions by insured persons, employers, and the Treasury. 
 
 4. Rates and rules for contributions by employed contributors and 
 
 tbeir employers. 
 
 5. Rates and rules for contributions by voluntary contributors. 
 
 6. Change from voluntary rate to employed rate and vice rersd. 
 
 7. Power to make regulations for the payment of contributious. 
 
 Benefits. 
 
 8. Rates and conditions of benefits. 
 
 9. Reduced rates of benefit in certain cases. 
 
 10. Reduced rates of benefits where contributions are in arrear. 
 
 1 1 . [Provisions in the case of contributors entitled to compensation 
 
 or damages. 
 
 12. Provisions in the case of contributors who are inmates of 
 
 hospitals, &c. 
 
 Administration of Benefits, 
 
 ]'.'). I'onefits to be administered by approved societies or the local 
 
 Iloalth Committee. 
 11. Administration of medical benefit. 
 15. Administration of sanatorium benefit. 
 10. Administration of maternity benefit. 
 17. Power to approved societies to subscribe to hospitals, &c. 
 
 g2
 
 84 NATIONAL INSURANCE BILL. 
 
 Approved Societies. 
 Clause. 
 
 18. Conditions for tlie approval of approved societies. 
 
 19. Special provisions for employers' superannuation funds, &c. 
 
 20. Security to be given by approved societies. 
 
 21. Approved societies to provide for local administration, &c. 
 
 22. Secessions, &c. 
 
 23. Withdrawal of approval. 
 
 Memhership of Approved Societies and Transfer of Members, 
 
 24. Admission of insui-ed persons to membership in approved 
 
 societies. 
 
 25. Transfer from one approved society to another. 
 
 26. Transfers to and from foreign and colonial societies. 
 
 27. Prohibition against double insurance. 
 
 Accounts : Valuations : Surplus and Deficit. 
 
 28. Approved societies to keep proper accounts. 
 
 29. Valuations of approved societies. 
 
 30. Sui-plus. 
 
 31. Deficit. 
 
 Deposit Insurance. 
 
 32. Provisions as to deposit contributors. 
 
 33. Transfer from approved society to deposit insurance and vice 
 
 versa. 
 
 Provisions as to Special Classes of Insured Persons. 
 
 34. Special provisions with respect to married women. 
 
 35. Special provisions as to aliens. 
 
 36. Special provisions with regard to persons in the naval and 
 
 military service of the Crown. 
 
 37. Application to other persons in the service of the Crown. 
 
 38. Application to young persons under sixteen. 
 
 Financial Provisions. 
 
 39. National Health Insurance Fund. 
 
 40. Reserve values. 
 
 Insurance Commissioners : Advisory Committee. 
 
 41. Constitution of Insurance Commissioners, appointment of 
 
 inspectors, &c. 
 
 42. Appointment of advisory committee.
 
 NATIONAL INSURANCE BILL. ^^ 
 
 Local Health Committees. 
 Clause. 
 
 43. Appointment of local Health Committees. 
 
 44. Powers and duties of local Health Committees. 
 
 45. Income. 
 
 Excessive Sickness. 
 
 46. Power to approved societies and local Health Committees to 
 
 demand inquiries into causes of excessive sickness, &c. 
 
 Supplementary Provisions. 
 
 47. Erection of sanatoria, &c. 
 
 48. Power to Insurance Office to make regulations, &c. 
 
 49. Determination of questions by Insurance Office. 
 
 50. Disputes. 
 
 51. Distress, execution, &c. to be illegal in certain cases. 
 
 52. Ofifences. 
 
 63. Civil proceedings against employer for neglecting to pay con- 
 tributions. 
 
 54. Repayment of benefits improperly paid. 
 
 55. Provisions as to application of the existing funds of friendly 
 
 societies. 
 
 56. Provision as to existing superannuation fund. 
 
 57. Power to remove difficulties. 
 
 58. Application to Scotland. 
 
 59. Application to Ireland. 
 
 Part II. 
 Unemployment Insurance. 
 
 60. Right of workmen in insured trades to unemployment benefit. 
 
 61. Contributions by workmen, employers, and the Treasury. 
 
 62. Statutory conditions for receipt of unemployment benefit. 
 
 63. Disqualifications for unemployment benefit. 
 
 64 . Determination of claims. 
 
 65. Ajjpointment of umpires, insurance officers, inspectors, &c. 
 
 66. Courts of referees. 
 
 67. Kegulatious. 
 
 68. Unemployment fund. 
 
 69. Treasury advances. 
 
 70. Pf)wer of omi)loyers to cfjmpound at reduced rates. 
 
 71. Return of part of contributions by workmen in certain cases. 
 
 72. Refund of contributions paid in respect of workmen working 
 
 short time.
 
 86 NATIONAL INSURANCE BILL. 
 
 Clause^ 
 
 73. Provisions with, resjiect to workmen engaged through labour 
 
 exchanges. 
 
 74. Subsidiary provisions. 
 
 75. Offences. 
 
 76. Periodical revision of rates of contribution. 
 
 77. Power to extend to other trades. 
 
 78. Procedure for making special orders. 
 
 79. Arrangements with associations of workmen in insured trade 
 
 making payments to members whilst unemployed. 
 
 80. Eepayments to associations making payments to persons, 
 
 whether workmen in insured trade or not, whilst unem- 
 ployed. 
 
 81. Interpretation and application. 
 
 Part III. 
 General. 
 
 82. Provisions as to stamps. 
 
 83. Outdoor relief. 
 
 84. Priority of claims for contributions due by bankrupt employers. 
 
 85. Benefits to be inalienable. 
 
 86. Powers of inspectors. 
 
 87. Short title and commencement. 
 
 SCHEDULES. 
 
 FIEST SCHEDULE. 
 
 Part I. 
 
 Employments within the meaning of Part I. or this Act 
 
 RELATING TO HEALTH INSURANCE. 
 
 Part II. 
 
 Exemptions. 
 
 SECOND SCHEDULE. 
 
 Bates oe Contribution under Part I. of this Act relating 
 TO Health Insurance.
 
 NATIONAL INSURANCE BILL. 
 
 THIED SCHEDULE. 
 
 EuLES AS TO Payment and Eecovery of Contributions paid 
 BT Employers on behalf of Employed Contributors 
 UNDER Part I. of this Act relating to Health In- 
 surance. 
 
 FOUETH SCHEDULE. 
 
 Benefits under Part I. of this Act relating to Health 
 
 Insurance. 
 Part I. — Eates of Benefits. 
 Part II. — Additional Benefits. 
 
 FEBTH SCHEDULE. 
 
 Eeduction or Postponement of Sickness Benefit, and tthere 
 Contributions are in Abrear. 
 
 SIXTH SCHEDULE. 
 
 List of Insured Trades for the purposes of Part II. of this 
 Act relating to Unemployment Insurance. 
 
 SEVENTH SCHEDULE. 
 Eates and Periods of Unemployment Benefit. 
 
 EIGHTH SCHEDULE. 
 
 Contributions for the purposes of Part II. of this Act 
 
 relating to Unemployment Insurance. 
 
 Part I. — Eates of Contribution from Workmen and Emi^loyera. 
 Part IL— Eate of Eeduced Conti-ibution bj' Employer. 
 
 NINTH SCHEDULE. 
 Provisions of the Factory and Workshop Act, 1901, applied 
 to Special Orders made under Part II. of this Act 
 relating to Unemployment Insurance. 
 
 87
 
 88 NATIONAL INSURANCE BILL. 
 
 APPENDICES. 
 
 A. Explanatory Memorandum re National Health. 
 
 B. Explanatory Memorandum n- Unemployment. 
 
 C. Amendments desired by the Friendly Societies. 
 
 D. Amendments desired by British Medical Association. 
 
 E. Amendments desired by Pharmaceutical Society of 
 
 Great Britain.
 
 NATIONAL INSURANCE BILL. 
 
 89 
 
 A 
 
 BILL 
 
 TO 
 
 Provide for Insurance against Loss of Health and for 
 tJie Prevention and cure of Sickness and for In- 
 surance against Unemployment, and for purposes 
 incidental thereto. 
 
 Be it enacted by the King's most Excellent Majesty, 
 by and with the advice and consent of the Lords Spiritual 
 and Temporal, and Commons, in this present Parliament 
 assembled, and by the authority of the same, a.s follows: — 
 
 Part I. 
 
 NATIONAL HEALTH INSURANCE. 
 
 Insured Persons. 
 
 1. Insured persons.] — (1) Subject to the provisions of § 1. 
 this Act, all persons who are employed within the 
 meaning of this Part of this Act shall be, and any 
 ] persons who are not so employed but who possess the 
 qualifications herein-after mentioned may be, insured in 
 manner provided in this Part of this Act, and all persons 
 so insured fin tliis Act called "insured persons") shall 
 be entitled in the manner and subject to the conditions 
 provided in this Act to the benefits in respect of health 
 insurance and prevention of sickness conferred by this 
 Part of this Act. 
 
 " all persons."— Seo definition in (2) below.
 
 ^0 NATIONAL INSURANCE BILL. 
 
 § 1. (2) The persons employed within the meaning of this 
 
 Part of this Act (in this Act referred to as " employed 
 contributors") shall include all persons of either sex, 
 whether British subjects or not, who are eng-aged in any 
 of the employments specified in Part I. of the First 
 Schedule to this Act, not being employments specified 
 in Part II. of that schedule: 
 
 Provided that the Insurance Commissioners herein- 
 after constituted may, with the approval of the Treasury, 
 by regulations, provide for including amongst the persons 
 employed within the meaning of this Part of this Act 
 any persons engaged in any of the excepted employments 
 specified in Part II. of the said schedule. 
 
 "whether British subjects or not."— See clause 35 for the 
 special provisions as to aliens. 
 
 (3) The pei-sons not employed within the meaning of 
 this Part of this Act who are entitled to become insured 
 persons include all persons who either — 
 
 (a) are eng-aged in some regular occupation and are 
 
 wholly or mainly dependent for their livelihood 
 on the earnings derived by them from that occu- 
 pation; or 
 
 (b) have been employed contributors for a period of 
 
 five years or upwards; 
 and the persons possessing such qualifications who 
 become insured persons are in this Act referred to as 
 voluntary contributors: 
 
 For terms on which "voluntary contributors" may come into 
 the scheme, see clause 5. 
 
 (a) "engaged in some regular occupation, &c."— This is one 
 of the provisions of the Bill which is causing much trouble — and is 
 especially objected to by the doctors. If it includes such rich men 
 as the Governor of the Bank of England, who was particularly 
 mentioned, it would certainly appear to include persons who can 
 be in no possible need of the benefits conferred by the Bill — and 
 the words " wholly or mainly dependent " are not definite enough.
 
 NATIONAL INSURANCE BILL. 
 
 There is no income limit ; and in view of the attitude taken up by § ^ 
 
 the medical profession it is very likely that this portion of the Bill 
 relating to voluntary contributors will have to be dropped. There 
 does not seem to be any good reason why rich men should be 
 assisted by the Government grant, nor why they should receive 
 medical attendance at nominal rates. 
 
 The Chancellor of the Exchequer was asked whether "any 
 person, however wealthy, will be able under clause 5 to obtain all 
 the health insurance benefits conferred by the Act, provided that 
 he depends partly for his livelihood upon some regular occupation, 
 while paying as premium only seven-niuths of the amount which 
 he would have to pay to an insurance company. If so, upon what 
 principle is the remainicg two-ninths payable by the State, and 
 whether he has considered the effect upon insurance companies of 
 such competition in these cases." 
 
 Mr. Lloyd George : " The answer to the first part of the question 
 is in the affirmative, provided that the person referred to joins an 
 approved society. A wealthy man who becomes insured would 
 probably contribute in taxation." 
 
 But no answer was given to the last part of the question ! 
 
 Provided that where a person who has been a volun- 
 tary contributor for five years or upwards ceases to possess 
 such qualifications as aforesaid he shall not by reason 
 thei-eof be disentitled to continue to be insured under this 
 Part of this Act. 
 
 (4) Nothing in this section shall require or authorise 
 a person over the age of sixty-five years not previously 
 insured under this Part of this Act to become so insured. 
 
 2. Exemptions.]— (1) Where any person employed 
 within the meaning of this Part of this Act proves that 
 he is not as a rule employed for more than thirty-nine 
 weeks in a year and is either — 
 
 (a) in receipt of any pension or income of the annual 
 \alue of twenty-six pounds or upwards not de- 
 pendent upon his personal exertions; or 
 
 (b; ordinarily dependent upon some other person, 
 he shall bo entitled to a certificate exempting him from 
 the liability to become or to continue to be insuird under 
 this Part of this Act. 
 
 91
 
 92 NATIONAL INSURANCE BILL. 
 
 § ^' (2) All claims for exemption shall be made to, and 
 
 uertificates of exemption granted by, the Insurance Com- 
 missioners in the prescribed manner: Provided that the 
 regulations of the Insurance Commissioners may provide 
 for claims under this section being made to and certifi- 
 cates granted by approved societies and local Health Com- 
 mittees herein-after constituted. 
 
 Contributions. 
 
 3. Contributions by insured persons, employers, and 
 the Treasury .^ — Except as otherwise provided by this Act, 
 the funds for providing the benefits conferred b}^ this 
 Part of this Act and defraying the expenses of the ad- 
 ministration of those benefits shall be derived as to 
 smen-ninths (or, in the case of women, three- fourths) 
 thereof from contributions made by or in respect of such 
 contributors by themselves or their employers, and as to 
 the remmning two-ninths {or, in tlve case of ivoynen, one- 
 quarter) thereof from moneys provided by Parliament. 
 
 4. Rates and rules for contributions by eomployed con- 
 tributors and their employers.] — (1) The contributions 
 payable in resj)ect of employed contributors shall be at 
 the rate specified in Part I. of the Second Schedule to 
 this Act (herein-after referred to as the employed rate), 
 and shall comprise contributions by the contributors and 
 contributions by their employers at the rates specified 
 in that Part of that schedule, and shall be payable at 
 weekly or other prescribed intervals . 
 
 " Part I. of the Second Schedule."~This is an instance of the 
 careless drafting of the Bill — there is no first part of the Second 
 Schedule ! — the words, of course, should be " specified in the Second 
 Schedule." 
 
 "payable at weekly or other prescribed intervals."— The 
 provisions throughout the Bill are for weekly payments. If it is 
 intended, us the speeches of Ministers would appear to suggest,
 
 NATIONAL INSURANCE BILL. 93 
 
 that payments should be made less frequently, say at the time S ^ 
 
 -wheu wages or salaries are paid, then definite words to this effect 
 
 should be inserted in the Bill. 
 
 See clause 7, where power is given to the Insurance Commissioners 
 to make regulations as to times, &c. of payments. 
 
 (2; The employer shall, in the first instance, pay both 
 the contributions payable by himself (in this Act referred 
 to as the employer's contributions), and also on behalf 
 of the employed contributor the contributions payable 
 by such contributor, and shall be entitled to recover from 
 the contributor by deduction from liis wages or otherwise 
 the amount of the contributions so paid by him on behalf 
 of the contributor in accordance with the rules set out 
 in the Third Schedule to this Act. 
 
 (3) An employed contributor who is temporarily un- 
 employed shall not, whilst so unemployed, be under any 
 obligation to pay any contributions which if he were 
 employed would be payable in respect of him, but nothing 
 in this section shall prevent such a contributor paying 
 such contributions for the purpose of avoiding falling 
 into arrear. 
 
 "would be payable in respect of him." — The wording of this 
 sub-section is not veiy clear. If it means, as these words would 
 seem to imply, that when he is out of work the workman has to 
 pay not only his own 4'/. but his employer's '3'L as well, then it 
 seems to be rather hard on the workman that when he is earning 
 nothing he should yet have to pay nearly double the amount he 
 would have to pay when in emplojTnent to prevent himself falling 
 intfj arroar. Anyhow, the words should bo altered so as to make 
 the meaning clear. 
 
 See clause 10, which regulates reduced rates of benefits when 
 contributions are in arrear. See also Fifth Schedule. 
 
 (4) Contributions in respect of employed contributors 
 shall cease to bo payable on their attaining the age of 
 seventy . 
 
 This is of course the ago at which old age pensions bocorao 
 payable.
 
 94 
 
 NATIONAL INSURANCE BILL. 
 
 § 4. (5) The employer of a person who thoug^h employed 
 
 within the meaning of this Part of this Act is not insured 
 under this Part of this Act by reason either — 
 
 (a) that, not having previously been insured, he has 
 become employed wdthin the meaning of this 
 Act after attaining the age of sixty-five; or 
 
 See clause 1 (4). 
 
 (b) that he has obtained a certificate of exemption 
 under this Act; 
 
 See clause 2. 
 
 shall be liable to pay the like contributions as would 
 have been payable as employer's contributions if such 
 person had been an employed contributor, and such con- 
 tributions shall be carried to such account and dealt with 
 in such manner as may be prescribed. 
 
 The manner in which the employer has to pay these extra con- 
 tributions has yet to be " prescribed." 
 
 5. Rates and ruhs for contributions by voluntary 
 contribtitors -I — (1) The contributions payable by volun- 
 tary contributors shall be at the rate appropriate to their 
 age at the date of their entry into insurance ascertained 
 in accordance with a table to be prepared by the Insur- 
 ance Commissioners (herein-after referred to as the 
 voluntary rate) and shall be paid by the voluntary con- 
 tributors at weekly or other prescribed intervals: 
 
 Provided that — 
 
 (a) In the case of a person who comes into insur- 
 ance within six months after the commence- 
 ment of this Act, the voluntary rate shall, 
 if he is below the age of forty-five at the 
 date of coming into insurance, be the same 
 as the employed rate, and if he is above that
 
 NATIONAL INSURANCE BILL. 95 
 
 age, be such rate, ascertained according to § 5. 
 
 a table to be prepared by the Insurance Com- 
 missioners, as, having regard to his age at that 
 date, will be sufficient to cover seven-ninths, 
 or in the case of a woman tJuree- fourths, of 
 the benefits conferred by this Part of the Act; 
 (b) Where a person, having been an employed con- 
 tributor for five years or upwards, becomes a 
 voluntary contributor the rate of contribution 
 payable by him shall continue to be the em- 
 ployed rate. 
 
 "rate appropriate to their age."— These rates are not yet 
 known, as the Table has yet " to be prepared.'' 
 
 But by (a) all voluntary contributors, if they come into the 
 scheme within six months of the jjassing of the Act, will pay the 
 same rate as the ordinary contributor, plus the amount which 
 the employer would have had to pay, had the voluntary con- 
 tributor been in ordinary employment and receiving 160/. a year 
 or less — in other words, ho will have to jjay "'/. a week and the 
 State will contribute 2d. 
 
 (2) Contributions by voluntary contributors shall 
 cease to be payable on their attaining the age of seventy. 
 
 This is the same provision as in the case of employed contributors 
 [clause 4 (4)]. 
 
 6. Change from voluntary rate to employed, rate and 
 vice versa.] — (1) Where an insured person has become 
 a member of an approved society as a voluntary contri- 
 butor, the rate of contributions payable in respect of 
 him shall, notwitlistanding that he becx)mcs employed 
 Avithin the moaning oF this Part of this Act, remain the 
 voluntary rate, unless at any time after becoming so cm- 
 ployed he gives notice in the prescribed manner oF his 
 wish to be transferred to the employed rate. 
 
 This (tlause ap]ilieH to those voluntary contributors who have not 
 como into the scheme witln'ii tln" six months <pf lln^ ])as8ing of the 
 Act.
 
 96 NATIONAL INSURANCE BILL. 
 
 RQ "notice in the prescribed manner." — This has yet to be 
 — defined. 
 
 (2) Where he gives such notice the rate payable in 
 resiject of him shall be the employed rate, but in such 
 case the rate of sickness benefit payable in respect of 
 him shall be such reduced rate as would have been pa}'- 
 able had he not previously been insured, subject to such 
 allowagtice as may according to tables prepared by the 
 Insurance Commissioners represent the value at that time 
 of the contributions previously paid by him. 
 
 These Tables have yet to be prepared. 
 
 (3) Where he does not give such notice, and until he 
 does so, the contributions paj^able by his employer in 
 respect of him during any period of employment within 
 the meaning of this Part of this Act shall be the same 
 as if he had been transferred to the employed rate, and 
 the contributions so paid by the employer shall be treated 
 as in part satisfaction of the contributions at the volun- 
 tary rate payable by the contributor, and if the contribu- 
 tor fails to pay the balance he shall be deemed to be in 
 arrear to that extent. 
 
 (4) Where an employed contributor within five years 
 from his entry into insurance ceases to be employed 
 within the meaning of this Part of this Act and becomes 
 a voluntary contributor, lie shall be deemed to be in 
 arrear, as from the date when he became a voluntary 
 contributor, to the amount of the difference between the 
 aggregate contributions paid in respect of him as an em- 
 ployed contributor and the aggregate of the contributions 
 which would have been payable by him had he originally 
 become a voluntary contributor, and the difference between 
 any reserve value which is credited to the approved society 
 of which he is a member in respect of him and the reserve 
 value (if any) which Avould have been credited to that
 
 NATIONAL INSUKANCE BILL. 97 
 
 society in respect of him had he originally become a § 6. 
 voluntary contributor shall be cancelled. 
 
 7. Poiver to make regulations for the payment of 
 contributions?^ — Subject to the provisions of this Act, 
 the Insurance Commissioners may make regulations pro- 
 viding for any matters incidental to the payment 9,nd 
 collection of contributions payable under this Act, and 
 in particular for — 
 
 (a) payment of contributions by means of adhesive 
 
 or other stamps affixed to or impressed upon 
 books or cards, and regulating the manner, 
 times, and conditions in, at, and under which 
 such stamps are to be affixed or impressed; 
 
 (b) the entry in or upon books or cards of particulars 
 
 of contributions paid and benefits distributed 
 in the case of the insured persons to whom such 
 books or cards belong; 
 
 (c) the issue sals custody or delivery up of books or 
 
 cards and the replacement of books or cards 
 which have been lost destroyed or defaced. 
 
 See note to clause 4 (1). It would surely be better to insert in 
 the Bill itself provisions as to when subscriptions are to become 
 payable. 
 
 Benefits. 
 
 8. Bates and conditions of benefits.] — (1) The bene- 
 fits conferred by this Part of this Act upon insured 
 persons are — 
 
 (a) Medical treatment and attendance, including the 
 
 provision of proper and sufficient medicines (in 
 this Act called "medical benefit"); 
 
 (b) Treatment in sanatoria or other institutions when 
 
 suffering from tuberculosis, or such othor 
 diseases as the Local Government Board with 
 the approval of the Treasury may appoint (in 
 this Act called "sanatorium benefit"); 
 
 W. H
 
 98 NATIONAL INSURANCE BILL. 
 
 § 8. (c) Weekly payments whilst rendered unfit to provide 
 
 their own maintenance by some specific disease 
 or by bodily or mental disablement, com- 
 mencing from the fourth day after notice 
 thereof is given, and continuing for a period 
 not exceeding twenty-six weeks (in this Act 
 called "sickness benefit"); 
 
 For amounts payable under " sickness benefit," see Fourth 
 Schedule, Part I. 
 
 (d) In the case of the disease or disablement con- 
 tinuing after the determination of sickness 
 benefit, weekly payments so long as so rendered 
 unfit by the disease or disablement (in this Act 
 called "disablement benefit"); 
 
 For amounts payable under "disablement benefit," see Fourth 
 Schedule, Part I, 
 
 (e) Payment in the case of the confinement of the 
 
 wife of an insured person, who is not herself 
 an insured person, or of a woman who is an 
 insured person, of a sum of thirty shillings (in 
 this Act called "maternity benefit"); 
 
 (f) In the case of persons entitled under any scheme 
 
 (made in accordance with this Part of this Act 
 to any of the further benefits mentioned in 
 Part II. of the Fourth Schedule to this Act 
 (in this Act called " additional benefits ") such 
 of those benefits as may be distributable under 
 that scheme. 
 
 For list of " additional benefits," see Fourth Schedule, Part 11. 
 
 (2) Subject to the provisions of this Part of this Act, 
 the rates of sickness benefit and disablement benefit to 
 which insured persons are entitled shall be the rates speci- 
 fied in Part I. of the Fourth Schedule to this Act.
 
 NATIONAL INSURANCE HILL. 99 
 
 (3) The right to sickness benefit and disablement § 8. 
 benefit shall not commence before the insured person 
 attains the age of sixteen and shall cease on his attaining 
 the ago of seventy, but, save as aforesaid, the right to 
 benefits (other than additional benefits) shall continue 
 throughout life. 
 
 " age of seventy." — This, of course, is the age when Old Age 
 Pensions commence— so that a person who has been receiving the 
 "disablement benefit'" of os. a week up till then, will still con- 
 tinue to receive os. a week, only it will then be his old age pension. 
 If he is, however, entitled to any additional benefits under the Act, 
 he will continue to receive these in addition to his old age pension. 
 
 (4) Except with the consent of the society or com- 
 mittee administering the benefit, no insured person shall 
 be entitled to any benefit during any period when he is 
 residont cither temporarily or permanently outside the 
 British Islands, or to medical benefit during any period 
 when he is resident outside the United King-dom. 
 
 This clause is not very clear. 
 
 Sec, however, clause 26 in reference to transfers to foreign and 
 colonial societies. 
 
 (5) Where an insured person, having been in receipt 
 of sickness benefit, recovers from the disease or dis- 
 ablement in respect of which he receives such benefit, 
 any subsequent disease or disablement, or a recurrence 
 of the same disease or disablement, shall bo deemed to 
 be a continuation of the previous disease or disable- 
 ment, unless in tlie meanwhile a period, continuous or 
 discontinuous, of at least twjlvc months has ehpscd, and 
 at least fifty Avcekly contributions have been paid by 
 or in respect of him: 
 
 Provided that the benefit in respect of such subse- 
 quent or recurrent disease or disablement shall not com- 
 menoo to be payable before the date at which it would, 
 apart from this provision, have commenced. 
 
 II 2
 
 100 NATIONAL INSURANCE BILL. 
 
 fi g This clause is, of course, important in view of the fact that by the 
 
 Fourth Schedule a higher rate of sickness benefit is payable during 
 
 the first 13 weeks. 
 
 (6) Where a woman is herself entitled to maternity 
 benefit she shall not be entitled to sickness benefit, dis- 
 ablement benefit, or medical benefit at and for a period 
 of four weaks after her confinement. 
 
 These words seem to make it clear that a woman contributor 
 only gets the benefit of the maternity benefit of 30s. for these four 
 weeks and does not receive the sick pay (say of 7s. 6d. a week) 
 which she would be entitled to in the case of any ordinary illness. But 
 the Chancellor of the Exchequer, in answer to a question, said that 
 the maternity benefit must be regarded as additional to sickness 
 benefit, and not as a substitute for it ! If this is the intention and 
 is agi'eed to by the House, the words of this sub- section will, of 
 course, have to be alteied. The clause as it stands is greatly 
 resented by women generally — the maternity benefit of 30s. is not 
 to be paid to the woman in cash, but is to be applied in payment of 
 doctor, nursing, &c. 
 
 See clause 16 for administration of maternity benefits. 
 
 (7) Notwithstanding anything in this Part of this 
 Act, no insured person shall be entitled — 
 
 (a) to imedical benefit during the first six months after 
 
 the commencement of this Act; 
 
 (b) to sickness benefit unless and until twenty-six 
 
 wesks have elapsed since his entry into insur- 
 ance, and at least twenty-six contributions have 
 besn paid by or in respect of him; 
 
 (c) to disablement benefit unless and until one hundred 
 
 and four weeks have elapsed since his entry 
 into insurance, and at least one hundred and 
 four contributions have been paid by or in 
 respect of him; 
 
 (d) to sickness benefit in respect of any disease or 
 
 disablement which commenced during the 
 twenty-six weeks, or to disablement benefits in 
 respect of any disease or disablement which
 
 NATIONAL INSURANCE BILL. 101 
 
 oommeno3d during the one hundred and four § 8. 
 wesks, next following his entry into insurance; 
 
 (e) tjO sickness benefit or disablement benefit during 
 
 any period when he is provided with board and 
 lodging by his employer; 
 
 (f) to maternity benefit unless and until twenty-six, 
 
 or in the case of a voluntary contributor fifty- 
 two weoks have elapsed since his entry into 
 insurance, and at least twenty-six, or in the 
 case of a voluntary contributor fifty-two, con- 
 tributions have been paid by or in respect of 
 him. 
 
 The main object of tliis clause is to enable a fund to be estab- 
 lished, and the actuarial calculations have been made on the basis 
 of the fund being formed. 
 
 (e) This sub-section has occasioned much adverse criticism. It 
 would apply expressly in the case of domestic servants and shop- 
 assistants who sleep in. In any such case where these employes 
 were nursed in the house of their employer, they would not receive 
 these two benefits for which both they and their employers had 
 contributed. 
 
 (f) This is, of course, practically to prevent fraud on the part of 
 a voluntary contributor. 
 
 (8) As soon as a sum has been accumulated by invest- 
 ment sufiiciont to provide interest at three 'per cent, per 
 annum on the amounts then standing to the credit of all 
 approved societies the benefits payable to insured persons 
 under this Part of this Act shall be extended in such 
 manner as Parliament may determine, but in determining 
 the distribution of such extended benefits amongst the 
 persons who become entitled thereto regard shall be had 
 to the claims or special considerations of persons who 
 have entered into insurance at an early age. 
 
 9. Reduced rates of benefit in certain cases.]— (!) In 
 the case of insured persons who are under tlie ago of 
 twenty-one years and unmarried, sickness benefit and
 
 102 NATIONAL INSURANCE BILL. 
 
 § 9. disablement benefit shall be at the reduced rates speci- 
 fied in Table B. in Part I. of the Fourth Schedule to 
 this Act. 
 
 (2) The rates of sickness and disablement benefits may 
 in any case, and shall in all cases where the rate of sick- 
 ness benefit or disablement benefit (as the case may be) 
 exceeds two-thirds of the usual rate of wages or other 
 remuneration earned by insured persons, be reduced to 
 such an extent as the society or committee administering! 
 the benefit, with the consent of the Insurance Commis- 
 sioners, determines; but where such reduction is made 
 provision shall be made by the society or committee, with 
 the like consent, for the grant of one or more additional 
 benefits of a value equivalent to such reduction. 
 
 This is to prevent it paying a contributor better to be ill than 
 weU! 
 
 (3) Sickness benefit shall be reduced in accordance 
 with Table C. in Part I. of the Fourth Sehedule to this 
 Act in the case of any insured person who is over fifty 
 years of age at the date of any claim by him for such 
 benefit and has not then paid at least five hundred weekly 
 contributions. 
 
 " Sickness benefit." — This sub- section only has the effect of 
 reducing the sickness benefit, and does not alter the right of those 
 persons to receive the full disablement benefit. 
 
 (4) In the case of every person over the age of sixteen 
 years who, not having been previously insured under this 
 Part of this Act, becomes an employed contributor sub- 
 sequently to the expiration of one year from the com- 
 mencement of this Act, the rate of sickness benefit and 
 maternity benefit to which he is entitled shall (unless he 
 proves that his time since he attained the age of sixteen 
 has been spent in a school or college, or otherwise in the 
 completion of his education, or unless he undertakes him-
 
 NATIONAL INSURANCE BILL. 103 
 
 self to pay the difference between the voluntary rate and § 9- 
 the employed rate, or pays to the Insurance Commis- 
 sioners, to be credited to the society, such capital sum 
 as will be sufficient to secure him benefits at the full rate) 
 be such reduced rate as may be fixed in accordance with 
 tables to be prepared by the Insurance Commissioners, 
 but not in any case less than five shillings a week for sick- 
 ness benefit or fifteen shillings for maternity benefit: 
 
 Provided that if at any time subsequently such person 
 would become entitled to sickness benefit at a higher rate 
 if he were treated as having become an employed con- 
 tributor as from the time when he attained the age of 
 sixteen, or as from the expiration of one year after the 
 commencement of this Act, whichever date may be the 
 later, and as boing in arrear for all contributions Vv'hich, 
 had he become an employed contributor at that date, would 
 have been payable in respect ox him between that date 
 and the date when he actually became an employed con- 
 tributor, he shall, if he so elects, be entitled to be so 
 treated . 
 
 10. Reduced rates of benefits where contributions are 
 in arrear.^ — (1) Whore an insured person being a member 
 of an approved society is in arrear to an amount greater 
 than thirteen contributions a year on the average since 
 his entry into insurance, his right to benefits under this 
 Part of this Act shall be suspended, and at the expiration 
 of the next succeeding calendar year any sums credited 
 to the society in respect of him, calculated in the pre- 
 scribed manner, shall, if his right to benefits still continues 
 to bo suspended, be transferred to such account and dealt 
 with in such manner as may be proscribed: 
 
 Provided that if at any time after such suspension he 
 again becomes employed within the meaning of this Part 
 of this Act he shall be entitled to benefits at such rate, 
 after the lapse of such time and after the payment of 
 such number of contributions, as would have been applic-
 
 104 NATIONAL INSURANCE BILL. 
 
 § 10. able to his case had he not previously been an insured 
 person, but if he so elects at any time the rate of benefits 
 shall be such rate as he would be entitled to, were the 
 period from the time of his original entry into insurance 
 taken as a whole. 
 
 See clause 4 (3), which allows a contributor out of employment to 
 pay contributions to prevent his falling into arrear. 
 
 (2) Where an employed contributor claiming sickness 
 benefit is at the date of such claim in arrears but the 
 arrears are less than as aforesaid, then the rate of sickness 
 benefit shall be reduced to a sum not less than five shillings 
 a week, or the time when sickness benefit commences de- 
 ferred, proportionately to the amount of arrears in accord- 
 ance with the table in the Fifth Schedule to this Act. 
 
 (3) Where a voluntary contributor is in arrears he shall 
 be liable to such reduction or suspension of benefits jeis 
 may be prescribed. 
 
 The Fifth Schedule does not apply in the case of voluntary 
 contributors. The reductions in this case have yet to be pre- 
 scribed. 
 
 (4) In calculating arrears of contributions, no account 
 shall be taken of any arrears accruing — 
 
 (a) during any period when the person in question has 
 
 been, or but for this or the two next succeeding 
 sections of this Act would have been, in receipt 
 of sickness benefit or disablement benefit; or 
 
 (b) in the case of a woman who, being an insured 
 
 person, is herself entitled to maternity benefit, 
 during two weeks before and four weeks after 
 her confinement; or 
 
 (c) during the first twelve months after the commence- 
 
 ment of this Act; or 
 
 (d) during any period when the contributor (if an em- 
 
 ployed contributor) is under the age of sixteen 
 years;
 
 NATIONAL INSURANCE BILL. 
 
 but, save as aforesaid, contributions shall be deemed to § 10. 
 be payable in respect of every week from the date of 
 entry into insurance. 
 
 (5) Where an insured person has paid any arrears of 
 contributions payable by or in respect of him which 
 accrued during the calendar year current at the date of 
 payment and the previous calendar year, together with 
 interest thereon at the rate of three per cent, per annum 
 from the respective dates on which the contributions 
 accrued due and the date of payment, he shall bs treated 
 for the purposes of this section as if the arrears so paid 
 had never become due: 
 
 Provided that if such person is at the date of payment 
 or subsc'iuently within one month thereafter becomes unfit 
 to provide for his own maintenance through disease or 
 disablement, he shall for the purposes of this section be 
 deemed to be still in arrear in respect of the amount so 
 paid until after the expiration of one month from the date 
 of his recovery from such disease or disablement. 
 
 11. Provisions in the case of contributors entitled to 
 compensation or damages.^ — (1) Whore an insured per- 
 son has received or recovered or is entitled to receive or 
 recover, whether from his employer or any other person, 
 any compensation or damages under the Workmen's Com- 
 pensation Act, 1903, or any scheme certified thereunder, 
 or under the Employers' Liability Act, 1880, or at 
 common law, in respect of any injury or disease, the 
 following provisions shall apply: — 
 
 (a) No sickness benefit or disablement benefit shall be 
 paid to such person in any case where any 
 weekly sum or the weekly value of any lump 
 sum paid or p:iyable in respect of any such com- 
 pensation or damages is equal to or greater than 
 the b;'ncfit otherwise paynblc to such person, and 
 where any such weekly sum or the weekly value 
 of any such lump sum is less than the benefit in 
 
 105
 
 106 NATIONAL INSURANCE BILL. 
 
 § 11. question, such part only of the benefit shall bo 
 
 paid as, together with the weekly sum or the 
 weekly value of the lump sum, will be equal to 
 the benefit: 
 
 This is, of course, quite fair. If a workman meets witli an 
 accident for which he is entitled to receive compensation by law, 
 such sum may very possibly be greater than he would receive under 
 the Bill— at any rate, he is not to receive anything under this Bill 
 provided he obtains from the employer as compensation for his 
 accident an amount equal to that which the Bill would give him for 
 sickness. 
 
 (b) The weekly value of any such lump sum as afore- 
 
 said may be determined by the society or com- 
 mittee by which the sickness and disablement 
 benefits payable to such person are administered: 
 
 (c) No person entitled to any such compensation as 
 
 aforesaid from his employer shall, except with 
 the consent of the society or committee by which 
 the sickness and disablement benefits payable to 
 such person are administered, enter into any 
 agreement to accept any lump sum in respect 
 thereof, and any agreement entered into without 
 such consent shall be null and void: 
 
 This sub-section is not very clear. If the employer comes to an 
 agreement with the workman as to the amount of compensation it 
 is all right ; but in the case where, as so often happens, the 
 employer having insured himself against risks, the woikman then 
 has to bring an action against the insurance company to enforce 
 his claim, and compensation is awarded in the County Court, words 
 should be inserted in this sub-section to meet that case. 
 
 (d) Nothing in this section shall affect the right of 
 an employer to redeem a weekly payment by 
 payment of a lump sum in any case where he 
 is entitled to do so under the Workmen's Com- 
 pensation Act, 1906, but where he exercises such
 
 NATIONAL INSURANCE BILL. 
 
 right lie shall, within three days thereafter, send § 11. 
 to the Insurance Commissioners, or to the 
 society or committee concerned, no'.ice in writing 
 of such redemption, giving particulars as to the 
 amount of the lump sum and of the applica- 
 tion thereof: 
 
 107 
 
 Similarly, if an amount is awarded by the County Court, pro- 
 vision should here bo made for an officer of the Court to give par- 
 ticulars of the award to the Commissioners. 
 
 (e) Where an insured person is entitled to any such 
 compensation or damages as aforesaid and re- 
 fuses or neglects to take proceedings to enforce 
 his claim, it shall be lawful for the society or 
 committee concerned, either at its own expense, 
 to take in the name and on behalf of such per- 
 son such proceedings, in which case any com- 
 pensation or damages recovered shall be held by 
 the society or committee as trustee for the in- 
 sured person, or to withhold payment of any 
 benefit to which apart from this section such 
 person would be entitled. 
 (2) Nothing in this section shall prevent the society 
 or committee paying to an insured person entitled to such 
 compensation damages benefit by way of advance pending 
 the settlement of his claim for compensation or damages, 
 and any advance so made shall, without prejudice to any 
 other method of recovery, be recoverable by deductions 
 from or suspension of any benefits which may subse- 
 quently become payable to such person. 
 
 12. Provisions in the case of contributors ivho cere 
 inmates of hospitals, dc] — (1) No payment shall be made 
 in respect of sickness disablement or maternity benefit 
 to any insured person during any period when he is an 
 inmate of any workhouse, hospital, asylum, or infirmary, 
 supported by any public authority or out of any public
 
 108 
 
 NATIONAL INSURANCE BILL. 
 
 § 12. funds or by a charity, or of a sanatorium or similar in- 
 stitution established under this Part of this Act. 
 
 (2) During such period as aforesaid any such benefit 
 which would otherwise have been payable to such person— 
 
 (a) shall be paid to or applied in whole or in part for 
 
 the relief or maintenance of his dependants (if 
 any) in such manner as the society or committee 
 by which the benefit is administered think fit; 
 or 
 
 (b) if such person is an inmate of a sanatorium or 
 
 similar institution in which he is receiving 
 treatment in accordance with the provisions of 
 this Part of this Act, and has no dependants, 
 shall be paid to the local Health Committee 
 towards the general purposes thereof. 
 
 (3) For the purpose of this section, the expression 
 " dependants " shall include such of the following mem- 
 bers of the insured person's family as are wholly or in 
 part dependent upon the earnings of such person at the 
 time when he became an inmate of any such institution 
 as aforesaid, tliat is to say, his or her wife or husband, 
 father, mother, grandfather, grandmother, step father, 
 step mother, son, daughter, grandson, granddaughter, 
 step son, step daughter, brother, sister, half brother, half 
 sister. 
 
 (4) The society or committee by which the sickness 
 disablement or maternity benefit of any insured persons 
 is administered, may enter into any agreement with the 
 pro]Der officers or authorities of any convalescent home 
 or sanatorium, admission to which is conditional on the 
 payment of the whole or any part not less than one half 
 of the cost of maintenance, for the p,a,yment thereto of any 
 sickness disablement or maternity benefit which would, 
 apart from this section, be payable to or in respect of any 
 such person who becomes an inmate of such home, during 
 any period for which he remains an inmate.
 
 NATIONAL INSURANCE BILL. 
 
 109 
 
 Similarly, I do not see why, when the contributor is in a hospital, g 12. 
 
 the sickness benefit to which he would otherwise be entitled, or some 
 
 part thereof, should not be paid over to such hospital. 
 
 By clause 17, it is made lawful for an approved society to grant 
 subscriptions or donations to hospitals, &c., and as the society is 
 saved payiug out the amount of the sickness, disablement or 
 maternity benefit, if the recipient is an inmate of a hospital, it 
 would seem only fair that the hospital should be paid the money. 
 
 Administration of Benefits. 
 
 13. Benefits to be administered by ajiproved societies 
 or the local Health Committee.]— (!) Sickness benefit, 
 disablement benefit, and maternity benefit, and, subject 
 to the provisions of ths next succeeding section, medical 
 benefit, sliall be administered, in the case of insured per- 
 sons who are members of an approved society, by and 
 through the society, and in other cases by and through 
 the local Health Committees; sanatorium benefit shall 
 in all cases be administered by and through local Health 
 Committees. 
 
 (2) Subject to the provisions of this Part of this Act, 
 an approved socioty may, with the consent of the Insur- 
 ance Commissioners, provide for the application of its 
 existing rules or make new rules with regard to the 
 manner and time of paying or distributing and mode of 
 calculating benefits, suspension of benefits, notices and 
 proof of disease or disablement, behaviour during disease 
 or disablement, and the visiting of sick or disabled per- 
 sons, and for the infliction and enforcement of penalties 
 (whether by way of fines or suspension of benefits or 
 otherwise) in the case of any member being an insured 
 person who is guilty of any breach of any such rule, or 
 of any imposition or attempted impoution in respect of 
 any benefit under this Part of this Act, and may from 
 time to time with the like consent allcr or repeal any such 
 rules; but — 
 
 (a) no fine imposed under any such rule shall exceed
 
 110 NATIONAL INSURANCE BILL. 
 
 § 13. ten shillings or, in the case of repeated breaches 
 
 of rules, twenty shillings; 
 
 (b) no such rule shall provide for the suspension of 
 
 any benefit for a period exceeding one year; 
 
 (c) every such rule relating to the visiting of insured 
 
 persons shall provide that women shall not be 
 visited otherwise than by women; 
 
 (d) every such rule relating to behaviour during disease 
 
 or disablement shall be in the prescribed form. 
 
 (3) The local Health Committee shall, subject to the 
 approval of the Insurance Commissioners, make rules in 
 respect of any of the matters mentioned in the last pre- 
 ceding subsection for the purpose of regulating the pay- 
 ment or distribution of benefits administered by the com- 
 mittee: 
 
 Provided that no such rule relating to anything to be 
 done by, to, or through the Post Office shall be made 
 without the consent of the Postmaster General. 
 
 (4) Where, under any such rule as aforesaid, payment 
 of sickness or disablement benefit is suspended on the 
 ground that the disease or disablement has been caused 
 by the misconduct of the person claiming the benefit, 
 such person shall nevertheless continue to be entitled to 
 medical benefit. 
 
 This sub-section has been criticized — but the object of it is not 
 so much to benefit the i-ecipient as to prevent the possible spread of 
 the disease. 
 
 (5) Where under any Act regulating the constitution 
 of an approved society the rules of the society are required 
 to be registered, any rules approved under this section by 
 the Insurance Commissioners shall forthwith be regis- 
 tered, but till so registered shall have effect as if they had 
 been duly registered. 
 
 14. Administration of medical benefit.] — (1) Every 
 approved society and local Health Committee shall for tli©
 
 NATIONAL INSURANCE BILL. 
 
 Ill 
 
 purpose of administering medical benefit make arrange- § 14. 
 ments with duly qualified medical practitioners for in- 
 sured persons to receive attendance and treatment to the 
 satisfaction of the Insurance Commissioners from such 
 practitioners. 
 
 This is one of tlie clauses whicli is much objected to by the 
 doctors. They strongly object to bo under the control of the 
 societies. At his interview with the representatives of the medical 
 profession, Mr. Lloyd George said : — 
 
 "The question is whether under 14 (I) it is intended that not 
 merely should the treatment and attendance be to the satisfaction 
 of the Commissioners, but that the arrangements made between 
 the societies and the medical profession should be to the satis- 
 faction of the Commissioners. The intention of the Government 
 was that the Commissioners should have the right to consider the 
 fairness of the arrangement, so that, suppose you get the kind of 
 arrangement, that I am sorry to say you have too often experienced, 
 of men having half a crown per patient, or some grossly inadequate 
 fee, the Health Commissioners would have the right to say then 
 that no medical man can possibly offer adequate and sufficient 
 services at such a miserable fee. and they will have the right to 
 send back the contract and say that it must be amended and an 
 adequate fee paid, as otherwise the patient would suffer as well as 
 the doctor. I agree that the wording is, perhaps, rather ambiguous, 
 and that it will have to be strengthened in that respect, and I 
 propose introducing words into that sub-section that will make 
 porfectiy clear the intention of the Government that the Insurance 
 Commissioners will have the right to refuse a contract between the 
 medical profession and the societies, and to see that it is a fair 
 bargain for the medical man as well as the patient." 
 
 (2) Every such society or committee shall also make 
 provision for the supply of proper and sufficient drugs 
 and medicines to insured persons, and no arrangement 
 shall bo mido with a medical practitioner under whicli 
 he is bound or agrees to provide drugs or medicine for 
 any insured person at an inclusive fee, without the con- 
 sent of the Insurance Commissioners, which consent they 
 shall not give unless the circumstances of any locality
 
 112 NATIONAL INSURANCE BILL. 
 
 § 14. situate in a rural district are such as to make it expe- 
 dient to do so. 
 
 This provision as it is worded does not satisfy the chemists. 
 They naturally wish the necessary drugs to be supplied through 
 them, and they fear that under this clause the societies and Health 
 Committees may set up their own depots for the distribution of the 
 drugs. Their contention is that under the Bill, as medical 
 attendance and medicine are now to be given gratis to the great 
 majority of their present customers, they wHl lose an enormous 
 amount of the trade which they now carry on in drugs, patent 
 medicines, &c., and that unless provision is made for the drugs to 
 be supplied through them they will be ruined. 
 
 (3) An approved society may enter into an agreement 
 with the local Health Committee for the administration 
 of medical benefit among such of the members of the 
 society entitled thereto as may be resident in the county 
 or county borough for which the committee is established; 
 and on any such agreement being made the committee 
 shall take over such administration and there shall in 
 each year be paid out of moneys credited to the society 
 such sum in respect of every member of the society en- 
 titled to the benefit and resident in the county or county 
 borough as may be agreed between the society and the 
 committee . 
 
 (4) If in any year the amount paj'able to a local Health 
 Committee in respect of all persons for the administra- 
 tion of whose medical benefit it is responsible is insuffi- 
 cient to meet the estimated expenditure thereon, the 
 Committee may, through the Insurance Commissioners, 
 transmit to the Treasury and to the council of the county 
 or county borough an account showing the amount so 
 payable and the estimated expenditure, and the Treasury 
 and the county council or the council of the county 
 borough shall, if satisfied that the amounts so payable 
 and the proposed expenditure are reasonable and proper 
 in the circumstances, sanction the expenditure.
 
 NATIONAL INSUHAA'CE BILL. 113 
 
 (5) The Treasury and the council of the county or § 14. 
 county borough sanctioning any such expenditure as 
 aforesaid shall thereupon each be liable to make good, in . 
 the case of the Treasiury out of moneys provided hy 
 Parliament, and in the case of the council of a county 
 or county borough out of the county fund or borough 
 fund or borough rate, as the case may be, one half of 
 any sums expended by the local Health Committee on 
 medical benefit in the course of the year in excess of 
 the amounts so payable to the local Health Committee as 
 aforesaid. 
 
 15. Administration of sanatorium benefit.] — (1) For 
 the pui-pose of administering sanatorium benefit local 
 Health Committees shall make arrangements, to the satis- 
 faction of the Insurance Commissionei^s, with persons or 
 local authorities having the management of a sanatoria 
 or other similar institutions approved by the Local 
 Government Board for the treatment therein of insured 
 persons entitled to sanatorium benefit under this Part of 
 this Act. 
 
 (2) The sums available for defraying the expenses of 
 sanatorium treatment in each year shall be — 
 
 (a) one shilling and threepence in respect of each in- 
 
 sured person resident in the county or county 
 borough payable out of the funds out of which 
 benefits are payable under this Part of this Act; 
 
 (b) one penny in respect of each such person pay- 
 
 nhle out of moneys provided hy Farliament : 
 
 Provided that the Insurance Commissioners may retain 
 the whole or any part of the sums so payable out of 
 moneys provided by Parliament for the purposes of 
 researcli. 
 
 (3) An insured person shall not be entitled to sana- 
 torium benefit unless the local He:ilth Committee con- 
 siders the caso one suitable for sanatorium treatment. 
 
 w. I
 
 114 NATIONAL INSURANCE RILL. 
 
 §16. 16. Administration of maternity ben&fit.] — (1). Where 
 
 the mother of the chihl is herself an insured person 
 maternity benefit shall be treated as a benefit for her and 
 shall be administered by the approved society of which 
 she is a member, or if she is not a member of any society 
 by the local Health Committee; if she is not herself an 
 insured person the benefit shall be treated as a benefit for 
 her husband and shall be administered by the approved 
 society of which he is a member, or if he is not a member 
 of any such society by the local Health Committee, and 
 shall be payable in respect of a posthumous child. 
 
 " is herself an insured person." — See clause 8 (b), by wbich, as 
 at present drawn, a woman who is an insured person is not entitled 
 to sickness, disablement, or medical benefits for a period of four 
 weeks after her confinement. (See note to clause 8 (b).) 
 
 (2) The money payable by way of maternity benefit 
 shall be expended in such manner as may be prescribed, 
 and no payment shall be made by way of maternity 
 benefit if the mother of the child has failed to comply 
 with such conditions as maj be prescribed. 
 
 "expended in such manner as maybe prescribed."— In the 
 
 "Memoi'andum explanatory of the Bill it is stated that societies 
 will not be allowed to pay this benefit in cash to the insured person 
 or her husband, but will be required to pay expenses incurred up 
 to the sum of 30s. under prescribed conditions." 
 
 17. Power to approved societies to subscribe to hos- 
 pitals, dc.'] — It shall be lawful for an approved society 
 to grant such subscriptions or donations as it may think 
 fit to hospitals and other charitable institutions, or for 
 the support of district nurses, and to appoint nurses for 
 the purpose of visiting insured persons who are members 
 of the society, and any sums so expended shall be treated 
 as expenditure on such benefits under this Part of this 
 Act as may be prescribed.
 
 NATIONAL INSURANCE BILL. 115 
 
 "to hospitals.'" — See note to clause 12. § J^7. 
 
 It is curious that altho'ugh power is given by the clause for ~~ " 
 
 approved societies to make grants to hospitals, &c., no such power 
 seems to be given to the local Health Committees. (See clause 44.) 
 
 Approved Societies. 
 
 18. Conditions for the approval of approved societies. 1 
 — ^(1) Any society, that is to say, any body of persons, 
 corporate or unincorp orate (not being a branch of another 
 such body), registered or established under any Act of 
 Parliament, which gives such security as is required to 
 be given under this Part of this Act and otherwise com- 
 plies with the requirements of this Act relating to ap- 
 proved societies, may be approved by the Insurance Com- 
 missioners, and if so approved shall be an approved society 
 for the purposes of this Part of this Act. 
 
 (2) No society shall receive the approval of the Insur- 
 ance Commissioners unless it satisfies the following- con- 
 ditions: — 
 
 (i) It must have at least ten thousand members, 
 being insured persons; 
 
 This must, of course, bo read in conjunction with sub-section (3), 
 below. In addition to this proviso, small societies may amalgamate, 
 and so bring their members up to the 10,000. But the requirement 
 is far from popular, manj' of the smaller societies objecting to being 
 merged in larger societies, and so losing their individuality. Also, 
 it is urged that small societies will be better able to stop malinger- 
 ing. In the case of Ireland, the minimum number is 5,000. 
 (Clause 59 (3).) 
 
 (ii; It must be precluded by its constitution from dis- 
 tributing any of its funds otlierwise than by 
 way of benefits (whether benefits under this Act 
 or not) amongst its mem hoi's; 
 
 The Ijabour I'arty object to this sub-section because, as drawn, 
 it would j)revent a trade union becoming an approved society. 
 
 i2
 
 116 
 
 NATIONAL INSURANCE BILL. 
 
 § 18. Words will douLtless be inserted to meet their wishes, to enable 
 trade unions to become approved societies, provided all the funds 
 received for the purposes of this scheme are earmarked and kept 
 quite separate from the ordinary funds of the union. 
 
 (iii) Its affairs must be subject to the absolute control 
 of its members; 
 
 See clause 19 (1) (b), which modifies this sub-section in the 
 circumstances there set out. 
 
 ' (iv) Its constitution must provide for the election of all 
 its committees, representatives, and officers by- 
 its members. 
 
 (3) A society may apply for approval at any time 
 before or after the commencement of this Act, and a 
 society with less than ten thousand members being in- 
 sured persons which otherwise fulfils- the requirements of 
 this section may be approved by the Insurance Commis- 
 sioners conditionally upon its having the requisite number 
 of such members within such time as the Insurance Com- 
 missioners may allow. 
 
 This will enable societies having less than the 10,000 members to 
 obtain the requisite number within " such time, &c.," which it is 
 anticipated many of them will be able to do quite easily, because so 
 many people will be desirous of joining one of the established 
 societies. It also enables societies to amalgamate, and so obtain 
 the requisite number of members. 
 
 19. Special provisions for employers' superannuation 
 funds, dc-l — (1) Where a society consists of persons en- 
 titled to rights in a superannuation fund or any similar 
 fund established by an employer or a number of employers 
 for the benefit of workmen employed by him or them, the 
 society may be approved — 
 
 (a) notwithstanding that it does not satisfy the condi- 
 ditions laid down by this Part of this Act as to 
 numbers;
 
 NATIONAL INSURANCE BILL. 117 
 
 (b) if the employer is responsible for the solvency of § 19. 
 the fund, or is liable to pay part of, or to make 
 contributions towards, any benefits payable out 
 of the fund similar to those conferred by this 
 Part of this Act greater in amount or value 
 than the employer's contributions payable by 
 him under this Part of this Act, notwithstand- 
 ing that he is entitled to representation on the 
 committee or other body administering the fund, 
 to an extent not exceeding one quarter of the 
 total number of the body. 
 
 This, of course, is a modific;itiou of the reqiui'ements in clause 18 
 (2) (iii) and (iv). 
 
 (2) Where, by reason of any such society becoming an 
 approved society, it is necessary to make any alteration in 
 the existing rules or constitution of the fund, a scheme for 
 the purpose may be submitted for the approval of the In- 
 surance Commissioners. 
 
 (3) Where such a scheme has been approved by the 
 Insurance Commissioners, the Act or deed constituting the 
 fund shall have effect subject to the provisions of the 
 scheme, but the Insurance Commissioners shall not 
 approve any such scheme unless they are satisfied that the 
 members of the society have been given an opj^ortunity 
 of voting thereon, and that the scheme makes proper pro- 
 vision for safeguarding existing rights and interests. 
 
 Clauses IS and 19 do not meet with the approval of members of 
 the Labour Part}'. They do not waut to see shop clubs increased, 
 because this would have the effect of weakening trade unions 
 organisation, and might, they think, enable employers to shift 
 burdens on to the shoulders of the workmen. Clause 18 prevents 
 their funds being used in future as they have been used in the past. 
 
 A Labour Member asked the Chancellor of the Exchequer 
 whether railway companies' friendly and superannuation societies, 
 membersliip of which was conipul-iory as a condition of eni])]oy- 
 ment by the companies, and also other railway companies' societies
 
 U8 
 
 NATIONAL INSURAI^CE BILL, 
 
 § 19. membership of which was not compulsory, whose solvency depended 
 upon subsidies by the companies by agreement and with no statu- 
 tory obligation, would bu eligible for admission as approved 
 societies under the terms of the National Insurance Bill. 
 
 The Chancellor of the Exchequer : I must refer the hon. member 
 to clause 19 of the Bill. It does not appear that the eligibility of a 
 society for approval would be affected by the circumstances such 
 as those referred to in the question. 1 may add that a member 
 leaving such a society and joining any other approved society 
 would be entitled to carry with him from the first society to the 
 second the sum representing the accumulation actuarially ascer- 
 tained as appropriate to his age. 
 
 20. Security to he given by approved societies.] — 
 (1) Every approved society and every society desirous 
 of becoming an approved society shall give such security 
 as the Insurance Commissioners may consider sufficient to 
 provide against any malversation or misappropriation by 
 officers of the society of any .funds coming to their hands 
 under this Part of this Act, but the security so given shall 
 not, unless the Insurance Commissioners are willing to 
 accept security of a smaller amount, be less in value than 
 one half of the aggregate of the annual contributions pay- 
 able by or in respect of the members of the society who are 
 insured persons. 
 
 The friendly societies object to tbis clause. They have always 
 very carefully invested their own funds, and naturally do not like 
 to lose the control of them in this way. Moreover, they have been 
 able to obtain about 4 per cent, interest on their funds — assuming 
 the Government to allow them 3 per cent., this is a loss of 1 per 
 cent., which is so much money lost which would otherwise go 
 towards the additional benefits. 
 
 (2) In the case of an approved society with branches 
 having insured persons among their members, security 
 shall be given in respect of ea.ch such branch by the 
 society. 
 
 (3) Except in cases where the Insurance Commis- 
 sioners are willing to accept other security, such security
 
 NATIONAL INSURANCE BILL. 
 
 shall be given by deposit, made in the prescribed manner, § 20. 
 of securities belonging to the society. 
 
 (4) The Insurance Commissioners may from time to 
 time vary the amount of security to be given or main- 
 tained by an approved society as may be thought proper, 
 and any such society maj, with the consent of the Insur- 
 ance Commissioners, substitute other securities for the 
 securities for the time being deposited . 
 
 (5) Any dividends or interest arising from securities 
 deposited by an approved society under this section shall 
 be paid to the society. 
 
 21. Approved societies to provide for local administra- 
 tion, <fc.]— (1) Every approved society, being a society 
 with branches, shall make proper provision by rules to 
 the satisfaction of the Insurance Commissioners — 
 
 (a) for the government of the society and its branches; 
 
 (b) for the determination of disputes arising between 
 
 the society and any branch thereof, or between 
 one such branch and another ; 
 
 (c) for the administration of benelits by the branches 
 
 as respects insui'ed persons who are members of 
 such branches; 
 ■ (d) for the keeping of proper books of account by the 
 branches in any case where separate accounts 
 are usually kept by those branches; 
 (e) for depriving of or suspending from the right of 
 administering benefits under this Part of tins- 
 Act any branch which is guilty of maladminis- 
 tration of those benefits, and for providing in 
 such a case for their administration by the 
 society or otherwise. 
 (2) Every approved society whose affairs are managed 
 by delegates, or by whose rules voting by proxy or by post 
 is permitted, or whicli distributes benefits amongst mem- 
 bers residing at a greater distance from its head olHc© 
 or principal place of business than three miles if such 
 
 119
 
 120 NATIONAL IN«URANCP: KILL. 
 
 § 21. place of business is situate in London or a borough or 
 urban district, or ten miles if such place of business is 
 situate in a rural district, must, in every locality in which 
 there are ordinarily resident one thousand of its members 
 being insured persons, establish a local committee for the 
 purjjose of administering benefits, so that as far as prac- 
 ticable there shall be one such local committee at least 
 for every thousand members of the society who are in- 
 sured persons. 
 
 (3) Subject to regulations made by the Insurance Com- 
 missioners, every approved society must, in every locality 
 distant more than three miles from its nearest office in 
 which there are ordinarily resident not less than two 
 hundred and fifty of its members being insured persons, 
 on the written requisition of not less than fifty of such 
 members, establish a local committee in respect of such 
 locality. 
 
 (4) Proper provision shall be made by rule to the satis- 
 faction of the Insurance Commissioners for the election of 
 local committees established under this S3ction by the 
 members of the society residing in the locality for which 
 such committees are appointed, and for the proper 
 management of such committees and the government 
 thereof by the society. 
 
 (5) Every approved society and every branch thereof, 
 and every such local committee as aforesaid, shall comply 
 with any regulations made by the Insurance Commis- 
 sioners as to the place in which meetings are to be held, 
 and those regulations may provide for the use for such 
 meetings, with or without payment, of any offices or other 
 buildings belonging to or under the management of a 
 local authority. 
 
 This clause is strongly objected to by one of the great friendly 
 societies, namely, the Hearts of Oak Benefit Society, and a deputa- 
 tion of the society waited upon the Chancellor of the Exchequer 
 to point out the injurious effect which the adoption of this clause, 
 sects. 2, 3, and 4, would have on their societj'.
 
 NATIONAL INSUKANCE BILL, 121 
 
 The society, it was explained, was completely centralized, not g 21. 
 
 only as regards its funds, but also for the purpose of administration 
 and management generally, and it was claimed that the success of 
 the society was largely the result of its centralized system of 
 control. The clauses objected to require that a local committee 
 should be set up in every district -'for the administration of 
 benefits." 
 
 Alter reading a statement which had been submitted, and hearing 
 the dei^utatiou, Mr. Lloyd George stated that his chief purpose was 
 to ensure the proper administration of the medical benefit in the 
 interest of the members, and as an alternative to the clauses 
 refen-ed to he suggested that the Hearts of Oak should agree to 
 the administration of that benefit by the ' ' local Health Committees " 
 which would be appointed and upon which the friendly societies 
 would have ample representation. He assured the deputation that 
 he is de.sirous of preserving the variety and individuality of 
 systems and societies, and the comph;te independence of the 
 centralized as well as other societies. 
 
 The alternative proposed seems the only waj- out of the difficulty 
 if this clause is to stand, but the members of the Hearts of Oak 
 make a point of one representative being appointed by their 
 society on every local Health Committee. They would, however, 
 have preferred to administer the medical benefit locally through 
 the medical associations all over the country w-hich have been and 
 are independent existences, but could be made officially attached to 
 the central office. 
 
 22. Secessions, dc] — (1) No branch of an approved 
 society having in.sured persons among its members shall 
 bo entitled to secede or withdraw from the socict}' with- 
 out the consent of the Insurance Commissioners; but such 
 consent shall not bo given unless the saceding or with- 
 drawing branch complies with the conditions of approval 
 requisite in the case of approved societies, and on any 
 such consent Ijeing given the branch shall bo subject in 
 all respects to the provisions and requiremcjils oL' this 
 Part of this Act relating to approved societies. 
 
 (2) An approved society or a branch thereof shall not 
 be dissolved Avithout the sanction of the Insurance Com- 
 missioners, and any such dissolution, so far as it affects
 
 122 NATIONAL INSURANCE BILL. 
 
 § 22. members who are insured persons, shall bo carried out in 
 chc prescribed manner. 
 
 (3) No branch of an approved society shall be expelled 
 from the society unless projDer provision is made to the 
 satisfaction of the Insurance Office with respect to lany 
 members of the branch who are insured persons. 
 
 (4) This section shall have effect notwithstanding any- 
 thing contained in any Act regulating the constitution 
 of the society. 
 
 23, Withdrawal of approval. \ — Where an approved 
 society fails to comply with any of the provisions or re- 
 quirements of this Part of this Act relating to apj^roved 
 societies, or is convicted of any offence under any Act 
 regulating the constitution of the society or under any 
 other Act, the Insurance Commissioners may withdraw 
 their approval, and thereupon the society shall cease to 
 be an approved society and the Insurance Commissioners 
 shall make such provision as they may consider necessary 
 with respect to members of the society who are insured 
 persons. 
 
 Membership of App-oved Societies and Transfer of 
 
 Members. 
 
 24, Ad/mission of insured persons to membership in 
 approved societies.] — (1) Subject to the provisions of this 
 Act, any insured person and any person desirous of be- 
 coming an insured ^^erson may applj^ to an approved 
 society for membership therein . 
 
 (2) An approved society shall be entitled, in accord- 
 ance with its rules, to admit or reject any such applicant, 
 or to expel any of its members being insured jjersons; 
 provided that no such application shall be refused solely 
 on the ground of the age of the applicant . 
 
 "solely on the ground of age."— AH persons coming within 
 tho Act will naturally wish to join an approved society on account
 
 NATIONAL INSURANCE BILL. 
 
 of tlio greater additional benefits to be received by so doing, and it § 24. 
 is quite conceivable that some societies may not wish to accept all 
 and sundry who may apply for membership. This clause leaves it 
 open to them "to admit or reject" any applicant, but if the 
 applicant was old, he would naturally say he was rejected on that 
 account. I do not see the object or value of this condition — how 
 is it proposed to deal with a society which so rejects an aged 
 applicant ? 
 
 25. Transfer from one approved society to another.'] — 
 If an insured person, being a member of an approved 
 society, ceases to be a member of that society, whether 
 voluntarily or by expulsion, and becomes a member of 
 another approved society, there shall be transferred to such 
 other society in respect of such person a sum representing- 
 the liability of the first-mentioned society in respect pf 
 him (in this Act called "transfer value") calculated in 
 accordance Avith tables to be prepared by the Insurance 
 Commissioners . 
 
 123 
 
 The:^e tables have yet to be prepared. I conclude, however, 
 that a member leaving a f^ociety, whether by expulsion, or because 
 he is leaving the neighbourhood, will not lose by the transfer. If 
 so, it would be well to have words to this effect inserted. 
 
 26. Transfers to foreign and colonial societies.] — 
 (1) If an insured person ceases to be permanently resi- 
 dent in the United Kingdom and becomes a member of 
 any society or institution established in a British posses- 
 sion or foreign country, of a kind similar to an approved 
 society, which is approved by the Insurance Commis- 
 sioners, or of any brancli established outside the United 
 Kingdom (d" an apj)roved society, the transfer value of 
 such person, or, in the case of a deposit contributor, the 
 amount staiiding to bis credit in the Post Office fund, 
 shall be paid to such society or institution or brancli ; but 
 no such payment shall bo made unlass the Insurance Com- 
 missioners are satisfied tliul thr society, institution, or
 
 124 NATIONAL INSURANCE BILL. 
 
 § 26. branch in question gives corresponding rights to any of its 
 members becoming resident in the United Kingdom. 
 
 " any branch outside the United Kingdom."— I do not think 
 there are any branches of our fViendly societies abroad or in the 
 Colonies. 1 fancy there are only affiliated societies, and that the 
 parent friendly societies here have no authority over them. If I am 
 right, this fact seems to have been overlooked by the framers of the 
 Bill. It is, however, stated in the memorandum that the Insurance 
 Commissioners will compile a list of Colonial societies approved 
 for the purjaose of this clause. 
 
 See clause 8 (-1), by which "except with the consent of the 
 society" no insured person is entitled to " any benefit" when he 
 is resident "outside the British Islands," or to medical benefit 
 " when he is resident outside the United Kingdom." When this 
 clause is read in conjunction with clause 26, the meaning is far 
 from clear. 
 
 If an insured person is unable to join a society abroad, does he 
 lose his transfer value 'r 
 
 (2) Where an arrangement has been made with the 
 Government of any British possession or witli the Govern- 
 ment of any foreign State, whereby insured persons may 
 be transferred to a society or institution established in 
 the British possession or foreign State similar to an ap- 
 proved society or the Post Office fund, and members of 
 any such society or institution may be transferred to ap- 
 proved societies or to the Post Office fund, it shall be 
 lawful for the Insurance Commissioners to make such 
 arrangements as may be necessary for any such transfer 
 as aforesaid, and for the determination of the amount to 
 be transferred in any such case, and of the rights to 
 which any person transferred is to be entitled ; so however 
 that nothing in this section shall affect the rights of a 
 society under this Part of this Act to refuse applications 
 for membership. 
 
 See clause 35 (3).
 
 NATIONAI. INSURANCE BILL. 126 
 
 27. Prohibition against double insurance.] — A person § 27. 
 shall not be or attempt to become a member for the 
 purposes of this Part of this Act of more than one ap- 
 proved society at the same time, or, being a deposit con- 
 tributor to, become at the same time a member for the 
 purposes of this Part of this Act of an approved society, 
 but nothing in this Act shall prevent any person who is 
 a member of an approved society or a deposit contributor 
 under this Part of this Act becoming a member of the 
 same or any other society independently of this Act, or 
 affect the right of an approved society to reject or expel 
 from membership any j^erson not being an insured person, 
 or the rights or liabilities of an approved society or of any 
 member thereof arising otherwise than under this Part of 
 this Act; and, subject to the provisions of this Part of 
 this Act, all rules made by an approved society or any 
 branch thereof shall remain and be of the same force 
 and effect as though this Act had not been passed: 
 
 Provided that where an insured person is a member of 
 an approved society or a Post Office contributor under this 
 Part of this Act, and is also a member of a society inde- 
 pendently of this Act, and the sums pa3^ible to him by 
 way of benefit under this Part of this Act, and indepen- 
 dently of this Act, would exceed his wages or other re- 
 muneration, the benefits payable to him under this Part of 
 this Act shall be reduced by the amount of the excess. 
 
 This clause seems to have been much uiisunderstood. What it 
 amounts to really is that no person shall obtain the benefit of the 
 State contribution of 2d. more than once. There is nothing to 
 prevent any contributor paying a bigger subscription to his society 
 than is required by the Bill, and the amount of such excess sub- 
 scrijition will go towards further benefits than those payable imder 
 the Bill — only he must not pay so much that in the event of illness 
 he will be entitled altogether to rnct'ivo birger sick benefits than he 
 would bo receiving as wages wore he well and at work^the latter 
 proviso is, of course, to prevent placing a premium on " sickness."
 
 126 NATIONAL INSURANCE BILL. 
 
 §28. 
 
 Accounts : Valuations : Surplus and Deficit. 
 
 28. Approved societies to keep proper accounts.'] — 
 (1) Every approved society and every branch of an ap- 
 proved society must — 
 
 (a) Keep its books and accounts under this Part of this 
 
 Act separate from all other books and accounts 
 of the society or branch, and in such form as 
 may be prescribed by the Insurance Commis- 
 sioners, and, when required, submit them to 
 audit by auditors to be appointed by the 
 Treasury; 
 
 (b) Submit to have its assets and liabilities under this 
 
 Part of this Act valued in accordance with the 
 provisions of this Part of this Act; 
 
 (c) In the event of a surplus or deficiency being shown 
 
 upon any such valuation, comply with the pro- 
 visions relating to surpluses and deficiencies 
 hereinafter contained; 
 
 (d) Render such returns as the Insurance Commis- 
 
 sioners may prescribe. 
 
 (2) The provisions of this Part of this Act relating 
 to accounts audit, valuation and returns shall as respects 
 the transactions of any approved society or branch thereof 
 under this Part of this Act be substituted for such of the 
 provisions of any Act regulating the constitution of the 
 society or branch as deal with the like matters. 
 
 29. Valwdions of approved societies.} — (1) A valua- 
 tion of the assets and liabilities arising under this Part 
 of this Act of every approved society and of every branch 
 of an approved society shall be made by a valuer to bo 
 appointed by the Treasury at the expiration of every thre© 
 years dating from the commencement of this Act, or at 
 such other times as the Insurance Commissioners appoint .
 
 NATIONAL INSUKANCE BILL. 127 
 
 (2) Every such valuation shall be made on such basis § 29. 
 as may be prescribed : 
 
 Provided that it shall be assumed for the purposes of 
 such valuation — 
 
 (a) that the approved society or branch liable to pay 
 
 the proportion of the benefits administered by 
 the society, and of the cost of the administra- 
 tion of those benefits which is payable out of the 
 contributions payable by or in respect of the 
 members, that is to say, seven-ninths, or in the 
 case of women three-fourths, of such benefits 
 and cost; 
 
 (b) that the rate at which interest is to be calculated 
 
 is three per cent, per annum. 
 
 30. Surplus.^ — (1) If upon any such valuation a 
 surplus (certified by the valuer to be disposable) is found, 
 the following provisions shall apply: — 
 
 (a) If the society is a society with branches, the sur- 
 plus shall, subject to the provisions of the next 
 succeeding section of this Act, be applied in the 
 first instance in making good any deficiency 
 shown by any of its branches: 
 
 See clause :}1 (1), whoreby a society may, if it is satisfied that the 
 deficiency is due to any maladministration on tho part of the 
 branch, refusn to make good the deficiency. 
 
 (b) Subject as aforesaid, the society may submit tc the 
 Insurance Cyommissioner.s a scheme for distribut- 
 ing out of sucli surplus any one or more addi- 
 tional benefits among insured persons who aro 
 momlxjrs thereof, and upon any such scheme 
 being sanctioned by the Insurance Comniis- 
 sionors the society may distribute such addi- 
 tional benefit or bonelits in accordance with the 
 provisions thereof:
 
 128 
 
 NATIONAL INSURANCE BILL. 
 
 §30. ^'^^ 1^®^ "^ "additional benefits. " see Part II. of the Fourth 
 Schedule. 
 
 (c) If on the valuation of a branch of an approved 
 
 society a surplus is shown in respect of such 
 branch, there shall be transferred to the central 
 body or other central authority of the society of 
 which it is a branch lone half of the surplus, 
 and the branch may itself, or through the 
 society, submit to the Insurance Commissioners 
 a scheme for distributing out of the remaining 
 one half of such surplus any one or more addi- 
 tional benefits, and upon any such scheme being 
 sanctioned by the Insurance Commissioners, the 
 branch may distribute such additional benefit 
 or benefits in accordanc© with the provisions 
 thereof : 
 
 (d) If at any time after a scheme submitted by a society 
 
 has been so sanctioned as aforesaid there is found 
 to be a deficiency in the funds of the society 
 or of any of its branches which the society is 
 required to make good, or if at any time after 
 a scheme submitted by or or behalf of a branch 
 has been so sanctioned as aforesaid there has 
 been found to be a deficiency in the funds of 
 the branch, no additional benefits shall be dis- 
 tributed under the scheme until such deficiency 
 is extinguished and a surplus shown. 
 
 (2) A scheme made under this section may prescribe 
 the conditions to be complied with as respects any addi- 
 tional benefit conferred by the scheme, and every such 
 scheme shall so far as practicable provide for the reduc- 
 tion, suspension, or deprivation of the additional benefits 
 conferred by the scheme in the case of members who are 
 in arrears, and may make a corresponding reduction in 
 the amount to which such members are to be deemed to
 
 NATIONAL INSURANCE BILL. 129 
 
 be in arrears for the purpose of reckoning the rate of § 30. 
 sickness benefit. 
 
 31. Deficit.] — (1) If upon any such valuation a defici- 
 ency is found, the following provisions shall apply: — 
 
 (a) If the deficiency is shown by a branch of an ap- 
 proved society, it shall, in the first place, so 
 far as possible, be made good out of any surplus 
 in the hands of the central bodv or other central 
 authority of the society: 
 
 See clause 30 (1) i^rovidiug for application in the first instance of 
 any surplus of a society to make good any deficiency in any of its 
 branches. 
 
 Provided that the society may, if it is satis- 
 fied that the deficiency is due to any malad- 
 ministration on the part of the branch in ques- 
 tion, with the consent of the Insurance Com- 
 missioners, refuse to make good the deficiency 
 or any part thereof out of such surplus: 
 
 This proviso is of course only fair, and is intended as a check. 
 
 (b) Subject as aforesaid, every deficiency shall be made 
 good in accordance with a scheme for that pur- 
 pose to be prepared by the society and submitted 
 to the Insurance Commissioners for their sanc- 
 tion; such a scheme shall provide for making 
 good the deficiency, within a period of three 
 years from the date at which the valuation was 
 made, in any one or more of the following 
 ways : — 
 
 (i) By a compulsory levy upon members of 
 the society or branch being insured persons; 
 (ii) By reducing the rate of sickness benefit 
 or maternity bniefit; 
 w. •<
 
 130 NATIONAL INSURANCE BILL. 
 
 § 31. (iii) By deferring- the date as fi'om which 
 
 sickness benefit becomes payable; 
 
 (iv) By reducing the first or the second 
 period of tliirteen weeks during which sick- 
 n^s benefit is payable, or both such periods; 
 
 (v) By increasing the period Avhich is re- 
 quired by this Part of this i^ct to elapse 
 between two periods of disease or disablement 
 to prevent the one being treated as a continua- 
 tion of the other, 
 
 and on the sanction of the Insurance Commis- 
 sioners being given to the scheme the society 
 shall jjrooeed to make good the deficiency in 
 accordance therewith : 
 
 These provisions for reductions of benefits are most important. 
 It is hoped in this way that it will be shown to be to the interest of 
 every member of a society to prevent malingering. If it can thus 
 be brought home to every member that the funds of his society are 
 being wasted through other members wi'ongfully receiving some of 
 the money which would otherwise come to him, and that when his 
 turn comes to receive benefits, he will, as the result of the wrong- 
 doing of his fellows, receive less than the benefits he would other- 
 wise be rightfully entitled to, malingering should become so 
 unpopular that it will be to the interest of all to prevent it. 
 
 (c) Payment of the amount of any compulsory levy 
 made in accordance Avith a scheme sanctioned 
 under this section may be enforced in such 
 manner as may be provided by the rules of the 
 society ; and where those rules so provide it shall 
 be lawful for the society in the case of any 
 member to enforce j)aynieut of the amount of 
 the levy by giving notice in the prescribed 
 manner to the employer of such member re- 
 quiring him to pay the amount of the levy, and 
 upon such notice being given such amount shall 
 be payable as if it were part of the contribution
 
 NATIONAL INSURANCE BILL. 131 
 
 to be made by the employer on behalf of the 8 31. 
 n:iember, and all the provisions of this Part of 
 this Act relating to the paj^ment of such con- 
 tributions shall apply accordingly: 
 
 (d) If within six months after the declaration of a 
 
 deficienc}-, or where an enquiry as to excessive 
 sickness is pending under this Part of this Act, 
 such longer period as the Insurance Commis- 
 sioners determine, such scheme as aforesaid has 
 not been submitted to and ajDproved by the In- 
 surance Commissioners, or if at any time there- 
 after it appears to the Insurance Commis- 
 sioners that the society or branch to which the 
 scheme relates is not enforcing the provisions 
 of the scheme, the Insurance Commissioners 
 may take over the administration of the affairs 
 of the society or branch under this Part of this 
 Act, and shall as soon as possible thereafter take 
 such steps as they may think necessary to make 
 good the deficiency by any or all of the methods 
 mentioned in paragraph (b) of this section, and 
 for that purpose they sliall be entitled to exer- 
 cise all or any of the powers given to the society 
 by this section: 
 
 (e) An}^ question or dispute arising between the In- 
 
 surance Commissionei-s and the society in respect 
 of the amount of the deficiency, or as to the 
 adequacy of any scheme proposed for making it 
 good, sliall be decided by an independent valuer 
 to be appointed by the Lord Chief Justice: 
 
 (f) A scheme made under this section shall not affect 
 
 any person w ho becomes a member of the society 
 aftei' tlic date as at which the \;iluation was 
 made, or any member over seventy years of age: 
 
 (g) Any nieml)or of tlio society, being an insured per- 
 
 son, who is transferred to another society before 
 the deficiency is made good, shiili he linhlc to 
 K 2
 
 132 NATIONAL INSURANCE BILL. 
 
 § 31. any levy or reduction of benefits whicii may 
 
 be made in respect of such deficiency in like 
 
 manner in all respects as if he had not ceased 
 
 to be a member. 
 
 (2) Any member liable to a levy payable at intervals 
 
 may relieve himself of the liability thereto on payment 
 
 to the Insurance Commissioners of the capitalised value 
 
 thereof ascertained in the prescribed manner. 
 
 Deposit Insurance. 
 
 32. Provisions as to deposit contributors .^ — (1) Until 
 Parliament otherwise determines, the following provisions 
 shall apj)ly in the case of insured persons (in this Act 
 referred to as deposit contributors) who, being employed 
 contributors, have not joined an approved society within 
 the prescribed time, or who, having been members of 
 an approved society, have been expelled therefrom and 
 have not joined another approved society: — 
 
 Aliens will have to become deposit contributors, but, of course, 
 under the special provisions in regard to aliens set forth in 
 clause 35, 
 
 (a) Contributions by or in respect of a deposit con- 
 
 tributor shall be credited to a special fund to 
 be called the Post Office fund: 
 
 (b) The Bums required for the payment of any sickness, 
 
 disablement, or maternity benefit payable to a 
 deposit contributor, except so far as they are 
 payable out of moneys provided by Parliament, 
 shall be paid out of the money standing to his 
 credit in the Post Office Fund, and his right to 
 benefits under this Part of this Act shall be sus- 
 pended on the sums standing to his credit in 
 that fund being exhausted, except that his right 
 to medical benefit and sanatorium benefit shall
 
 NATIONAL INSURANCE BILL. 133 
 
 continue until the expiration of the then current § 32. 
 year: 
 
 In other words, tlie sclieme, so far as deposit contributors are 
 concerned, is scarcely an "insiu'ance" scLeme ! It is compiilsory 
 tkrift, and the depositor gets his own money back, together with 
 his employer's and the State's contributions. When these amounts 
 are exhausted he gets nothing more, except • ' medical benefits " 
 untU the expiration of the then current year. 
 
 (c) A deposit contributor shall not be entitled to sick- 
 ness benefit unless at least fifty-two weekly con- 
 tributions have been paid by or in respect of 
 him: 
 
 This is as against twenty-six weeks in the case of society members. 
 (Clause 8 (7) (b).) By clause 8 (7) (a) no insured person (which of 
 course includes deposit contributors) is entitled to medical benefit 
 during the first ^ix months after the commencement of the Act. 
 
 (d) Such sum as may be prescribed shall in each year 
 
 be payable in respect of each deposit contribu- 
 tor towards the expenses incurred by the local 
 Health Committee in the administration of 
 benefits : 
 
 (e) Such sum as the" local Health Committee may, 
 
 with the consent of the Insurance Commis- 
 sioners, determine shall in each year be pay- 
 able in respect of each deposit contributor for 
 the purpases of the cost of medical benefit: 
 
 The doctors are to .be paid by the local Health Committee in 
 respect of deposit contributors. Surely it would simplify matters 
 if these Health Committees were given power to make arrangements 
 for medical benefits in respect of «// contributors ; and this plan 
 would also meet one of the chief objections of the doctors. 
 
 (f) The sums payable in respect of a deposit contri- 
 butor for the pui-posos of medical benefit and 
 sanatorium Ixjnofit, and towards the expenses of
 
 134 NATIONAL INSURANCE BILL. 
 
 § 32. administration, shall, except so far as they are 
 
 payable out of moneys provided by Parliament, 
 be deducted at the commencement of each jeav 
 from the amount standing to his credit in the 
 Post Office fund: 
 (g) The amount standing in the Post Office fund to 
 the credit of any deposit contributor shall, upon 
 his dying, be forfeited. 
 
 (2) A valuation of the Post Office fund shall be made 
 by a valuer to be appointed by the Treasury at the ex- 
 piration of every three years dating from the commence- 
 ment of this Act, or at such other times as the Insurance 
 Commissioners may appoint, and if the valuer certifies 
 that the fund shows a disposable surplus the Insurance 
 Commissioners may carry the surplus to the credits of 
 the deposit contributors in proportion to the number of 
 contributions paid by, or in respect of, them respectively: 
 
 Provided that if the local Health Committee for any 
 county or county borough in which more than twenty 
 per cent, of the insured j)ersons resident in the county or 
 county borough are deposit contributors makes an appli- 
 cation for the purpose, the Insurance Commissioners shall 
 make provision— 
 
 (a) for crediting and debiting to a sepal-ate account 
 
 the sums to be credited or debited under this 
 Part of this Act in respect of deposit coutri- 
 ■ butors resident in the county or county borough; 
 and 
 
 (b) for a separate valuation being made of such account 
 
 and for distributing any surplus found on such 
 valuation to be disposable amongst the deposi- 
 tors resident in the county or county borough, 
 who shall not be entitled to participate in any 
 distribution of any surplus in the general Post 
 Office fund.
 
 NATIONAL IN81JRANCE BILL. 
 
 33. Transfer from approved society to deposit in- § 33. 
 surance and vice versa.]— (1) If an insured person, being 
 a member of an approved society, ceases to be a member 
 of that society, whether volmitarily or by expulsion, and 
 fails to become a member of another approved society, 
 then 
 
 (a) if he become a deposit contributor, his transfer 
 
 value shall be carried to his credit in the Post 
 Office fund: Provided that if a reserve value 
 is credited to the society in respect of him, that 
 reserve value shall be cancelled and the difference 
 between the transfer value and the reserve value 
 shall be carried to the credit of the deposit con- 
 tributor ; 
 
 (b) if he does not become a deposit contributor, his 
 
 transfer value shall be carried to such account 
 and dealt with in such manner as may be pre- 
 scribed. 
 
 (2) If an insured person who is a deposit contributor 
 subsequently becomes a member of an approved society for 
 the purposes of this Part of this Act, there shall be trans- 
 ferred to the society the amount standing to his credit in 
 the Post Office fund: 
 
 Provided that — 
 
 (a) if that amount exceeds the value of tlie contribu- 
 tions paid by or in respect of him estimated 
 on the assumption that he had been a member 
 of an approved society since his entry into 
 insurance, the excess shall not be transferred 
 to the society but shall be carried to the credit 
 of the Post Office fund; 
 
 (b; if that amount is less than such value the in- 
 sured person shall be treated as being in arrear 
 to the amount oT the deficiency. 
 
 136
 
 136 NATIONAL INSURANCE BILL. 
 
 §34. 
 
 Provisions as to Special Classes of hisnred Persons. 
 
 34. Special provisions with respect to married tvo^nen.] 
 — (1) Where a woman who, having before marriage been 
 an insured jDerson, marries, and is supported by her hus- 
 band, she shall, unless she continues to be employed 
 within the meaning of this Part of this Act, be suspended 
 from receiving any benefits under this Part of this Act 
 until the death of her husband, and if she is a member of 
 an approved society any sums credited to the society in 
 respect of her, calculated in the prescribed manner, shall 
 be carried to such account and dealt with in such manner 
 as may be prescribed, but if at any time after such death 
 she again becomes employed within the meaning of this 
 Part of this Act, the period between her marriage and 
 the expiration of one month from death of her husband 
 shall be disregarded for the purpose of reckoning arrears: 
 
 Provided that where such married woman again be- 
 comes employed within the meaning of this Act before 
 such death contributions shall thereuiDon again become 
 payable in respect of her, and she shall cease to be sus- 
 pended from receiving benefits, but the period between 
 her marriage and the time when she so again becomes 
 employed shall be disregarded for the purpose of reckon- 
 ing arrears. 
 
 The provisions in tlie Bill respecting women are strongly objected 
 to by many women. A deputation from women workers' organiza- 
 tions waited on the Chancellor of the Exchequer to urge upon him 
 that the Bill operated unfairly on women as compared with men. 
 He contended that the Treasury found that the liability was heavier 
 than the contributions of women. It is only married women who 
 do not go out to work who will not be insured. If this class were 
 insured it would be practically impossible to check their claims for 
 sickness benefits. The whole of the money contributed by women will 
 go into a " women's fund." Mr. Lloyd George thinks that women 
 are actually better treated than the men.
 
 NATIONAL INSURANCE BILL. 
 
 (2) Where a woman -who was a married woman living § 34. 
 with and supported by her husband at the commencement 
 
 of this Act at any time subsequently either before or 
 within one year after the death of her husband becomes 
 an employed contributor and a member of an approved 
 society, she shall be entitled to full benefits notAAathstand- 
 ing that at the time of so becoming she is over the age of 
 sixteen . 
 
 This is a most valuable provision in favour of working women. 
 It enables an elderly woman when slie is left a widow and goes out 
 to work, to obtain the same benefits as she would be entitled to 
 were she very many years younger at not greater subscription. 
 The great advantage of this sub-section seems to have been over- 
 looked by the women critics of the Bill. 
 
 (3) Where any arrears of contributions ha\'e accrued 
 due in respect of a married woman during coverture such 
 arrears shall, on the death of her husband, be disregarded 
 and she shall be thenceforth entitled to benefits as if such 
 arrears had never accrued due. 
 
 (4) A married woman shall not be entitled to become 
 a voluntary contributor, and if a woman is before mar- 
 riage a voluntary contributor she shall on marriage not 
 be entitled to continue to be such a contributor. 
 
 137 
 
 Does this sub-section mean that she will thus lose all she has 
 contributed ? I think words should be added making the effect 
 clear. 
 
 (5) Save as aforesaid, tlio provisions of this Part of 
 this Act shall ap])ly to a woman Avho has been married, 
 both during and after coverture, in liko numnor as if she 
 had never been mari'icd . 
 
 ((]) 'I'his section shall apply in the case of a woman Avho 
 is legally separated from her husband by divorce or other- 
 wise as if her husband had died at the date at which such 
 separation took effect.
 
 138 NATIONAL INSURANCE BILL. 
 
 g 34^ This sub-section i^ also in favour of women. It will doubtless 
 
 have the effect of inducing more women to apply to magistrates for 
 
 separation orders under the Summary Jurisdiction Act, 
 
 35. Special provisions as to aliens.] — (1) This Part 
 of this Act shall apply to persons over the age of sixteen 
 at the date of entrj into insurance who are not British 
 subjects, subject to the following modifications: — 
 
 (a) No such person shall be qualified to become a mem- 
 
 ber of an aj)proved society for the purposes of 
 this Part of this Act; 
 
 (b) No part of the benefits to which such persons may 
 
 become entitled shall be paid out of moneys pro- 
 vided by Parliament; 
 
 (c) The rate of sickness, disablement, and maternity 
 
 benefit shall be reduced, in the case of men, to 
 seven-ninths, or in the case of women to three- 
 quarters, of the rate to which they would other- 
 wise be entitled under this Part of this Act; 
 
 (d) No part of the sums payable in respect of such 
 
 persons for medical benefit and sanatorium 
 benefit or towards the expenses of administra- 
 tion of benefits shall in the case of such persons 
 be paid out of moneys provided by Parliament. 
 
 Put briefly, it comes to this: all "employed" aliens must sub- 
 scribe, and their employers will also have to subscribe, just as if 
 they were British subjects, but the State's contribution of 2d. will 
 not be paid in respect of them. 
 
 (2) For the purposes of this section a widow Avho, 
 liaving been a British subject before marriage, has ceased 
 to be a British subject by reason of marriage with a person 
 not being a British subject, shall be deemed to be a British 
 subject. 
 
 (3) This section shall not apply to any person who is 
 transferred to an approved society or the Post Office fund
 
 NATIONAL INSURANCE BILL. 1^^ 
 
 Q pursuance of an arrangement with the Government of § 35. 
 ny foreign State. 
 
 See clause 26. 
 
 36. Special provisims uith regard to persons in the 
 \aval ciM military service of the Croim.]—il) There 
 hall be deducted from the pay of every seaman and 
 larine mthin the meaning of the Naval and Marine Pay 
 nd Pensions Act, 1865, and of every soldier of the regu- 
 ar forces (other than His Majesty's Indian forces and the 
 loyal Malta Artillery) the sum of tivopence a week, and 
 here shall be contributed by the Admiralty and the Army 
 'oimcil respectively in respect of every smh seaman, 
 narine, and soldier, out of moneys provided by Parlia- 
 nent for wrmj a)id navy services such sum per tveek as 
 nay be p-escribed : Provided that this provision shall not 
 pply to a seaman, marine, or soldier Avho has re-engaged 
 or pension unless he so elects. 
 
 " such sum per week as may be prescribed." -It is difficult 
 seo why tliis smn .should not be lixod in the Bill. The State's 
 ontribution is tixed in the cases of other contributors, why not 
 a the case of soldiers and sailors? There is a very general feeling 
 hat this class is not being treated as generously as other con- 
 ributors. 
 
 (2) The sums so deducted and the contributions so 
 nade shall be paid to the Insurance Commissioners, and 
 )y tliem carried to a separate account, and thore also 
 ihall be credited to that account — 
 (a) in the case of a seaman, marine, or soldier serving 
 at the commencement of this Act (other than 
 those who have re-engaged for pension), th(^ re- 
 serve values of such seamen, marines, and sol- 
 diers; 
 [); in tlio case of a .seama]i, marine, or soldier who has, 
 before his entry or enlistment, been insured 
 under this Part of this Act, and paid contribu-
 
 140 NATIONAL INSURANCE BILL. 
 
 § 36. tions thereunder, the amount which would have 
 
 been credited to an approved society had he 
 been transferred to such a society; 
 (c) tim-ninths of the amount calculated in the pre- 
 scribed manner which would be payable from 
 year to year in resj)ect of benefits (including 
 expenses of administration) to seamen, marines, 
 and soldiers from whose pay deductions are 
 made under this section had they been members 
 of approved societies, and had been employed 
 within the meaning of this Part of this Act. 
 
 (3) On the discharge of a seaman, marine, or soldier, 
 from whose pay deductions continue to be made up to the 
 date of his discharge there shall be debited to the said 
 separate account and credited to the approved society of 
 which he is or becomes a member, or if he is not and does 
 not become a member of such a society within the pre- 
 scribed time from his discharge, there shall be carried to 
 his credit in the Post Office fund the transfer value which 
 would have been payable in respect of him had he been a 
 member of an approved society during his period of ser- 
 vice and the contributions payable in respect of him 
 during that period had been paid in full: 
 
 Provided that if he proves to the satisfaction of the 
 Insurance Commissioners that he has been unable to ob- 
 tain admission to an approved society on account of the 
 state of his health he shall, instead of becoming a deposit 
 contributor, become entitled to benefits under such scheme 
 as is herein-after mentioned. 
 
 (4) The Insurance Commissioners may, after consulta- 
 tion with the Admiralty and Army Council, prepare a 
 scheme for conferring on persons who, having been sea- 
 men, marines or soldiers, prove to the satisfaction of the 
 Insurance Commissioners that they have been unable to 
 obtain admission to approved societies on account of the 
 state of their health, sickness and disablement benefit at 
 the rate of five shillings a week, and for the administra-
 
 NATIONAL INSURANCE BILL. 
 
 ion of those benefits, and for the payment of such bene- § 36. 
 its out of the said separate account, and for carrying to 
 hat account any contributions payable under this Part of 
 his Act by or in respect of such persons, and this Part of 
 his Act shall apply to the persons to whom any such 
 cheme applies subject to the provisions of the scheme: 
 
 Provided that — 
 
 (a) tho'e shall he repaid to the account, out of 
 
 monei/s provided by Parliament, tivo-ninths 
 of the sums expended on such benefits ; 
 
 (b) if a person who having re-engaged for pension is 
 
 invalided without a pension or with a pen- 
 sion of less than five shillings a week, he shall 
 (whether or not deductions have continued to 
 be made from his pay up to the date of his 
 discharge) be entitled to benefits under the 
 scheme with this qualification that if he is 
 in receipt of pension he shall be only entitled 
 to such benefit as would with his pension 
 amount to five shillings a week. 
 
 (5) This section shall, subject to such adaptations and 
 nodifications as may be prescribed, apply to men belong- 
 ng to the Fleet Reserve Avhen called out on actual service, 
 Old to any men of the Army Reserve when called out 
 )n permanent service or to men of the Territorial Force 
 ,vhen called out on embodiment. 
 
 (G) Where a man of the Fleet Reserve, the Army 
 Eleserve, or the Territorial Force is called out for training, 
 16 shall for the purposes of this Part of this Act be 
 lecmcd whilst so called out to be in the employment of 
 ;he Crown. 
 
 37. Application to other persons in the service of the 
 Crot^m.]— This Part of this Act shall apply to persons 
 3mploycd by or under the Crown, other than those with 
 [•espcct to whom special provision is made by this Part 
 
 141
 
 142 NATIONAL INSURANCE BILL. 
 
 § 37. of this Act, in like manner as if the emj) lover were a 
 private person: 
 
 Provided that in the case of a person employed in the 
 private service of the Crown, the head of the department 
 of the Royal Household in which he is employed shall be 
 deemed to be his employer. 
 
 Apart from soldiers and sailors the other servants of the Crown 
 are to be treated in the same way as any other contributor. 
 
 38. Application to young persons under sixteen.'] — 
 In the case of an insured person under the age of sixteen 
 no part of the contributions payable by or' in respect of 
 him above the sum of four shillings and eightpence (or 
 in the case of a girl four shillings and sixpence a year) 
 shall be credited to the society of which he is a member, 
 or if he is a deposit contributor, carried to his credit in 
 the Post Office fund, and in the latter case that pum 
 alone shall be payable out of his account to the local 
 Health Committee towards the expenses of the benefits to 
 which he is entitled and the cost of the administration 
 thereof. 
 
 Boys and girls under the age of sixteen will only be entitled to 
 the medical benefits, including sanatorium treatment. The balance 
 of their contributions are to be accumulated and utilized in this 
 way in order to hasten the time when the whole scheme can be 
 extended. 
 
 Financial Provisions . 
 
 39. National Health Insuramye Fund.] — (1) All sums 
 received in r^pect of contributions under this Part of 
 this Act and all sums paid out of moneys provided by 
 Parliament under this Part of this Act in respect of the 
 henefits thereunder and the expenses of administration of 
 such benefits shall be paid into a fund, to be called the 
 National Health Insurance Fund, under the control and
 
 NATIONAL INSURANCE BILL. 143 
 
 management of the Insurance Commissioners, and the § 39. 
 mms required to meet expenditure jDroperly incurred by 
 approved societies and local Health Committees for the 
 pui-poses of the benefits administered by them and the 
 administration of such benefits shall be paid out of that 
 fund. 
 
 (2) The sums payable to the said fund out of moneys 
 provided by Parliament shall be paid in such manner 
 and at such times as the Treasury may determine. 
 
 (3) Any moneys forming part of the said fund may 
 be paid over to the National Debt Commissioners and by 
 tliem invested in accordance with regulations made by 
 the Treasury in any securities which are for the time 
 being authorised by Parliament as investments for Savings 
 Banks funds, but those Commissioners shall in making 
 the investment give preference to stock or bonds issued 
 under the provisions of the Acts relating to borrowing 
 for raising capital for the purposes of the local loans 
 fund where the purposes for which such capital is re- 
 quired is the making of advances for the purposes of 
 the Housing of the Working Classes Acts, 1890 to 1909. 
 
 (4) The accounts of the National Health Insurance 
 Fund shall be auditod in such manner as the Treasury 
 may direct. 
 
 (5) The National Debt Commissioners shall present to 
 Parliament annually an account of the securities in which 
 nioncvK forming pai't of the said fund are for the time 
 being invested. 
 
 40. Reserve values.'] — (1) The Insurance Commis- 
 sioners shall cause tables to be prepared showing, in cases 
 ill which such provision is necessary, the capital sums 
 (in this Part of the Act referred to as "reserve values") 
 which it is necessary to provide in respect of members 
 entering into insurance at ages above the age of sixteen 
 to meet the estimated loss (if any) arising through the 
 acceptincf of such persons as members upon the forms
 
 144 
 
 NATIONAL INSURANCE BILL. 
 
 3 ^Q- and conditions as regards contributions and benefits pre- 
 scribed by this Act. 
 
 (2) On a pei'soin above the age of sixteen joining an 
 approved society there shall be credited to the society the 
 reserve value (if any) appropriate to such persons in ac- 
 cordance with such tables. 
 
 The sums so credited to a society in respect of reserve 
 values shall carry interest at the rate of three per centum 
 per annum. 
 
 (3) Out of each weekly contribution payable by or in 
 respect of an insured person who is a member of an ap- 
 proved society there shall be retained by the Insurance 
 Commissioners the sum of one penny and five ninths (or 
 in the case of women one penny halfpenny), and the 
 amounts so retained shall, together with any other moneys 
 available for the purpose, be accumulated so as to provide 
 the funds necessary for meeting the liabilities of the In- 
 surance Commissioners to approved societies in respect 
 of the reserve values created by this section, and the 
 balance of such contributions shall be credited to the 
 approved society. 
 
 In reply to an inquiry, the Chancellor of the Exchequer has 
 pointed out that the Insurance Commissioners will be responsible 
 for the investment of moneys, standing to the credit of the societies, 
 which are not immediately required for the payment of benefits 
 and administration expenses. The fact that the investments under 
 the Bill are centralized makes it possible to adopt a simple method 
 of valuation upon a uniform basis of 3 per cent. This arrange- 
 ment avoids the complication which would be involved by allowing 
 local investments at varying rates of interest in local securities 
 which would require close supervision and periodical revaluation. 
 
 Moreover, as the liabilities in respect of older lives are incurred 
 3,t the cost of the whole of the insurance under clause 40 (2) of the 
 Bill, it has not been considered desirable to allow individual 
 societies to invest moneys which might be required to meet those 
 liabilities. 
 
 Societies administering the State scheme will receive advances 
 from time to time from the amounts standing to then- credit for
 
 NATIONAL INSURANCE BILL. 145 
 
 the payment of benefits and the cost of administration under the g 40. 
 
 Bin. The societies are not required to make any sacrifice of their 
 
 existing funds for the purpose of the State scheme. 
 
 Insurance Commisnoners : Advisory Committee. 
 
 41. Constitution of Insurance Commissioners, appoint- 
 ment of inspectors, dc] — (1) As soon as may be after 
 the passing of this Act there shall be constituted for the 
 purposes of this Part of this Act Commissioners (to be 
 called the Insurance Commissioners), with a central office 
 in London, and with such branch offices as the Treasury' 
 may think fit, and the Commissioners shall be appointed 
 by the Treasury. 
 
 The number of the Commissioners is not fixed, nor the amount 
 of salarj' to be paid them. The doctors are very anxious that they 
 shall have a representative as one of the Commissioners. At his 
 interview with the representatives of the medical profession Mr. 
 Lloyd George did not liold out anj' hope of this, but seemed to 
 think they ought to be represented on the Advisory Committee. He 
 said : — 
 
 " I think it would be undesirable at this stage that we should 
 finally determine the number of the Commissioners. We must 
 have a medical expert on the body. My own view at the present 
 moment is that the Insurance Board ought to be a small body. It 
 will be a judicial body. It ought not to be a body to hold dis- 
 cussions and debates, but it ought to be a small body of efficient 
 administrators — in fact, the smaller that body, I think, the better, 
 consistently with getting men who are more or less in contact with 
 different views of health, or rather, with the different aspects of 
 health. But what is still more important for you is that you should 
 get an adequate roprosontation on the Advisory Committee. That is 
 the body that will advise the Commissioners upon the way they 
 should deal with all questions. That is where I think you ought 
 to get an adequate representation of your profession." 
 
 (2) The Insurance Commissioners may appoint such 
 ofiiccrs, inspectors, referees, and servants, for the pur- 
 poses of this Part of this Act as the Commissioners, sub- 
 ject to the api)roval of the Treasury as to number, may 
 
 w. L
 
 146 NATIONAL INSURANCE BILL. 
 
 § 41. determine, and there shall he paid out of moneys 'provided 
 by Parliament to the Commissimiers and to such officers, 
 inspectors, referees, and servants, such salaries or remu- 
 neration as the Treasury may determine ; and any expenses 
 mcurred by the Treasury 07' the Commissioners in carry- 
 ing this Part of this Act into effect, to such extent as the 
 Treasury may sanction, shall he defrayed out of moneys 
 provided by Parliament. 
 
 (3) The Insurance Commissioners may empower any 
 such inspector to exercise in respect of any approved 
 society or any branch of an approved society all or any of 
 the powers given by section seventy-six of the Friendly 
 Societies Act, 1896, to an inspector appointed thereunder: 
 
 Provided, that any complaint or rej^ort as to any such 
 branch as aforesaid made by an inspector under this sub- 
 section shall be communicated to the central body or other 
 central authority of the society. 
 
 42. Appomtment of Advisory Committee.] — The In- 
 surance Commissioners shall as soon as may be after the 
 passing of this Act appoint an Advisory Committee for 
 the purpose of giving the Insurance Commissioners ad- 
 vice and assistance in connection with the making and 
 altering of regulations under this Part of this Act, con- 
 sisting of representatives of associations of employers and 
 approved societies, and of such other persons as the Com- 
 missioners may appoint. 
 
 The number of members of tbis Advisory Committee is not 
 mentioned, nor is it stated if they are to be paid, and if so, how 
 much. 
 
 The doctors are very anxious to have representatives on this 
 Committee, and Mr. Lloyd George has promised them that they 
 shall be represented. When asked whether they would be allowed 
 to choose these representatives in the same way that the ship- 
 owners had done in framing regulations iinder the Merchant 
 Shipping Acts, Mr. Lloyd George said he proposed to follow 
 exactly the precedent which he set there, which was that they 
 could not allow absolute nominations on a Government Board, but
 
 NATIONAL INSURANCE BILL. 147 
 
 as a matter of fact they accepted them. The raedical meu 'v\-(3ul(l « 42 
 
 send in the names of those they select, and unless there was some ■ — 
 
 objection, which was inconceivable, they would always accept 
 them, but they could not get men there sitting merely as delegates 
 of the medical profession or of any intex-est. They were coming 
 there not to represent the medical profession, but to advise the 
 Government on behalf of the medical profession, which was a very 
 different thinsr. 
 
 o' 
 
 Local Health Committees. 
 
 43. Appomtment of local Health Committees.']— (1) A 
 local Health Committee shall bo constituted for every 
 county and county borough. 
 
 It is not stated whether members of the local Health Committees 
 are to be paid, and if so, what salary they are to receive. 
 
 (2) Such number of the members of the committee as 
 the Insurance Commissioners, having regard to the cir- 
 cumstances of each case, determine, but in no case less 
 than nine or more than eighteen, shall be apjDointcd — 
 (a) As to one third thereof (which shall consist wholly 
 or in 2)iii't of members of the local sanitarj"^ au- 
 thorities) by the county council or the council of 
 the county borough: 
 (b). As to one tliird thereof by such ajiproved societies 
 as have members resident in the county or 
 county borough -who arc insured persons, or, if 
 such societies cannot agree upon the appoint- 
 ment, by the Insurance Commissioners: 
 (c) As to tiio remaining one thii'd thereof by any asso- 
 ciation of deposit contributors resident in the 
 county or county borough which may have been 
 formed iiiiilri' rcy uhilions made I'or lh;il ])ur- 
 poso by the Insurance Commissioners; j)ro\ ided, 
 tliat if no such association has been formed, such 
 one tliird shall, subject lo tlic .ijjproNal nl' the 
 Insurance Cojumissioncrs, \)r aj»)ioiii|((l by the 
 
 l2
 
 148 NATIONAL INSURANCE BILL. 
 
 § 43- other members of the committee, or in default 
 
 by the Insurance Commissioners, from amongst, 
 so far as practicable, such deposit contributors 
 as afonesaid. 
 
 The Labour Party is not satisfied with this proposed constitution 
 of the local Health Committee. They would prefer to see it 
 constituted as follows : — 
 
 (1) The local insurance authority shall be: — (a) In a county 
 borough, the council of the borough ; (b) in an administi-ative 
 county, excej^t as hereinafter provided, the county council ; (c) in 
 a non-countj^ borough or urban district entitled to be a pensions 
 authority under the Old Age Pensions Act, 1908, or an authority 
 for the purposes of Part III. of the Education Act, 1908, the 
 council of the borough or urban district. 
 
 (2) Every local insurance authority shall appoint an insurance 
 committee, consisting partly of members of the council and partly 
 of non-members, in such numbers as the council may determine ; 
 provided (a) that the number of non-members of the council shall 
 not exceed one-third of the total number of the committee ; 
 (b) that such non-members shall be chosen by the council from 
 among members of approved societies resident within the area of 
 the council after nominations by such societies have been invited 
 by the coiuicil ; and (c) that such non-members shall include at 
 least two women. 
 
 (3) All matters relating to the exercise by the local insurance 
 avithority of powers under this Act shall stand referred to the 
 insurance committee. 
 
 (3) Anv members appointed by the Insurance Com- 
 missioners under paragraph (b) of the last preceding sub- 
 section shall be appointed from among insured persons 
 resident in the county or county borough who are mem- 
 bers of approved societies, and in making such appoint- 
 ments regard shall be had to the desirability of securing 
 that, so far as practicable, this representation of the 
 several societies should correspond to the number of such 
 insured persons who are members thereof. 
 
 (4) The Insurance Commissioners may, in any case 
 w^here it may be desirable to do so, by regulations vary 
 the proportions in which the county council or borough
 
 NATIONAL INSURANCE BILL. 149 
 
 ooLiucil, the approved societies, and the deposit contri- § 43. 
 butoi-s respectively are entitled to appoint members of 
 the committee, but any such regulations shall be laid 
 befoi-e Parliament as soon as may be after they are made. 
 
 "laid before [Parliament." — This is a very proper provision, 
 and should be followed^in^other cases where the Commissioners arc 
 given powers to vary the regulations contained in the Bill. 
 
 (5) The remaining members of the committee, not ex- 
 ceeding in number one fourth of the members appointed 
 in manner aforesaid, shall be appointed by the Insurance 
 Commissioners, but so that at least two of the members 
 so appointed shall be duly qualified medical practi- 
 tioners . 
 
 The doctors are not satisfied with this clause. They contend that 
 it gives them too small a voice on the committees. 
 
 (6) The Insurance Commissioners ma}' make regula- 
 tions as to the appointment, quorum, term of office, and 
 proceedings generally, of the committee, and the use by 
 the committee, with or without payment, of any offices 
 of a local authority, and any such regulations may pro- 
 vide for the appointment of auxiliary committees con- 
 sisting wholly or partially of members of the committee, 
 and for the powers and duties of any such auxiliary 
 committee. 
 
 (J ) Any local Health Committee may, and shall if so 
 re(|uired by the Insurance Commissioners, combine with 
 any one or more other local Health Committees for all 
 or any of the purposes of this Part of this Act, and where 
 they so combine the provisions of this Part of this Act 
 shall apply with such necessary adaptations as may be 
 prescribed. 
 
 44. Pr/wers and dutks of local Health Committees.] 
 — v^l; The local Health Committee of a county or county
 
 150 NATIONAL INSURANCE BILL. 
 
 § 44. borough shall, in addition to the other powers and duties 
 imposed or conferred on it by this Part of this Act, 
 have the following powers and duties: — 
 
 (1) It shall consider generally the needs of the county 
 
 or county borough with regard to all questions 
 of public liealth, and may make such reports a,nd 
 recommendations with regard thereto as it may 
 think fit; 
 
 (2) It shall make such provision for the giving of 
 
 lectures and tli© publication of information on 
 questions relating to health as it thinks neces- 
 sary or desirable. 
 
 Clause 17 makes it "lawful for an approved society to grant" 
 subscriptions to hospitals, &c. Should not this power be also 
 extended to local Health Committees ? 
 
 (2) For the jjurpose of assisting local Health Com- 
 mittees in the exercise and performance of their powers 
 and duties under this Part of this Act the medical officer 
 of health for the county or county borough may, at the 
 request of the committee, attend meetings of this com- 
 mittee and give such advice and assistance as is in his 
 power . 
 
 45. Incmne.'] — (1) All sums available for sanatoriuni 
 benefit in a county or county borough, and all sums pay- 
 able in respect of deposit contributors so resident for the 
 purposes of medical benefit and administrative expenses 
 in any year, shall be paid or credited to the local Health 
 Committee at the commencement of that year. 
 
 (2) There shall also be paid to the local Health Com- 
 mittee in every year by each approved society having 
 members who are insured persons resident in the county 
 or county borough, in respect of each such member, the 
 sum of one penny towards the administrative expenses 
 of the committee:
 
 NATIONAL INSURANCE BILL. 151 
 
 Provided that if the special circumstances of any, county § 45. 
 are such that the Insurance Commissioners consider that 
 the travelling expenses of the members of the committee 
 should be repaid to them by the committee, the Insurance 
 Commissioners may authorise such repayment, and in 
 such case may increase the said sum of one penny to such 
 sum, not exceeding twopence, as they may determine. 
 
 (4) Proper books and accounts shall be kept in the 
 prescribed form by the local Health Committee, and shall 
 when required be submitted to an audit by auditors to 
 be appointed bv the Treasurj-, and shall render to the 
 Insurance Commissioners such returns as may be pre- 
 scribed. 
 
 (5) It shall be lawful for any local authority, out of 
 an}' fund or rate out of which the expenses of the au- 
 thority are payable, to subscribe such sums as it may 
 think fit towards the general purposes of the local Health 
 Committee. 
 
 This is an exceedingly wide provision ! Is there to be no limit 
 to tliis power of local authorities ? 
 
 Excessive Sickness. 
 
 46. Power to approved societies and loccd Health Com- 
 mittees to demand inquiries into catises of excessive sick- 
 ness, dtc] — (1) Where it is alleged by any approved 
 societ}' or local Health Committee that the sickness which 
 b;!s taken place among insured persons for the adminis- 
 tration of whoso sickness and disablement benefits the 
 soiit'ty or committee is responsible, is excessive, and that 
 such excess is due to the conditions or nature of employ- 
 nicnt of such persons, or to bad housing or insanitary 
 conditions in any locality, or to a defective or contami- 
 riutcd water sujiply, or to the neglect on tin; ])ar1. of any 
 |)('isoii or authority to observe or enforce the provisions 
 ol' any Act relating to the health of work(>rs in factories,
 
 162 NATIONAL INSURANCE BILL. 
 
 § 46. workshops, mines, quarries, or other industries, or relating 
 to public health, or the housing of the working classes, or 
 any regulations made under any such Act, or to observe or 
 enforce any public health precautions, the society or com- 
 mittee making such allegation may apply to the Secretarj- 
 of State or the Local Government Board, as the case may 
 require, for an inquiry, and thereupon the Secretary of 
 State or Local Government Board may appoint a loom- 
 pet«nt jDerson to hold an inquiry. 
 
 This clause seems to open up a vista of costly litigation and 
 inquiries. The remedy for many of the evils here aimed at is 
 already in existence, and the result of this clause may be endless 
 friction between established bodies and the Secretary of State or 
 the Local Government Board. The provisions of this clause must 
 in any event add very largely to the administration of the scheme. 
 
 (2) If upon such inquiry' being held it appears to the 
 person holding the inquiry that the amount of such sick- 
 ness has 
 
 (i) during a period of not less than three years before 
 
 the date of the inquiry; or 
 (ii) if there has been an outbreak of any epidemic, 
 endemic or infectious disease, during any less 
 period; 
 
 been in excess of the average expectation of sickness by 
 more than ten per cent., and that such excess was in whole 
 or in part due to any such cause as aforesaid, the amount 
 of any extra expenditure found by the person holding- 
 the inquiry to have been incurred under this Part of this 
 Act by the society or committee in question by reason of 
 such cause shall be ordered by him to be made good in 
 accordance with the following provisions: — 
 
 (a) Where the excess or such part thereof as aforesaid 
 is due to the conditions or nature of the employ- 
 ment or to any neglect on the part of any em- 
 jDloyer to observe or enforce any such Act or
 
 NATIONAL INSUEANCE BILL. 
 resulation as aforesaid, it shall be made good § 46 
 
 153 
 
 by the employer: 
 (b) Where such excess or such part thereof as aforesaid 
 is due to bad housing or insanitary conditions in 
 the locality, or to any neglect on the part of 
 any local authority to observe or enforce any 
 such Act or regulation as aforesaid, it shall be 
 made good by such local authority as appears 
 to the person holding the inquiry to have been 
 in default: 
 Where the excess or such part thereof as afore- 
 said is due to an insufhcient or contaminated 
 water supply, it shall be made good by the local 
 authority or company by -which the water is 
 supplied, or which having imposed upon it the 
 duty of affording a water supply has refused 
 or neglected to do so. 
 
 \^/ 
 
 '•ten per cent."— This seems rather a low increase above the 
 "average expectation of sickness" (in itself rather a vague 
 quantity !) on which to base these penalties. 
 
 (3) Where any such inquiry as aforesaid is held in 
 respect of bad housing or insanitary conditions in any 
 locality, it shall be lawful for the local authority to serve 
 notice upon the owner or occupier of any premises which 
 are the subject-matter of the inquiry, and where it is 
 proved thai such a notice has been served and that any 
 such extra expense as aforesaid, or any part thereof, has 
 been caused by the act or default of such owner or occu- 
 pier, the person holding the inquiry may order the owner 
 or occupier to repay to the local authority tlie amount of 
 the extra expenditure or part thereof which has been so 
 caused . 
 
 (4) For the puipose of this section the average ex- 
 pectation of 8ickne.ss shall be calculated in accordance with 
 the tabh?s prepared by the Insurance Commissioners for
 
 154 NATIONAL INSURANCE BILL. 
 
 •§ 46. the purpose of valuations under this Part of this Act, but 
 " any excessive sickness attributable to any disease or dis- 
 
 ablement which is or is due to any disease or injury in 
 respect of which damages or compensation are payable 
 under the Employers' Liability Act, 1880, or the Work- 
 men's Compensation Act, 1906, or at common law, shall 
 not be taken into account. 
 
 (5) A person holding an inquiry under this section 
 shall have all such powers as an inspector of the Local 
 CTOvernment Board has for the purposes of an inquiry 
 under the Public Health Acts, and shall have power to 
 order ho\\- and by what parties costs, including such ex- 
 penses as the Secretary of State or Local Government 
 Board may certify to have been incurred by them, are to 
 be paid, and an order made by such person under this 
 section may by leave of the High Court be enforced in. 
 the same manner as a judgment or order of the Court to 
 the same effect: 
 
 Provided that a society or committee shall not be 
 ordered to pay the costs of the other party to the inquiry 
 if the person holding the inquiry certifies that the demand 
 for an inquiry was reasonable under the circumstances, 
 and when he so certifies the Treasury may repay to the 
 society or committee the whole or any part of the costs 
 incurred by it. 
 
 The " person holding an inquiry " is given very large powers, and 
 there is no provision for any appeal against his award. Words 
 giving leave to appeal against his decisions should certainly be 
 inserted in the Bill. 
 
 (6) Without prejudice to any other method of recovery, 
 any sum ordered under this section to be paid by a local 
 authority may, in accordance with the regulations of the 
 Local Government Board with the approval of the 
 Treasury, be paid out of the Local Taxation Account 
 and {deducted from any sums payable either directly or 
 indirectly out of that account to the local authority.
 
 NATIONAL INSURANCE BILL. 
 
 155 
 
 (7 , For the purposes of this section any expenditure § 46- 
 on any benefit administered by a local Health Committee 
 shall be deemed to be expenditure of that committee, 
 liut any sums ordered to be paid to any such committee 
 under this section to meet extra expenditure on sickness 
 l>euefit or disablement benefit shall be dealt with for the 
 benefit of deposit contributors in accordance with regu- 
 lations made by the Insurance Commissioners. 
 
 Supplementary Provisions. 
 
 47. Erection of mnatoria, do.']— {I) If under any 
 other Act of the present session any sum is made avail- 
 able for the purposes of the provision of sanatoria and 
 other institutions for the treatment of tuberculosis or 
 such other diseases as the Local Government Board with 
 tlie approval of the Treasury may appoint, such sumshall 
 be distributed by the Local Government Board with the 
 consent of the Treasury in making grants for those pur- 
 poses. 
 
 (2^ If an^- such grant is made to a county council, the 
 Local Government ^Board may authorise the county 
 council to provide any sueli institution, and where so 
 authorised the county council shall have power to erect 
 such buildings and to do all such things as may be neces- 
 sary for the purpose, and any expenses of the county 
 council, so far as not defrayed out of the grant, shall bo 
 defrayed out of the county fund. 
 
 (3) For the purpose of facilitating co-operation 
 amongst county councils, county borough councils, and 
 other local authorities for the provision of such sanatoria 
 and other institutions as aforesaid, the Local Govern- 
 meiil Board may by order make such provisions as 
 appear to them necessary or expedient b} the con- 
 stitution oT joint coiiiiiiitteos, joint boards, or otherwise, 
 I'or the joint e.xercise by such councils and authorities 
 of their po^ei-s in relation thereto, and any such order
 
 156 NATIONAL INSURANCE BILL. 
 
 § 47. may provide how, in Avhat jDroportioiis, and out of what 
 funds or rates the expenses of providing such institu- 
 tions, so far as they are not defrayed out of grants under 
 this section, are to be defrayed, and may contain such 
 consequential, incidental, and supplemental provisions as 
 may appear necessary for the purposes of the order, and 
 an order so made shall be binding and conclusive in 
 respect of the matters to which it relates. 
 
 In the gi-ouping under (3) it has been suggested that Wales 
 should be made the unit for purposes of administration, on the 
 ground that such an arrangement would make for efficiency and 
 economy. 
 
 It would be well to make provision for making use of the 
 existing sanatoria throughout the country which are already 
 actively engaged in tighting consumption. 
 
 48. Power to Insurance Office to make regukdiom, 
 dc.'] — The Insurance Commissioners may make regula- 
 tions for any of the purposes for which regulations may 
 be made under this Part of this Act or the schedules 
 therein referred to, and for jJrescribing anything which 
 under this Act or any such schedules is to be prescribed, 
 and generally for carrying this Act into effect, and any 
 regulations so made shall have effect as if enacted in this 
 Act. 
 
 Yery wide powers are here given to the Commissioners, and 
 there seems to be no check, even by the Treasury, much less by 
 Parliament. 
 
 49. Determination of questions by Insurance Office.] 
 — If any question arises — 
 
 (a) as to whether a person is liable to become in- 
 
 sured under this Part of this Act as being 
 a person employed within the meaning of 
 this Act; or 
 
 (b) as to the rate of contributions payable by or in 
 
 resj^ect of any insured person; or
 
 NATIONAL INSURANCE BILL. l^'?' 
 
 (o) as to the rates of contributions payable in respect § 49. 
 of an employed contributor by the employer and 
 the contributor respectively; 
 
 the question shall b© determined by the Insurance Com- 
 missioners, in accordance with regulations made by them 
 for the purpose. Provided that — 
 
 (i) if any person feels aggrieved by the decision of 
 the Insurance Commissioners on any question 
 arising under paragrajDh (a), he may appeal 
 therefrom to the county court, with a further 
 right of appeal upon any question of law to 
 such judge of the High Court as may be 
 selected for the jDurpose by the Lord Chan- 
 cellor and the decision of that judge shall 
 be final; 
 (ii) the regulations of the Insurance Commissioners 
 may provide for questions under paragraph (b) 
 being determined, in the case of any person 
 \\ho is or is about to become a member of 
 an approved society, by the society. 
 
 "by the society." — It seems curious that the society may be 
 the only judge as to the reasonableness of the rate fixed by itself. 
 
 50. Disputes.] — (1) Every dispute between — 
 
 (a) An approved society or a branch thereof and 
 
 an insured person who is a member of such 
 society or branch or any person claiming 
 through him; 
 
 (b) An approved society or branch thereof, and any 
 
 person who has for not more llian six months 
 ceased to bo a member for the jDurposes of 
 tliis Part of this Act of such society or 
 braiicli, or any person claiming through him; 
 
 (c) An approved society and any br.infh tlicrcof; 
 
 (d) Any twoor more branches of an nppioved society, 
 
 relating to ;iii\ lliiiiu' doin' oi- niiiiffod by such insured
 
 158 NATIONAL INSURANCE BILL. 
 
 § 50. person, society, or bra,ncli (as the case may be) under this 
 ' Part of this Act or any regulation made thereunder, 
 
 shall be decided in the first instance in accordance with 
 the rules of the society, but any party to such dispute 
 ma,y appeal from such decision in the prescribed manner 
 to the Insurance Commissioners. 
 
 (2) Every dispute between a deposit contributor and 
 the local Health Committee, relating to anything done 
 or omitted by such contributor or the local Health Com- 
 mittee under this Act, or any regulation made hereunder, 
 shall be decided in the prescribed manner by the Insur- 
 ance Commissioners. 
 
 (3) The Insurance Commissioners may authorise 
 referees appointed by it to decide any appeal or dispute 
 submitted to tlie Insurance Commissioners under this 
 section . 
 
 (4) The Insurance Commissioners may make regula- 
 tions as to the procedure on any such appeal or dispute, 
 and such regulations may apply any of the provisions 
 of the Arbitration Act, 1889, but, except so far as it 
 may be so applied, the Arbitration Act, 1889, shall not 
 apply to proceedings under this section, and any decision 
 given by the Insurance Commissioners or a referee under 
 this section shajl be final and conclusive. 
 
 51. Distress, execution, dc. to he illegal in certain 
 ooS'es.]— (1) It shall not be lawful during any period 
 when an insured person is in receipt of sickness benefit, 
 or during the fourteen days immediately following that 
 period, for any person to levy any distress or execution 
 upon any goods or chattels belonging- to such insured 
 person and being on premises occupied by him, or to 
 take any proceedings in ejectment or for the recovery 
 of any rent or to enforce any judgment or ejectment 
 against such insured person; and any person levying or 
 attempting to levy any such distress or execution or en- 
 forcing or attempting to enforce any such judgment.
 
 NATIONAL INSURANCE BILL. 
 
 159 
 
 shall be liable on summary conviction to a fine not ex- § 51- 
 ceeding fifty founds. 
 
 This claus-e has natui'ally aroused the resentment of lantUords 
 and others. Under it a landlord may not take any steps to recover 
 the rent duo to him if his tenant is in receipt of sickness benefit for 
 so long a period in extreme cases of over a year — and after then 
 his chance of recovering all these arrears would most probably be 
 very remote. 
 
 If it is felt by Parliament that such an " additional benefit " (in 
 addition to the money and medical benefits which contiibutors are 
 entitled to under the Bill) is desirable, siirely such relief should be 
 given out of the funds created by the scheme, and not out of the 
 pocket of a landlord, who himself may be a poor man, and who, 
 moreover, all this time would himself be liable for ground rent, 
 rates, taxes, and repairs. 
 
 "or execution upon any goods."— It is not only landlords 
 who are to be hit by this clause. These words will prevent any 
 other creditor from enforcing a judgment he may have against the 
 person who is in i-eceipt of sickness benefit. 
 
 (2) It shall 1)0 hnvful for the judge of tlie county 
 court upon application made on behalf of the insured 
 pei-son ex parte for that purpose, from time to time to 
 extend the poi-iod (hiring- which the provisions of the last 
 preceding subsection are to he applicable, upon heing 
 satisfied that the levying of any such distress or execu- 
 tion or tlie taking of any such proceedings or the en- 
 forcement of any such judgment would endanger the life 
 of tlie insured person, and any order granting such ex- 
 tension shall not be subject to appeal: 
 
 Provided that such period shall not bo extended for 
 moro than twelve montlis from the date when the right 
 to levy the distress or execution or to take the proceed- 
 ings or enforce the judgment arose, unless proper security 
 l>c given for payment of the i-ent ihoi'oafter to become 
 du/,' from the insured person, oi' the amount of the judg- 
 ment debt, as the case may be. 
 
 52. Offences.^ — (1) If for the purpose ol' f)l)fiiining
 
 160 
 
 NATIONAL INSURANCE BILL. 
 
 § 52. any benefit or ijayment under this Part of this Act, either 
 for himself or for any other person, any person knowingly 
 makes any false statement or false representation, he 
 shall be liable on summary conviction to imprisonment 
 for a term not exceeding three months with or without 
 hard labour. 
 
 See clause oo, by which, if a per.sun obtains anypayments or benefits 
 under the Act without being lawfully entitled thereto, he is made 
 liable to repay the amount of such benefit. Are these two clauses 
 to be read together ? If so, words accordingly should be inserted. 
 
 (2) If any employer has failed to pay any contribu- 
 tions which under this Part of this Act he is liable to 
 pay in respect of an employed contributor, or if any such 
 employer or insured jjerson, or any other person is guilty 
 of any other contravention of or non-compliance with 
 any of the requirements of this Act or the regulations 
 made thereunder in respect of which no special penalty 
 is provided, he shall for each offence be liable on summary 
 conviction to a fine not exceeding ten pounds, and where 
 the offence is failure or neglect on the part of the em- 
 ployer to make any such contributions, to pay to the 
 Insurance Commissioners a sum equal to the amount of 
 the contributions which he has so failed or neglected to 
 j)ay, which sum when paid shall be treated as a payment 
 in satisfactioii of such contributions: 
 
 Provided that no person shall be liable to any penalty 
 in respect ,of any matter if he has acted in conformity 
 with any decision in respect thereto by the Insurance 
 Commissioners . 
 
 53. Civil proceedings against emploi/er for neglecting 
 to pay contribidions Jj — (1) Where an employer has failed 
 or neglected to pay any contributions which under this 
 Part of this Act he is liable to pay in respect of a person 
 being a member of an approved society in his employ-
 
 NATIONAL INSURANCE BILL. 
 
 ment, and by reason thereof that person has been deprived § 53. 
 in whole or in part of his right to any benefits which 
 would otherwise have been payable to him, he shall be 
 entitled to take proceeding-s against the emi^lpyer for the 
 value of the right of which he has been so deprived, and 
 in any such proceedings the employer may be ordered 
 to pay to the Insurance Commissioners a sum ecjual to 
 the value so ascertained, which sum when paid shall be 
 carried to the credit of the society of which such person 
 is a member, and thereupon such person sliall thencefortji 
 be entitled to receive from the society benefits at the 
 same rate as he would have been entitled to had the con- 
 tributions been properly paid, together with the difference 
 l>6tAveen the amount of the benefits (if any) he has actually 
 received and the benefits he would have received had the 
 contributions been properly paid. 
 
 (2) Proceedings may bo taken under either this or the 
 last preceding section notwithstanding that proceedings 
 have also been taken under the other section in respect 
 of the same failure or neglect to pay contributions. 
 
 54. Repayment of benefits hnproperly paid.] — If 
 it is found at any time that a person has been in 
 receipt of any payment or benefit under this Part of 
 this Act without being lawfully entitled thereto he, or 
 in the case of his death his pei'sonal representatives, shall 
 bo liable to repay to the Insurance Commissioners the 
 amount of such payment or benefit, and any such amount 
 may bo recovered as a debt due to the Crown and when 
 so recovered shall bo carried to the credit of the society 
 of which sucli person was a member, or if he was not a 
 member of any approved society, of the Post OfHce Fund. 
 
 161 
 
 See clause .32, by which any person guilty of making false rei^re- 
 sentiitions for tho purpose of obtaining any benefit under the Act 
 is I'en'lercd liable to three months' imprisonment. 
 
 W. M
 
 162 
 
 NATIONAL INSURANCE BILL. 
 
 § 55. 55. Provisions as to application of existing funds of 
 
 friendly societies.'] — (1) Any registered friendly society 
 or branch which provides benefits similar to those con- 
 ferred by this Act shall submit to the Registrar of 
 Friendly Societies a scheme for abolisliing, reducing, or 
 altering such benefits as respects members who become 
 insured persons under this Part of this Act, and for the 
 apJ)lication of the funds accumulated in respect of such 
 members for the purposes of such benefits in any one 
 or more of the following ways: — 
 
 (a) in the payment of other benefits; 
 
 (b) in the reduction of the contributions of members 
 
 in respect of benefits jjayable by the society in- 
 dependently of this Part of this Act ; 
 
 (c) in the payment of contributions under this Part 
 
 of this Act payable by its members; 
 and any such scheme when confirmed by the registrar 
 shall have effect as if enacted in this Act. 
 
 (2) This section shall come into operation on the 
 passing of this Act. 
 
 Mr. Claaiies Bathurst asked the Chancellor of the Exchequer 
 whether uuder clause 55 any existing member of a registered 
 friendly society will under any circumstances be compelled to pay 
 in respect of sickness and invalidity insurance to the Government 
 and in respect of death and funeral insurance to his society 
 a larger aggregate amount than he has now to pay for the same 
 benefits to his society ? 
 
 Mr. Lloyd George : I fear it is impossible to say whether this 
 will be so in particular cases. It depends entirely on the amount 
 of the benefits they are insured for. If it occurs it will be clear 
 evidence that the member was inadequately insured against 
 sickness and disablement. 
 
 56. Provisions as to existing superannuation funds.]^ 
 — Where at the passing of this Act a superannuation 
 fund or any similar fund has been established by 
 an employer for the benefit of the workmen employed 
 by him, and under the Act or deed establishing the fund
 
 NATIONAL INSURANCE BILL. 
 
 any sum is payable by the employer towards benefits § 56. 
 secured by the Act or deed, and those benefits include 
 benefits similar to those conferred by this Act, the em- 
 ployer may at anj- time before the commencement of this 
 Act submit to the registrar a scheme allowing him to 
 deduct from any contributions payable by him under the 
 Act or deed towards benefits of a nature similar to those 
 under this Act the an^ount of the employer's contribu- 
 tions payable by him under this Part of this Act. 
 
 57. Potver to remove diffimlties.] — If any difiiculty 
 arises with respect to the constitution of local Health 
 Committees, or the advisory committee, or otherwise in 
 bringing into operation this Part of this Act, the In- 
 surance Commissioners, with the consent of the Treasury, 
 may by order make any appointment and do anything 
 Avhich appears to them necessary or expedient for the 
 establishment of such committees and for bringing this 
 Part of tliis Act into operation, and any such order may 
 modify the provisions of this Act so fa,r as may appear 
 necessary or expedient for carrying the order into effect. 
 
 This is one of the most extraordinary clauses ever inserted in any 
 Uill ! It actually gives to the Insurance Commissioners power to 
 override an Act of Parliament ! They " may modify the provisions 
 of this Act." And the only check on them is that they may only 
 do this " with tlie consent of the Treasury," by whom they were 
 appointed I If the framers of this Bill really meant to give the 
 Commissioners tlieso powers, it seems rather a pitj^ to waste the 
 time of Parliament in discussing and passing all the many clauses 
 in the Bill ! It would have been so much simi>ler to have 
 appointed the Commissioners in the first instance, and then by 
 Act of Parliament give them and the Treasury power to frame 
 and carry out the provisions of u National Insurance P.ill I 
 
 58. Appliailion to Scotland.] — This Part of this Act 
 in its application to Scotland shall be subject to the fol- 
 lowing modifications: — 
 
 (1) The expression "Local Government Board" 
 
 M 2 
 
 163
 
 164 NATIONAL INSURANCE BILL. 
 
 § 58. means the Local Government Board for Scot- 
 
 land: Provided that as regards the making of 
 riegulations respecting sums payable out of the 
 Local Taxation (Scotland) Account the said ex- 
 pression means the Secretary for Scotland; the 
 expression "Local Taxation Account" means 
 the Local Taxation (Scotland) Account; and the 
 expression " inspector of the Local Government 
 Board " includes a person acting under section 
 seven or section eight of the Public Health 
 (Scotland) Act, 1897: 
 (2) The expression "county borough" means a burgh 
 or police burgh within the meaning of the Local 
 Government (Scotland) Act, 1889 (in this 
 section referred to as the Act of 1889), con- 
 taining within the police boundaries thereof ac- 
 cording to the census of nineteen hundred and 
 eleven a pojDulation of twenty thousand or up- 
 wards, and all other burghs and police burghs 
 shall, for the purposes of this Part of this Act, 
 be hold to be within the county, and unless 
 already represented on the county council shall, 
 foir the purposes of this Part of this Act, be 
 represented thereon as may be determined by 
 the Secretary for Scotland on a representation 
 in terms of section fifty-one of the Act of 1889: 
 
 (3) Except in this section, references to a county and 
 the county council thereof shall, a,s regards — 
 
 (a) the counties of Kinross and Clack- 
 mannan ; 
 
 (b) the counties of Elgin and Nairn; and 
 
 (c) the counties of Peebles and Selkirk; 
 
 be construed in each case as references respec- 
 tively to a combination of the two recited 
 counties and to a joint committee of the county 
 councils thereof which shall from time to time
 
 NATIONAL INSURANCE BILL. 165 
 
 be appointed subject to the provisions of section § 58. 
 seventy-sis of the Act of 1889: 
 
 (4) Expenses incurred by a county council under this 
 
 Part of this Act shall be defrayed out of the 
 general purposes rate; provided that notwith- 
 standing anything contained in the Act of 1889, 
 the ratepayers of a police burgh shall not be 
 assessed by the county council for any such ex- 
 penses unless the police burgh is, for the pur- 
 poses of this Part of this Act, held to be within 
 the county; and provided further that with 
 respect to every burgh within the meaning pf 
 the Act of 1889, which is, for the purposes of 
 this Act, held to be within the county subsection 
 three and subsection four of section sixty, and 
 section sixty-six, of the Act of 1889, shall, so 
 far as applicable, have effect as if such expenses 
 were expenditure therein mentioned: 
 
 (5) Expenses incurred by a town council under this 
 
 Act (whether under requisition from the county 
 council or otherwise) shall be defrayed out lol' 
 the public health general assessment, but shall 
 not be reckoned in any calculation as to the 
 statutory limit of that assessment; and refer- 
 ences to the borough fund or borough rate shall 
 be construed accordingly: 
 
 (0; The expression " borough or urban district " means 
 a burgh or police burgh within the meaning of 
 the Act of 1889, and the expression "rural dis- 
 trict" moans any part of a county outwith a 
 burgh or police burgh: 
 
 (7) The expression " Lord Chief Justice," in reference 
 to questions or disputes arising between the 
 Insurance Ollico and a society whose head office 
 or principal place of business is in Scotland, 
 means the Lord President of the Court of 
 Session :
 
 166 NATIONAL INSURANCE BILL. 
 
 § 58, (8) Tho expression "county court" means the sheriff; 
 
 and in lieu of an appeal from the county court 
 upon any question of law there shall be sub- 
 stituted an appeal from the sheriff upon any 
 question of law in terms of subsection (17) (b) 
 of the Second Schedule to the Workmen's Com- 
 pensation Act, 1906; provided that the decision 
 of either division of the Court of Session on such 
 appeal shall be final: 
 (9) The expression "workhouse" means j)oorhouse; 
 " coverture " means marriage; " levy any distress 
 or execution upon " means use any diligence 
 in respect of; "ejectment" means removing; 
 "amount of judgment debt" means amount 
 decerned for; "Public Health Acts" means the 
 Public Health (Scotland) Acts; and "High 
 Court" means Court of Session: 
 
 59. Application to Ireland.] — This Part of this Act, 
 in its application to Ireland, shall be subject to the fol- 
 lowing modifications: — 
 
 (1) Tho reference to the Lord Chancellor shall be con- 
 
 strued as a reference to the Lord Chancellor of 
 Ireland. 
 
 The reference to the Lord Chief Justice shall, 
 as respects disputes or questions arising between 
 the Insurance Commissioners and any approved 
 society having its head office or principal place 
 of business in Ireland, be construed as a refer- 
 ence to the Lord Chief Justice of Ireland. 
 
 References to the Local Government Board 
 shall be construed as references to the Local 
 Government Board for L'eland, and the refer- 
 ence to the Local Taxation Account shall be 
 construed as a reference to the Local Taxation 
 (Ireland) Account. 
 
 (2) A reference to the Housing of the Working Classes
 
 NATIONAL INSURANCE BILL. 
 
 16^ 
 
 (Ireland) Acts, 1890 to 1908, shall be substi- §59. 
 tuted for the reference to the Housing of the 
 Working Classes Acts, 1890 to 1909, and a refer- 
 ence to the Public Health (Ireland) Acts, 1878 
 to 1907, shall be substituted for the reference 
 to the Public Health Acts. 
 (3) Where the number of members of any society being 
 insured persons exceeds five thousand, the society 
 may receive the approval of the Insurance Com- 
 missioners notwithstanding that the number of 
 such members is less than ten thousand, and in 
 the provisions of this Part of this Act with 
 respect to the approval of societies "five 
 thousand" shall be substituted for "ten 
 thousand ' ' accordinglv . 
 
 " At least ten thousand members " are necessary in the case of 
 England, Scotland and Wales [clause 18 (2) (i)]. 
 
 (4) (a) If it appears to any county council that, having 
 regard to the number of employed contributors 
 resident in the county who are not members of 
 any society approved under the foregoing pro- 
 visions of this Act it is desirable that steps 
 should bo taken by the council for the estab- 
 lishment of an approved society for the county 
 under the council (in this section referred to 
 as a county society), the council may at any 
 time before the expiration of one year from the 
 commencement of this Act submit to the Insur- 
 ance Commissioners a scheme for the establish- 
 ment of a county society ; 
 (b; The scheme may provide for — 
 
 (i) the representation of the council on the 
 committee of management of the society; 
 
 (ii) the appointment of ofFicors and district 
 and other comniittoes by the council;
 
 NATIONAL INSURANCE BILL. 
 
 §69. 
 
 (5) 
 
 (iii) the delegation of powers to com- 
 mittees ; 
 
 (iv) the giving of security by means of a 
 charge upon the county fund or otherwise; 
 
 (v) the restriction of membership to in- 
 sured persons resident in the county not being- 
 members of any other approved society; 
 
 (vi) the reduction of benefits below the 
 minimum rates fixed bj^ this Part of this Act; 
 and 
 
 (vii) such other matters as may appear 
 necessary and in particular such further modi- 
 fications of the provisions of this Part of this 
 Act with respect to approved societies as may 
 be required for the purpose of adapting those 
 provisions to the case of a county society; 
 
 (c) The scheme may be approved notwithstanding 
 that the number of members or prospective 
 members of the society is less than five thousand; 
 
 (d) Where such a scheme has been approved by 
 the Insurance Commissioners, the provisions of 
 the scheme shall have effect notwithstanding 
 anything to the contrary in this Part of this 
 Act; and, subject to those provisions, the county 
 society shall be an approved society for all the. 
 purposes of this Part of this Act; 
 
 (e) A county council desirous of submitting a 
 scheme under this section may at any time after 
 the passing of this Act take such steps as appear 
 necessary with a view to ascertaining what in- 
 sured persons resident in the county are eligible 
 and willing to become members of the proposed 
 county society, and generally for the formation 
 of the society; 
 
 The local health committee of a county shall consist 
 of such number of members as may be deter- 
 mined by the Insurance Commissioners, and of
 
 NATIONAL INSURANCE BILL. 169 
 
 that number not more than one-fourth shall bo § 59. 
 persons appointed by the Insurance Commis- 
 sioners, and the remainder shall be appointed 
 by the county council. 
 
 (6) Subject to the provisions of this section the rules 
 
 of a local health committee of a county may pro- 
 vide for the performance of duties by officers 
 of local authorities in connection with the 
 administration of benefits administered by the 
 committee, and those officers shall perform the 
 duties so assigned to them, and shall in respect 
 thereof be entitled to the remuneration fixed by 
 the rules. 
 
 (7) The following provisions shall have effect with 
 
 respect to the administration of medical benefit 
 by a local healtli committee of a county in the 
 case of deposit contributors resident in the 
 county : — 
 
 (a) It shall be the duty of the medical 
 officer of health of each dispensary district in 
 the countj^, Avithout the production of any 
 medical relief ticket, to attend and treat every 
 deposit contributor resident in his district and 
 rec|uiring medical attendance or treatment, 
 and at the expense of the guardians to supply 
 proper and sufficient drugs and medicine to 
 the contributor; 
 
 (b) There shall be paid to the medical 
 officer in respect of his services under the last 
 preceding paragraph such yearly sum as may 
 be prescribed in respect of each deposit con- 
 tributor resident in his district; 
 
 (c) There shall be paid to the guardians 
 of the poor Jaw i in ion in respect of medicine 
 and drugs supplied to deposit contributors 
 resideni in the union, or the part of the union
 
 170 
 
 NATIONAL INSURANCE BILL. 
 
 § 69. within the county as tlie case may be, a sum 
 
 calculated at such rate as may be prescribed; 
 (d) Any sums so payable to a medical 
 officer or board of guardians shall be paid 
 in the prescribed manner and at the prescribed 
 time by the local health committee out of 
 the amount paid -or credited to the committee 
 on account of sums payable in respect of 
 deposit contributors resident in the county for 
 the purposes of the cost of medical benefit. 
 
 (8) If a grant is made to a county councilor county 
 borough council out of any sum made available 
 under any other Act of the present session for 
 the purposes of the provision of sanatoria and 
 other institutions for the treatment of tuber- 
 culosis or such other diseases as the Local Gov- 
 ernment Board may with the approval of the 
 Treasury appoint, the council may, subject to 
 the sanction of the Local Government Board, 
 exercise for all or any of those purposes the 
 powers given to them hj Part II. of the Tuber- 
 culosis Prevention (Ireland) Act, 1908, in like 
 manner as if those purposes were purposes au- 
 thorised by that Part of that Act, and any ex- 
 penses of the council so far as not defraj^ed 
 out of the grant shall be defrayed in manner 
 provided by that Part of that Act. 
 
 (9) If on a representation made by an approved 
 society the Insurance Commissioners are satis- 
 fied that the society is unable to make arrange- 
 ments upon reasonable terms for the administra- 
 tion of medical benefit in the case of members 
 resident in any specified locality, the Com- 
 missioners may authorise the society in the case 
 of members resident in that locality to suspend 
 medical benefit and out of the moneys otherwise 
 payable for the cost of that benefit to distribute
 
 NATIONAL INSURANCE BILL. 
 
 171 
 
 any one or more additional benefits among those § 59. 
 members in accordance -with a scheme approved 
 b}' the Commissioners. 
 
 Mr. Lloyd George seems to recognize that very different con- 
 ditions prevail in Ireland ; he said : — 
 
 " As far as I am concerned, I would rather that the problems of 
 Irish doctors be settled by the Irish doctors themselves. ... I 
 am told there are very different considerations applying. At any 
 rate, the money would be there for them. As to how it is dis- 
 tributed, they will have to fight that out themselves, but the 
 medical profession will be i"ep resented." 
 
 He has also promised that the medical profession shall have 
 representation on the Advisory Committee in Ireland in the same 
 manner as that which he had referred to as regarded Great 
 Britain. 
 
 (10) For the purposes of proceedings in Ireland under 
 the provisions of this Part of this Act relative 
 to disputes regulations of the Insurance Com- 
 missioners may apply all or any of the provi- 
 sions of the Common Law Procedure (Ireland) 
 Act, 1856, with respect to arbitration. 
 
 Part II. 
 
 UNEMPLOYMENT INSURANCE . 
 
 60. Right of workmen in inst&ed trades to uwemploy- 
 ment benefit.^ — Every workman who, having been em- 
 })loyed in a trade mentioned in the Sixth Schedule to this 
 Act (in this Act referred to as " an insured trade "), is un- 
 oraploycd, and in whose case the conditions laid down by 
 this Part of this Act (in this Act referred to as " statu- 
 tory conditions") are fuKIUod, shall be entitled, subject 
 to the provisions of this Part of this Act, to receive pay- 
 ments (in this Act referred to as " unemployment benc- 
 ht") at weekly or other prescribed intervals at such rates 
 and for such periods as arc authorised by or under the
 
 1'^- NATIONAL INSURANCE BILL. 
 
 § 60. Seventh Schedule to this Act, so long as those conditions 
 continue to be fulfilled, and so long as he is not disquali- 
 fied under this Act for the receijDt of unemj^loyment 
 benefit. 
 
 "Every workman," — For definition of workman see clause 81 (1). 
 " Sixth. Schedule." — The Act is comimlsoiy in regard to work- 
 men emploj'cd in tlie trade set forth in the Sixth Schedule. 
 " statutory conditions."— See clause 62. 
 " not disq^ualified." — For disqualification see clause 63. 
 
 61. Contributions hy workmen, employers, and the 
 Treasury -I — (1) The sums required for the payment of 
 unemployment benefit under this Act shall be derived 
 partly from contributions by workmen in the insured 
 trades and partly from contributions from employers of 
 such workmen and 'partly from moneys provided hy 
 Parliament . 
 
 (2) Subject to the provisions of this Part of this Act, 
 every workman employed within the United Kingdom 
 in an insured trade, and every employer of any such work- 
 man, shall be liable to pay contributions at the rates 
 specified in Part I. of the Eighth Schedule to this Act. 
 
 (3) Excei^t where the regulations under this Part of 
 this Act otherwise prescribe, the employer shall, in the 
 first instance be liable to pay both the contribution pay- 
 able by himself, and also on behalf of and to the exclusion 
 of the workman, the contribution payable by such work- 
 man, and subject to such regulations shall be entitled 
 notwithstanding the provisions of any Act relating to 
 truck or any contract to the contrary, to recover from 
 the workman by deductions from his wages or otherwise 
 the amount of the contributions so paid by him on behalf 
 of the workman. 
 
 (4) Notwithstanding any contract to the contrary the 
 employer shall not be entitled to deduct from the wages 
 of, or otherwise recover from, the workman the contribu- 
 tions jDayable by the employer himself.
 
 NATIONAL INSURANCE BILL. 
 
 173 
 
 (5) Subject to the provisions of this Part of this Act, § 61. 
 the Board of Trade may make regulations providing ' 
 for any matters incidental to the payment and collection 
 of contributions payable under this Part of this Act, 
 and in particular for — 
 
 (a) payment of contributions by means of adhesive or 
 
 other stamps affixed to or impressed upon books 
 or cards, and for regulating the manner, times 
 and conditions in, at and under which such 
 stamps are to be affixed and impressed; 
 
 (b) the issue sale custody or delivery up of books or 
 
 cards and the replacement of books or cards 
 which have been lost destroyed or defaced. 
 (6) A cmtrihution shall he made in each year out 
 of moneys pravided by Parliament equal to one-third 
 of the total contributions received from employers and 
 v}orT<:men during that year, and the sums to he contri- 
 huted in any year shall be paid in such manner and at 
 such times as the Treasury may determine. 
 
 62. Statutory cwiditions for receipt of unemployment 
 benefit.']— Tlh.Q statutory conditions for the receipt of un- 
 employment benefit by any workman are — 
 
 (1) that he proves that ho has, since the commence- 
 
 ment of this Act, been employed in an insured 
 trade during each of not less than twenty-six 
 separate calendar weeks; 
 
 This is the same provision for the waiting period of six months 
 as in the case of sickness benefit. 
 
 (2) that ho has made application for unemployment 
 
 benefit in the prescribed manner, and proves that 
 since the date of tho application ho has been 
 continuously unemplo3^cd; 
 
 (3) tliat ho is capable of work but unable to obtain 
 
 suitable employment;
 
 I'^-i NATIONAL INSURANCE BILL. 
 
 § 62. (4) that he has not exhausted his right to unemploy- 
 
 ^ ^" ment benefit under this Part of this Act: 
 
 Provided that a workman shall not be deemed to have 
 failed to fulfil the statutory conditions by reason only 
 that he has declined an offer of employment in a situa- 
 tion vacant in consequence of a trade dispute involving 
 a strike or lock-out, or an offer of employment at a rate 
 of wage lower than the rate which he habitually earns 
 Avhen in employment, or, in the case of an offer of em- 
 ployment in a district other than that in which he resides, 
 at a rate of wage lower than the rate current in the dis- 
 trict in which the employment is offered. 
 
 63. Disqualifications for unemployment benefit. '\ — 
 (1) A workman who loses employment by reason of a 
 trade dispute involving a strike or lock-out by which he 
 is directly affected shall be disqualified for receiving un- 
 employment benefit so long as the strike or lock-out con- 
 tinues . 
 
 (2) A workman who loses employment through mis- 
 conduct or who voluntarily leaves his employment with- 
 out just cause shall be disqualified for receiving unem- 
 ployment benefit for a period of six weeks from the date 
 when he so lost employment. 
 
 (3) A workman who has been convicted of an offence 
 and ordered to be imprisoned without the option of a fine 
 or to suffer any greater punishment shall be disqualified 
 for receiving unemployment benefit for a period of six 
 weeks after his release from prison. 
 
 (4) A workman shall be disqualified for receiving un- 
 employment benefit whilst he is an inmate of any work- 
 house or other institution suiaported wholly or partly out 
 of public funds, and whilst he is resident temporarily or 
 permanently outside the United Kingdom. 
 
 64. Determination of claims.'] — (1) All claims for un- 
 employment benefit under this Part of this Act, and all
 
 NATIONAL INSURANCE BILL. 17-"> 
 
 questions whether the statutory conditions are fulfilled § 64. 
 in the case of any workman claiming such benefit, or 
 whether those conditions continue to be fulfilled in the 
 case of a workman in receipt of such benefit, or whether 
 a workman is disqualified for receiving or continuing to 
 receive such benefit, or otherwise arising in connexion 
 with such claims, shall be determined by one of the offi- 
 cers appointed under this Part of this Act for deter- 
 mining such claims for benefit (in this Act referred to 
 as "insurance officers"): 
 
 For appointment of " insurance ofiScers " see clause 65. 
 
 Provided that — 
 
 (a) in any case where unemployment benefit is 
 refused or is stopped, the workman may 
 require the insurance officer to report the 
 matter to a court of referees constituted in 
 accordance with this Part of this Act, and 
 the referees after considering the circum- 
 stances may make to the insurance officer 
 such recommendations Cn the case as they may 
 think proper. If the insurance officer dis- 
 agrees wdth anv such recommendation he shall, 
 if so requested by the referees, refer the 
 recommendation, with his resaons for dis- 
 agreement, to an umpire appointed under this 
 Part of this Act, whose decision shall be final 
 and conclusive; 
 
 limpil'e. ' — For appointment of "nmpives " yee clause 65. 
 
 (b) the insurance officer in any case in which he con- 
 siders it expedient to do so may, instead of 
 himself determining the claim or question, 
 refer it to a court of referees, who shall in 
 such case determine the question, and the de-
 
 176 NATIONAL INSURANCE BILL. 
 
 § 64- cision of the court shall be final and con- 
 
 clusive. 
 
 " court of referees." — For con&titution see clause 66. 
 
 (2) Nothing in this section shall be construed as pre- 
 venting an insurance officer or umpire, or a court of 
 referees, on new facts being brought to his or their know- 
 ledge, revising a decision or recommendation given in 
 any particular case, but where any such revision is made, 
 the revised decision or recommendation shall have effect 
 as if it had been an original decision or recommenda- 
 tion, and the foregoing provisions of this section shall 
 apply accordingly. 
 
 (3) The Arbitration Act, 1889, shall not apply to pro- 
 ceedings under this section except so far as it may be 
 applied by regulations under this Part of this Act. 
 
 (4) For the purposes of proceedings under this section 
 in Ireland regulations may apply all or any of the pro- 
 visions of the Common Law Procedure (Ireland) Act, 
 1856, with respect to arbitration. 
 
 65. Appointment of um.pires, insurance officers, in- 
 spectors, dc] — (1) For the purjjoses of this Part of this 
 Act umpires and insurance officers shall be appointed by 
 the Board of Trade, subject to the consent of the Treasury 
 as to number, and the insurance officers shall be ap- 
 pointed to act for such areas as the Board direct. 
 
 (2) The Board of Trade may appoint such other offi- 
 cers, inspectors, and servants for the jDurposes of this 
 Part of this Act as the Board may, with the sanction of 
 the Treasury, determine, and there shall he paid out of 
 monkeys provided by Parliament to the umpires and in- 
 surmice officers and to such other officers, inspectors, and 
 servants such salaries or remuneration as the Treasury 
 may determine; and any expenses incurred by the Board 
 of Trade in carrying this Part of this Act into effect
 
 NATIONAL INSUKANCK BILL. 177 
 
 to such mnoimt as may be scmctioned by the Treasury § 65. 
 shall be defrayed, out of moneys provided by Parliament : 
 Provided that one-tenth of the receipts, other than 
 advances by the Treasury, paid into the unemployment 
 fund on income account shall, in accordance with regu- 
 lations made by the Treasury, be applied as an appro- 
 priation in aid of money provided by Parliament for 
 the purpose of such salaries, remuneration, and expenses. 
 
 66. Courts of referees.]— (!) A court of referees for 
 the purposes of this Part of this Act shall consist of one 
 or more members chosen to repi-esent employers, with an 
 equal nuiidxr of members chosen to represent workmen, 
 and a chairman appointed by the Board of Trade. 
 
 (2) Panels of persons chosen to represent employers 
 and workmen respectively shall be constituted by the 
 Board of Trade for such districts and such trades or 
 groups of trades as the Board may think fit, and the 
 members of a court of referees to be chosen to represent 
 employers and workmen shall be selected from those 
 panels in the prescribed manner. 
 
 (3) Subject as aforesaid, the constitution of courts of 
 referees shall be determined by regulations made by the 
 Board of Trade. 
 
 (4) The regulations of the Board oT Trade may further 
 [novidc Tor ihc referenc*^; to referees chosen from the 
 panels const if uImI und<'r lliis section, for consi(UH'ation 
 and advice, of (juestioiis bearing ujion the administra- 
 tion of this Part of this Act, and foi' the holding of 
 tne< tings of referees for the purpiose. 
 
 (o) The Board of Trade may pay such remuneration 
 to the chainmm and other members of a court of referees 
 (tn/i svch trarrlllnfj and other allowances {includinc) com- 
 pensation for loss of tim.e) to persons required to attend 
 before any such court, and such other expenses in con- 
 nexion irith any referees^ (ts tin Ihnird, irilh the sane- 
 lion of the Treasury d' h rniiuc, and (u/// such paynients 
 
 \\. N
 
 178 NATIONAL INSURANCE BILL. 
 
 § 66. shall he treated as expenses incurred by the Board of 
 Trade in carrying this Part of this Act into effect. 
 
 67. Regulations.] — (1) The Board of Trade may 
 make regulations for any of the purposes for which regu- 
 lations may be made under this Part of this Act and the 
 schedules therein referred to and for prescribing anything 
 which under this Part of this Act or any such schedules 
 is to be prescribed and — 
 
 (a) for prescribing what occupations are to be deemed 
 
 employment in an insured trade for the purposes 
 of this Part of this Act; and for excluding - 
 
 (i) any occupations which are common to 
 insured and uninsured trades alike, and are 
 ancillary only to the purposes of an insured 
 trade; and 
 
 (ii) any occupations which are ancillary 
 only to the trade carried on by the employer 
 Avhere that trade is not an insured trade; 
 and 
 
 (iii) any occupations in businesses which, 
 though concerned with the making of parts 
 or the preparation of materials for use in an 
 insured trade, are mainly carried on as separate 
 businesses or in conjunction with trades other 
 than insured trades; 
 
 (b) as to the determination, on application being juade 
 
 for the pui'pose, of questions whether contri- 
 butions under this Part of this Act are pay- 
 able in respect of any workman or claiss of work- 
 men; 
 
 (c) for prescribing the evidence to be required as to 
 
 the fulfilment of the conditions and qualifica- 
 tions for receiving or continuing to receive un- 
 employment benefit, and for that purpose re- 
 quiring the attendance of workmen at such
 
 NATIONAL INSURANCE BILL. 179 
 
 offices or places and at such times as may be § 67. 
 prescribed ; 
 (d) for prescribing- the manner in which claims for 
 unemployment benefit ma}' be made and the 
 procedure to be followed on the consideration 
 and examination of claims and questions to be 
 considered and determined by the insurance 
 officei-s, courts of referees, and umpires, and the 
 mode in Avhich any question may be raised as 
 to the continuance, in the case of a workman 
 in receipt of unemploj-inent benefit, of such 
 benefit, 
 and iJ-ciK rally for carrying this Pai't of tliis Act into 
 effect, and any regulations so made shall have effect as 
 if enacted in this Act. 
 
 (2) The regulations ma}', with the concurrence of the 
 Postmaster General, provide for enabling claimants of 
 unemployment benefit to make their claims for unem- 
 ployment benefit under this Act through the Post Office, 
 and for the payment of unemployment benefit through 
 the Post Olfice. 
 
 68. inempk/yment fund.} — (1) For thi' purposes of 
 this Part of this Act there shall be established undei- 
 llie control and management of the Board of Trade a 
 fund called the unemployment fund, into which shall be 
 paid all contributions payable under this Part of this 
 Act by employers and workmen and out of moneys pro- 
 vided by Parliament, and out of A\liich shall be paid all 
 claims for unemployment benefit and any other payments 
 which under this Part of this Act are payable out of 
 the fund. 
 
 (2) The accounts of the uncnipluN'ineiil fiiiid shall be 
 audited in such manner as the Treasur} ma\ direct. 
 
 (3) Any moneys forming j)art of the unemplo\'ment 
 fund may from time to time bo paid over to the National 
 Debt Commissioners aiul In- them iincsted in accord- 
 
 n2
 
 18U NATIONAL INSURANCE BILL. 
 
 § 68. ance with regulations made by the Treasury in any 
 " ' securities which are for the time being authorised by Par- 
 liament as investments for savings banks moneys. 
 
 (4) The National Debt Commissioners shall present 
 to Parliament annually an account of the securities in 
 which moneys forming part of the sai'd fund are for the 
 tirr^e beirig invested. 
 
 69, Treasury advances.] — (1) The Treasury may out 
 of the Consolidated Fund Or the growing produce thereof 
 adftcmce on the security of the unemploipnent fund any 
 sums required for the purpose of discharging the liabili- 
 ties of that fund under this Part of this Act : Prodded 
 that the total amount of advances outstanding at any 
 time shall not exceed three million pounds or such larger 
 sum m the Treasury may fix. 
 
 "The Treasury may." — The benefits receivable under the Bill 
 are not guaranteed by tlie State, but the provision in this clause is 
 naade for the Treasnry to advance moneys to the fund to meet 
 times of great depression of trade whereby the trade had become 
 exhausted. 
 
 (2) // whilst any part of any such advance is out- 
 standing it appears to the Treasury that the unemploy- 
 ment fund is insolvent, the Board of Trade shall, if the 
 Treaswy so direct, by order, make' such temporary modi- 
 fications in any of the rates of contribution, or the rates 
 or periods of miemployment benefit, (md during such 
 pWiod, as the Treasury ma if consider necessary to seeure 
 the solvency of the unemployment fund : 
 
 Provided that no order made under this siibsection shall 
 reduce the weekly rate of unemployynent benefit below 
 the sum of fitm shillings, or shall increfise the rates of con- 
 tribution from employers or ivorkmen by more than one 
 penny per toorkinan per week, and no such order shall 
 remain in force more than three months after all the 
 advances and, interest thereon have been repaid.
 
 NATIONAL INSURANCE IMIJ-. ' 
 
 'make such temporary modifications."— 1 he powers given §69. 
 seem scarcely wide enuuyh. The whule scheme is a leap in the dark, 
 and there is really no sufficient data at present on which to formu- 
 late the contributions and benefits. Hence, if the Board of Trade 
 find the financial basis is wrong, it seems only right that as they 
 may not reduce the weekly benefit below os. they should be able to 
 enforce their order for a longer period than the three months. 
 
 (3) The Treamiry may for the purpose of providing 
 fw the issue of sums out of the Consolidated Fund under 
 this section, or for the repay meni fo that fund of aJJ 
 or any part of the stffns so issued, or for paying off any 
 ."teeurity issued under this seetion, so far a^' that payment 
 i>i nut (dherivise provided for, horrou^ money by means 
 of the issue of Exchequer hoyids or Treasury bills, and 
 (dl sums so borrowed sliall be paid into the Exchequer . 
 
 i'4 The principal of and interest on any Exchequer 
 bonds issued under this section shall be charged on and 
 payable out of Hie Consolidated Fund of tJie Fnited 
 Kingdom or the growing produce thereof. 
 
 ("5) Notrvithstanding anything in any other Act, 
 money in the hands of the National Debt Commusioners 
 for the reduction of the National Debt shall not be applied 
 to purchasing, reducing, or paying off any Exchequer 
 bonds or Treasury bills issued binder this section. 
 
 70. Power of em,ployers to compound at reduced 
 7'ates. - Any employer may in lioii of paying as they 
 Ix'f'ome due the eonti'ibutions to which h(> is liable under 
 this Part of this Aot in respect oi' any workman, on his 
 own aeeount and on behalf of th<' workman, pay in advance 
 a contribution in respect of that workman at such )v- 
 (liHcd rat<' as is speciHcd in I*;irt II. of th(_' Eighth 
 Schedule to this .Act or at such other Jiitc as the Board 
 of Ti-adc. with the approviil <>{' tlir Tn'nsiii'y. iii;i\ pi'c- 
 scribe; and wlxic sufli a. contribution has been paid by 
 an cm|)h)y<'r. he shall be cnl it led to I'ccovci' fVoin I lie w ork- 
 niaii III respoct of wiioiii th'' cunl n Inil ion Iims been [ciid. 
 
 1.^1
 
 182 NATIONAL INSURANCE BILL. 
 
 § 70. and to deduct from his wages, the same sums as he woukl 
 have been entitled to recover and deduct if he had made 
 the ordinary weekly or other periodical contributions on 
 behalf of the workman, and the sums which he is so en- 
 titled to deduct shall for the purposes of this Part of this 
 Act be treated as contributions made by the workman: 
 
 Provided that if in the course of the period in respect 
 of which the contribution in advance was paid the work- 
 man becomes entitled, or would, had he taken the neces- 
 sary steps, have become entitled, to unemployment benefit, 
 and is subsequently re-employed by the same employer, 
 the contribution so paid in advance shall not cover any 
 part of the j^eriod of such re -employment. 
 
 The rebate here allowed to the employer is a very substantial 
 one. The weekly contributions of employer and workman would 
 amount to 1/. Is. 8(/. in the year— and as the employer is given the 
 option of paying 15s. in respect of both, he clearly saves 6s. 8d. — 
 in other words, his own contribution only amounts to 4s. 2rl. — but 
 of course he runs the risk of the workman leaving his employ 
 during the year. 
 
 The rebate, of course, is given to encourage employers to keep 
 their workmen. 
 
 71. Return of part of contributions l)y workmen in 
 certain cases.'] — {\) Any workman who satisfies the Board 
 of Trade that he has paid contributions in accordance 
 with the provisions of this Part of this Act in respect 
 of five hundred weeks or upwards shall be entitled at any 
 time after reaching the age of sixty to be repaid the 
 amount, if any, by which the total amount of such con- 
 tributions have exceeded the total amount received by 
 him out of the unemployment fund under this Act, 
 together with compound interest at the rate of two-and- 
 a-half per cent, per annum calculated in the prescribed 
 manner, and such repayment may, in accordance with 
 regulations made by the Board of Trade, be made by 
 way of a lumjD sum payment or by way of annuity, or in 
 lauch other manner as may be jjrescribed.
 
 NATIONAL INSURANCE HILL. 1^3 
 
 In other wordt:, the workman will get back all the money he has 8 71. 
 paid himself, minus anj' unemployment benefits he has received, 
 together with 2i per cent, compound interest. 
 
 (2) The Board of Trade may, if they think lit, by 
 regulations reduce the age of sixty mentioned in the fore- 
 going' subsection to an age not less than fifty-five in the 
 case of workmen who prove that they have finally ceased 
 to follow any insured trade. 
 
 72. Refund of contributions paid in respect of trork- 
 men irorking short time.] — If any employer satisfies tlve 
 Board of Trade that during any period of depression in 
 his trade ^^orkmen employed by him have been systemati- 
 cally -working short time, and that during such period 
 he lias ijaid contributions under this Part of this Act on 
 behalf of such workmen, as well as on his own behalf, 
 without recovering such contributions from such ANork- 
 men either by way of deductions from wages or otherwise, 
 there may be refunded to him out of tho unemployment 
 fund in accordance with regulations made by the Board 
 of Trade tho contributions so paid by him in respect of 
 those workmen for the period or such part thereof as in 
 tho circumstances may seem just: 
 
 Provided that no such refund shall be made in respect 
 of any workmen for any week in which the hours of work 
 have exceeded five-sixths of the number usually recog- 
 nised as constituting a full week's work at that time in 
 tho trade and district. 
 
 The explanatory memorandum of this Part of tlie Bill states 
 that tho clause is to give an advantage to omploj ers who adopt the 
 plan of working short tiiiio in times of depression instead of dis- 
 missing some men and keeping the rest on full time, and tliat to 
 ffiicoixrage employers to adopt this course " the contributions botli 
 of employers and of workmen may be remitted altogether." To 
 cany out this object words should be inserted saying what is to be 
 remitted in tlie case of employers who have paid tho reduced 
 contributions of ],')». for the year in respect of particnil.ii- workmen.
 
 184 
 
 NATIONAL INSURANCE BILL. 
 
 § 73. 73. Prmnsions with resp&ct to workmen engaged 
 
 through labour exchanges.] — (1) The Board of Trade 
 tnay in such cases and on such conditions as the Board 
 may j^rescribe, make an arrangement with any employer 
 liable to pay contributions under this Act whereby in 
 respect of workmen engaged by him through a labour 
 exchange, the performance of all or any of the duties 
 required under this Act to be performed by the employer 
 in respect of those workmen, whether on his own behalf 
 or on belialf of the workmen, shall be undertaken on behalf 
 of tbe employer by the labour exchange, and whereby 
 successive periods of employment, whether of the same 
 workmen or different workmen, may for the purposes of 
 the employer's contributions be treated as a continuous 
 employment of a single workman. 
 
 (2; Where any such arrangement has been made, all 
 the periods of employment during which a workman en- 
 gaged through a labour exchange is employed by one or 
 more employers with whom such an arrangement has been 
 made may, on the application of the workman, be treated 
 for the purposes of ihis contributions as a continuous period 
 of employment under one employer. 
 
 This clause is, of course, framed to encourage employers to make 
 greater use of the Labour Exchanges. 
 
 74. Subsidiary provisions.] — (1) If the repeated 
 failure of any insured workman to obtain or retain em- 
 ployment appears to the insurance officer to be wholly 
 or partly due to defects in skill or knowledge, the insur- 
 ance officer may, if he thinks fit, offer to arrange for the 
 attendance of the Avorkman at a suitable course of technical 
 instruction, and may out of the unemployment fund pay 
 all or any of the expenses incidental to such attendance. 
 If the workman fails or refuses either to avail himself 
 of the offer, or to produce satisfactory evidence of his 
 competence, or if the person in charge of the course
 
 NATIONAL INSURANCE BILL. 1S5 
 
 attended by the workman reports that there is no reason- § 74. 
 able prospect of such defects being remedied, such facts 
 shall be taken into consideration in determining what is 
 suitable employment for the workman. 
 
 This clause, if properly worked, should be of great value iu 
 improving the status and value of workmen who have not been 
 properly trained. 
 
 (2) The regulations of the Board of Trade made under 
 this Part of this Act may provide for the return to a 
 Asorkman ^\'ho is not a workman in an insured trade and 
 to his employer of any contributions paid by them respec- 
 tively under the belief that the workman was a workman 
 in an insured trade. 
 
 ^3) Where under reguiat ions made by the Board of 
 Trade any sum has been paid out of the uii(mu[)Ioviiu'ii1 
 Fund by way of reward for the retui'n of a book or card 
 which has been lost, the ])erson responsible for thi^ custody 
 of the book or card at the time of its loss shall be liable 
 to repay the sum .so paid, not exceeding one shilJinfj in 
 lespect of any one occasion. 
 
 75. Offences.] — (1) If for the purpose of obtaining 
 any beneHts or payment under this Part of this Act either 
 for himself or for any other person, any person know- 
 ingly makas any false statement or false representation, 
 be shall be liable on summary conviction to imprisonment 
 lor a term not exceeding three months, with or without 
 hard laboui-. 
 
 (2 ft' any emjjloy<'r or workman has faiic*! to pay any 
 contributions wbicb he is liable undei' fin's Part of this 
 .\(l to j)ay. oi- if any employer or workman or any other 
 person refuses oi' neglects to comply with an\ of llic j-c- 
 "jiiirements of this Part of tliis .\(l. oi- llif regulations 
 madf: tlK'reunder, he shall I'oi- ciich olTcncc be liable on 
 summary convicfir)n to a line not exceeding /en pounds, 
 and also, when; t.lie onencc is t'adure or neylocf to make
 
 1^^ NATIONAL INSURANCE BILL. 
 
 § 75. auy contribution under this Part of this Act, to pay to 
 the unemployment fund a sum equal to three times the 
 amount which he has refused or neglected to pay, which 
 sum, when paid, shall be treated as a payment in satis- 
 faction of the contributions which he has so refused or 
 neglected to pay. 
 
 (3) Proceedings under the foregoing provisions of this 
 section shall not be instituted except by, or with the con- 
 sent of, the Board of Trade, and may be commenced at 
 any time within three months of the date at which the 
 offence comes to the knowledge of the Board of Trade. 
 
 (4) Nothing in this section shall be construed as j)re- 
 venting the Board of Trade from recovering any sums 
 due to the unemployment fund by means of civil jn-o- 
 ceedings, and all such sums shall be recoverable in such 
 proceedings as debts due to the Crown. 
 
 (5) If it is found at any time tliat a person has been 
 in receipt of unemployment benefit under this Part of 
 this Act whilst the statutory conditions were not fulfilled 
 in his case or Avhilst he was disqualified for receiving un- 
 employment benefit, he, or in case of his death his per- 
 sonal representatives, shall be liable to repay to the 
 unemployment fund any sums paid to him in respect of 
 unemployment benefit whilst the statutory conditions were 
 not fulfilled or whilst he was disqualified for receiving 
 the benefit, and the amount of such sums may be recovered 
 as a debt due to the Crown. 
 
 76. Feriodical revision of rates of contribution.] — If 
 at any time after the expiration of five years from the 
 commencement of this Act it appears to the Board of 
 Trade that the unemployment fund is insufficient or more 
 than sufficient to discharge the liabilities imposed upon 
 the fund under this Part of this Act, or that the rates of 
 contribution are excessive or deficient as respects any par- 
 ticular insured trade, or any particular branch of any 
 such trade, the Board may, with the sanction of the
 
 NATIONAL INSURANCE BILL. 
 
 187 
 
 Treasury, by special order made in manner herein-after § 76. 
 provided revise the rates of contribution of employers and 
 workmen under this Part of this Act, and any such order 
 may, if the Board think fit, prescribe different rates of 
 contribution for different insured trades or branches 
 thereof, and where any such order is made the rates pre- 
 scribed b}^ the order shall as from such date as may be 
 specified in the order be substituted as respects trades or 
 branches thereof to which it relates for the rates pre- 
 scribed by this Act: 
 
 Provided that Avhere such a revision has bet^i made 
 no further revision under this section shall bo madie 
 before the expiration of Rxe years from the last revision, 
 and that no order under this section shall increase the 
 rates of contribution from employers or workin(Mi by 
 more than ryne penny per workman per week. 
 
 77. Powder to extend lo other lrade.9.}-Ij it appears 
 to the Board that it is desinible to extend the proinsiom 
 of this Part of this Act to workmen in any trade other 
 than an insured trade the Bom'd may, ivith the consent 
 of tJie Treasury, make, in manner hereiyi-after pro- 
 rided, a special order extending thi^s Part of this Act 
 /(/ such irorkmen cither without modification or subject 
 lo such viodificatkms as may he contained in the order, 
 and on any such order being made this Part of this 
 . let shall, suhfect to the modifications {if any) contained 
 in the order, apply as if the trade mentioned in the order 
 were an insured trade and a>s if the rates and periods of 
 benefit mentioned in the order were the rates and periods 
 of benefit ptovidpd hi/ this Pari of IJiis Ad In respect 
 of fiuch trade : 
 
 Provided that noswjh order shall he made whk-h would, 
 in the opini/m of the Treasury, increme the contribution 
 to the unemphyyment fund oul of moneys provided by 
 Parliament to n xujn exceeding one in it lion pounds a
 
 188 NATIONAL INSURANCE BILL. 
 
 § 77. year before, the expiration oj l)hme yews fro-m the making 
 of the order. 
 
 78. Procedure for making special orders.^} — (1) Sec- 
 tions piglity and eighty-one of the Factory and "Workshop 
 Act, 1901, relating- to the making of regulations under 
 that Act, as set out and adapted in the Ninth Schedule 
 to this Act, shall apply to special orders made under this 
 Part of this Act. 
 
 (2) Before a special order comes into force it shall 
 be laid before both Houses of Parliament for a period of 
 not less than thirty days during the session of Parlia- 
 ment, and if either of those Houses before the expiration 
 of those thirty days presents an address to His Ma;jesty 
 ajgiainst the order or any pari thereof, no further pi'o- 
 ceedings shall be taken thereon, without prejudice to the 
 making of any new order. 
 
 79. Arrangements ivith associations of workmen in 
 insured trade waking pm/ments to members tvhilst un- 
 employed.] — (1) The Board of Trade may, on the appli- 
 cation of any association of workmen the rules of which 
 p'rovide for payments to its members, being workmen in 
 an insured trade, or any class thereof, whilst unemployed, 
 make an aiTangement with such association that, in lieu 
 of paying unemployment benefit under this Part of this 
 Act to w'orkmeii who prove that they are members of the 
 association, there sliall be repaid periodically to the asso- 
 ciation out of the unemployment fund such sum as ap- 
 pears to be, as nearly as may be, equivalent to the aggre- 
 gate amount which such workmen would have received 
 during that period by way of unemployment benefit under 
 this Part of this Act if no such arrangement had been 
 made, but in no case exceeding two-thirds of the amount 
 of the payments mad© during that period by the associa- 
 tion to such workmen as aforesaid whilst unemployed. 
 
 (2) The council or other governing body of any asso-
 
 NATIONAL INSURANCE BILL. 1^9 
 
 elation of workmen which has made such an arrangement § 79. 
 as aforesaid shall be entitled to tv(>at the contributions 
 due from any of its members to the unemployment fund 
 under this Part of this Act, or any part thereof, as if 
 such contributions formed part of the subscriptions pay- 
 able by those members to the association, and, notwith- 
 standing anything in the rules of the association to the 
 contrary, may reduce the rates of subscription of those 
 membei"s accordingly. 
 
 (3) For the purpose of determining whether a work- 
 man has exhausted his right to unemployment benefit 
 under this Part of this Act, the amount of any sum which, 
 but for this section, would have been paid to liiin by 
 way of unemployment benefit shall be deemed to have 
 been 60 paid. 
 
 (4) The Board of Trade may make regulations for 
 giving effect to this sectioii, and for determining the mode 
 in which (juestions arising under this section shall be 
 settled . 
 
 80. Repayments to associations making paymenh /<> 
 P'ersons, whether workmen in insured trade, or not, whilsi 
 imemployed.\—{l) The Board of Trade may with the 
 consent of the Treasury, and on such conditions and 
 cither annuatty or at such other intervals as the Hoard 
 may prescrihe, repa// oat of moneys provided f)y Parlia- 
 ment to any assori/ition of persons not trading for profit 
 the rul.es of /rhich provide for paym,ents to persons whilst 
 unemptoyed, whether mjrkynen in an insured trade or not, 
 such part [in no case exceeding one-sixth) as they think 
 fit, of the aggregate amount which the association has 
 expendcA on such payments during the preceding year 
 or other prescribed period, exclusive of the sum {if any) 
 repaid to the association in respect of such period in pur- 
 suance of an (nrang.ement under the tast foregoing section, 
 an'/ crrlusivr in the case of i)(/i/inr}its whirh exceed I leeJvc
 
 l^'O NATIONAL INSURANCE BILL. 
 
 § 80. shillings a week of so much of those payments as exceeds 
 that mm. 
 
 (2) No repayment shall be made under this section in 
 respect of any jjeriod before the commencement of this 
 Act. 
 
 (3) The Board of Trade may make regulations fo]" 
 giving effect to this section, and for determining the mode 
 in which questions arising under this section shall be 
 settled . 
 
 So far the clauses in this Part of the Bill have aU related to 
 compulsory insurance against unemployment in the insured trades ; 
 but this clause encourages voluntary insurance in any trade. 
 
 81. Interpretation and application ?j — (1) For the pur- 
 poses of this Part of this Act — 
 
 The expression " workman " means any person of the 
 age of eighteen or upwards employed wholly or 
 mainly by way of manual labour, who has entered 
 into or works under a contract of service or 
 ap23i'enticeship with an employer, whether the con- 
 tract is expressed or implied, is oral or in writing, 
 and in relation to a person whilst unemployed 
 means a i^erson who, when employed, fulfilled the 
 conditions aforesaid ; 
 
 Contributions made by an employer on behalf of a 
 workman shall be deemed to be contributions by 
 the workman; 
 
 Two periods of unemployment of not less than two 
 days each, separated by a period of not more than 
 two days, or two jjeriods of unemplojanent of not 
 less than one week each, separated by an interval 
 of not more than six weeks, shall be treated as a 
 continuous period, and the expression " con- 
 tinuously unemj^loyed " shall have a corresponding 
 meaning; 
 
 Temporary work provided b}' a central bod}' or dis-
 
 NATIONAL INSUKANCE BILL. 191 
 
 tress committee under the Unemployed Workmen § 81. 
 Act, 1905, or towards the provision of which any 
 such central bodv or distress committee has con- 
 tributed under that Act, shall not be deemed to 
 be employment in an insured trade. 
 
 (2) This Part of this Act shall apply to workmen em- 
 plojed by or under the Crown to whom this Act would 
 apply if the employer were a private person, except to 
 such of those workmen as are serving in an established 
 capacity in the permanent service of the Crown, subject, 
 however, to such modifications as may be made therein 
 by Order in Council for the purpose of adapting the [H'd- 
 visions of this Part of this Act to the case of such 
 workmen . 
 
 Part III. 
 
 GENERAL. 
 
 82. Provisiom as to stamps.] — Stamps required for the 
 purposes of this Act shall be prepared and issued in such 
 manner as the Commissioners of Inland Revenue with 
 the consent of the Treasury may direct, w ho may pvox ide 
 for applying, witli the necessary adaptations, as respects 
 sucli stamps, all or any of tiie pi'ovisions (including penal 
 ])rovisions^ of the vStamp Duties Management .\(t, 1891, 
 ns amended by any subsequent Act. and section sixfy-fivc 
 of the Post Ollice Act, 1908, and ujuv with the eonsentor 
 th(! Postmaster-General provide for the s;ih' of such st^amps 
 through the Post Office. 
 
 83. Outdoor relief.] — In granting outdoor relief lo a 
 person in receipt of or entitled to nu-eive any himlii 
 under this Act, a board of guardians in England shall 
 not take into considcmtion any such benefit, except so 
 far as auch l)cnefit oxcocds five shillings a week.
 
 193 NATIONAL INSURANCE BILL. 
 
 § 84. 84. Priority of claims for contributions due by banlc- 
 
 nipt employers. \ — (1 ) There shall be included among the 
 debts which, under section one of the Preferential Pay- 
 ments in Bankruptcy Act, 1888, and section two hundred 
 and nine of the Companies (Consolidation) Act, 1908, 
 are, in the distribution of the property of a bankrupt 
 and in the distribution of the assets of a company being- 
 wound up, to be paid in priority to all other debts, all 
 contributions payable under this Act by the bankrupt or 
 the company in respect of employed contributors, work- 
 men in an insured trade during the four months before 
 the date of the receiving order, or as the case may be, 
 the commencement of the winding up, and those Acts 
 shall have effect accordingly. 
 
 (2) In the case of the winding up of a company within 
 the meaning of the Stannaries Act, 1887, such contribu- 
 tions as aforesaid shall, if payable in respect of a min,er, 
 have the like priority as is conferred on wages of miners 
 by section nine of that Act, and that section shall have 
 effect accordingly. 
 
 (3) This section shall not apply where a company is 
 wound up voluntarily merely for the purposes of recon- 
 struction or of amalgamation with another company. 
 
 (4) In the application of this section to Scotland a 
 reference to section three of the Bankruptcy (Scotland) 
 Act, 1875, shall be substituted for the reference to section 
 one of the Preferential Payments in Bankruptcy Act, 
 
 1888. 
 
 (5) In the application of this section to Ireland a refer- 
 ence to section four of the Preferential Payments in 
 Bankruptcy (Ireland) Act, 1889, shall be substituted for 
 the reference to section one of the Preferential Payments 
 in Bankruptcy Act, 1888; and any reference to a bank- 
 rupt shall include a reference to an arranging debtor; 
 and the reference to the receiving order shall be construed 
 as a reference to the order of adjudication in the case
 
 NATIONAL INSUKANCE BILL. 193 
 
 of a bankru23t, or to the filing of tlie petition for arrange- § 84. 
 ment in the case of an arranging debtor. 
 
 85. Benefits to he inaUenable.] — Every assignment of, 
 or charge on, and every agreement to assign or charge, 
 any of the benefits conferred by this Act shall be void 
 and on the bankrujjtcy of any pci-son entitled to any such 
 benefit, the benefit shall not pass to any trustee or other 
 person acting on behalf of his creditors. 
 
 86. Poivers of inspectors.] — (1) An inspector ap- 
 pointed under this Act shall, for the purposes of the 
 execution of this Act have power to do all or any of the 
 following things, namely: — 
 
 (a) to enter at all reasonable times any premises or 
 
 place where he has reasonable grounds for sup- 
 posing that any emj)loyed contributors or work- 
 men in an insured trade are employed; 
 
 (b) to make such examination and inquiry as may be 
 
 necessary for ascertaining Avhether the provi- 
 sions of this Act are complied Avith in any such 
 premises or place; 
 
 (c) to examine, either alone or in the presence of any 
 
 other person, as he thinks fit, with respect to 
 any matters under this Act, every person whom 
 he finds in any such premises or place, or whom 
 he has reasonable cause ix> believe to be or to 
 have been an employed contributor or workman 
 in an insured trade, and to require every such 
 person to bo so examined, and to sign a de- 
 claration of the truth of the matters in respect 
 of which he is so examined; 
 
 (d) to exercise such other powers as may be necessary 
 
 for carrying this Act into effect. 
 
 (2) The occupier of any such premises or place and 
 any otlier p^'rson employing any om ployed contributor 
 or workman in an insured trade, and the servants and 
 
 W.
 
 194 NATIONAL INSURANCE BILL. 
 
 § 86. agents of any such occupier or otlier person, and any 
 cmijloyed contributor or workman in an insured trade 
 shall furnish to any insijector all such information and 
 shall produce for inspection all such registers, books, 
 cards, and other documents as the inspector may reason- 
 ably require. 
 
 (3) If any person wilfully delays or obstructs an in- 
 spector in the exercise of any power under this section or 
 fails to give such information or to produce such docu- 
 ments as aforesaid, or conceals or prevents or attempts to 
 conceal or prevent any person from appearing before or 
 being examined by an inspector, he shall be liable on 
 summary conviction to a fine not exceeding five pounds : 
 
 Provided that no one shall be required under this 
 section to answer any question or give any evidence 
 tending to incriminate himself. 
 
 (4) Where any such premises or j)lace are liable to be 
 inspected by inspectors or other officers, or are under the 
 coritrol, of some other Government department, the In- 
 surance Commissioners or Board of Trade may make 
 arrangements with that other Government department for 
 any of the powers and duties of inspectors under this 
 section being carried out by inspectors or other officers 
 of such other Government department, and where such 
 an arrangement is made such inspectors and officers shall 
 have all the powers of an inspector under this section. 
 
 87. Short title and commencement.^ — This Act may 
 be cited as the National Insurance Act, 1911, and shall, 
 save as otherwise expressly provided by this Act, come 
 into operation on the first day of May nineteen hundred 
 and twelve.
 
 NATIONAL INSURANCE BILL. 195 
 
 SCHEDULES. 
 
 FIRST SCHEDULE. Sc hedules. 
 
 Part I. 
 
 EMPLOYMENTS WITHIN THE MEANING OF PART I. OF THIS 
 ACT RELATING TO HEALTH INSURANCE. 
 
 (a) Employment in the United Kingdom, or on auj' 
 ship registered in the United Kingdom, or on any other 
 British ship or vassel of which the owner, or (if there 
 is more than one owner) the managing owner or manager, 
 resides or has his principal place of business in the United 
 Kingdom, under any contract of service or apprentice- 
 ship, written or oral, whether expressed or implied, and 
 whether paid by the employer or some other person, and 
 Avhether under one or more employers, and whether paid 
 by time or by the piece or without any money payment. 
 
 (b) Employment as an outworker in such classes of 
 work as may for the time being be specified in any special 
 order made under Part VI. of the Factory and Workshop 
 Act, 1901. 
 
 (c) Employment in llie United Kingdom in plviug for 
 hire with any vehicle or vessel the use of which is obtained 
 Troin the owner thereof under any contract of bailment 
 (or in Scotland any contract of lotting to hire) in coji- 
 sidcration of the payment of a fixed sum or a share in the 
 earnings or otherwise, in whicli case the owner shall for 
 the purposes of Part I. of this .Vet be deemed to be the 
 employer. 
 
 o 2
 
 196 NATIONAL INSURANCE BILL. 
 
 Schedules. 
 
 Part II. 
 
 EXCEPTIONS. 
 
 (a) Employment in the naval or military service of 
 the Crown, including service in Officers' Training Corps, 
 but excluding service in the Naval Reserves, the Army 
 Reserve, and the Territorial Force excejjt when called 
 out on actual service or on ijermanent service or on 
 embodiment. 
 
 (b) Employment under the Crown or any local or other 
 public authority where the Insurance Commissioners 
 certify that the terms of the employment are such as to 
 secure provision in respect of sickness and disablement 
 on the whole not less favourable than the corresponding 
 benefits conferred by Part I. of this Act. 
 
 (c) Employment as a teacher to whom the Elementary 
 School Teachers Superannuation Act, 1898, or a scheme 
 under section fourteen of the Education (Scotland) Act, 
 1908, or the National School Teachers (Ireland) Act, 
 1878, ajjplies. 
 
 (d) Employment as an agent not ordinarily engaged 
 in any other regular employment jDaid by commission or 
 fees or a share in the profits, or partly in one and partly 
 in another such ways, and not being ordinarily employed 
 by one employer onlj^ 
 
 (e) Employment in respect of which no wages or other 
 money payment is made where the employer is the occu- 
 pier of an agricultural holding the annual value of which 
 as assessed for the purposes of Schedule A. of the Income 
 Tax Acts is less than tiventy pounds or where the em- 
 ployer is the parent of, or person liable to maintain, the 
 person employed and that person is under the age of 
 sixteen . 
 
 (f) Employment otherwise than by way of manual 
 labour and at a regular salary or other fixed rate of re-
 
 NATIONAL INSURANCE BILL. 197 
 
 muneration exoeeclino- onr hnndred and sirf// ponnd.'^ a Schedules, 
 year. 
 
 (g) Employment of a casual nature otherwise than for 
 the purposes of the employer's trade or business, and 
 otherwise than for the purposes of anj^ game or recrea- 
 tion where the persons employed are engaged or paid 
 through a club, and in such case the club shall be deemed 
 to be the employer. 
 
 SECOND SCHEDULE. 
 
 RATES OF CONTRIBUTION UNDER PART T. OF THIS ACT 
 RELATING TO HEALTH INSURANCE. 
 
 Employed Rate. 
 
 In the case of men: 7d. a week. 
 In the case of women: 6d. a week. 
 
 Contributions hy Employers and Employed Contributors. 
 
 To be paid by the contributor: Men, Ad. a week; 
 
 women, 3c?. a week. 
 To be paid by the employer: 3c?. a week. 
 
 In the case of employed contributors of cither sex 
 over the age of 21 wliose wages or other remuneration do 
 not exceed 2.?. i^d. a day and wiio are not provided with 
 board and lodging by their employer, the following shall 
 be the rates of contribution: — 
 
 Wliorc the wages oi' oilier iciiiiiiicr;il ion ihj not cxccvid 
 Is-. 6c/. a day — 
 
 To bo j)aid h\ tiii' i'iiij>l(jy<'r : For iim'ii, (i^/. ;i wi.'ck; 
 
 for women, Ad. a week. 
 To lio jKiid by tlif contributor: id. a week.
 
 198 
 
 NATIONAL INSURANCE BILL. 
 
 Schedules. Where the \vage.s or other remuneration do not exceed 
 2s. a day — 
 
 To be paid by the employer: For men, 6d. a 
 
 week; for women, 4:d. a week. 
 To be paid by the contributor: 2d. a week. 
 
 Where the wages or other remuneration do not exceed 
 2s. (id. a day — 
 
 To be paid by the employer: For men, 4d 
 
 week; for women, 3d. a week. 
 To be paid by the contributor: 3r7. a week. 
 
 a 
 
 THIRD SCHEDULE. 
 
 RULES AS TO PAYMENT AND RECOVEBY OF CONTRIBUTIONS 
 PAID BY EMPLOY'ERS ON BEHALF OF EMPLOYED CON- 
 TRIBUTORS UNDER PART I. OF THIS ACT RELATING TO 
 HEALTH INSURANCE. 
 
 (1) The employer shall, except as herein-after pro- 
 vided, be entitled to recover from the employed contri- 
 butor the amount of any contributions paid by him on 
 behalf of the employed contributor. 
 
 (2) Except where the employed contributor does not 
 receive any wages ,or other remuneration from the em- 
 ployer, the amounts so recoverable shall, notwithstanding 
 the provisions of any Act relating to truck or any con- 
 tract to the contrary, be recoverable by means of deduc- 
 tions from the wages or other remuneration, and not 
 otherwise; but no such deductions may be made from 
 any wages or remuneration other than such as are paid 
 in respect of the period or part of the period in respect 
 of which the contribution is payable, or in excess of the 
 sum which represents the amount of the contributions 
 for the period in respect of which the wages or other re- 
 muneration are paid.
 
 NATIONAL INSURANCE BILL. 
 
 199 
 
 (3) Where a contribution paid by the employer on Schedules, 
 behalf of an employed contributor is not recoverable by 
 
 means of deductions as aforesaid, it shall (without pre- 
 judice to. any other means of recovery) be recoverable 
 summarily as a civil debt, but no such contribution shall 
 be recoverable unless proceedings for the purpose are in- 
 stituted within three months from the date when the con- 
 tribution was payable. 
 
 (4) Where the contributor is employed by more than 
 one employer in any calendar week, the first person em- 
 ploying him in that week or such other employer as may 
 be prescribed shall be deemed to be the employer for the 
 purposes of the provisions of Part I. of this Act relating 
 to the payment of contributions and of this schedule. 
 
 ' ' the first person .... or such other employer as may be 
 prescribed." — In my opiniou this section requires careful con- 
 sideration. As drawn, it may prove very harmful to the casual 
 and other labourers. Employers will not be anxious to be the first 
 person in the week to employ such labourers, and the effect may 
 be to force down the wages of the workman. 
 
 "as may be prescribed." — Surely it would be better to 
 thoroughly discuss this question in Parliament instead of leaving 
 the decision to be made elsewhere. 
 
 (5) Regulations of the Insurance Commissioners may 
 provide that in any cases or any classes of cases where 
 employed contributors work under the general control and 
 management of some person other than their immediate 
 employer, such person shall, for the purposes of the pro- 
 visions of Part I. of this Act relating to the payment, 
 of contributions and of this schedule, be treated as the 
 employer, and may provide for allowing liini to deduct 
 the amount of any contributions which he may become 
 liable to pay from any sums payable hy him to the imme- 
 diate employer, and for enabling tlie immediate em- 
 ployer to recover from the employed contributors the like 
 sums and in the like manner as if he were liable to pay 
 the contributions.
 
 200 NATIONAL INSURANCE BILL. 
 
 Schedules. (6) Where the contributor is not paid wages or other 
 money payments by his employer or any other person, 
 the employer shall be liable to pay the contributions pay- 
 able both by himself and the contributor, and shall not 
 be entitled to recover any part thereof from the con- 
 tributor. 
 
 (7) Notwithstanding any contract to the contrary, the 
 employer shall not be entitled to deduct from the w^ages 
 of lOr otherwise to recover from the contributor the em- 
 ployers' contribution . 
 
 (8) Any sum deducted by any employer from wages 
 or other remuneration under this schedule shall be deemed 
 to have been entrusted to him for the purpose of paying 
 the contribution in respect of which it was deducted. 
 
 FOURTH SCHEDULE. 
 
 BENEFITS UNDER PART I. OF THIS ACT RELATING TO 
 HEALTH INSURANCE. 
 
 Part I. 
 
 Rates of Benefits. 
 
 Table A. — Ordinary Mates. 
 
 Sickness benefit: during the first thirteen weeks the 
 sum of 10s. a week for men, and the sum of 7^. Qd. 
 for women: for the second thirteen weeks, 5s. a week 
 for men and women alike. 
 
 Disablement benefit — the sum of O.s. a week for men 
 and women alike.
 
 NATIONAL INSURANCE BILL. 
 
 Table B.— Reduced Rates in the case of Young Persons. 
 
 Sickness benefit — for males, the sum of 5s. a week 
 
 throughout the whole period of 
 twenty-six Aveeks. 
 for females, the sum of 4.s. a week 
 throughout the whole period of 
 twenty-six weeks. 
 
 Disablement benefit — for females, the sum of 45-. a 
 
 week. 
 
 Table C. — Reduced Rates for Persons over Fifty in 
 
 certain cases. 
 
 Where the insured person is over 50 and under 60 — 
 For men, the sum of Is. a week during the first 
 thirteen weeks, and o.s. a week during the second 
 thirteen weeks. 
 
 For women, the sum of 6.?. a week during the first 
 thirteen weeks and 6s. a week during the second 
 thirteen weeks. 
 
 Where the insured person is over 60 — 
 
 For both men and women the sum of 6s. a week 
 throughout the whole period of twenty-six weeks. 
 
 See clause 9 (3). This reduction only applies to sickness benefit. 
 Tt does not modify the right of those persons to disablement 
 l)enpfit : that will still bo jiayable at the full i-nte. 
 
 Part 11. 
 Addit ional Bene fits . 
 
 (1) Medical treatment .mhI attendance for any persons 
 dependent upon thf^ labour of a. member. 
 
 (2) An increase of sickness benefit or (lisablcnicnl 
 
 201 
 Schedules.
 
 202 NATIONAL INSURANCE BILL. 
 
 Schedules, benefit in tlie case either of all members of the society 
 or of such of them as have any children or any specified 
 number of children wholly or in part dependent upon 
 them. 
 
 (3) Payment of sickness benefit during the second 
 thirteen weeks of disease or disablement at the same rate 
 as during the first thirteen weeks thereof, or from the 
 first, second, or third day after notice of disease or dis- 
 ablement. 
 
 (4) An increase of maternity benefit. 
 
 (5) Allowances to a member during convalescence from 
 some disease or disablement in respect of which sickness 
 benefit or disablement benefit has been payable. 
 
 (6) The building or leasing of premises suitable for 
 convalescent homes and the maintenance of such homes. 
 
 (7) An addition to old age pensions payable under the 
 Old Age Pensions Act, 1908; or the payment of old age 
 pensions at an earlier age than seventy years with an 
 option to the person entitled to take in lieu of such earlier 
 payment a proportionately increased pension at a later 
 age. 
 
 (8) Payments to members v/ho are in want or distress. 
 
 (9) Payments for the personal use of a member who, 
 by reason of being an inmate of a hospital or other in- 
 stitution, is not in receipt of sickness benefit or disable- 
 ment benefit.
 
 NATIONAL INSURANCE BILL. 
 
 208 
 Schedules.. 
 
 FIFTH SCHEDULE. 
 
 REDUCTION OR POSTPONEMENT OF SICKNESS BENEFIT AND 
 WHERE CONTRIBUTIONS ARE IN ARREAR. 
 
 Table . 
 
 (1) 
 
 (2) 
 
 Where the ArrearB amount to 
 
 Rates of Sickness Benefit during 
 first Thirteen Weeks. 
 
 Men. 
 
 Women. 
 
 
 4 contributions a year on average 
 
 .. .. 
 
 G 
 
 7 
 
 8 
 
 9 
 10 
 II 
 12 
 18 
 
 s. 
 
 (1. 
 
 9 
 
 6 
 
 9 
 
 
 
 8 
 
 6 
 
 8 
 
 
 
 ■V 
 
 6 
 
 7 
 
 
 
 6 
 
 6 
 
 6 
 
 
 
 5 
 
 6 
 
 5 
 
 
 
 V 
 
 
 
 6 
 
 9 
 
 6 
 
 6 
 
 6 
 
 8 
 
 6 
 
 
 
 5 
 
 9 
 
 5 
 
 6 
 
 5 
 
 3 
 
 r> 
 
 
 
 I) )> 
 
 
 5s. 
 
 , commenciu 
 
 g 5th day after notice 
 
 'T3 
 
 
 
 
 6th „ 
 
 § 
 
 
 
 
 7th „ 
 
 a • 
 
 
 
 
 8th ,. 
 
 21 
 
 
 
 
 9th „ 
 
 
 
 
 ll'th ,, 
 11th „ 
 
 b 
 
 
 
 
 12th ,, 
 
 ^ 
 
 
 
 
 13th „ 
 
 
 \ 
 
 
 
 14th ,, 
 
 Notes. 
 
 Where tho insured j)ersoii is by virtue of any of tli(> 
 provisions of Part F. of this Act, other than those rc- 
 hiting to arrears, entitled to sickness benefif mI a rate 
 lower than thf full rate, this table shall ha\e elloct as 
 if the entries in the first column were so shifted down 
 that tho first entry therein wa.s set opposite the entry in
 
 204 NATIONAL INSURANCE BILL. 
 
 Schedules, the second coluuiii next below the entry specifying the 
 rate of sickness benefit to which the insured person is 
 entitled . 
 
 When the rate of sickness benefit during the first 
 thirteen weeks to which the insured person is entitled is 
 by virtue of any of the provisions of this Act, other than 
 those relating to arrears, less than 5s. a week, this table 
 shall have effect as if such lower rate were therein sub- 
 stituted for the rate of 5s. a week. 
 
 See clause 10. 
 
 This schedule is only in respect of an employed contributor. 
 The reductions in the case of voluntary contributors have not 
 yet been prescribed. 
 
 SIXTH SCHEDULE. 
 
 LIST OF INSURED TRADES FOR THE PURPOSES OF PART II. 
 OF THIS ACT RELATING TO UNEMPLOYMENT INSUR- 
 ANCE. 
 
 (1) Building; that is to say, the construction, altera- 
 tion, repair, decoration, or demolition of any building 
 or any part thereof. 
 
 (2) Construction of works; that is to say, the con- 
 struction, reconstruction, or alteration of railroads, docks, 
 harbours, canals, embankments, bridges, piers or other 
 works of construction. 
 
 (3) Shipbuilding; that is to say. the construction, 
 alteration, repair oi- decoration of ships, boats or other 
 craft or any parts thereof, and of the tackle thereof, by 
 persons not being members of a ship's crew. 
 
 (4) Mechanical engineering, including the manufacture 
 of ordnance and firearms. 
 
 (5) Construction of vehicles; that is to say, the con- 
 struction and decoration of vehicles or any parts thereof.
 
 NATIONAL INSURANCE BILL. 205 
 
 Schedules. 
 SEVENTH SCHEDULE. 
 
 RATES AND PERIODS OF UNEMPLOYMENT BENEFIT. 
 
 In respect of each week following tlie first week of 
 unemployment: — 
 
 in the case of a workman engaged in building or con- 
 struction of works: 6s. 
 
 in the case of a workman engaged in mechanical en- 
 gineering, shipbuilding, or construction of vehi- 
 cles: 7s. 
 
 or such other rates as may be prescribed either generally 
 or for any particuLar trade or any branch thereof. 
 
 No workman shall receive unemployment benefit for 
 more than fifteen or such other number of weeks as may 
 be prescribed either generally or for any particular trade 
 or branch thereof within any period of twelve months, 
 or in respect of any period less than one day. 
 
 No workman shall receive more unemployment benefit 
 than in the proportion of one week's benefit for every 
 five contributions paid by him under this Act, or in such 
 other proportion as may be prescribed either generally 
 or for any particular trade or branch thereof. 
 
 Provided that for the purpose of the foregoing para- 
 graph — 
 
 (a) in the case of a workman who satisfies the Board 
 
 of Trade that he has habitually worked at an 
 insured trade before the passing of this Act, 
 there shall be deemed to be added to the number 
 of contributions which he has actually paid five 
 contributions for each period of three months or 
 part of such period during which he has so 
 worked before the passing of this Act, up to a 
 maximum of twenty-five contributions; and 
 
 (b) where contributions are paid under Part II. of this 
 
 Act in respect of any workman at intervals
 
 206 
 
 NATIONAL INSURANCE BILL. 
 
 Schedules. greater than a week, that workman shall be en- 
 
 titled to treat each contribution as so many con- 
 tributions as there are weeks in the intervening 
 period. 
 
 Any time during which a workman is under Part II. 
 of this Act disqualified for receiving unemployment bene- 
 ht shall be excluded in the computation of time under 
 this schedule. 
 
 A period of unemployment shall not be deemed to oam- 
 mence till the workman has made application for un- 
 employment benefit in such manner and fulfilled such 
 other conditions as may be prescribed. 
 
 The power conferred by this schedule on the Board 
 of Trade to prescribe rates and periods of unemployment 
 benefit shall not be exercised so as to increase the rate of 
 benefit above eight shillings per week or reduce it below 
 six shillings per week, or to increase the period of un- 
 employment benefit above fifteen weeks, or to alter the 
 proportion which the period of benefit bears to the number 
 of contributions paid, except by rules confirmed by an 
 order made in accordance with the provisions of Part II. 
 of this Act relating to special orders. 
 
 EIGHTH SCHEDULE. 
 
 OONTRIBUTIONS FOR THE PURPOSES OF PART II. OF THIS 
 ACT RELATING TO UNEMPLOYMENT INSURANCE. 
 
 Part I. 
 
 RATES OF CONTRIBUTION FROM WORKMEN AND 
 EMPLOYERS. 
 
 From every workman employed in an insured trade 
 for every week he is so employed,. 2^d.
 
 NATIONAL INSURANCE BILL. 207 
 
 From every employer by whom one or more work- Schedules, 
 men are employed in an insured trade, in respect 
 of each workman, for every week he is so em- 
 ployed, 2hd. 
 
 Every such period of employment of less than a week 
 shall for the puq>oses of this part of this schedule be 
 treated as if it were employment for a whole week. 
 
 Part II. 
 
 RATE OF REDUCED CONTRIBUTION BY EMPLOYER. 
 
 For the calendar year or any part thereof, 15s. 
 
 NINTH SCHEDULE. 
 
 PROVISIONS OF THE FACTORY AND WORKSHOP ACT, 1901, 
 APPLIED TO SPECIAL ORDERS MADE UNDER PART II. 
 OF THIS ACT RELATING TO UNEMPLOYMENT INSUR- 
 ANCE , 
 
 80. — (1) Before the Board of Trade make any special 
 order under this Act, they shall publish, in such manner 
 as they may think best adapted for informing- persons 
 affected, notice of the proposal to make the order, and 
 of the place where copies of the draft order may be ob- 
 tained, and of the time (which shall be not less than 
 twenty-oue days) within which any objection made with 
 respect to the draft order by or on behalf of persons 
 affected mu.st be sent to the Board of Trade. 
 
 (2) Every objection um.^t be in writing and state — 
 
 (a) the draft order or portions of draft order ob- 
 
 jected to; 
 
 (b) the spc^cific grounds of objection; and 
 
 (c) the omissions, additions, or modifications asked 
 
 for.
 
 208 NATIONAL INSURANCE BILL. 
 
 Schedules. (3) The Board of Trade shall consider any objection 
 made bj or on behalf of any persons apjj earing to them 
 to be affected which is sent to them within the required 
 time, and they may, if they think fit, amend the draft 
 order, and shall then cause the amended draft to be dealt 
 with in like manner as an original draft. 
 
 (4) Where the Board of Trade does not amend or with- 
 draw ,any draft order to which any objection has been 
 made, then (unless the objection either is witlidrawn or 
 appears to them to be frivolous) they shall, before making 
 the order, direct an inquiry to be held in the manner 
 herein-after provided. 
 
 81. — (1) The Board of Trade may appoint a com- 
 petent person to hold an inquiry with regard to any draft 
 order, and to report to them thereon. 
 
 (2) The inquiry shall be held in public, and any ob- 
 jector :and any other person who, in the opinion of the 
 person holding the inquiry, is affected by the draft order, 
 may appear at the inquiry either in person or by counsel, 
 solicitor, or agent. 
 
 (3) The witnesses on the inquiry may, if the person 
 holding it thinks fit, be examined on oath. 
 
 (4) Subject as aforesaid, the inquiry and all proceed- 
 ings preliminary and incidental thereto shall be conducted 
 in accordance with rules made by the Board of Trade. 
 
 (5) The fee to be paid to the person holding the in- 
 quiry shall be such as the Board of Trade may direct 
 and shall be deemed to be part of the expenses of the 
 Board of Trade in carrying this Act into effect.
 
 209 
 
 APPENDIX A. 
 
 NATIONAL INSURANCE BILL. App. A. 
 
 Explanatory Memorandum. 
 Health Insurance Scheme. 
 
 1. Objects. 
 
 The Bill is intended to effect as wide au insurance as 
 possible of the working- population ag-ainst sickness and 
 breakdown. It is also intended to make the Bill as ^'ar 
 as possible a preventive measure operating to reduce the 
 amount of sickness. Both the Majority and Minoi'ity Reports 
 of the Poor Law Conuuission call special aitention to the 
 utter inadequacy of our methods for preventing- and curing- 
 sickness amongst the industrial classes. This Bill contains 
 several provisions designed to amend this unsatisfactory 
 state of things. In other words, it is, as described in the 
 title, a Bill for "National Iloulth Insurance and the Pre- 
 vention of Sickness,"' the title " Invalidity Insurance" 
 being- by no means a suitable one for English purposes. 
 
 The plan differs from the German scheme of sickness and 
 invalidity insurances in the following respects:— 
 
 (1.) It is proposed that uiuhn- ])roper sai'eguai'ds the 
 administration of the fund should bo handed over 
 to the jgi'eat friendly societies either already estab- 
 lished in this country or hereafter to be founded 
 under the Act. As all deficits due to raalino-ering 
 will have to be borne either in levies or loss of 
 benefits l)y the members of a defaulting- society, 
 and nol by the Slate or the emj)loyor, (hero is 
 every inducement to economy. Bad manageniont 
 will be promptly and effectively penalised. Good 
 management will bo rewarded. 
 
 In Germany the .system is much more bureaucratic in its 
 management, and does not nearly to the same oxfont adopt 
 the principle (jf self-govornrnont . 
 
 W. P
 
 210 NATIONAL INSURANCE BILL. 
 
 App. A. (2) 111 starting- a universal scheme there must neces- 
 
 — sarily be a very heavy burden during the earlier 
 
 years of its operation, owing to a large number 
 of persons entering it at an age when their con- 
 tributions are actuarially inadequate to ensure the 
 benefits guaranteed by the Bill. Unless financial 
 arrangements are made to liquidate the loss so 
 arising it will fall on future generations of in- 
 surers. 
 
 The finance of the present scheme will be so arranged that 
 the deficiency inevitable in starting a scheme which includes 
 all ages shall in fifteen to sixteen years be completely wiped 
 out. At the end of that period the administrators of the 
 funds Avill be in a position to declare increased benefits, 
 e.g., the reduction of the pension age. 
 
 (3.) The fact that the superannuation of all persons 
 over 70 is undertaken by the Government in this 
 country, whereas in Germany it is a burden on the 
 contributory scheme, makes an enormous difference 
 in the rates of weekh' payments, which suffice 
 -under the proposed scheme to produce higher 
 benefits than those conferred by the German 
 scheme. Moreover, the German Government 
 makes no contribution to the cost of sickness as 
 distinguished from invalidity, whereas the present 
 scheme proposes to pay one-quarter of such cost 
 in the case of women and two-ninths in the case 
 of men. 
 
 (^4.) There are sev^eral other points of difference between 
 this scheme and the German .system, e.g., it is not 
 [)roposed to adopt the German plan of dividing 
 the industrial population into four classes accord- 
 ing to the rate of wages earned — and not, as in 
 Gerniau}^ to set up separate machinery for sick- 
 ness and invalidity. By raking this course, and by 
 the macliinorv Avhicii has been adopted for the 
 collection of contributions, the inconvenience and 
 trotible likely to be caused to employers will be 
 greatly diminished. 
 
 There are other points of variation, notably in the measure 
 of control given to the workmen, which will appear later 
 on. Another paper is being circulated to give particulars 
 of the Gorman insurance.
 
 APPENDIX A. 2^11 
 
 App. A. 
 
 2. Scope of Scheme. 
 
 The Bill will extend to the whole of the United Kiugdom. 
 
 The Bill will jjartly rest upou compulsiou. It is pro- 
 posed that the insurance moneys should in part be collected 
 at the source bv deductions from wao-es. It is therefore 
 necessary to decide how far this compulsion should go, that 
 is, what classes of persons should be compulsorily included 
 and what shoidd be the position of persons who choose to 
 join the scheme voluntarily. The following proposals are 
 made : — 
 
 The compulsory deduction ftom wages will extend to all 
 persons of whatever nationality^ under contract of service, 
 whether paid by the hoiu", day, week, month, or year, to 
 include artisans, mechanics, miners, clerks, shop assistants, 
 servants, sailors in the mercantile marine, uupensionable 
 employees of local authorities, railway employees, golf 
 caddies, &c., &c. 
 
 The compulsor}- deduction will also extend to otit-workers 
 in such classes of work as may be covered by order of the 
 Home Office imder the Factory- and Workshop Act, 1901. 
 It will also include cases of joint emplojnient, e.g., em- 
 ployment in a mine through gangers, the mine-owner being* 
 made responsible. 
 
 It will not extend to — 
 
 (1.; Agents paid by commission or fees, and employed 
 by more than one employer. 
 
 {2.) Such persons as washerwomen, sempstresses, &c., 
 executing small orders on their own account. 
 
 (3.; Wives eniphned by husbands. 
 
 (4.) Extremely precarious personal employments, e.g., 
 luggage carriers, not connected with a trade or 
 business. 
 
 (.3:j Casual domestic emj)loyment. 
 
 (6. J Jobbing occupations, e.g.. gardeners, if working 
 (jn their own acctnml . 
 
 I 7.) Persons receiving- more than JfiO/. a year I'roni 
 their em|»loyers by way of salary. 
 
 (8.) Soldiers and .sailoi-s, who will be dealt with se])a- 
 rately. A reduced deduclioit from wages will 
 be made \n these cases Tthe soldier, saihn", &c. 
 being cared for while in (he service of the 
 Crown j (o provi<le (he necessary reserve against 
 the time when the .sorvicx* ceases, with further 
 as.sistajico from public funds to make s])oci{iI pro- 
 vision for iiivali<l soldiciv and sailnrs. 
 
 !■ 2
 
 212 NATIONAL INSURANCE BILL. 
 
 App. A. (9.) Pensionable employees of the Crown or of local 
 ^ authorities . 
 
 The Treasury will have power by regulations to extend 
 the compulsory deduction from wages to other classes of 
 employees not included in the definition. 
 
 In tlie case of persons emplo^^ed for no money wage, or 
 appointed by one person and paid by others, the employer 
 will be made responsible for seeing that the person em- 
 ployed is insured. 
 
 The class of persons such as cab-drivers or boatmen, who 
 live by "working" a cab or boat for which they pay the 
 employer, will also be included. 
 
 There is a large class of persons who only go into em- 
 ployment occasionally (say, for a period of less than thirty- 
 nine weeks in the year), and it may be considered that there 
 is no reason why the State should require such persons to 
 insure themselves, as it is unfair to enforce contributions 
 which might never materialise into benefits. Exemption 
 from deductions from wag-fes will, therefore, be allowed on 
 request in such cases to (^1) persons who prove that thej- 
 have a pension or income of 26 ^ a year; (2) married women 
 and persons dependent on the labour of other persons who do 
 not habitually go to work in one of the employments which 
 fall within the initial definitions. The employer will be 
 liable to contribute in such cases. 
 
 So far as the Bill does not rest upon compulsion as above 
 defined, it is proposed to allow all other persons to join the 
 scheme or not as they may choose, provided that they are 
 engaged in some occupation by which they seek their liveli- 
 hood. It has been necessary to exclude married women 
 (^^non-workers) from insurance, because it is impossible to 
 devise any scheme to control claims for sick pay in such 
 cases. 
 
 3. Contributions. 
 
 Contributions will oease at 70. Persons over 65 years 
 of age at the commencement Avill not be taken into insur- 
 ance. 
 
 The rates for employed persons will be uniform — 
 
 For men, 4d. a week, deductible from wages. 
 For women, 3^. a M^eek, deductible from wages. 
 For the einplo^'er, 3d. a week for both sexes. 
 
 The State's contribution will be the payment of two- 
 ninths of the benefits in the case of men, and one-fourth 
 in the case of women. It will not be paid in the case of
 
 APPENDIX A. 213 
 
 persons of foreign nationality who have not become App. A. 
 naturalised. •■■ - -" " '■" ■ - 
 
 These contributions will be subject to a variation in the 
 apportionment as between employer and employee in the 
 ease of persons over the age of 21 where the person em- 
 ployed does not receive "board and lodging," as under: — 
 
 If the wages do not exceed \s. Qd. a da}^ the employer is 
 
 to pay 6(Z. for men, orf. for women; the employee is to 
 
 pay \d. 
 If the wages do not exceed 2s. a day, the employer is to 
 
 pay od. for men, -id. for women; the employee is to 
 
 pay 2d. 
 If the wages do not exceed 2s. 6^. a day, the employer is 
 
 to pay Ad. for men, 3f7. for women; the employee 3<7. 
 If the wages exceed 2s. ^d. a day, the em])loyer is to 
 
 pay Zd.\ the man 4^., the woman \^d. 
 
 Persons who are entitled to insure voluntarily, and who 
 are under the age of 45 at the commencement of the scheme, 
 will be given six months to join the insurance on paying 
 Id. [li mem, (k/. (if women). Such persons if over 4.5 
 and persons under 45 joining subsequently to the six months 
 will be required to pay rates increasing- according to their 
 ages, in no case less than Id. for 6r?.). 
 
 4. Benefits. 
 
 The contributions have l)een calculated to enable the 
 approved societies who administer them i^see heading 5 
 below) to grant certain minimum benefits, and if the societies 
 manage their business prudently they will also be able to 
 grant some one or more of certain additional benefit.s. 
 
 The miniumm benefits will comprise— 
 
 (a) Medical attendance throughout life for the person 
 
 insured. The societies will be responsible for 
 making arrangements Avitli doctors for attending 
 upon sick mond)ers, but prohibiled from making 
 any arrangement under wliidi ihe doctor wnuld 
 be rei|uiif'd to piwtvido modiciuc foi' any insured 
 ])0rson. Tlic socioiies will liavo to ])rovid(' lln^sp 
 expenses themselves, exce))t in s])ecial circiiiM- 
 stances in rural districts. 
 
 (b) Is. ^d . ft bend annnallv Ww a sanaloriuni fund 
 
 thi'oughout lilc. It is fmlhoi' proposed to ])ay 
 a capital sum of 1, 500,0^0/ into a special fund 
 to bo used in making- grunts foi' buil<lin<i' sana- 
 toria, on condition that funds are also raised
 
 214 NATIONAL INSURANCE BILL. 
 
 App. A. locally, and to make an additional yearly grant 
 
 of Id. per member to the sanatorium fund as 
 
 explained later. The total income available for 
 preventive work is thus Is. id. a head annu- 
 ally, and it should be added that power is taken 
 to use the additional grant of Id. for research 
 purposes. 
 
 (c) 10,S'. a week in sickness for men and 7s. 6d. a week 
 
 for women for 13 weeks from the fourth day of 
 sickness, in each case, and 5s. for tlie next 13 
 weeks. Members over 50 and under 60, who 
 have not made 500 contributions, will receive 7s. 
 a week only for the first 13 weeks if men, and 6s. 
 only if women; and if over 60 such members will 
 receive 5s. in both cases. 
 
 (d) 5s. for the remainder of sickness. 
 
 (e) A maternity benefit of 30s. payable from the 
 
 father's insurance unless the mother is an in- 
 sured person, when it will be paid from her 
 insurance. 
 
 Benefits (c) and (d) cease at 70 for both sexes. 
 
 Young- ("unmarried ) persons under the age of 21 will re- 
 ceive smaller benefits under (c) and (d) at the rate of 5s. 
 for the boys and 4s. for the girls. 
 
 Boys and girls under the age of 16 will only be entitled 
 to medical attendance and sanatorium treatment, the balance 
 of their contributions being accumulated in order to enable 
 the Avhole scheme to be extended at an earlier date than 
 would otherwise be possible. 
 
 According- to the actuarial calculations which have been 
 made the proposed contributions will provide a margin of 
 ai^proximately 10 per cent, in addition to the amounts 
 required for the payment of the minimum benefits, the 
 societies' costs of administration, and the liquidation of the 
 original deficit in fifteen to sixteen years. 
 
 This margin Avill, if the actuarial anticipations are 
 realised, be made available for the grant of "additional" 
 benefits, as provided for in the Bill, as soon as experience 
 shows that it can safely be devoted to that purpose. 
 
 Well-managed societies will thus almost from the outset 
 be able to make a very substantial addition to the standard 
 schedule of benefits, Avhile in all cases the existence of the 
 margin will operate to prevent deficiencies arising from 
 casual and accidental variations from the assumed rates of 
 sickness, and so as a rule to obviate the necessity for bring- 
 ing into o]'>Pration the special machinery necessary for
 
 APPENDIX A. 215 
 
 dealiug with such deficiencies, viz., levies upon members App. A, 
 
 or reduction of benefits belo^\■ the standard schedule. : — -^ 
 
 The additional benefits Avill include such benefits as the 
 following: — 
 
 (1.) Free medical attendance for dependants. 
 
 (2.'') Benevolent fund for distressed members. 
 
 (3.) Extension of period of full sick pay to 26 weeks; 
 granting- sick pay from first or second day of 
 sickness; increasing sick pay either in all cases 
 or in the case of man-ied men Avitli largo 
 families . 
 
 (4.) Convalescent allowances in selected or necessary 
 cases. Building and maintaining convalescent 
 homes . 
 
 (5.) "Pocket money" for men in hospital or conva- 
 lescent homes, who are being paid for. 
 
 (6.) Additional invalidity or superannuation benefit, or 
 addition to old ag-e pension. For instance, the 
 societies might (^\hen their funds permit) begin 
 to gi'ant a j^ension before 70, Avith an option to 
 the i-ecipient of taking an increase to his old 
 age pension if he prefers to wait till 70. 
 
 (7.) An extension of the maternity benefit. 
 
 The Bill will require the societies to grant a reduced bene- 
 fit under (c) and (d) in cases where those benefits are more 
 thati two-thirds of the Avages earned bv the iiisiirod person 
 — compensation for the reduction being made l)y the grant 
 of one or more additional lienefits of a vakic equivalent to 
 the reduction. The insurance office's consent would be 
 necessary to any such adjustment of benefits. The poAver 
 so granted may also lie used in nflior cases with the consent 
 of the insurance office. 
 
 The Bill Avill specify some of the conditions under which 
 the benefits Avill 1)C payable, the remainder of the conditions 
 for the minimum benefits and all condififins for (ho grant of 
 additional liem.'fifs being left to regulations to be drawn uj) 
 with the hclj) of the committee to be appointed under the 
 Bill (nee later under tlio liciuliMg " ATiscollancdUs," p. 2.'),'5i. 
 
 All societies in aflminisicring the l^enefils will be required 
 to conform to tliose conditions Avhich arc embodied in the 
 Bill or regulations. Tliose of them Avhich are not so ])re- 
 scribed will be left to the rules of tlie sofioties: 
 
 (a,) Medical attendance. — This will commence on entry 
 into insurance ^except for the first six months of 
 flic operation of the Act), and run throughout life. 
 
 (h) The rules as to sanatoria Avill be made by the "' Local 
 Health Committee," as to Avhicli see later.
 
 216 
 
 NATIONAL INSURANCE BILL. 
 
 App. A. (c) and (d) Temporary and permanent sickness.— The 
 
 — ^- _™ folloAving rules or regulations will apply:— 
 
 (i.) That notice of sickness must be given to 
 the society. 
 
 (ii.) That sick pay will only commence as from 
 the fourth day after such notice has been de- 
 livered ; no payment being in fact made for the first 
 three days. 
 
 (iii.) That the member must prove that he has 
 been rendered unfit to provide his maintenance by 
 some specified sickness or physical or mental dis- 
 ablement. 
 
 (iv.) Hules will be sanctioned to ])rescribe the 
 periods for which a doctor's certificate will be re- 
 quired, i.e., whether a certificate must he produced 
 once a week, or once a fortnight; and to deal with 
 the ease of members resident at some distance from 
 the offices of their society. 
 
 (v.) Rules will be sanctioned for the behaviour 
 of members during- sickness, but strict compliance 
 Avitli the directions of the doctor will be required. 
 Societies will have to arrange for women visitors 
 to visit women. 
 
 (vi.) A waiting jjeriod of six months has been 
 laid doAvn for the temporary sickness benefit, and 
 of two years for the permanent invalidity benefit. 
 
 (vii.) Societies will be allowed to follow their 
 own rules for refusing- sick pay in the case of sick- 
 ness brought on by the member's own misconduct. 
 They will, however, be required to g-ive medical 
 attendance in such cases, even if sick pay is re- 
 fused. 
 
 (viii.) If a member has received temporary sick 
 pay and recovered from his sickness and falls sick 
 a second time, such second sickness will be reckoned 
 as continuous with the first, unless a period of 12 
 months has elapsed and the member has followed 
 his usual occupation and paid his contribiitions. 
 
 (ix.) The societies will be given power to im- 
 pose fines not exceeding 20 shillings for repeated 
 offences and to suspend payment of benefit for a 
 period of not more than one year for any violation 
 of the above conditions, or for imi^osing on the 
 funds, or for refusing to obey the rules of the 
 society. They will also be given power of expul- 
 sion as indicated later. 
 
 (x.) Sick pay (temporary and permanent) will 
 not be paid except by way of advance to persons
 
 APPENDIX A. 
 
 217 
 
 entitled to coinpeusatiou under Act of Parliament App. A. 
 
 or the connuon la^v, unless the amount of such 
 
 compensation is less than the benefit to which the 
 member is entitled, when the difference will be 
 made up. Advances will be recoverable by legal 
 process or deducted from future benefits. 
 
 Alternatives have been inserted giving- the societies power 
 
 (1) to take legal action in support of a member's claim, and 
 
 (2) to refuse payment of benefit if the person injured does 
 not take action. The societies will of course be liable to 
 costs if they take action and lose the case. If they win 
 the ca.se they Avill be made trustees of any sum awarded. 
 Also, the consent of the society has been made necessary 
 for the acceptance of any lump sum in voluntary commuta- 
 tion of a weekly payment, and it has been left to the 
 societies, subject to ap])eal, to determine the amount of the 
 set-off from benefits under this Act Avhen a lump sum is 
 paid. Where a lump sum is awarded by the Court, the 
 award will be communicated to the approved society con- 
 cerned . 
 
 (e) Maternity benefit. — Societies will not be allowed to 
 [)ay tliis benefit in ca.sh to tlie insured person or her husband, 
 l)ut will be reqiiired to pay expenses incurred up to the sum 
 of 30.S. imder prescrilied conditions. 
 
 Non-assignment of Benefits. 
 
 A clause has been inserted prohibiting the sale, transfer, 
 pledging, or assignment of benefits. 
 
 A clause is also inserted to the effect that when a member 
 becomes an inmate of a hospital, asylum, infirmary, or work- 
 house under the charge of any public authority, or of any 
 charity, no money benefit shall be allowed unless he has a 
 wife or children or other relatives dependent upon him for 
 support, Avhen the amount duo shall be paid for their relief 
 iijid maintenance. 
 
 Societies will be giv(Mi [)ower to make agreements to pav 
 the mojiey benefit towards the maintcziancc of members who 
 ai'o taken into convalescent homes whose rules require the 
 payment of at least one-half of the cost of maintenance; 
 and also, they Avill 1)0 autlioriso<^l to grant subserij)tions, at 
 tlieir discretion, to ho8[)itals an<l other charities, and to dis- 
 trict jnirses. 
 
 As refjunls Wome?i. 
 
 Women marrying and ceasing to be emploA'od Avitliin the 
 meaning of the Act Avill not be insured. If they become
 
 218 NATIONAL INSURANCE BILL. 
 
 App. A. widows, and go into employment, they will be entitled at 
 
 —^'-^ once to rejoin the insurance. So, too, women now married 
 
 who become widows after the Act has come into operation, 
 if they then go into employment, will be entitled to be in- 
 sured at the rate apj)licable to employed people (with the 
 full waiting- periods). The rig-ht so given to women to 
 insure late in life is a very valuable one. Married women 
 who g-o to work will be insured under the same conditions 
 as other persons as regards arrears; but, as already indi- 
 cated, they will be entitled t/O claim exemption if their em- 
 ployment is irregular. Arrears accruing during marriage 
 will be wiped out on widowhood. The effect of these pro- 
 visions is that, if an insured woman is left an invalid at her 
 husband's death, she at once gets the benefit of her own in- 
 surance . 
 
 Transfers from the Class of Emiployed Persons to the Class 
 of Voluntary Members, and vice versa. 
 
 A difficulty arises for which it is necessary to make rules, 
 owing to the fact that there will be a number of voluntary 
 members liable to pay a higher rate of subscription than 
 the employed rate. Such persons w'ill therefore desire to 
 pose as employed members in oixler to obtain the benefit of 
 the lower rate ; and it is necessary to protect the societies and 
 the insurance funds ag-ainst such imposition. 
 
 The folloAving rules are necessary: — 
 
 (l.j Persons wdio enter the scheme as employed mem- 
 bers will be charged the employed rate and will 
 be allowed to remain at that rate if they remain 
 in employment for a period of five years . When 
 they enter a society they will be required to fur- 
 nish evidence that they are regularly employed. 
 
 (2.) Persons who go into employment, having been pre- 
 viously insured as voluntary members at a higher 
 rate than the employed rate, will not be treated 
 as having' become employed members. If, Iioav- 
 ever, they become regularly employed persons, 
 they will be insured as such for what the con- 
 tributions which they pay, or have paid, are 
 W'Orth . 
 
 (3.) Non-payment of contributions by employed per- 
 sons will be dealt with as follows: — 
 
 Non-payment due to sickness Avill be disre- 
 giarded . 
 
 Non-payment due to unemployment not 
 amounting to four weeks a year on average 
 will be disregarded. Beyond this sickness bene-
 
 APPENDIX A. 
 
 219 
 
 fit will be reduced or postponed, but if the non- App. A. 
 
 payment exceeds thirteeu ■weeks a year on aver- 
 
 ag^ the member will be suspended from benefits. 
 Voluntary members who fall into arrear will 
 be dealt with specially. 
 
 Members in arrear will be given the right to pay arrears 
 of contribution Avhich have occurred in the current and pre- 
 vious calendar j-ear Avith interest at 3 per cent. The societies 
 will be protected against such ])aymentvS being made when 
 sickness has commenced, or just before it, with a view to 
 obtaining full benefit, and a ])eriod of one month has been 
 proposed as a ])rotecriou against abuse of the insurance in 
 such cases. 
 
 ImniigTants coming on to the scheme late in life will be 
 compulsorily insured for the proportion of the benefits only 
 which their own and their employers' contributions are 
 worth. It has seemed necessary to provide that other per- 
 sons Avlio aix? driven into employment late in life, or who 
 re-enter after exclusion, should be insured for reduced bene- 
 fits; they will, however, be given a minimum insurance of 
 not less than 5s. a week, corresponding with the insur- 
 ance gTanted to a person who is in the maxinuun amount of 
 arrears, even if the employed rate is not sufficient to g-rant 
 this mijiinuun insurance, and the society accepting such a 
 member ^\i\\ he given credit b}' the Government at the ex- 
 pense of the A\hole insurance for the deficit caused by so 
 acceptiiig him according to the tables which will be pre- 
 pared. It niay be pointed out that, if such persons were 
 given the full insurance, thev would be treated as well as 
 peo])le Avho had previously insured themselves voluntarily, 
 and Ijetter than eni])l()yed ])ersons of the same ag^e who were 
 to an}' extent in arrear with their contributions. The 
 amounts ])reviou.sly paid by way of voluntary insurance by 
 any j)erson coming' on to the scheme late in life as an em- 
 jdoycd person Avill be cre<lited to his insurance. 
 
 An exception will be made in favour of persons whose 
 education is continued bevond KJ. 
 
 .). Machinery tor Distfiibution of Benefits. 
 The niacliiiiciy will consist of — 
 
 (A.) — Approved societies. 
 
 (B.) — A Pcjst Office sysf«nm, sot up by the Government 
 for tJie benefit of those persons who fail or 
 jieglect to join a society, or are rejected.
 
 App. A. 
 
 NATIONAL INSURANCE BILL. 
 
 (A.) — Approved Societies. 
 
 The conditions of approval comprise: — 
 
 (1.) Absolute self-government. 
 
 (2.) Not working for a profit. 
 
 (3.) Election of all committees, representatives, &c. by 
 the members in accordance with rules approved 
 by the insurance office or regulations drawn up 
 under the* Act. 
 
 (4.) A minimum number of 10,000 insured persons 
 under the Act. 
 
 (5.) Local as well as central control of arrangements 
 for medical attendance and payment of sickness 
 benefit and appeals. For all questions arising 
 imder the Act societies will 1)6 required to pro- 
 vide for a final appeal to arbitrators appointed 
 by the insurance office. 
 
 (6.) Giving security by the deposit of sufficient stock or 
 in some other way to compensate the Govern- 
 ment for any malversation by officers. 
 
 (7.) Keeping separate accounts for the State scheme. 
 
 (8.) Complying with the provisions and requirements 
 of the Act. 
 
 It will be open to any society which satisfies the conditions 
 t-o become an approved society, and it will not be asked to 
 apply any of its existing funds for the purposes of the new 
 scheme, even though they have been contributed in respect 
 of benefits now included in that scheme . 
 
 All the great friendly societies and trades unions Avill be 
 able to comply with these conditions. By doing so they will 
 not sacrifice their independence or their rig-ht to select mem- 
 bers. The Government inspection and supervision to which 
 they will be liable is only devised in the interest of the 
 members themselves to secure the proper administration of 
 the funds, and should streng-then the position of the manag- 
 ing committees in well managed societies. 
 
 Under the heading- (4), the minimum of 10,000 has been 
 adopted for Great Britain, 5,000 for Ireland; but this num- 
 ber will not apply to superannuation funds established by 
 employers. It may be explained that a fairly high number 
 is necessary to prevent an unreasonable number of cases 
 occurring in which further levies from members might prove 
 necessary, putting employers and employed to considerable 
 inconvenience. As only one employer is concerned in the 
 case of a superannuation fund, it makes less difference in 
 such a case if a levy is necessary.
 
 APPENDIX A. 221 
 
 It should be added that societies which do not contain the App. A. 
 
 prescribed number, 10,000, will be able to join or form an — 
 
 association or society of societies containing- that number. 
 The terms of such association must be that the societies 
 forming it agree to conform to the conditions subsequently 
 laid down for dealing witli surpluses and deficits. Societies 
 Avhich ax-e members of such associations (^whether existing 
 or to be formed) will apply for approval and give securit} 
 through the central body of the association. Such associa- 
 tions must make provision in their rules for settling disputes 
 and for the govermnent of the as.sociation, and it is clear 
 that societies forming such associations will be able to main- 
 tain a strong-er independence through their associations than 
 the}" could maintain sepai^atelj- . 
 
 Under the heading (5), societies which are managed by 
 delegates, or where voting by proxy or by post is permitted, 
 and Avhich carry on business at a distance from their head 
 offices, will be required to set up local committees, elected 
 by all the members of the society residing in the district, 
 for determining claims and supervising the administration 
 of benefits in the district. A district has been defined as "a 
 locality in Avhich there are 1,000 members in the State in- 
 surance," and societies are required to set u]) a committee 
 for every 1,000 members as a maximiuu, and further re- 
 quired upon a request of 50 members to set up a cominittee 
 for every gi'oup oT 250 members as a minimum not more 
 than 3 miles distant from the nearest branch ofiice. 
 
 PoAver has also been taken to prescribe the place of meet- 
 ing of societies. 
 
 Under heading (6), the Government «ill be given power 
 to require security by the deposit of sufficient stock out of 
 the funds of societies and to refuse approval to a society that 
 is not j)repared to make a deposit of stock up to the amount 
 of half the annual contributions of the members of the 
 society in the scheme . 
 
 Security will also be accepted in other forms at the dis- 
 cretion of the insurance office. 
 
 Requirements of the Act with which Approved Societies 
 
 tnust Comply. 
 
 (1.) To keej) their books and accounts, so far as relates 
 to the State scheme, in the form to be prescribed by the 
 committee witli the approval of tjie Treasury. 
 
 (2.) To submit all sucJi books ajid aicounts to Uovern- 
 ment audit when require*!. It is proposed that the Govern- 
 ment should undertake tlie work of auditing the Stale funds. 
 
 {'■i.i To subujil to u Government valuatioji at intervals
 
 222 NATIONAL INSURANCE BILL. 
 
 App. A. of three years or at such other intervals as may be 
 -- appointed. 
 
 (4.) To conform to the requirements of the Act in the 
 event of any surplus or deficiency being- shown on a valua- 
 tion . 
 
 (5.) In the ca.se of societies which are members of an 
 " association, to remain members of the association to which 
 they belong, unless secession or dissolution is sanctioned 
 as specified later. 
 
 (6.) To provide for an appeal to arbitrators appointed 
 by the insurance office in the event of any dispute between 
 societies or between members arising out of the operation 
 of the Act. 
 
 (7.) To conform in other resj^ects with the provisions of 
 the Act. 
 
 Special Piovlsions re Su perannaation Funds established by 
 
 Employers. 
 
 All the requirements of the Act, except those regarding 
 the minimum number of 10,000 members, Avill apply to such 
 funds, if they are to be given the privileges of approved 
 societies. 
 
 A special provision has been inserted authorising em- 
 ployers, subject to the qualification mentioned below, to 
 deduct an amount equivalent to the contribution to be made 
 by them under the Act from any future contribution which, 
 by existing Act or deed, they have bound tliemselves to make 
 to benefits similar in kind to those provided by the Bill. 
 Such alteration of the ett'ect of any existing Act or deed 
 will only take effect as from the date when the present Act 
 comes into operation, and all rights, titles and benefits to 
 Avhich members have in any way become entitled under 
 the present constitution of such funds before that date will 
 be preserved. The deduction will be required to be limited 
 accordingly to such an amount as can be made consistently 
 with the maintenance of such rights, titles and benefits. 
 
 Members of such funds will be given the right of voting 
 on any modification of existing rules pro])osed under the 
 preceding paragraph, and all modifications of existing 
 schemes will be submitted for approval. Any member of 
 such a fvuid ^^i\\ be given the right at any time to transfer 
 his subscription and his employer's share Avith it to another 
 society, if he prefers to be insured in that way, and the 
 fund will carry out the transfer as a transfer between 
 societies in the manner specified below. 
 
 It has been nece.ssary to deal Avith tlie tjuestion of the 
 employer's repre.sentation in the manao^eraent of such funds,
 
 APPENDIX A. 223 
 
 and a clause has been inserted allowing- the employer one- App. A. 
 
 fourth i-epresentation if he makes himself responsible for 
 
 the solvency of the fund, and excluding- him from represen- 
 tation in other cases, except to the extent to which he con- 
 tributes more than the proportion represented by the amount 
 payable by him under this Act. 
 
 Membership of Societies. 
 
 Subject to the provisions of the Bill, membership will 
 be g-overned by the existing rules of friendly societies. 
 Transfers from one society to another will be carried out 
 by the transfer of the amount apjn-opriate to the member's 
 ag-e, according- to a table which will be prepared, subject 
 to appropriate deductions in the event of the member being- 
 in arrear or the society being- in deticieucy. A clause has 
 beeii inserted, re([uiring- a society which expels a member 
 who is unable to hud another society to take him, to pay 
 <»ver to the insurance office the money appropriate to the 
 member's age. 
 
 Ex))elled members will be giveii a right to ajjpeal to (he 
 ijisurancc office arbitrators. 
 
 Management Expenses. 
 
 The contributions are calculated to cover management ex- 
 pen.ses. A separate account must be kept for management 
 exj)enses, and the Government will contribute its propor- 
 tion of such expenses. 
 
 Emigrants. 
 
 Members will bo entitled to a transfer to a colonial society 
 at the usual transfer rates. The insiininco oHico will coui- 
 j)ile a list of cobniial .societies appioNcd tor tiie purpose, 
 who grajit reciprocal treatment \n their own members 
 migrating t<» this connlrx . A clause will [)rovide for 
 rcci]>rocity with colonies and foreign countries having state 
 schemes (jf insurance. Persons iji receipt of permanent 
 sick alhnvances going abrijad without the consent (if llicir 
 societies will forfeit l)enelit,s. 
 
 I iiccsLmciils. 
 
 Any sums stan<ling (o the credit of a society will bo in- 
 vested by the (J(jvornment through the National Debt Com- 
 missioners. Tluise funds will bo available for making loans 
 under the Ili.ii>iiig Acts.
 
 224 
 App. A. 
 
 NATIONAL INSURANCE BILL. 
 
 Equalising Clause as between Societies accepting Members 
 
 of Different Ages. 
 
 Inasmuch as societies will be allowed to retain their own 
 indepeiidence and carry on business in the method to which 
 they are accustomed, some arrangements must be made to 
 equalise the position as between societies consisting of old or 
 of young members. If there were only one fund and one 
 society no difficulty would arise. The age distribution of 
 such a society would be normal at the commencement, and 
 as it would get its full and proper proportion of new entrants 
 it would remain normal throughout. But as it is, there are 
 over 20,000 societies and branches with the greatest pos- 
 sible variety in age distribution. It is not proposed to break 
 up and reconstitute these societies, nor is it desirable or 
 necessary to do so. But it is necessary to put every society 
 on exactly the same footing: — 
 
 (1.) For the pui'pose of the State valuation. 
 (2.) As regards its financial position if it takes the older 
 lives into insurance. 
 
 This has been effected in the following way: — 
 Inasmuch as the State is covenanting to pay two-ninths of 
 the benefits for men (one-fourth for women), every society 
 will necessarily be in a solvent condition if it has seven- 
 ninths for men (three-fourths for womenj of the contri- 
 bution necessary as regards members joining it at the age 
 of sixteen — the age when the insurance commences, and as 
 from which all calculations for the purpose of the insurance 
 have been made. For members joining at any age over 
 16, societies in order to be solvent should also hold seven- 
 ninths for men, and three-fourths for women, of the reserves 
 appropriate to the members' ages. These reserves they will 
 not, of course, hold at the commencement of the scheme, 
 and it is therefore necessary to create them in the form of 
 a paper debt, at the cost of the whole insurance. This debt 
 will be credited to the various societies, and will carry 
 interest in the accounts at 3 per cent. Debt and interest 
 will be redeemed by the investment of two-ninths for men 
 (one-fourth for women) of the contributions paid by in- 
 sured persons. In this way every society is put upon an 
 equal footing of solvency as regards the acceptance of 
 members. If a society has an age distribution of members 
 Avhicli is exactly normal in accordance with the calculation 
 of the Government's actuaries, the reserves credited to it 
 in the form of the paper debt would be paid off by the 
 investment of the two-ninths (and one-fourth) of the con-
 
 APPENDIX A. 225 
 
 tributioiis. If a .society admits youuger members, the ex- App. A. 
 
 cess of their contxibutious is available to pay the debt 
 
 credited to a neighboiu'ing societ3' which admits older 
 members. No one society, therefore, can get an advantage 
 over another society by admitting members at the youuger 
 or older ages. 
 
 The proportion of the contribution which societies have 
 to surrender is the proportion repre.sented by the Govern- 
 ment grant of two-ninths (or one-fourth) of the benefits. 
 It is true, therefore, at the commencement that young per- 
 sons of 16 years of age in fact get no value from the 
 Government grant — for the Government pay.s two-ninths 
 (or one-foui'th) of the benefits and takes two-ninths (or 
 one-fourth) of the contribution. But for every age over 
 16 the society to which every insured person belongs from 
 the commencement receives in the insurance a credit appro- 
 priate to his age-risk carrying interest at 3 per cent., and 
 this credit represents the value to him and his employer 
 of the Government insurance. The credit is of course 
 greater at the hig-her ages, and it is for this reason that 
 a somewhat reduced insurance is g-iven to persons over 50 
 years of age and that persons over 6.5 are excluded. 
 
 It is impossible without great complications under a 
 universal scheme of insurance with a uniform rate of pre- 
 mium to devise a scheme under which every insured person 
 from (he commencement would receive exactly equal treat- 
 ment. Equality of treatment can only be reached when 
 the original deficit due to the inclusion of the older lives 
 has been wiped off. Meanwhile, under the provisions of 
 the Bill the younger generation will receive the full value 
 of their own and the employers' contribution, and it is 
 proposed in the Bill that when tlie deficit has been wiped 
 off, and it becomes possible to extend the benefits conferred 
 by the insurance, regard in tlie extension should be had to 
 their ages when they joiited the insurance. The value of 
 the promise thus made to the younger generation is shown 
 in the financial statement which will be circidated. 
 
 It should be added heie that the Bill proposes (hat (he 
 insurance fund should l)e rolled u]) by the operation of the 
 provisions above explained until it is sufficient to provide 
 interest at 3 per cent, on all nmounts then s'^anding to the 
 credit of societies. The adviinlages of this proposal are 
 that i( enables all valuations meanwhile to be conducted 
 on a 3 pel' r-ent. basis, and (hat it m;ikes ii capital valiintion 
 of the fund unnecossai-y. Wlicu (he scheme is extended. 
 Parliament will be able to make such arrangements as may 
 be reasonable for dealinir with the capital account or 
 r-hanging the rate of interest ado]i!ed for valuation puryiosos. 
 
 W. Q
 
 226 NATIONAL INSURANCE BILL. 
 
 App. A. 
 
 ^' Valuation of Sgcieties. 
 
 (A.; Surpluses. 
 
 If a surplus is found upon a valuation of a society, 
 which is not a member of an association of societies, the 
 society will be entitled to prepare a scheme for granting 
 one or more of the additional benefits specified in the Act. 
 The consent of the insurance office will be necessary before 
 such a scheme can be brought into operation. 
 
 If a society showing a surplus is a member of an asso- 
 ciation of societies, it will be required to transfer one-half 
 of any surplus to the central fund of the association, and 
 with the approval of the association and of the insurance 
 office it will be entitled to introduce one or more of the 
 additional benefits. An association of societies will be 
 entitled to introduce additional benefits for all its branches, 
 when its central fund is sufficient for the purpose, subject 
 to the consent of the insurance office. 
 
 (B.) Deficits. 
 
 If a deficiency is found, the society Avill be required to 
 prepare a scheme for extinguishing the deficiency. Such 
 a scheme may provide for — 
 
 (a) A levy upon all members of the society. 
 
 (b) A reduction of the temporary sickness benefit. 
 
 (c) A postponement of sickness benefit, or an extension 
 
 of the period of twelve months mentioned above 
 between payment of full sickness benefit. 
 
 All such schemes must receive the approval of the insur- 
 ance office. 
 
 If a society with a deficit is a member of an association, 
 the deficiency must in the first instance be made good from 
 any surplus in the liands of the association; but the govern- 
 ing body of the association, if it alleges maladministration 
 on the part of the branch society, will be entitled, subject 
 to an appeal to the insurance office, to refuse to make any 
 grant from surpluses. 
 
 If within six months after the declaration of a deficit 
 no such action should be taken as may be reasonably ex- 
 pected to make good the deficiency in the affairs of the 
 society within a period of three years, the insurance office 
 is empowered and required to take over the administration 
 of the statutory powers and funds of the society and to 
 take steps to recover as quickly as possible the amount of
 
 APPENDIX A. 
 
 227 
 
 the deficiency by auy or all of the methods above indicated. App. A. 
 For the purpose of these clauses further contributions will 
 be enforced if necessary by a deduction from wagevS as indi- 
 cated below. Member.s joining a society in which a defi- 
 ciency has been declared after the declaration of the deficit 
 will not be required in any way to make good such deficit. 
 Members leaving a society in similar circumstances will be 
 charged with their proper proportion of the deficit. Any 
 dispute as to the amoimt of the deficit or as to the adequacy 
 of the provision proposed for extinguishing it ^dll be de- 
 cided by an independent referee to be appointed by the 
 Lord Chief Justice in England and Ireland, and the Lord 
 President in Scotland. If a society is found to be in defi- 
 ciency at any time after the approval of a scheme for 
 granting additional benefits, payment of such additional 
 benefits will be suspended. 
 
 Excessive Sie'kn^ss in Certain Trades, dc 
 
 If one or more societies allege that excessive sickness 
 has been caused among their members by the conditions 
 or nature of employment in some trade or trades, or in 
 certain shops or factories in which their members are em- 
 ployed, they will be entitled to demand an enquiry into 
 the conditions of the trade, shop, or factory. If it is 
 found on such enquiry that there has been among members 
 of the societies engaged in the particular trade, shop, or 
 factory concerned during a period of not less than three 
 years an amount of sickness exceeding by ten per cent, 
 the average expectation of sickness, as shown by the table 
 which the Treasury will publish for the use of persons 
 making valuations under the Act, the employer will be 
 required to make good the extra expense incurred by the 
 -jocietie.s through such excessive .sickness. 
 
 This provision will of coiir.so e.\-clndo any sickness or 
 disease which is a subject of com])ensntinn undei' the Work- 
 men '.s Compensation Act. 
 
 Excessive Sickness in any Locality. 
 
 The ]K»wers of societio-t as regards .'<uch sickness will be 
 defined la<er under the heading "Local Health Committee" 
 ri)p. 220— 2.'}2). 
 
 New Socisties, Seeessions, dc 
 
 The orders and associations will have the power now 
 given l<j fheni bv (he Friondlv Societies Acts of Oj)ening 
 
 Q 2
 
 228 NATIONAL INSURANCE BILL. 
 
 App. A. 116W branches. Such branches will give security through 
 
 their order or association. 
 
 New societies which are not branches of existing societies 
 may only be oj^ened upon the insurance office being satisfied 
 with the security offered, and upon the necessary minimum 
 number of members being enrolled. 
 
 Dissolution of an approved society will only be allowed 
 with the consent of the insurance office, proper provision 
 being made for the State members. 
 
 Secessions from Orders and Associations. 
 
 The jjresent law will apply. Affiliated societies may only 
 secede after complying with the terms of their agreement 
 with the order or association to which they belong. The 
 further condition will be imposed that the consent of the 
 insurance office will be necessary. 
 
 Withdranml of Approval. 
 
 The insurance office will be given the right to withdraw 
 approval from any society failing to comply with the provi- 
 sions of the Act, or of any Act regulating its constitution. 
 The funds of any such society will be used to provide, so 
 far as they will go, for the transfer of the members to other 
 societies or to the Post Office insurance. 
 
 (B.) — The Post OmcE Deposit Insurance. 
 
 Persons liable to the compulsory deduction from wages, 
 who fail to join a society or are rejected or expelled by a 
 society and who cannot get another society to take them, 
 will be dealt with through the Post Office. Their names 
 and addresses will be ascertained and the insurance will 
 be conducted as follows: — 
 
 The cards first issued for the collection of contributions 
 (see later) will be made current for a period of four or 
 five months only. After tJiat period new cards will be 
 issued free to members through the societies and to other 
 compulsorily insured persons through the Post Office upon 
 the name and address being furnished. A membership 
 book, upon which credit will be given for contributions, 
 will be issued with the card to persons joining the Post 
 Office insurance, and the contributions will be charged annu- 
 ally with seven-ninths for men and three-tpiarters for women 
 of the calculated cost for management, medical attendance, 
 and sanatorium. A waiting period of fifty-two payments 
 will be required before any contribution can be withdrawn,
 
 APPENDIX A. 
 
 •229 
 
 but the member will be entitled after six months to medical App. A. 
 
 attendance. If, after the waiting- period has expired, a 
 
 member falls ill, he (or shej will be entitled to withdraw 
 his (^or her) contributions including the employer's share 
 with the addition of two-ninths (or one-quarter) from the 
 State's contribution, at the rate of 10s., 7s. 6d., or 5s., &c. 
 a week, as the case may be. After the expiration of three 
 years, if the funds admit, a further addition from lapsed 
 and forfeited contributions will be made to the amounts 
 withdrawable by members in sickness. 
 
 Lapses or forfeits will occur by the member dying. 
 
 The Post Ofhce insiu'ance will include foreigners, no State 
 HTant being' "-iven in such cases. 
 
 Medical attendance for persons in the Post Office insur- 
 ance will be provided by a Local Health Committee to be 
 set up as follows: — 
 
 Local Health CoiMmittee. 
 
 In connection with tiie proposals for the Local Health 
 Committee, it should be stated that the areas of these com- 
 mittees will not be quite the same in Scotland as in England, 
 and that most of the provisions relating to these committees 
 will not apply to Ireland. 
 
 A committee will be formed for counties and county 
 boroughs, with power to create local sub -committees so far 
 as necessary. It will consist — 
 
 (1.) Of persons nominated hy the cutiuty councils or 
 county boroughs, some of wiiom must be members 
 of the sanitary authorities. 
 
 (2.) Of persons nominated by the approved societies. 
 
 (3.) Of persons nominated by an association, if any such 
 is formed, of persons who insure through the Post 
 Office, or in default, of such nomination by co-option 
 of such persons. 
 
 (4.) Of persons appointed by the insurance office,' two of 
 whom will be doctors. 
 
 The insurance office nominees will join iji the co-option 
 (tf persons appointed under heading (o). 
 
 The county or borough medical officer will be entitled to 
 attend the meetings of tlie committee. 
 
 Tbe insurance office is given power to vary the propor- 
 tions of the representatives upon the connnittee, and this 
 power might prove of (considerable importance in the oveni 
 of agreements for the transfer of medical attendance being 
 entered into as explained lat-er. 
 
 In Ireland, tbe duties of these committees will bo given
 
 !30 NATIONAL INSURANCE BILL. 
 
 App A. to the county councils (outside the large towns) and the 
 — =-=- — '- — councils will also have power themselves to undertake to 
 establish societies. 
 
 In counties where there are many Post Office contributors 
 arrangements are permitted for creating- a separate Post 
 Office account. 
 
 Duties. 
 
 1. To make medical arrangements for persons who have 
 been rejected by or failed to join a society. 
 
 2. To control the whole of the expenditure of insurance 
 money for sanatoria in the district. Patients will be re- 
 quired to be sent to sanatoria approved by the Local Govern- 
 ment Board, either existing or to be built with the help 
 of the Government grant of 1,500,000Z. 
 
 3. To consider the needs of the district from the point of 
 view of public health, to demand enquiries as to the enforce- 
 ment of the Public Health Acts, the Factory i^cts, and 
 the Mines Acts, and to make recommendations. If, as the 
 result of an enquiry, any excessive sickness is found to be 
 due to bad housing, insanitary conditions, &c., the cost of 
 such sickness is to be paid to the approved societies and the 
 health committee by the local authorities. 
 
 Where an enquiry is ordered into insanitary housing con- 
 ditions in a neighbourhood, power will be given to the 
 local authority to summon owners of insanitary property 
 before the commissioner holding- the enquiry — as third 
 parties — with a view to passing on to them the whole or a 
 part of any levy due to excessive sickness. The enquiry 
 will be held before a commissioner or commissioners ap- 
 pointed by the Government Department concerned in each 
 case . 
 
 The power given to Health Committees to protect their 
 members in cases of the kind mentioned is a necessary 
 counterpoise to the liability imposed on members to make 
 good the cost of excessive sickness, for it is not fair to call 
 on them to make good the cost of sickness caused by the 
 negligence of other persons. 
 
 Power will also be given to the societies separately to 
 demand enquiries into the above matters. 
 
 4. To provide for lectures and the publication of infor- 
 mation upon questions relating to 'health. 
 
 Local Health Committees will be given power to combine 
 for common purposes, and the insurance office will be em- 
 powered to form joint committees for neighbouring counties 
 in special circumstances.
 
 APPENDIX A. 231 
 
 App- A. 
 
 Transfer of Medical Attendunce to Health Committee. 
 
 The present system of medical relief as org-anised by the 
 friendly societies cannot be regurded as entirely satisfactory . 
 Doctors employed by these societies are paid an inclusive 
 fee of about 4s. per member on an avei-ag-e. This fee 
 covers drugs and the cheaper medical appliances, but is in- 
 sufficient to provide the more costly drugs, the cost of which 
 has to be borne by the doctors themselves. 
 
 To correct this it is proposed to insert a clause forbidding- 
 the societies to enter into any contract which provides for the 
 payment of drug-s by an inclusive fee. This Avill involve 
 a substantial increase in the cost of medical relief, but the 
 funds at the disposal of the societies under the Bill will 
 enable them to meet the additional expense without trench- 
 ing- upon the minimum benefits. 
 
 Further, the societies Avill be ^ven the option of hand- 
 ing- over this part of their duties to the Health Committee, 
 on such terms as may be arranged in each case. If tJie 
 terms arrang-ed or proposed involve a deficit the Health 
 Committee will be authorised to apply to the Government 
 and the local authority for the payment of the deficit in 
 equal shares; the latter can well ali'ord it, for the scheme 
 must eftect a considerable saving- in the medical charges 
 now falling on the rat^es. It must be remembered in this 
 connection that the compulsory character of the scheme 
 secures a contribution towards medical attendance from that 
 class of the population who now, having- no society to fall 
 back upon in ease of sickness, resort to the Poor Law both 
 for medicine and maintenance. 
 
 The medical treatment given by societies will be made 
 subject to inspection. 
 
 Income. 
 
 This will consist of — 
 
 (i.j The proportion charg-ed to Post Ofiice members 
 in the district to cover medical attendance, 
 management, and sanatorium, with the addition 
 of the State grant. 
 
 (2.) The whole of the sanatorium money from approved 
 societies. 
 
 (;j.j The societies will also bo lequired to subscribe Id. 
 or 2d. per member per annum towards (he ad- 
 ministrative expenses of the Committee. 
 
 (4.j The State Avill make an additional grant of \.d. 
 for every is. Sd. of tlie saiiatorium money, and
 
 J^ NATIONAL INSURANCE BILL. 
 
 App. A. it is proposed to take power to use the whole or 
 ■ — part of this additional grant for research pur- 
 poses . 
 Power will be given to local authorities to subscribe to 
 the general purposes of the Committee. 
 
 6. Collection of Contributions. 
 
 The system to be provided for is as follows: — 
 
 The employer of any person liable to deduction from 
 wages is to be responsible for paying that person's 
 contribution as well as the employer's contribution in 
 respect of him, and may recoup himself the amount 
 of the former contribution (but not of the latterj by deduc- 
 tions from the insured person's wages. Such a deduction 
 will only be allowed at the time when tlie wages are paid 
 for the period for which they are paid. If the employed 
 person is not paid by the person employing him but by 
 other persons, the employer will be responsible for seeing 
 that he is insui-ed. If the employed person gets no wages 
 from anybody, then the employer must himself pay the 
 whole amount. Deductions not made at the proper time 
 cannot be made from any later payment. AVhen an em- 
 ployed person is out of employment or ill, the contributions 
 are not required to be paid. 
 
 The payment of contributions is to be effected by means 
 of adhesive stamps which the employer will be able to ob- 
 tain at any Post Office and affix to a card belonging to the 
 employed person. The stamps umst be cancelled by writing 
 the date across them. The insured person will be respon- 
 sible for obtaining the card and producing it to the employer 
 to be stamped. On entering employment he may hand over 
 his card to be kept by his employer, but if that course is 
 followed, the employer must deliver the card back to him 
 after a prescribed interval stamped u]3 to date. When the 
 card is in this manner left with the employer, the employer 
 will be saved the trouble of stamping tlie card every week. 
 
 To secure the due payment of contributions in the case of 
 casual trades and employments, it is lai;l down as a general 
 rule that the first employer in the week should be responsible 
 for the payment of the contributions. The employee will 
 be freed from further deductions from wag'es in the same 
 week by producing his stam])ed and dated card to any sub- 
 sequent employer. The inclusion of casual labour in in- 
 surance is of great importance. If it were excluded, it 
 would tend still further to increase . 
 
 The following penalties will be provided for: — 
 
 (1.) The employer to be liable to civil proceedings for 
 damages caused hj failing to insure an employe.
 
 APPENDIX A. 233 
 
 (2.) The employer also to be liable on summary con- App. A. 
 
 viction to a penalty for every omission to stamp 
 
 a card, or for holding a card which he has not 
 stamped at the prescribed intervals, and the card 
 will be stamped at the employer's expense. 
 
 The workman is to be required to produce his card to his 
 employer at the time Avhen wag-es are paid, and, if he omits 
 to do so, then the employer will be empowered and required 
 to obtain a card for him. 
 
 The whole of the above provisions will not appear in the 
 Bill, some being left to regulations. A general explanation 
 of the method to be adopted has been inserted here so as to 
 make clearer the intention of the provisions of the Bill. 
 
 A clause has been inserted to provide that any covenant 
 betAveen employers and employed, under which the em- 
 ployed agrees to the employer's deducting from wages the 
 employer's share of the contribution, shall be void and of no 
 effect. 
 
 The card Avill be made the property of the workman, the 
 employer having no right to retain it Avithout hi.s consent, 
 or to write any comment whatever upon it. 
 
 Subject to the general rules laid down above, power will 
 be taken to make regulations dealing Avith the contribu- 
 tions of casual labourers, including persons aa'Iio are habitu- 
 ally employed by the hour or day, or for periods less than a 
 complete Aveek, and persons Avho are employed by several 
 employers in one week. It will be permissible under these 
 regulations for a group of employers Avho betAveen them 
 employ a group of casual labourers, or for a group of casual 
 labourers theubselvee, to deposit the casual labourers' cards 
 Avith an insurance officer or at a Labour Exchange or some 
 other suitable agency, to which (he money for the contribu- 
 tions would then be paid. 
 
 The cards Avill be made current foi' a fixed ))eriod, and 
 will be handed over at the end of the period by the insured 
 person to his society or to the Post Office, and he will re- 
 ceive a new card in exchang-e. The stamped card becomes 
 a vouclier furnishing evidence that the contributions have 
 been duly paid as it passes first from the employer to (he 
 insured person, then from him to his society, and finally 
 from (lie socie(y (o (lie Post Office oi- (lie department having 
 cus(<idy of the insurance funds. 
 
 7. Miscellaneous Questions. 
 
 (a I The Committee. — The Bill will contain provisions for 
 the setting up of a committee of employers and insured 
 persons whose duty it will be (/) advi.se (he insurance office.
 
 234 NATIONAL INSURANCE BILL. 
 
 App. A. C^) Double Insurance. — A clause has been inserted pre- 
 
 venting, under a penalty, double insurance in the State 
 
 scheme, and the same person will not be able to draw both 
 unemployed and sick benefit. Members will, of course, be 
 entitled to make what further insurance they may desire 
 voluntarily through their societies, or in any other way. 
 
 (c) Inspection, Insurance Office, dc. — A clause will be in- 
 serted giving the Government the right to appoint inspectors 
 for the purpose of the Act, and to establish an oftice for 
 the purpose of dealing with all matters arising under the 
 Act, the audit and valuation of accounts of societies, in- 
 vestments, &c. 
 
 Inspectors and officers of the insurance office so consti- 
 tuted will be given wide powers as regards all matters re- 
 lating to the collection of contributions, and as regards 
 conducting enquiries into the affairs of the societies. 
 
 (d) A penalty clause will be inserted to protect the 
 Government against false claims by officials of societies, 
 frauds in the Post Office insurance, and misuse of stamps 
 or cards; and to protect societies against frauds by officials 
 or members. Existing Acts will be applied as far as pos- 
 sible to this purpose. 
 
 Offences in connection with the payment of contributions 
 have been abeady dealt with. 
 
 (ej Out-door Relief. — The existing Act with regard to 
 benefits payable by friendly societies and out-door relief 
 granted by guardians will be made applicable. 
 
 (f) A clause will be drafted suspending the execution 
 of all process for ejectment or for rent or debt against 
 an insured person during the period he or she is in receipt 
 of sick pay under benefit (c) and for 14 days after the 
 expiration of such period. 
 
 Power will be given to the judge or registrar of the 
 county court to extend the period of protection in case of 
 sickness, in no case beyond twelve months without a gua- 
 rantee for the rent, if he is satisfied that life would be 
 imperilled. 
 
 Malingering. 
 
 The greatest evil which has to be guarded against in 
 all benefit schemes of this character comes from the danger 
 of malingering. The friendly societies have never been 
 able to suppress it altogether, and no plan which human 
 ingenuity can devise will succeed in stamping it out. The 
 best that can be achieved is the compression of it within 
 limits that will not substantially disarrange or affect the 
 funds available for honest men. The most effective check
 
 APPENDIX A. 235 
 
 — in fact, the only really effective check — upon malingering App. A. 
 
 is to be found in engaging- the self-interest of the work- '— 
 
 men themselves in opposition to it. That is why a pui-ely 
 State scheme, where the Exchequer could be drawn upon to 
 an unlimiied extent, would inevitably lead to unlimited 
 shamming and deception. This scheme is so worked that 
 the burden of mismana,gement and maladministration would 
 fall on the workmen themselves. If, through any such 
 cause, there is any deficiency, the workmen must make it 
 up either in diminished benefits or increased levies. Once 
 they realise that, then malingering will become an un- 
 popular vice amongst them, and they will take the surest 
 and shortest way to discourage it. 
 
 Finance. 
 
 An estimate of the cost of the scheme has been prepared 
 by actuaries and will be circulated as a separat-e paper. 
 
 D. LI. G.
 
 236 NATIONAL INSURANCE BILL. 
 
 AppB. APPENDIX B. 
 
 NATIONAL INSUEANCE BILL. (PART II.: 
 UNEMPLOYMENT.; 
 
 EXPLANATOKY MEMORANDUM. 
 
 The scheme of inaurauce ag^aiust uuemploymerit embodied 
 in Part II. of the National Insurance Bill provides for — 
 
 (a) compulsory insurance in certaiu scheduled trades; 
 
 (b) encouragement of voluntary insurance in all trades. 
 
 The scheme applies eompulsorily to all workmen, skilled 
 or unskilled, organised or unorganised, in building, con- 
 struction of works, shipbuilding, engineering and construc- 
 tion of vehicles (Sixth Schedule). That is to say, on the 
 one hand all Avorkmen and their employers are liable to 
 contribute to an unemployment fund in respect of employ- 
 ment in these trades, and, on the other hand, all workmen 
 who have thus contributed are entitled when unemployed 
 to certain payments from the fund. The definition of the 
 t«rm " workman " is such as to exclude foremen and clerks 
 as well as all persons under 18 years of age (Clause 81 (i.)), 
 and poA\'er is given to the Board of Trade by regulations to 
 define more exactly than can be done in the Sixth Schedule 
 the precise scope of the scheme (Clause 67 (1) (a)). Work- 
 men under the Crown, unless they are established, i.e., pen- 
 sionable, are included, but power is taken to adapt the 
 provisions of the scheme to their special circumstances 
 (Clause 81 (2)). 
 
 The income of the unemployment fund (Clause 68) is 
 raised by contributions from workmen, em})]oyers. and the 
 State (Clause 61). The workman's contribution is 2^d. 
 for each period of employment of a Aveek ox less, and the 
 employer's contribution is also 2^d. for each period of em- 
 ployment of a week or less, subject to the provision for 
 compounding described helow (Eighth Schedule). The 
 State contribution to the unemployment fund is one-third 
 of the total contributions from workmen and employers
 
 APPENDIX B. 
 
 237 
 
 (Clause 61 (5)). The Stale is responsible in the first in- App. B. 
 
 stance for the cost of administration, but ten per cent, of 
 
 the income of the unemployment fund will be paid over 
 in aid of administrative expenditure (Clause 65). The 
 workman's and employer's contributions will as a rule be 
 paid together by the emploj-er's purchasing- a special in- 
 surance stamp and affixing it to an insurance book carried 
 by the workman. That is to say, it will in general be 
 illegal to employ any workman in the insured trades with- 
 out obtaining from him an insurance book and without affix- 
 ing thereto week by week a 5d. stamp to repre.sent the joint 
 contribution. An employer who has affixed a stamp in 
 this way will be entitled to deduct half the value of the 
 stamp from the workman's wages (Clause 61 (3)). No con- 
 tributions are required while the workman is unemployed 
 for any cause. 
 
 The benefit provided consists of Aveekly payments to the 
 workman whilst unemployed provided that he fulfils certain 
 statutory conditions and is free of certain dis(|ualification.s 
 (Clause 60). The statutory conditions are, that the work- 
 man should have been employed in an insured trade for 
 26 weeks, should have made apjjlication for benefit in the 
 prescribed manner and have been continuousl} unemployed 
 since the date of ap])lieation, should be ca])able of work and 
 unable to obtiiin suitable employment, and should not have 
 exhausted his right to benefit (Clause 62). Notwithstand- 
 ing the fulfilment of the statutory conditions a Avorkman 
 may be disqualified for receiving benefit on the following 
 grounds for the period stated in each case: — 
 
 ^^a; if he ha.s lost cmploymoiit through a strike or lock- 
 out, for so long as the strike or lock-out continues; 
 
 (h) if he has lost employment through misconduct or has 
 voluntarily left employment without jusl cau><e, for 
 six weeks from the dale of losing or l(!aviiig em- 
 ployment; 
 
 ((■) if ho has been impi'isoned, for a peiiod of six weeks 
 afler leaviug prison: 
 
 (d) while he is an inmate of any public institution: 
 
 (e) while he is resident temporarily or permanently out- 
 
 side the United Kingdom. 
 CClause 63.) 
 
 No JKMK^lit will b(( paid for the first week of any period 
 of unom))loymeut. Thereafter benefit can be drawn at the 
 rate of 7s. a week by workmen engaged in (Migineering, 
 shipbuilding, and Cf)nstriiction of vehicles, and 6s. a week 
 by woikmcii fiitiatred in house building and works of con- 
 struction, up to a maximum in each case of 1") weeks of
 
 238 NATIONAL INSURANCE BILL. 
 
 App. B. benefit in any 12 months (Seventh Schedule). It is pro- 
 
 vided in addition that not more than one week of benefit 
 
 can be drawn by any man for ever}' five weekly contribvitions 
 paid by him. Thi.s rule, while it will not be felt by men 
 who work steadily in youth and only make large claims 
 on the fund in exceptional ti'ade depressions or in their 
 later years, will drastically exclude from benefit men who 
 are incompetent or idle. The same rule provides also an 
 automatic means of dealing- with the claims of those who 
 work only part of their time at an insured trade. Such 
 men will get a correspondingly reduced claim upon the 
 fund. Special provision is made to prevent the rule from 
 operating hardly in the case of workmen already working 
 at an insured trade before the commencement of the Act. 
 The rates and periods of benefit mentioned above are 
 those proposed in the first instance. Power is given, how- 
 ever, to the Board of Trade hy regulation to vary the rates 
 within certain limits (viz., 6s. and 8s. per week), and if 
 necessary to reduce the period below 15 weeks. For larger 
 variation in the rates, or for an extension of the period, 
 or change in the proportion which total benefits may bear 
 to total contribvitions, more elaborate procedure, involving 
 a public enquiry and hearing of objections, is required, 
 on the lines of the procedure for making special orders 
 under the Factory Acts (clause 78 and Ninth Schedule). 
 All such changes may relate either to the insured trades as 
 a whole or to any single trade or branch thereof. 
 
 The administration of the scheme will take place prin- 
 cipally through the Labour Exchanges. That is to say, a 
 workman leaving employment will take his insurance book 
 duly stamped to date to the nearest exchange and lodge 
 it and claim benefit. The decision as to how much benefit, 
 if any, he may draw will be made by a statutory officer 
 known as an "Insurance Officer" (clause 64 (D). The 
 Avorkman will be entitled to receive such benefit as the 
 insurance officer allows, subject to his remaining unem- 
 ployed and continuing to sign the register daily during 
 working hours. If the workman is dissatisfied with the 
 decision of the insurance officer in any case, he will have 
 a right of appealing to a Court of Referees (clause 64 
 (1) (a)), consisting of one or more members from a panel 
 of persons chosen to represent employers, and an equal 
 number of members from a panel of persons chosen to 
 represent workmen, with an impartial chairman (clause 66V 
 It is contemplated that Courts of Referees should sit in 
 convenient centres once a week, and should deal each week 
 with the whole of the appeals, so that there should be no 
 delay in deciding ca.ses. No charge will be made to the
 
 APPENDIX B. 239 
 
 workman for appealing- to a Court of Referees, and if sent App. B. 
 for to attend he will receive travelling- expenses (^clause - 
 66 (5)). If the Court of Referees and the insurance officer 
 are in agreement on any case, their decision will be final; 
 if they differ, there will be a further appeal to an umpire 
 appointed by the Board of Trade, whose decision will be 
 final and conclusive (clause 64 (1) (a)). The appeal to 
 the umpire will serve to harmonise the principles on which 
 Courts of Referees and" insurance officers decide cases. Dis- 
 tricts not covered by Labour Exchanges will be dealt with 
 tlirough local offices in the nature of sub-post offices. 
 
 The foregoing- paragi'aphs set our the framework of the 
 compulsory scheme. There are, however, a number of sub- 
 sidiary provisions which will be best understood by refer- 
 ence to two main underlying principles: — 
 
 (1) That provision for unemployment, whether through 
 
 insurance or in other forms, must not be such as to 
 create unemployment, and should if possible tend 
 to diminish unemployment; 
 
 (2) That compulsory provision for unemployment should 
 
 be accompanied by ai^rangements for preserving 
 and encouraging voluntar}^ provision. 
 
 Diminution ok Unemployment. 
 
 As regards the first principle — the avoidance of any 
 tendency to encourage or increase unemployment by pro- 
 viding for it — attention may bo called to the following- 
 points. 
 
 In the first place, provision for unemployment through 
 insurance is throughout closely linked uj) with the machinery 
 already established for diminisliing unemployment, namely, 
 llie Labour Exchanges. Workmen claiming unemidoyment 
 benefit through an exchange will automatically bo regis- 
 tered as applicants by the exchange Hov employment, and 
 if the exchange can find them suitable work, they Avill be 
 required to take that work in ])]ace of drawing benefit. 
 They will no longer be held to be " unable to obtain suit- 
 able emi)loyment" (clause 62). The insurance scheme, it 
 is hoped, will greatly increa'^e the efficiency of the ex- 
 chaiige.s. first by bringing to them all the unom])ioyod 
 workmen who apply for benefit, and second and conscqiion- 
 lially by inducing employers to send to them lor tlio men 
 who will necessarily be there. 
 
 In (ho second i)lace, Iho Inirden of providing Ijoiiofit is 
 tlirowii upon workmen, employers and State in such a way 
 as to give each of those parties an interest in diminishing
 
 240 
 
 NATIONAL INSURANCE BILL. 
 
 App. B. unemplojineut, I.e., preventing- unnecessary idleness with 
 
 a view to diminisliing the burden. The benefits of the 
 
 scheme are not guaranteed by the State. It is necessary 
 indeed to make some provision for the possibility of an 
 excejDtionally severe depression of trade which might ex- 
 haust the fund temporarily, and this is done by allowing' 
 the Treasury to make an advance (clause 69 (1)). It is 
 provided, however, that in the event of such an advance 
 being' made there may be required by the Treasury an 
 immediate temporary modification of the rates of contri- 
 bution, or of the rates and periods of benefit, such as may 
 serve to repay the advance and restore the solvency of the 
 fluid (clause 69 (2)). Further, if it is found over a period 
 of years that the rates of contribution are eirher too low 
 or too high in view of the benefits g'iven, it is contemplated 
 that there should be a periodical revision of these rates, 
 and that in such revision there should, if necessary, be a 
 differentiation between different trades and branches of 
 trades according to the unemployment recorded in them 
 (clause 76). In this way it is made to the interest of both 
 employers and workmen to reduce unemployment, if they 
 can, with a view to obtaining a reduction or avoiding- an 
 increase of contributions when the revision takes place. 
 The periodical revision of contributions requires a special 
 order, made after public enquiry and hearing of objections 
 (clause 78 and Ninth Schedule), and can only be undertaken 
 at intervals of five years or more. The contributions of 
 employers or workmen cannot be raised by such a revision 
 by more than one penny per workman per week. 
 
 In the third place, a number of specific provisions are in- 
 serted in the Bill with a view to encourag-ing regularity of 
 employment or otherwise diminishing- tbe burdens on the 
 fund. 
 
 (a) A minimum contribution of 2hd. each is required 
 
 from em])]oyers and workmen for every separate 
 period of employment of a week or less (Eighth 
 Schedule). In this way the premium for insurance 
 is to some extent automatically adjusted to the 
 greater risk, in so far as casual workmen and their 
 employers are required to pay more frequent con- 
 tributions than the more reg-ular workmen and 
 their employers. 
 
 (b) Any employer, in place of paying- in each week the 
 
 joint contribution of 5d. as it becomes due in 
 respect of any ))articular workman, may pay in 
 advance at a rate of 15s. for that workman for the 
 whole 3'ear, continuing to deduct from the work- 
 man the ordinary contribution for each week of
 
 APPENDIX B. -2M 
 
 emijloyment (clause 70). This rate represents a Ann B 
 substantial reduction of the employer's contribu- ^ ~^^L 
 
 tions. 
 
 (c) Any workman may at the age of 60 (or, in the case of 
 
 men who have finally left the trade, at the age of 
 oo) recover from the unemployment fund the 
 amount, if any, by which his own contributions 
 (exclusive of those of the employers and the State) 
 exceed the amount of benefits drawn by him from 
 the fund, with compound interest at 2^ per cent 
 (clause 71). 
 
 (d) In the case of workmen put on short time during- a 
 
 period of trade depression, the contributions both 
 of employers and of workmen may be remitted 
 altogether. This will give an advantage to em- 
 ployers who adopt tlie plan of working- short time 
 in times of depression instead of dismissing- some 
 men and keeping tlie rest on full time (clause 72) 
 
 (e) In the ease of workmen engaged through a Labour 
 
 i^xchange, the Labour Exchange mav bv arrano-e- 
 meiit with the employer undertake on "his behalf 
 the Avhole duty of ]:ecping and stampiuR- insurance 
 books, and further, mav treat all tJie successive 
 periods of employment of the same or different 
 workmen eng-ag-ed by that emj, lover tlirough the 
 Lxchang-e as a .singJe com iu no us period of em- 
 ployment of <me workman. In other words, an 
 employer a\]io use.s the Excliange may pav accord- 
 ing- to the amount of labour he has in fact used 
 even thoug-h the employment has been discon- 
 tinuous and though he has not always had the 
 same man (chiusc 73 (I)). Corre.sponding-Iv, a man 
 engaged throug-h the Labour E.xohaiige by one or 
 more employers Avith whom an arrangement lia.s 
 been made will be allowed to pax a single con- 
 tribution per week, however mauv separate en- 
 gagements he has had (clause 73 (2) ). 
 (f) Any workman wlio 1)ecomes repeatedlv unemployed 
 throug-h lack of skill or knowledge mav bo requiVo(] 
 to attend a suitable course of teclinical iii.s(ii,ttio,i 
 and il 1)0 fails to do so or to profit by such instruc- 
 tion, this fact may be taken into account in con- 
 sidering what is suitable em])lovment for him 
 (clause 74 (1)). 
 
 The combii K-d offcct of these provisions is to oive a sub- 
 stantial advantagxj both to the einploycr a.id to tli(< workman 
 in respect of rognilar and confinuoi.H eniployn.ent as ooin- 
 pared with ca.sual ongagomentfi. This discrimination is 
 
 B
 
 242 NATIONAL INSURANCE BILL. 
 
 App. B. justified both equitably and actuarially by the saving to the 
 unemployment fund Avhich results from the diminution of 
 claims for unemployment benefit. 
 
 Preservation and Encouragement of Voluntary 
 Insurance. 
 
 Provision is made in the following "ways for the preserva- 
 tion and encouragement of voluntary insurance against un- 
 employment. 
 
 In the first place, an association of workmen in the in- 
 sured trades which gives unemployment benefit can make an 
 arrangement with the Board of Trade, enabling its members 
 to draw benefit, not from the unemployment fund direct 
 through the Labour Exchange, but through the association. 
 The association will thereafter claim a refund from the un- 
 employment fund of the sums to which the individual mem- 
 ber would have been entitled (clause 79). The association 
 may thus be the channel for the distribution of the statutor}'^ 
 benefits to its own members. It will, of course, be at 
 liberty to give what benefits it pleases over and above the 
 statutory benefits, and to give them for what periods and 
 subject to what rules it pleases. The individual member 
 of the association will be concerned only with the rules of 
 his own association, and in place of having to attend at the 
 Labour Exchang-e to get say 7s., and at the association 
 office to get another 4s. or 5s., he will be able to get the 
 whole lis. or 12s. from his association, leaving the latter 
 subsequently to settle with the unemployment fund. In 
 order to secure the interest of the association in economical 
 distribution and to encourage provision of benefits beyond 
 the statutory minimum, it is provided that repayments to an 
 association under this clause shall not exceed two-thirds of 
 what it has itself expended. In addition to repayments 
 under this clause (79) the association will be entitled to 
 participate in the subsidy payable under the scheme of 
 voluntary insurance in the next paragTaph. 
 
 In the second place, it is provided that the Board of Trade 
 may out of moneys provided by Parliament pay to any 
 association giving unemployment benefits a subsidy of one 
 sixth of the amount (up to a maximum rate of 12s. a week) 
 expended on such benefits, exclusive, in the case of an asso- 
 ciation which has made an arrangement under clause 79, of 
 any sum repaid to the association under that arrang-ement 
 (clause 80). This provision, which is applicable to all trades 
 and all classes of employees, thus adds on to the limited com- 
 pulsory insurance scheme a scheme for universal voluntary 
 insurance through avssociations .
 
 APPENDIX B. 248 
 
 While the compulsory part of the scheme is limited at the App. B. 
 
 outset to the trades mentioned, poA\er is g-iveu to the Board — 
 
 of Trade to extend it to other trades by special order involv- 
 ing' the procedure already described (clauses 77 and 78). 
 
 Miscellaneous provisions, e.g., for inspection of work- 
 places so as to see that cards of men eug-aged are being 
 duly stamped: for making- unemployment benefit inalien- 
 able; and for excluding consideration of -any benefit under 
 the Bill when boards of guardians are making a grant of 
 out-door relief, are contained in the general part of the 
 National Insurance Bill (Part III.). 
 
 It is estimated that 2,421,000 Avorkpeople of 18 years of 
 ag« and upwards vnW come within the compulsory insurance 
 scheme at the outset, and that these will be divided into tAvo 
 groups as folloAvs: — 
 
 Engineering, shipbuilding, and construction of vehicles, 
 
 1,100,000. 
 Building and works of construction, 1,321,000. 
 
 The membershi]) of trade unions in the insured trades at 
 the end of 1909 was 462,288. of whom about -350,000 be- 
 longed to unions providing unemployment benefits other 
 than travelling pay. 
 
 The re])ort of the actuary and further stati'itical informa- 
 tion with regard to unemjiloyment insurance will be circu- 
 lated shortly. 
 
 r2
 
 244 NATIONAL INSURANCE BILL. 
 
 App.c. APPENDIX C. 
 
 AMENDMENTS DESIEED BY THE FRIENDLY 
 
 SOCIETIES. 
 
 Clause 1. 
 
 Hearts of Oak Benefit Society ; Independent Order of Odd- 
 fellows (East Anglian Unity); Order of Druids; 
 Ancient Noble Order of United Oddfellows (Bolton 
 Unity); National United Order of Free Gardeners: 
 
 Clause 1, section 4: Amend to include persons over 65 
 years of age who have been members of approved societies 
 for a period of twenty years prior to the passing of the Act. 
 
 Clause 2. 
 
 Manchester Warehousemien and Clerks' Provide?it Associa- 
 tion : 
 
 Clause 2 to be amended so as to provide that wherever 
 a member of a solvent and well-managed society registered 
 under the Friendly Societies' Acts can show to the sadsfae- 
 tion of the Insurance Commissioners that he is covered by 
 virtue of his voluntary subscription to such society for the 
 minimum amount of benefit which he would receive under 
 the National Health Insurance Bill, he shall be granted 
 exemption from compvilsory insurance: 
 
 Clause 3. 
 
 National Independent Order of Oddfellows: 
 
 Clause 3, section 4: That the words "seven-ninths" be 
 deleted from line 4 of clause 3, and "two-thirds" substi- 
 tuted in lieu thereof. Aho that the Avords " two-ninths " be 
 deleted from line 7 in clause 3, and " one-third " substi- 
 tuted in lieu thereof.
 
 APPENDIX c. :^46 
 
 App. C. 
 Clause 4. " 
 
 Independent Order of Rechabites ; Ancient Order of 
 Foresters; Sons of Temperance; Order of Druids; 
 Nationnl United Order of Free Gardeners : 
 
 (1 ) Clause 4 (and Second Schedule): That coiitributious 
 be apporrioued for each benefit and for manag-ement, and 
 at the least the niaxinuuu allowance for nianag-ement to bie 
 clearl}^ stated. 
 
 Ancient Order of Foresters; Grand United Order of Odd- 
 fellows : 
 
 (2) Clause 4 (and Second Schedule): That arrears of 
 contributions allowed in respect of unemployment be clearly 
 stated. 
 
 Ancient Order of Foresters; Grand United Order of Odd- 
 fellows; Independent Order of Rechabites; 
 
 (3) Clause 4 (and Second Schedule): Page 3, line 24, 
 after " Act " insert: " (2a) Provided that when a person is 
 already insured in an approved society for benefits equal 
 to those insured under this part of the Act' and while so 
 insured the contributions ' to be paid by the contributor ' 
 mentioned in Part I. of the Second Schedule to this Act 
 shall not be deducted by the employer if and so long- as 
 the proper oJQBcer of such society certifies to the employer 
 that such insurance continues in force." 
 
 That a flat rate contribution bo paid by the Governmeni 
 in respect of all such members. 
 
 That the penalising of persons under 21 years of age 
 in respect of reduced benefits be removed. 
 
 Hearts of Oak Benefit Society ; National Independent Order 
 of Oddfelloirs ; Nottiju/hani Ancient Imperial United 
 Order of Oddfellows ; National United Order of Free 
 Gardeners : Independent Order of Oddfellows (Ke)it 
 Unity) : 
 
 (4) Clause 4, section 2 (and Third Schedule): Amend so 
 as U) allow iiionibeis of approved societies to pav the whole 
 of their contiilmtions direct to their societies. 
 
 national AssocUition Friendly Society: 
 
 (5) Clause 4, scdioii '.\. Add io section: "The contiibii- 
 tion of the insured in this case refers only to the contribu-
 
 4b NATIONAL INSURANCE BILL. 
 
 ^PP' ^' tion payable by himself, and the amount usually paid by 
 an employer shall be credited from the insurance fund." 
 
 Ancient Order of Foret^ters ; Loyal Order of Ancient Shep- 
 herds (Ashton Unity); Grand United Order of Odd- 
 fellows : 
 
 (6) Clause 4: page 3, in line .'32, after "seventy" insert: 
 '•Unless the insured person is not eligible to the old age 
 pension, such person to have the opportunity of continuing 
 the membership under the same conditions of the previous 
 membership." 
 
 National Independent Order of Oddfellows: 
 
 { 7 ) That the maximum sum allowed for management ex- 
 penses under the National Health Insurance Scheme be 4s. 
 per member per annum. 
 
 Clause 6. 
 Rational Association Friendly Society : 
 
 Clause 6, section 4: Inasmuch as this section appears to 
 be inequitable in consequence of the insured employed con- 
 tributor having- paid all that was required of him, he should 
 not be penalised for having improved his position in life 
 by being charged with arrears, when in fact there would 
 be no arrears because his employer had already paid the 
 '•id. per week for him. 
 
 Suggest amendment: That where an employed contributor, 
 within five years from his entry into insurance, ceases to 
 be employed within the meaning of this part of this Act, 
 and becomes a voluntar}' contributor, he shall pay the re- 
 quired contribution for those under 45 years of age, and 
 if above that age, shall pay contributions in accordance 
 with age at the date he becomes a volutitary contributor, 
 under the same scale as provided for in section 5, sub- 
 section (a). 
 
 Clause 7. 
 
 Ancient Order of Forester's; Grand United Order of Odd- 
 fellows; Independent Order of Rechabites ; National 
 United Order of Free Gardeners : 
 
 (^1) Clause 7: That times or dates be stated when stamped 
 cards are to be produced to the society to show whether 
 person insured is in benefit or not, &c.
 
 APPENDIX C. 
 
 247 
 
 Rational Association Friendly Society : App. C 
 
 (2) Clause 7 (b): That every insurer paying contribu- 
 tions through an approved society shall produce his con- 
 tribution card at least once a nionrh to the society of which 
 he is a member, for the purpose of taking particulars of 
 his payments. 
 
 Clause 8. 
 Royal Oak Benefit Society : 
 
 (1) Clause 8: That dentistry be inchided amongst the 
 benefits. 
 
 (The following arrangement is suggested: That the State 
 pa}^ two-ninths of the expense, that one-half of the re- 
 mainder be paid from the funds proposed to be created 
 by the Bill, and the remaining proportion be paid by the 
 individual member, the society to be allowed to advance 
 him that amount, if required, subject to, say, two sureties 
 and to some arrangement for the repayment or recovery of 
 the money. J 
 
 Hearts of Oak Benefit ^Society : 
 
 (2) Clause 8, section I. sub-section (b;, and clause 15: 
 Amend to provide that the sanatoria benefit shall be under- 
 taken by the State, i.e., that sanatoria be established, main- 
 tained, and managed by or under the control of tlic Local 
 doverjiment Board, and that no moneys payable or credited 
 to approved societie.s be chargeable for this purpose . 
 
 Clause 8, section 1, sub-section (c): Amend to prmido 
 for payment of sickness benefit from the hrst day. 
 
 J^atvotial Independent Order of Oddfelloivs ; Order of 
 Druids; Ancient Order of Rowans : Independent Order 
 of Oddfellows (Kent Unity): 
 
 (Z) Clause 8, section 1, sub-section (e): That tlie mater- 
 nity benefit be paid in cash. 
 
 Loyal Order of Ancient Shepherds (Ashton Unity); 
 National United Order of Free Gardeners; Ancient 
 Order of Foresters; National Independent Order of 
 Oddfelloivs ; Sons of Tempeiance ; Royal Oak Benefit 
 Society : 
 
 (4; Clause 8, section 1, sub-section {c): After ''benefit" 
 insert " but no maintenance shall be given for a lesser period 
 of sickness than four days."
 
 248 NATIONAL INSUEANCE BILL. 
 
 App. C Ancient Order of Foresters : 
 
 (5) Clause 8, section 3, page 7, line 3, after "life" in- 
 sert: " But this shall not apply to those insured persons 
 under the Act who are not eligible for relief under the Old 
 Age Pension Act." 
 
 Ancient Order of Foresters ; Loyal Order of Ancient Shep- 
 herds (Ashton Unity); Grand United Order of Odd- 
 fellows; National United Ordei- of Free Gardeners: 
 
 (6) Clause 8, section 1, sub-section (e), page 6, line 27: 
 After " benefit " insert: " In the event of a married man and 
 his wife being insured under the Act, the maternity allow- 
 ance shall be sixty shillings," or, in the alternative, "that 
 two premiums (that of the husband and the wife) shall not 
 be charged for the one risk." 
 
 Hearts of Oak Benefit Society : 
 
 (1) Clause 8, section 1, sub-section {e): Expunge regula- 
 tion (e) on page 6 of memorandum, and sub-section 2 of 
 clause 16. 
 
 Rational Association Friendly Society : 
 
 (8) Clause 8, section 4: But any insurer having contri- 
 buted for five years, if he leaves the United Kingdom to 
 reside temporarily or permanently abroad, may continue 
 his member.ship in an approved society, and shall pay con- 
 tributions in accordance with his age at entry, under the 
 National Insurance Bill, and the reserve value shall in such 
 case be transferred from tlie insurance fund to the approved 
 society. 
 
 Royal Oak Benefit Society : 
 
 (9) Clause 8, section 6: That this section be so amended as 
 to give a woman member medical benefit during confinement 
 for any illness Avhich may supervene . 
 
 National Independent Order of Oddfellows : 
 
 (10) Clause 8, section G, be so amended that it will read: 
 "Where a woman is herself entitled to maternity benefit 
 she shall not be entitled to disablement benefit." 
 
 A.ncient Noble Order of United Oddfellows (Bolton Unity): 
 
 (11 j Clause 8, section 6: Delete the words " sickness bene- 
 fit, disablement benefit, or." 
 
 Hearts of Oak Benefit Society : 
 
 (12) Clause 8, section 7: Expunge this section as regards 
 free members of approved societies.
 
 APPENDIX C. 249 
 
 Loyal Order of Ancient Shephei-ds (Ashton Unity): App. C. 
 
 (13) Clause 8, section 7, sub-section (a): After "Act"' 
 insert " unless sucli in.sured person has been a member of an 
 approved society for a period of tnelve months prior to the 
 passing of the Act." 
 
 (14) Clause 8, section 7, sub-section (c;, line 2: Aft«r 
 ■ entry " insert ' into an approved society or." 
 
 (15) Clause 8, section 7, sub-section (d), Hue 5: After 
 "'entry'" insert "into an approved society or.' 
 
 (16) Clause 8, section 7, sub-section (f), line 3: After 
 ■'entry" insert "into an approved society or." Line 5, 
 after "him" insert "to an approved society or under the 
 Act." 
 
 National Independent Order of Oddfellows; National 
 United Order of Free Gardeners; Ancient Order of 
 Foresters; Grand United Order of \Oddfelloios ; 
 Rational Association Friendly Society : 
 
 (17) Clause 8, section 7, j)age 7: Delete sub-section (a). 
 (This "would give medical benefit from entry.) 
 
 Ancient Order of Foresters; Grand United Order of Odd- 
 fellows ; Rational Association Friendly Society ; Inde- 
 pendent Order of Rechabites ; National United Order 
 of Free Gardeners : 
 
 (18) Clause 8, .section 7, pages 7 and 8: (a) Make clear 
 whether an insured person who is sick or disabled, and under 
 saspension of benefit through no fault of his own (i.e., 
 through a check on claims under the .scheme), is relieved or 
 not from contributions while the sickness or disablement 
 continues. 
 
 (19) (b) At least modify the provision that sickness or 
 disablement benefit is not payable if sickness or disable- 
 ment commenced in the Avaiting period, so that -where the 
 person insured passed a medical test on entry the provision 
 shall not apply. 
 
 (20; (c; Sickness or disablement benefit ought to bo paid 
 to a Avife onlinarily living away from the jnomises of the 
 employer of the husband where the Jiusband, being an in- 
 sured per.son, is ill and otherwise entitled to benefit, where 
 the employer provides the husbaJid with board and lodging. 
 
 (21; (dj Oil page 8, delete lines 3, 4, and 5. 
 
 (22) Clause 8, scdioii 7, page 8: After line 11 in.scrt: 
 " The provisions of sub-sections (a) to (f; inclusive shall not
 
 250 NATIONAL INSURANCE BILL. 
 
 App. C. ^PPly ^<3 insured persons who were members of approved 
 societies and entitled to similar beiielits before the passing- 
 and on the coming into force of this Act." 
 
 iloyal Oak Benefit Society : 
 
 (23) Clause 8, section 7, sub-section {c): That " 52 weeks" 
 be substituted for " 104 weeks " in this sub-section. 
 
 Royal Oak Benefit Society; Independent Order of 
 Rechabites: 
 
 (24) Clause 8, section 7, sub-section (d;: That this sub- 
 section be deleted. 
 
 Royal Oak Benefit Society: 
 
 (25) Clause 8, section 7, sub-section (e): That a similar 
 provision be added as to the payment of sickness benefit 
 where a member has any dependents as is contained in the 
 clause providing- for the payment of sickness benefits to 
 members while in hospital, sanatoria, &c. 
 
 Grand United Order of Oddfellows : 
 
 (26) Clause 8: Provision to be made for supplying funds 
 to societies to meet expenditure without interfering Avith 
 existing societies' funds. 
 
 (27) Clause 8: Make clear when an insured person who 
 is sick or disabled and under suspension from benefit is re- 
 lieved or not from contributions whilst such sickness or 
 disablement continues . 
 
 Order of the Sons of Temperance; Ancient Order of 
 Romans; Independent Order of Oddfellows (Kent 
 Unity) : 
 
 (28) Clause 8: To ascertain to what extent the fund is 
 loaded for medical attendance and medicine, and the precise 
 amount for (a) medical attendance; (b) medicine and drugs; 
 (c) to call attention to the necessarily increased payments 
 to doctors for all friendly society members over the 1601. 
 limit; (d) to ask that members of societies over 65 years of 
 age at the commencement of the Act be allowed to partici- 
 pate in its benefits; (e) to ascertain if the examination fee 
 for candidates is included, and if not, to take action in order 
 that same shall be included.
 
 APPENDIX C. 
 
 251 
 
 United Patriots National Benefit Society ; Natioml Indepen- A pp- C 
 dent Order of Oddfellows : 
 
 (29; Clause 8; That exemptioiii; from the waiting- periods 
 mentioned in clause 8, section 7, be g-rauted to all free 
 members of friendly societies and trades unions who are 
 insured against sickness. 
 
 Caledonian Order of United Oddfellows : 
 
 (30) Clause 8, section 7, sub-section (e): After the word 
 "employer," add: "With the exception of those having de- 
 pendents to whom the benefit shall be paid." 
 
 National Independent Order of Oddfellows : 
 
 (31) Clause 8: That the provisions of clause 8, section 7, 
 sub-section (e), shall not apply in cases where a man has 
 dependents. 
 
 Ancient Noble Order of United Oddfellows {Bolton Unity): 
 
 (32) Clause 8, section 7: Delete sub-section (a). Clause 8, 
 section 7: Delete sub-section (d), and substitute: "To sick- 
 ness benefit in respect of any disease or disablement which 
 commenced during the 26 weeks next following his entry 
 into insurance, unless at least 26 contributions have been 
 paid on behalf of him and he is not otherwise disqualified; 
 nor to disablement benefit in respect of any disease or dis- 
 ablement which commenced during the 104 weeks next 
 following his entry into insurance, unless at least 104 con- 
 tributions have been paid on behalf of him and he is not 
 otherwise disqualified. ' 
 
 Clause 9. 
 Royal Oak Benefit Society : 
 
 (1) Clause 9, section 1: That age 18 be substituted for 
 21 in this section. 
 
 Hearts of Oak Benefit Society: 
 
 (2) Clause 9, sections 1 and 3, and Fourth Schedule, 
 Ta})los R. and C: Amend so as lo exoiii|)t mombors of ap- 
 proved societies who were in iii('iiil)ersliip before ihu passing 
 of the Act. 
 
 (3; Clause 9, section 2, and clause 27, second paragraph: 
 .\nioiid so as to define inoio clearly and in any case provide 
 that the income from any soui-ce of members of approved
 
 252 
 
 NATIONAL INSURANCE BILL. 
 
 App. C. societies who were in membership before the passing- of 
 the Act, shall not affect their sickness benefit. 
 
 Notthigham Ancient Imperial United Order of Oddfellows ; 
 Rational Association Friendly Society: 
 
 (4) Clause 9, section 2, be so amended as to provide that 
 15s. per week for adult males, and lis. 3^^. per week for 
 adult females, shall be assumed to be the minimum wag-e 
 for the purposes of this section. 
 
 Independent Order of Reohabites : 
 
 (h) That ]irovision be made in respect of persons under 
 clause 9, section 3, who have been members of societies 
 and have had to drop their sick benefits therein in order to 
 come under the Stata scheme. 
 
 Clause 10. 
 Rational Association Friendly Society : 
 
 (1) Clause 10, section 5: This section should be amended 
 to clearly define if a contributor in paying arrears with 
 interest, has to pay not only his own 4d. per Aveek, but 
 also an assumed employer's Sd. j)er week. 
 
 National Independent Order of Oddfellows : 
 
 (2) That the clauses in the Bill which deal with arrears 
 of both employed and voluntary members are unsatisfac- 
 tory, and should be amended, (a) No "employed " member 
 should be called upon to pay contributions during unem- 
 ployment, (b) In regard to "voluntary" members, the 
 provisions in the Bill are altogether too complicated, and 
 should be considerably simplified. 
 
 Clause 11. 
 
 National Independent Order of Oddfellows ; Ancient Order 
 of Foresters ; Loyal Order of Ancient Shepherds (Ash- 
 ton Unity); Sons of Temperance ; Rational Association 
 Friendly Society ; Ancient Noble Order of United Odd- 
 fellows {Bolton Unitij); Nottingham Ancient Imperial 
 United Order of Oddfellows ; Independent Order of 
 Rechabites : 
 
 (1) Clause 11, section 1, page 12, line 15: Delete "either 
 at its own expense," and insert "with the sanction of the 
 insurance commissioners and at their expense."
 
 APPENDIX C. 
 
 !293 
 
 Order of the Sons of Temperance: App. C- 
 
 (2) Clause 11: (a) To endeavour to obtain the deletion 
 of this clause, and the substitution of another giving imme- 
 diate medical benefit, (b) To endeavour to obtain modifi- 
 cations in sections (d), (e), and (f) of this clause. 
 
 Hearts of Oak Benefit Society: 
 
 (3) Clause 11: Amend so that the State shall provide 
 sickness benefits in cases of compensated accidents or in- 
 juries. 
 
 Royal Oak Benefit Society : 
 
 (4) Clause 11: That one-half sickness benefit be paid to 
 the member in receipt of compensation. 
 
 Sational Independent Order of OddfeUoii-s; National United 
 Order of Free Gardeners: 
 
 {S) Clause 11: That provision he made in clause 11 
 whereby notification shall be given by an employer or other 
 person paying accident compensation to an injured person, 
 such notification to 1)6 sent to the society of which the in- 
 jured person is a member, stating the amount of coinpen- 
 sation i)aid. Or otherwise that ail compensation paid to 
 a member shall bo ])aid tlirotigh the society of wliich he is 
 a member. 
 
 Clause 12. 
 Raijal Oak Benefit Society: 
 
 Clause 12, section ;}: That where parents have married 
 since birth, illegitimate children be included under the ex- 
 pression "dependents." 
 
 Clause 14. 
 
 Ancient Order of Foresters; Independent Order of Recha- 
 bites; National I'nlled Order of Free Gardeners: 
 
 (Ij Clause 14: That .separation of arrangements for 
 (1) treatment and for (2) medicine and drugs in regard to 
 medical benefit to be made optional. 
 
 Grand United Order of OddfelUms : National United Order 
 of Free Gardeners: 
 
 (2) Clause 14: Tbut the Govoniment bo rerpiested to pro- 
 vide in clause 14 a fixed sum per member U) be paid to
 
 26i NATIONAL INSURANCE BILL. 
 
 App. C. iiiedica] ijractitioners, such sum to be ditferent for town or 
 ■ — ^— — country members, or occupation, as may be thought desir- 
 able. 
 
 Order of the Sons of Temperance; Independent Order of 
 Oddfellows (East Anglian Unittj); Independent Order 
 of OddfeUoivs (Norfolk and Norwich Unity): 
 
 (3) Clause 14, sub-sections 1 and 2: To oppose the clauses 
 as they now stand, and to move for a clause permitting 
 the present practice of obtaining- medical advice and medi- 
 cine from the same practitioner. 
 
 United Patriots National Benefit Society : 
 
 (4) Clause 14: That concerted steps be taken to retain 
 clause 14, section 1, as printed in the Bill. 
 
 Rational Association Friendly Society: 
 
 (5) Clause 14, section 3: Add: " That in the case of what 
 is termed country members living too far away from their 
 branch or society to receive medical attendance and treat- 
 ment of the appointed medical men of such society, that 
 the members so situated shall be entitled to receive medical 
 attendance and treatment from any medical man appointed 
 either by a society or Health Committee, without extra cost 
 to the insurer. 
 
 Boyal Oak Benefit Society : 
 
 (6) Clause 14, section 3: That payments to local Health 
 Committees for medical benefit be made each quarter and 
 not each year. 
 
 Nottingham Ancient Imperial United Order of Oddfellows : 
 
 (7) Clause 14, sections 1, 2, and 3, be so amended as to 
 make it clear that the control of the medical men receiving 
 payment on account of the members of the approved 
 societies, and the provisions for the supply of medicines, 
 shall rest with the societies themselves. 
 
 (8) That the amount charged to such societies shall not 
 exceed the amount named by the actuaries on page 42 of 
 their report. 
 
 (9) That in the opinion of this assembly the provision 
 of medicine by the chemist separate from the doctor is a 
 wise one, and well calculated to facilitate the recovery of 
 the sick person.
 
 APPENDIX C. 2^^ 
 
 (10) That no income limit be recognised by the societies App. C 
 in relation to medical benefits. 
 
 (11) Clause 14, section 1, the following- be added: 'Ex- 
 cept where an approved society, with the sanction of the 
 insm-ance commissioners, shall provide for insured persons 
 to receive medical treatment, and medicine, through the 
 approved society's medical institute." 
 
 Clause 16. 
 Royal Oak Benefit Society : 
 
 (1) Clause 16, section 1: That maternity benefit be paid 
 direct to the woman in all cases. 
 
 Ancient Order of Foresters; Loyal Order of Ancient Shep- 
 herds (Ashton Unity): 
 
 (2) Clause 16: That section 2, lines 25. 26, 27. 28, and 
 29, be deleted. 
 
 United Patriots Mationat Benefit Society : 
 
 (3) That clause 16, section 2, be amended by deleting 
 the words " expended in such manner as may be prescribed," 
 and instead thereof inserting, " paid to the insured person." 
 
 Hafioual Association Friendly Society ; Natiomd United 
 Order of Free Gardeners: 
 
 (4) Clau.se 16: Recommend to add to .section 2: That the 
 maternity benefit paid to insurers by an approved society 
 shall not come under the restrictions in section 2. 
 
 Ancient Noble Order of United Oddfellows (Bolton Unity) : 
 
 (5) Clause 16, section 2, page 16, line 26: After the word 
 "prescribed" insert "by an approved society or local 
 Health Committee as the case may be." 
 
 Cl.\use 18. 
 
 Independent Order of Oddfellows (East Anglian Unity): 
 
 ilj Claase IH: Th;u clause 18, section 2, sub-section (i). 
 be deleted. 
 
 Royal Oak Benefit Society ; Ancient Order of Romans: 
 
 (2) Clause 18, section 2, sub-section (1): Tliat "5,000" 
 be substituted for " 10,000."
 
 256 NATIONAL INSURANCE BILL. 
 
 App. C Royal Oak Benefit Society : 
 
 (3) Clause 18, section 2, sub-section (2): That the follow- 
 ing be substituted: "It must not provide any additional 
 benefits other than those contained in the scheme unless the 
 contribution tables for such benefits are certified to be suffi- 
 cient by a qualified actuary, i.e., a Fellow of the Institute 
 of Actuaries or the Faculty of Actuaries." 
 
 Loyal Order of Ancient Shepherds (Ashton Unity) : 
 
 (4) Clause 18, section 2, sub-section (ii): After second 
 word "of" insert "reducing contributions or increasing." 
 
 United Patriots National Benefit Society; Hearts of Oak 
 Benefit Society : 
 
 (5) Clause 18: That sub-sections (ii) and (iii) as printed 
 in the Bill be adhered to . 
 
 Ancient Order of Foresters ; Loyal Order of Ancient Shep- 
 herds {Ashton Unity); Grand United Order of Odd- 
 fellows; National United Order of Free Gardeners; 
 United Patriots National Benefit Society : 
 
 (6) Clause 18: Add as neAv section: "No society shall be 
 entitled to be an approved society unless it is a friendly 
 society providing at least sick and old age benefits and is 
 registered under the Friendly Societies' Act, and no trade 
 union shall be recognised except on the same conditions 
 (Trade Union Act for Friendly Societies' Actj, the trade 
 unions also to comply as to separation of accounts." 
 
 Ancient Order of Foresters; Loyal Order of Ancient Shep- 
 herds (Ashton Un'ty): Grand United Order of Odd- 
 felloics; hideperulent Order of Rechabites ; National 
 United Order of Free Gardeners; Ancient Order of 
 Romans : 
 
 (7) Clause 18: That the expressed intention of the Gov- 
 ernment to include collecting and insurance companies and 
 dividing societies as approved societies under the national 
 health insurance scheme is a direct attempt to open competi- 
 tion against properly con.3titut8d benefit societies, which 
 must have a detrimental effect upon them, and this confer- 
 ence strongly protests against such bodies being utilised 
 against those societies which have always been working for 
 the payment of sickness benefits. 
 
 North Staffordshire Provident Association : 
 
 (8) Clause 18: That this general annual meeting of mem-
 
 APPENDIX C. 257 
 
 ber.s ui: the North Staffurdshiie Provident Association, an App. C. 
 
 association established and registered as a frieadly society -^ 
 
 in 1817, Tiith funds of £113,000 and actuarial surpluses in 
 all departments, a membership of 4,400, and with all the 
 qualifications i-equired under the National Insurance Bill 
 Avitli the exception of the number of members, respectfully, 
 but urg-ently, requests the G-overnment to consider and 
 amend clause 18, .so that souud friendly societies distribu- 
 ting permanent sickness and other benefits, and with local 
 and central arrang-ements for efficient management, ma}- 
 be included amongst that body of friendly societies which 
 will be approved, and so be able to co-operate with the State 
 in the working of the health insurance scheme. 
 
 Manchester Warehousemen and Clerics' Pro-vident Associa- 
 fion : 
 
 (9) Clause 18: In clau.-e 18, ])age 17, lines 8 and 21: 
 Delete i\\o Avord "ten"" before the word "thousand" and 
 substitute the Avord "five, " so that clause 18, section 2, sub- 
 section (i.) Avill now read "it must have at least five thou- 
 sand meud)ers, being insured persons; "' and sub- 
 section (iii. ) to noAv read "a society may apply for approval 
 at any time before or after the commencement of this Act, 
 and a society Avith less than five thousand members, being- 
 insured persons, Avhich otherwise fulfils the requirements of 
 this .section, may be approved by the insurance commis- 
 sioners conditionally upon its having the requisite number 
 of such members Avithin such time as the insurance com- 
 missionei's may allow." 
 
 From the Caledonian Order of United Oddfellows : 
 
 (10) Clau.sc 18: That this national conference of friendly 
 societies ask the Chancellor of the E.xchequer to take into 
 hi^ favourable consideration the advisability of accepting 
 all existing societies fulfilling tlie conditions for approval, 
 other than that of membership. 
 
 Improved Independent Order of Oddfellows (London 
 Unity J ; Sons of liechah : 
 
 (11 ) Clause 18, sections 2 and 3: That the Chancellor of 
 the Exclierjucr be re(|ucsted to substitute 1,000 ior 10,000 
 as a condition of an a])proved .society. 
 
 Siirrcf/ Ncfnniied Benefil Soriefij : 
 
 (12) Clause 18, .sectioji 2: Delolo the number of meud)ers 
 fixed as lioing a neoensary (piiilification for Avorking as an 
 a])provod society. 
 
 w. B
 
 258 NATIONAL INSURANCE BILL. 
 
 App. C. Independent Order of Oddfellows {Kent Unity) : 
 
 (13) That the numbers of approved societies be reduced 
 to 4,000 members if the society has been established 50 
 years . 
 
 Clause 19. 
 
 Loyal Order of Ancient Shepherds (Ashton Unity)-, Grand 
 United Order of Oddfellows ; Satis of Temperance : 
 
 (1) Clause 19, section 1, line 4: After "approved" insert 
 "provided that no employee is compelled as a condition 
 of employment to surrender his membership in an approved 
 society to join any society formed by an employer or a 
 number of employers." 
 
 Ancient Order of Foresters: 
 
 (2) Clause 19: That in the opinion of this conference, 
 after the passing- of this Act, it shall not be lawful for an 
 employer to make it a condition of employment that any 
 person employed must become a member of the works' sjck 
 club. 
 
 Royal Oak Benefit Society : 
 
 (3) Clause 19: That no superannuation fund or other 
 similar fund established by an employer or a number of em- 
 ployers be approved unless prior to the introduction of the 
 National Insurance Bill into the Hou.se of Commons it has 
 been certified under the Shop Clubs Act of 1902, and further, 
 that the beiiefits are, at least, 25 per cent, in excess of those 
 proposed by the Bill. That a deposit be required by such 
 funds as if they were approved societies, and that all such 
 funds be on a sound actua*'ial basis. 
 
 Clause 20. 
 
 Hearts of Oak Benefit Society ; Aii6i-ent Order of Foresters; 
 Grand United Order of Oddfellows ; Sons of Temper- 
 ance ; hidependent Order of Fechabites ; NationM 
 United Order of Free Gardeners: 
 
 (1) Clause 20: Page 18, lines 28 and 29: Delete ''Of 
 securities belonging to the seeiety," and insert "Of bonds 
 or policies of a guarantee company or society of at least 
 five years' standing."
 
 APPENDIX C, 
 
 269 
 
 Hoyal Oak Benefit Society : App. C. 
 
 (2) Clause 20: That tlie security to be given by approved 
 societies be 20,000?., and that repayable mortgage deeds 
 for both local loans and leasehold or freehold property be 
 accepted . 
 
 The Order of Druids : 
 
 (3) Clause 20: Clause 20 of the Bill to be amended by 
 the substitution of "one quarter" for "one half," or that 
 security may be given through an approved system of 
 fidelity insurance. 
 
 Nottingham Ancient Imperial United Order of Oddfellows : 
 
 (4) Clause 20, section 1: In line 8 delete the words "one- 
 half." and substitute "one-tenth." 
 
 Clause 21. 
 Hearts of Oak Benefit Society : 
 
 (^\) Clause 21, section 2: Amend by deleting the word 
 ""committee " on the ninth line, and substituting "'branch " 
 or "association," and by adding the -word "medical" after 
 ■'administering" on the tentli line, adding aft,er "'benefits," 
 on the tenth line, " and such other duties as the society may 
 devolve upon them from time to time." 
 
 1 2) Clause 21: Amend section 8 by deleting the -word 
 "committee" on the sixth line, and sub.stituting "branch" 
 or " association." 
 
 (3) Claiiso 21: Amend section 4 by deleting the Avord 
 "committees" Avherever it occurs, and substituting 
 " branches " or " associations." 
 
 (4) Clause 21: Amend section 5 by deleting the words 
 "and every such local committee" on the first and second 
 lines . 
 
 Or as an alternative to the above amendments of clause 21 
 e.x'punge sections 2, 3, and 4, and the words "and every 
 Miuh local committee " in section 5, and in place thereof 
 provide that sufli societies shall transfer the administra- 
 tion of their medical benefits to the local Health Com- 
 mittees. 
 
 Uational AssociaiioH Friendly Society: 
 
 (5 I Clause 21, section 2: Add: L'nle.ss the rules of such 
 societv provide for remitting benefit without dedin'iion to 
 the insurer, niifl ii i)rop('r svstem (if visiting the si(Ov. ' 
 
 ■s2
 
 260 NATIONAL INSURANCE BILL. 
 
 ■A-Pp. C. (6) Clause 21, section 5: Add: " But no place of meeting 
 
 — ' - shall cost the societies more for rent than now being paid 
 by them, oomput/ed on an average per meeting." 
 
 Ancient Noble Order of United Oddjelloivs (Bolton Unity): 
 
 (7) Clause 21, section 5: Add at end of section: "But 
 no such regulations shall come into force until they have 
 been j)resented to the Houses of Parliament for 40 days, 
 and have not been rejected or amended by them." 
 
 Anrdent Order of Foresters; Grand United Order of Odd- 
 fellows; Sons of Temperance : National United Order 
 of Free Gardeners: 
 
 (8) Clause 21: That probable regulations afi'eeting meet- 
 ing places of societies, and particularly of branches, be 
 ascertained." 
 
 Surrey Reformed Benefit Society : 
 
 (9) Clause 21: To alter as to allow centralised societies 
 to continue their present mode of management. 
 
 Clause 24. 
 Ancient Order of Foresters: 
 
 (1) Clause 24: (a) That eligible persons must apply for 
 membership in an approved society, and section 24, sub- 
 section (1) be amended accordingly, and (b) That the period 
 allowed for employed contributors to join approved 
 societies be clearly stated. 
 
 Order of the Sons of Temperance : 
 
 (2) Clause 24, section 2: To add a clause not permitting 
 a member to leave his society, or the society to expel a 
 member without some very real and tangible reason, and 
 to fix a period for transfers from employed to approved 
 societies. 
 
 Hearts of Oak Benefit Society: 
 
 (3) Clause 24, section 2: Amend so as to make clear that 
 admissions to membership may l)e restricted to the State 
 section of its benefits. 
 
 Royal Oak Benefit Society : 
 
 (4) Clause 24: That all existing members of approved 
 societies under 70 years of age be allowed to join the State
 
 APPEJSDIX C. 
 
 261 
 
 scheme, ami tu be immediate Ij- eutitied to fidi benetits iu App. C. 
 connection therewith. . ■' ,-. 
 
 Independent Order of Keehabites: 
 
 ■ (5_) Clause 24, section 1. line 3, be amended by the dele- 
 tion of the word "may' and substitution of the word 
 "must."' 
 
 Clause 25. 
 
 Lrraiid United Order of Oddfelloivs ; National United Order 
 of Free Gardeners : 
 
 1 1 ) Clause 25: That the Government be requested to pro- 
 vide in clause 25 that a member shall not be permitted 
 to leave his society, nor a society to e.xpel a member, except 
 for bond fide reasons, that some definitions of such permis- 
 sible reasons to be set out in the Bill, or that the insurance 
 conmiissioners be instructed to set out such definitions iu 
 tlieir reg-ulations, for instance, removal of residence through 
 change of situation or other cause. 
 
 Improved Independent Order of Oddfelloivs {London 
 Unity) : 
 
 (2) Clause 25: Transfer value, be struck out. 
 
 Litter pool Clerks' Association : 
 
 (S) Clause 25: That after the word "him"' on line 15, 
 to add the words "derivable solely from the contributions 
 under this Act." 
 
 national Association Friendly Society : 
 
 (A) Clause 25: Add: "But no member of an approved 
 society sliall be allowed to transfer to another approved 
 society uidess he resides more than three miles from the 
 society of which he is a member (unless he be an expelled 
 iiioiiil)ei', hv which case no transfer value .sliall be allowed). 
 
 Independent Order nf Rechabites : 
 
 (5) Clause 2'>: Add: "If a member is (ner i;i weeks 
 in arrears no transfer value shall l)e paid in regard to him 
 by the society or branch of which he was formerly a 
 member." 
 
 Clause 26. 
 
 Hetirts of 0(d,- Benefit Society : 
 
 Clause 26: Amend so as to reipiiro that transfer values 
 •^iuill nol -1)0 made Avhoro the home society retains the mom-
 
 ^62 National insurance bill. 
 
 App. C. bership and continues its benefits to members residing out 
 
 _ q£ l^j^g United Kingdom. 
 
 Clause 27. 
 
 Improved Independent Order of Oddfelloivs (London 
 TJniUj): 
 
 (1) Clause 27: Be amended to enable members of ap- 
 proved societies to insure to 50 per cent, over their wages, 
 providing his wages does not exceed 21. per week. 
 
 Royal Oak Benefit Society : 
 
 (2) Clause 27, par. 2: That this paragraph provides that 
 no insured person shall be insured for more than his average 
 weekly wages in any friendly society, shop club, insurance 
 society, or any other body, corporate or unincorporate, pro- 
 viding benefits during sickness. 
 
 Ancient Noble Order of United OddfeUoivs (Bolton Unity): 
 
 I 3) Clause 27, page 22, line 26: After the word "remu- 
 neration" insert "by more than 15 per cent." 
 
 Independent Order of Reohabites: 
 
 I 4) Clause 27: Amend so that the amount of any excess 
 benefit should be divided equally between the approved 
 society and the State. 
 
 Clause 28. 
 
 Ancient Order of Foresters; Grand United Order of Odd- 
 fellows; Order of Druids; Independent Order of 
 Rechabites ; Natio(n.(il United Order of Free Gardeners; 
 Loyal Order of Ancient Shepherds (Ashton Unity); 
 In'dependent Order of Oddfellows (Kent Unity): 
 
 Clause 28: (a) "That this conference presses for supply 
 by the State of account and other books for the scheme 
 at the cost of the State, and (b) That the provisions as to 
 State audit be more definitely stated; also whether State 
 audit is at the cost of the State; and whether an approved 
 scheme of audit of branches by or through the society would 
 be acceptable."
 
 APPENDIX C. 
 
 Clause 29. 
 
 263 
 App. C. 
 
 Loyal Order of Ancient Shepherds ^Ashton Unity); Ancient 
 Order of Foresters; Rational Association Friendly 
 Society; Order of Druids; National United Order of 
 Free Gardeners; Independent Order of Oddfellou-s 
 (Kent Unity): 
 
 (1) Clause 29: That valuations by the State in respect 
 of its scheme be at the cost of the State . 
 
 Independent Order of Oddfelloivs iEast Anglian Unity): 
 Royal Oak Benefit Society : 
 
 i2i Clause 29: That valuations be made every five years, 
 and that societies be allowed to arrange for the valuation of 
 the State benefits to be made at the same time as their 
 ordinary valuations are due. 
 
 Hearts of Oak Benefit Society : 
 
 ( 3) Clause 29, section 1: Amend to provide that approved 
 societies may continue to appoint their own valuers, who 
 shall be duly qualified actuaries, and that their valuations 
 shall be accepted l»y ihc insurance commissioners. 
 
 Ancient Noble Order of United Oddfellows {Bolton Unity): 
 
 (4) Clause 29, section 1. page 23, line 16: Delete 'three," 
 substitute "five," or as an alternative:— '' That the funds 
 of an approved society other than State funds he valtied 
 triennially, notwithstanding any provision contained in any 
 other Act of Parliament governing friendly societies." 
 
 (5) Clause 29, section 2. page 23, line 23: After the word 
 "branch " insert " is." 
 
 Rational Association Friendly Society: 
 
 Clause 29, section 2: Add a new .sub-section (c): "That 
 the most recent available tables of sickness and mortality 
 experience be u.sed as a standard for valuations of ail aj)- 
 proved societies." 
 
 Cl.\u.ses 30 & 31. 
 
 Ancient Order of Foresters ; Loyal Order of Ancient Shep- 
 herds iAshton Unify): 
 
 (1) Clause 30, pa^-e lil. line !»: Delete "the,' and in.sert 
 such.
 
 264 NATIONAL INSUKANCE BlLt. 
 
 App. C Hearts of Oak Benefit Society : 
 
 {2) Clauses 3U and 31: Amend to provide that distribu- 
 tions .o£ surplus and arrang'ements to meet deficiencies shall 
 take plaoB, or be made every five years, as the experience 
 of societies shows that three years Avould be too short a 
 period for action to be taken in these directions. 
 
 Royal Oiak Benefit Society : 
 
 (3) Clauses 30 and 31: That the same provision with 
 reference to surpluses and deficiencies of branches of an 
 approved society be made applicable, as far as possible, 
 to local conunittees Avhere such are formed by centralised 
 societies . 
 
 Ancient Order of Foresters : 
 
 (\) Clause 31, pages 25 and 2G, in relation to sub-sec- 
 tion (c): That steps be taken to satisfy the society or the 
 branch that the levy is paid, or credited to its account in the 
 Government's insurance fund. 
 
 Anient Onder of Foresters ; Loyal Order of Ancient Shep- 
 herds (Ashton Unity'): 
 
 [2) Clause 31, pag-e 26, sub-section (d;: Insert after 
 "Avithin"in seventh line: "A reasonable time not less 
 than." 
 
 Ancient Order of Foresters: 
 
 (3) Clause 31, page 26: " That section 1, sub-.section (g), 
 be amended to provide that a member of a branch shall be 
 liable to the same conditions before transfer to another 
 branch on a deficiency being shoAAii on valuation. 
 
 Ancient Order of Forester.s ; Loyal Order of Ancient Shep- 
 herds (Ashton Unity): 
 1^4) Clause 31: Add at the end of clause, page 27: 
 ■'(^3) Nothing in this or the preceding .section shall affect 
 any funds of the society or branch other than those under 
 this part of this Act." 
 
 Clause 32. 
 Roycil Oak B&nefit Society : 
 
 Clause 32: That deposit contributors receive sick pay for 
 a limited number of weeks in each year, say, ten for the 
 first year; fifteen for the first tAvo years; and twenty for the 
 first three years.
 
 APPENDIX C. 265 
 
 App. C 
 
 Clause 34. ^ 
 
 Anvlent Older uf Foresters; Loyal Order of Ancient Shep- 
 herds [^ Ash ton l')iiti/): 
 
 {\) Clause 34, pag-e 30, sub-section (4), liue 17: Delete 
 " not " and delete all after " contributor " on line 18 to end 
 of sub-section. (This "would enable married women, not 
 ■' workers," to become voluntary contributors.) 
 
 (2) Clause 34: Add at end of clause, page 30 (to be neAv 
 sub-section (7)): "Nothing in this section or any part of 
 the Act shall be so construed as to interfere A\ith the present 
 benefits of married women who are members of an approved 
 society at the passing of the Act." 
 
 Royal Oak Benefit Society : 
 
 (3) Clause 34: That married women who are not em- 
 ployed, but are the wives of employed members, be included 
 in the scheme for medical benefit^ only. 
 
 Aatioruil Independent Order of Oddfellows: 
 
 (^4) Clause 34: That the Chancellor of the Excliequer be 
 pressed to reconsider his decision with regard to the accept- 
 ance of married A\omen as conti'ibutors under the Bill. 
 
 Independent Order of Rechahites : 
 
 (5) Clause 34: TJiat females on marriag'e receive a sur- 
 render value for sickue.ss contributions paid basetl on clear- 
 ajice value applicable thereto as between ages at entry and 
 
 iiijiniagc. 
 
 Clause 3o. 
 
 Ancient Or,der of Foresters; Loyal Order of Ancient Shep- 
 herds ( Ashfon Unity); Hearts of Oak Benefit Society : 
 
 (\) Clause 3.5, pag^ 31, section 3, line 14: Add "and 
 this seotioji shall nut apply to any person who is a member 
 and ha.s regularly- contributed for at least 12 months to an 
 approved society." 
 
 Royal Oak Benefit Society : 
 
 (2) Clause 3;}: That societies be allowed to admit aliciis 
 for State bcjioHts.
 
 266 NATIONAL INSURANCE BILL. 
 
 App. C. 
 
 Clause 38. 
 
 Loyal Order of Ancient Shepherds {Ashton Unity); 
 Ancient Order of Foresters: 
 
 (^1/ Clause 38, line 5: After "member" insert "but in- 
 sured persons under the ag'e of 16 shall be allowed such 
 benefits as may be pix)vided for them in the approved society 
 to which they belong- in addition to the benefits herein pro- 
 vided for. ' 
 
 [^2) Clause 38: Amend this «and all clauses relating to 
 persons under 16 years of ag-e to provide that no personal 
 contributions shall be demanded until they are of age to be 
 paid benefits. 
 
 Clause 39. 
 
 Loyal Order of Ancient Shepherds (^Ashton Unity); 
 Surrey Reformed Benefit Society: 
 
 (1) Clause 39, section 1, line 2: After "Act," iu.sert "by 
 members of approved societies shall be paid over to the 
 society or branch of which they are members." 
 
 Rational Association Friendly Society : 
 
 (2) Clause 39, section 1: Add "That the sum per capita 
 allowed to an approved society for administrative or 
 management purposes, shall, upon the coming into opera- 
 tion of this Act, be paid to such society as to one -fourth of 
 the amount so allowed in two months, and a further one- 
 fourth at five months, a further one-fourth at eight months, 
 and the balance at 12 months; thereafter the sum allocated 
 shall be paid to approved societies every three months, and 
 shall be held by the approved societies for their exclusive 
 use as an administrative or management fund." 
 
 (3) Clause 39, section 3: Add "And any sums standing 
 to the credit of an approved society to the extent of four- 
 ninths of the contributions of it-s members, after having 
 satisfied the claims arising for the benefit under this Acr to 
 the extent of four-ninths, may be invested by such society 
 in the name of its trustees, provided such investment is in 
 accordance with the rules of the society and bears interest 
 at more than 3 per cent, per annum." 
 
 Loyal Order of Ancient Shepherds (Ashton Unity); 
 Ancient Order of Foresters; Grand United Order of 
 Oddfellows; Independent Order of Rechabites ; 
 National United Order of Free Gardeners: 
 
 (4) Clause 39: That provision be made for supplying
 
 APPENDIX C. 
 
 267 
 
 funds to societies to meet expenditure ^\•itllout interfering- App. C- 
 Avith voluntary funds. 
 
 Hearts of Oak Benefit Society : Order of Druids; Indepen- 
 dent Order of Oddfellows [Kent Unity): Ancient Order 
 of Romans : 
 
 ^5) Clauses 39 and 40: Amend to provide that approved 
 societies shall receive all moneys payable for benefits, Avhich 
 such societies will be called upon to administer, or to which 
 their membei-s are entitled, subject to the said societies being 
 able to satisfy the insurance commissioners of their con- 
 tinuous solvenc-y, and tlieir conformity to all needful reg-ula- 
 tions. Further, that the societies may continue to them- 
 selves invest all moneys available for the purpose of invest- 
 ments in any securities which are authorised by Parliament 
 as suita])le foi- the societies' investments, subject to the ap- 
 proval of the insurance commissioners. 
 
 Order of Druids: 
 
 (6) Clause 39: That no proposed scheme of State insur- 
 ance can be acceptable to friendly societies unless provisions 
 be inserted providing- that the whole of the contributions of 
 members, including those for State benefits, may be paid 
 to the societies direct as heretofore. 
 
 Cl.\use 40. 
 
 Order of the Sons of J'eniperance : 
 
 ('lause 40: To cT,scertain if there is any povssibility of a 
 hig-her interest than 3 i)er cent. That the Chancellor be 
 approached Avith the object of iiaving the surphis capital 
 accruing unfka- the Insurance Bill lent on mortgage "as 
 per present friendly .society practice " to members for the 
 purpose of jmrchasing a house or houses. 
 
 Clause 41. 
 
 Loi/al Order of Ancient Shepherds (Ashton Vnity); 
 Ancient Order of Foresters; Grand Vnitcd Order of 
 Oddfellows : 
 
 il Clause 41. section I. line 3: .After " cuinmis.siinicrs." 
 insert "an adequate proportion of whom shall be persons 
 having not les.s than ten years' actual e.vperience in the 
 Avorking of a rcg-istercfl friendly society."
 
 ^68 NATIONAL INSURANCE BILL. 
 
 App. C. Ancient Order of Foresters: 
 
 {2) Clause 41: In liue 30, after 'in respect of" insert 
 "the affairs under this Act of ." 
 
 (3) Clause 41: That the Chancellor of the Exchequer be 
 requested to a|T[)oiut a special commission, including a 
 number of expert friendly society men who have had ex- 
 perience in the working- of friendly societies, to draft the 
 bye-laws and regulations for the management and working 
 of this scheme. 
 
 Clause 42. 
 
 Order of the So)is of Temperance: 
 
 {\) Clause 42: To ascertain the proportion of represen- 
 tatives from each body constituting the advisory committee. 
 
 Hearts of Oak Benefit Society : 
 
 {2) Clause 42: Amend to provide that in the appoint- 
 ment of the advisory committee, in respect of the repre- 
 s.eiitatives of approved societies, the insurance commis- 
 sioners shall appoint the nominees of the national 
 conference of friendly societies and of any other repre- 
 sentative body that may be formed, and be duly authorised 
 to represent the friendly societies. 
 
 Clause 43. 
 Hearts of Oak Benefit Society : 
 
 (1) Clause 43, section 1, sub-section (^b): For the ap- 
 pointment of representatives of approved societies, make 
 such regulations as shall ensure as near as possible the 
 equal representation of the various societies. 
 
 (2) Clause 43: Amend to provide that there shall be a 
 local Health Committee in eveiy borough or district. 
 
 (3) Clause 43: Amend so as to provide larger represen- 
 tation of friendly societies. 
 
 Clause 46. 
 
 Ancient Order of Foresters: 
 
 Clause 46, page 41, section 7: That it be made clear that 
 an approved society is to have repaid excessive cost of 
 sickness after sviccessful inquiry in manner prescribed.
 
 APPENDIX C. 269 
 
 CjLAUSE 48. App. C 
 
 Ancient Noble Order of United Oddjelloivs (Bolton Unity) : 
 
 Clause 48: Add at end of clause: "But no such regula- 
 tions shall come into force until they have been presented 
 to the Houses of Parliament for forty days, and have not 
 been rejected or amended by them." 
 
 Clause 49. 
 
 Grand United Order of Oddfellows: 
 
 Clause 49, section 1: Amend to pi'ovide for an appeal 
 by ap-grieved societies. 
 
 Clause 50. 
 
 Order of the Sons of Temperance: 
 
 [\) Clause .)0, section 1: To ascertain if this would alter 
 tlie present procedure of purely friendly society members. 
 
 (2 ) Clause oO, section 1 : To ascertain in the case of dis- 
 putes if arranoements are to be made to ensure attendance 
 of witnesses before the committee a])pointed to hear appeals, 
 as at present no such power is ali'orded friendly societies 
 to insist upon attendance of witnesses. 
 
 Clause 51. 
 
 Ancient Order of Foresters : Loyal Order of Ancient Shep- 
 herds (Ashton Unity): Rational Association Friendly 
 Society ; Grand United Order of Oddfelloivs ; National 
 Independent Order of Oddfelloirs ; Nottingham Ancient 
 Imperial United Order of Oddfelloivs : 
 
 (V) Clause 51: Tliat the whole of the clause be deleted. 
 
 Hearts of Oak Benefit Society : 
 
 (2) Clause 51: Amend to provide that any loss to the 
 landlord arising fiom the objection of this clause shall be 
 defrayed by the Treasury. 
 
 ClATJSK 'f-'). 
 
 Ancient Order of Foresters: 
 
 i\ 1 f'liMi-^c 5.'): (',i) Tha< (his Ifi<jli ('(pint i(>;jii(>sI tim con- 
 foroncf cdniMiiltee in pr<'])iirinu' any scheme iindoi' clinisp 55
 
 ^70 NATIONAL INSURANCE BILL. 
 
 App. C. dealing- with existing- funds to ofier options of benefits 
 amongst which shall be a {1) j^aid up life policy, (2) an- 
 nuity payable at 65; and (h) That this clause be referred 
 to the conference committee to make such suggestions and 
 recommendations for the guidance and protection of dis- 
 tricts and branches as they may deem necessary and advis- 
 able to meet the provisions of this clause. 
 
 Liverpool Clerks' Association: 
 
 (2) Clause 55: After the word "'scheme" (23rd line), 
 add: "which notwithstanding anything contained in this 
 part of this Act, shall be framed strictly in accordance with 
 the rules of such friendly society or branch current at the 
 time of the passing of this Act." 
 
 Ancient Order of Foresters: 
 
 (3) Clause 55: Add at end of line 36: 'and every such 
 scheme shall include provision for regulating the voting 
 at meeting-s, so that those members wdio are or become in- 
 sured persons under this Act shall have no votes in regard- 
 to any funds or benefits to which they are not contributors 
 or entitled." 
 
 Rational Association Friendly Society: 
 
 {4) Clause 55, section 1: Follow line 36: ' But no member 
 of an existing society at the coming into operation of the 
 Act, if he ceases membership in the approved society and 
 pays to the State scheme only, shall have any claim upon 
 the accumulated funds of the society of which he was a 
 member." 
 
 National Independent Order of Oddfellows : 
 
 (5) Clause 55: That if the present funds of friendly 
 societies are to be applied to the benefit of the present 
 members thereof in such manner as may be approved by 
 the registrar, provision should be made in the Bill wdiereby 
 the registrar sliall not have the powder to refuse to sanction 
 any scheme which is recommended by a qualified actuary. 
 
 Independent Order of Rechobites: 
 
 (6) Clause 55: Add after "ways," "provided, however, 
 that any contributions for the funeral benefit of a member 
 or a member's wife or child, or any contributions for super- 
 annuation benefit for which any member is or has been 
 previously insured in any friendly society, shall not be
 
 APPENDIX C. 
 
 271 
 
 taken iutu accouut in any learrangenient of contribution(> App- C 
 which may be made."' 
 
 Clauses 60 to 81. 
 
 Loyal Order of Ancient Shepherds (Ash ton Unity); Ancient 
 Order of Foresters : 
 
 Clauses 60 to 81: That the national conference of 
 frieucUy societies recommend Parliament to have the 
 health insurance and unemployment provisions separated 
 and made two measures. 
 
 Clause 87. 
 
 Loyal Order of Ancient Shepherds (Ashton Unity); 
 National Independent Order of Oddfellows ; Grand 
 United Order of Oddfellows ; Hearts of Oak Benefit 
 Society ; Nottingham Ancient Imperial United Order 
 of Oddfelloivs : Independent Order of Bechahites : 
 Ancient Order of Bomans : 
 
 Clause 87: Thai in view of ihe additional labour involved 
 on friendly societies in preparing for the scheme, the con- 
 ference recommend that at least twelve months elapse from 
 the passing of the Act before it comes into operation, and 
 suggest January 1st, 1913, as every approved society will 
 have to prepare schemes for re-adjustment of contributions 
 and benefits ro submit to the registrar. It is recommended 
 that the Treasury take into consi{loration an augmentation 
 of the staff of the registry office to deal with the scheme 
 without undue delay. 
 
 Schedules. 
 Ancient Order of Foresters: 
 
 {\) First Schedule: Tiiai all Jieces.sary stei)s be tuken to 
 .secure that agricultural labourers working ])artly for em- 
 ployers and partly for themselves are pro])crly recognised 
 under Part I. of Sche<lule 1. 
 
 (2) First Schedule: Amend seition (e) Part II., Sche- 
 dule 1, HO that it roads to the (Wleci that the annual vabie 
 sliall be taken to mean not annuiil value Schedule A., nnd 
 amount 'M)l. instead of 20/..
 
 272 
 
 NATIONAL INSURANCE HILL. 
 
 App. C. Ancient Order of Foresters ; Loyal Order of Ancieni Shep- 
 ' ~ herds (Ashton Unity): 
 
 (1) Second Schedule: Last line but one on page 70: 
 Should not "-k/." be substituted for "4fZ." in the case of 
 women ? 
 
 Ancient Noble Order of United Oddfellows {Bolton Unity) ; 
 Ancient Order of Ro7nans : 
 
 (2) Second Schedule: That the contributions of the em- 
 ployers and employed contributors be as follows: — To be 
 paid by the contributor: Men, .'k?. per week, women, 2d. 
 per week. To be paid by the employer, 3d. per week. 
 The State to take over the extra contribution. 
 
 Ancient Order of Foresters: 
 
 Third Schedule: In line 15, page 71. should not 'herein- 
 after" be "herein"? 
 
 Ancient Order of Foresters: 
 
 Fourth Schedule: In regard to Table B in Part I.: " That 
 in the opinion of this conference male members should be 
 entitled to the same benefit as females, on disablement." 
 
 Fourth Schedule: Add at the bottom of page 72: "This 
 shall not take effect where the young person has any one 
 dependent upon him or her for maintenance or support." 
 
 PROPOSITIONS. 
 
 Aticient Order of Foresters : 
 
 (1) Sanatoria: Indicate proportion of funds to be raised 
 locally for sanatoria conditional on State g-rant. 
 
 Independent Order of Rechabites ; Ancient Order of 
 Foresters; National U-nited Order of Free Gardeners ; 
 Grand United Order of Oddfellows ; So7is of Temper- 
 ance; Unite^d Patriots National Benefit Society; 
 Rational Association Friendly Society ; National Inde- 
 pendent Order of Oddfellows ; Order of Druids; Not- 
 tingham Ancieni Imiperial United Order of Oddfellows : 
 
 (2) Expenses involved in starting scheme: That the State 
 should make s])ecial grants to apjiroved societies on account 
 of the somewhat heavy expenditure which must be incurred
 
 APPENDIX C. 273 
 
 in adaptiug- present coaditious to the new circumstanee.s App. C. 
 
 created by the State scheme. This expenditure ■n'ould in- r— — 
 elude, of course, actuarial calculations, valuations, printing- 
 of new rules, providing- books, extension v/ork, &c. 
 
 Grand United Order of Oddfellows : 
 
 (3) That the National Insurance Bill cannot be reg'arded 
 as satisfactory to the friendly societies unless it is so 
 amended that the societies retain primary rights of insuring 
 their owji members ior the full sickness benefits they require. 
 and have control of the funds connected therewitJi so far 
 as they are contributed by members and their employers. 
 
 Or and JJnited Order of Oddfelhws ; Independent Order of 
 Rechalnfes ; Independent Order of Oddfellows (East 
 Anglian Vnity): 
 
 (4) That the societies shall have full control of their funds 
 anil investments as heretofore, subject to the provision of 
 am])lc guarantees as to the safety of those investments, the 
 continuous solvency of the society and their present and 
 future ability to discharge the obligation conferred upon 
 tliom by the State and their OAvn rides. 
 
 Grand United Order of Oddfelloivs : 
 
 (5; That Avhilst ex])ressing- our thanks to the Chancellor 
 of the Exchequer for the time and care he has bestowed in 
 the framing- of the National Insurance Bill for the benefit 
 of the -workers of the country, as well as the admirable 
 character of many of its provisions, notably the position of 
 the scheme which deals with that terrible scourge — tuber- 
 culosis, feel that taking- into consideration the gi-eat and 
 important change it is likely to effect amongst our respective 
 societies in their vulnutary and self-governing- ]n-inci])les, 
 beg- that he will delay the passing of the measure until after 
 the conference has held its annual meeting in October, to 
 allow the members of the various societies an ample oppor- 
 tunity of considering- its various provisions. 
 
 Lo;/al United Order of Anglo-Saxons : 
 
 (6) That all financial mend)crs of registered friendly 
 societies, provided flieir contributions 1)e j)roperly and i-eg-u- 
 hii'ly [)aifl to their society, be exrMnpl from the pvdvi'^ions of 
 the pro))Osed NatioJial Insurance Hill. 
 
 \v. T
 
 274 
 
 NATIONAL INSURANCE BILL. 
 
 App. C United Patriots National Benefit Soeietij : 
 
 (7 ) TJiat we protest ag-aiiist the compulsion of members 
 of registered friendly societies, wlig have already insured 
 themselves against sickness for the sum of 10s., to join the 
 State insurance scheme. 
 
 Improved Independent Order of Oddfellows {London 
 Unity) : 
 
 (8) That provision be made in the Bill whereb}^ branches 
 of an approved society consisting- of old members, reduced 
 to a state of hopeless insolvency through excessive sickness, 
 should be taken over by the insurance commissioners, who 
 shall fix the rate of contributions to be paid and benefits 
 received by the members. 
 
 (9 ) That a clause be inserted in the Bill that ^^-ill enable 
 two or more societies to amalgamate or associate for the 
 purpose of becoming- approved by a majority of iiKMubers 
 voting in favour. 
 
 (10) That provision lie made in the Bill for a society to 
 become ajiproAod which has branches that conform to the 
 requirements of the Bill, notwithstanding- there are branches 
 that cannot or refuse t^o conform to such requirements. 
 
 Independent Order of Oddfellows (Norfolk and Norwich 
 Unity) : 
 
 (11) That all monies should be paid to the approved 
 societies monthly, and no wage limit recognised, and 10,000 
 be deleted from the Bill. 
 
 (12) That Avhile this meeting recognises the Government's 
 duty to provide for those members of the community not 
 within the ranks of the friendly societies, it strongly re.sents 
 the interference v,-ith that voluntary effort existing for so 
 many years, which voluntary effort has proved conclusively 
 to be the backbone of England in the building up of true 
 citizenship and self -reliap.ee. 
 
 Rational Association Friendly Society : 
 
 (\3) That the representatives of the societies affiliated 
 with this conference of friendly societies agree to lay the 
 qiiestion before their res]iective societies of the desirability 
 that every approved society should have the same or similar 
 rules for the giving of benefit or otherwise to members for 
 claims arising in consequence of accidents for which they 
 Avill receive payment under the Compensation Act.
 
 APPENDIX C. 275 
 
 (14) Tliat .societies affiliated with the coiifereiice agree App. C- 
 to act ill luiiforniitv reo-ardiiio- the pavmeut of .sickness bene- 
 fit from the eoramencement (or other-nise) of au illne.ss. 
 
 (15 » That any Health Committee, apj^roved friendly 
 society, or groujj of friendly societie.s, may, for the purpose 
 of administration of the medical benefits, appoint permanent 
 medical officer for attendance upon insured persons, also 
 establish drug- depots in a part of their area; also appoint 
 duly (jualified nur.ses for visitation and attendance upon the 
 sick . 
 
 (16) That "ue protest ag-ainst any attempt being- made 
 to deprive friendly societies of the right t-o .select or appoint 
 medical men, and seeing- that friendly societies -will be more 
 or less responsible for the financial stability of the scheme, 
 Ave feel this Avould be ab^oluNdv inijiossible unless power of 
 appointment i.s given to a])pi()\ed friendly societies. 
 
 7^0 1/(1 1 Oak Benefit Hooietij : 
 
 (17 1 That provisiojis be made in the Bill for the pay- 
 ment of contrilnitions in advance, both by employers and 
 voluntary subscribers, and that some allowance — from 5 to 
 10 per cent. — be made where such ))ayments are made yearly 
 in advance. Whei'o an emj)loyer ])ay8 yearly in advance no 
 allowance be made in respect of the employed person for any 
 period of sickness during- which the sick pav would not 
 otherAA-ise be payable. When an insured person leaves his 
 employer, who has paid in advance under these conditions, 
 any fresh emjiloyer shall Ijo conijielled to contribute the 
 weekly amounts provided under the Bill, and no allowance 
 shall be made for the first employer on account of any pay- 
 ments that may have been made in advance in respect of any 
 l)eriod after the insured person has left his employment. 
 
 (18; That Avhere required for the purposes of the Act, 
 societie.s be alloAved to obt<iin eviflence of aoie from the 
 Registrar-General Avithout charge, as is done under the Old 
 Age Pensions Act. 
 
 The Order of Druids : 
 
 (\9) Thai the committee of the conference 1)0 strength- 
 ened in any further negotiations Avith the Government by 
 the addition of a representative of each .society affiliated Avith 
 the cx)nferonce not ahearly represented on such committee, 
 and coming- Avithin the (h>finitioii of an ajiprovod societv. 
 
 Independent Order of Oddfellows {Kent Unity): 
 
 (20 1 P'\f]iiNif)ii of colh'cting- .societies, insurance coni- 
 panio-, and (lividing societies. 
 
 t2
 
 276 NATIONAL INSURANCE BILL. 
 
 App. C ^,21; The following- does not appear quite clear, and the 
 
 — question might be submitted to the next meeting: " AVhat 
 
 would be the position of a member under the Bill, who is 
 already a member of one or more societies? Can he still re- 
 tain his membership, or will he have to join under the State 
 scheme, as it would appear to read at present? " 
 
 Ancient Order of Romans: 
 
 (22) That this congress is of opinion that the Bill as at 
 present constituted is detrimental to the interests of regis- 
 tered friendly societies. 
 
 (23) That this congTess is of opinion that no State Insur- 
 ance Bill is complete unless it makes some provision for 
 Avidows nnd orphans.
 
 APPENDIX \). '^^' 
 
 APPENDIX D. App.D. 
 
 AMENDAIENTS DESIKED BY BKITISH MEDICAL 
 
 ASSOCIATION. 
 
 Incomk Limit of those entitled to Medical and 
 Maternity Benefits. 
 
 Clause H. pa^-e ti. sub-clause (1) {n), line 4, before the 
 word "medical"' insert the words "except as hereinafter 
 provided.' 
 
 Clause 8, page 8, sub-clause (7), insert new suli-dause (g'l 
 as follows: — 
 
 (<>•) to medical l)enefit who is in receipt of an average 
 income fioni all soiu'ces exceeding 21. per week. 
 
 Clause 14 {1), page 14, line 35, after the word "persons" 
 insert the words "entitled to such benefit." 
 
 Administration of Medical and Materniiy Benefits. 
 
 Clause Li (i), page Li, line 24, after words "sickness 
 benefit" insert the word "and." 
 
 Clause 13 (Ij, lines 24 to 26 inclusive, delete all words 
 from "and maternity" down to words "medical benefit," 
 inclusive. 
 
 Clause J 3 (1), page 13, line 29, before the word "sana- 
 torium" insert tlie woids "medical, maternity, and," and 
 for the word "benefit" substitute tlie word "benefits." 
 
 Clause 14 (1), page 14, line 32, delete the words ";ij)- 
 provcd society and." 
 
 Clause 14 ('2), page 14, line 37, delete the words "society 
 or." 
 
 (Clause 14 (3), page 15, delete. 
 
 Clause 10 Ci), page Ui, lino^ J 7 to L», inchisive. delete 
 all woj'ds from the woids •and shall ' in line 17 to the words 
 "Health Committee ' iji line !'.» iuclusive; and delete all 
 words from the words "by the" in line 21 down to the 
 word "society" in line 22, iuclusive.
 
 T8 NATIONAL INSURANCE BILL. 
 
 App. D. Clause 45 (1), i)age 38, line o, before word "sanatorium" 
 
 insert the words " raedical, maternity, and.' 
 
 Clause 45 (1), page 38, lines 5 and 6, delete all words 
 from the word "deposit" down to the words "benefit and," 
 inclusive . 
 
 Free Choice of Doctor. 
 
 Clause 14 (^1), page 14, line 34, delete the words "duly 
 qualified" and substitute the word "registered," and alter 
 the numbering of the clause to clause 14 (1) (a). 
 
 Clause 14 (1 i, page 14, add the following new sub-clauses 
 
 (,b), (c), (d),\ej, and (f): 
 
 ( b) xHl arrangements of the local Health Committee with 
 medical praciitioners for attendance and treatment 
 of insured persons shall be subject to the approval 
 of the insurance commissioners. 
 
 ( c; The local Health Committee shall jjrepare a list of 
 registered medical practitioners who have entered 
 into arrangements with the committee for giving 
 attendance and treatment to insured persons whose 
 medical benefit is administered by the committee. 
 
 (d) In the list of registered medical practitioners the local 
 
 Health Committee shall include all registered 
 medical practitioners who apply to be included 
 unless in respect of any such practitioner the 
 insurance connnissioners are satisfied after due 
 enquiry that his appointment would be prejudi- 
 cial to the efiiciency of the medical service of the 
 insured. 
 
 (e ) The insurance commissioners shall have power at any 
 
 time after due enquiry to remove from the list of 
 registered medical practitioners for any district any 
 practitioner whose conduct is deemed by them to 
 be prejudicial to the efiiciency of the medical ser- 
 vice of the insured. 
 
 (f ) Each insured person shall be entitled to select from 
 
 the list so prepared a medical practitioner, subject 
 to the consent of such practitioner, to attend him 
 when required. 
 
 Medical Representation in Administration. 
 
 Insurance Commissioners . 
 
 Clause 41 (1), page 35, line 17, at the end insert the 
 following Avords, "and shall include registered medical prac-
 
 APPENDIX D. 
 
 279 
 
 titioners who have had persunal experience of general App. D. 
 practice among the classes from which the insured are 
 drawn . ' 
 
 Advisory Committee. 
 
 Clause 42, page 36, line 3, after the word " societies," 
 insert the following words ''and registered medical prac- 
 titioners who have had personal experience of general prac- 
 tice among the classes from which the iusiu-ed are drawn." 
 
 Local Health Committees. 
 
 {Fifnt Alternative Amendment.) 
 
 Clause 43, sub-clause (2), page 36, line 10. fV)r tire Avurd 
 
 nine"' substitute the Avord '"twelve.' 
 
 Line 11, for the word "eighteen" substitute the word 
 ■ twenty-four. ' 
 
 Line 12, for the word 'third" substitute tlie word 
 " fourth." 
 
 Lino IG, for the word 'third" substitute the word 
 " fourth." 
 
 Line 21, delete the words 'the remaining" and for the 
 word "third" substitute the word "fourth." 
 
 Line 26, for the word "third" substitute the word 
 ■foiu'th." 
 
 Line 31, insert the new sub-paragraph (d) as follows: — 
 
 " (d) As to the remaining one-fourth thereof by the 
 registered medical practitioners resident in the 
 county or county borough." 
 
 Clause 43 (5), page 37, lines 10 — 12, inclusive, delete the 
 words "but so" down to "medical practitioners." 
 
 Second Alternative Amendment.) 
 
 Clause 43, sub-clause o, page 37, line 9, for the word 
 "fourth" substitute "third." 
 
 Lines 10 to 12, inclusive, delete the words "but so" to 
 "medical pi'actitioners " and insert "and sliall include 
 members, to the number of at least one-fourth of the whole 
 committee, selected from registered medical practitioners 
 nominated by the registered medical practitionere re- 
 siding in the county or county borough." 
 
 Local Medical Committees. 
 
 New ciau.se to follow clause 1 I, page 38— 
 
 (1) A local mcdi(.'al comnnttee sli:ill be rdiineii in the 
 area of each coujitv and countv borough con-
 
 280 NATIONAL INSURANCE BILL. 
 
 App. D. .si.stiiig- of registered uieclical practitioner« elected 
 
 by the registered medical practitioners who are 
 
 engaged in medical practice in such county or 
 county borough. 
 
 {2) The number of members of each medical committee 
 and the mode of election and term of office of 
 such members shall be determined by the insur- 
 ance commissioners. 
 
 {3) The local medical committee shall be consulted by 
 the local Health Committee on all matters afiect- 
 ing the arrangements with registered medical 
 ])ractitioners to give attendance and treatment 
 to the insured and shall discharg-e such other 
 duties and exercise such poA\'ers as shall be deter- 
 mined by the insurance commissioners. 
 
 Power to Approved Societies to subscribe to 
 Hospitals, &c. 
 
 Clause 17, page 16, delete. 
 
 Clauses of the Bill referred to above, as Amended, and 
 New Clauses to read as follows — 
 
 Liuteb and conditions of benefits.] — Clause '8 (I) la;. Ex- 
 cept as hereinafter provided medical treatment and atten- 
 dance, including the provision of proper and sufficient medi- 
 cines (_in this Act called "medical benefit "j. 
 
 Clause 8 (7), new sub -clause (g): 
 
 (g') To medical benefit who is in receipt of an average 
 income from all sources exceeding 21. per week. 
 
 Benefits to be Administered by approved societies or the 
 local Health Coinmittee.] — Clause 13 (1 1, Sickne.ss benefit 
 and disablement benefit shall be administered, in the case 
 of insured persons who are members of an approved society, 
 by and through the society, and in other eases by and 
 through the local Health Connnittees: medical, maternitj 
 and sanatorium benefits shall in all cases be administered 
 by and through local Health Committees. 
 
 Administration of medicnl benefit.] — Clause 14 (1) (a),' 
 Every local Health Conuniitee shall for the purpose of ad- 
 ministering medical benefit, make arrangements Avith regis- 
 tered medical practitioners for insured persons entitled to 
 such benefit to receive attendance and treatment to the satis- 
 faction of the insurance commissioners from such practi- 
 tioners .
 
 APPENDIX D. 281 
 
 Insert uew sub-clauses (b), (c), (d), (e), aud (f): App- D. 
 
 (b) All arraug-emeuts of the local Health fouHiiittee — - 
 
 Avitli .medical practitioners for attendance and 
 treatment of insured persons shall be subject to 
 the approval of the insurance commissioners. 
 
 (CI The local Healtli Committee shall prepare a list of 
 registered medical practitioners who have en- 
 tered into arrang-emeuts with the connnittee for 
 g'iving- attendance and treatment to insured per- 
 sons whose medical benefit is administered by the 
 committee . 
 
 {d j in the list of registered medical practitioners the 
 local Health Committee shall include all regis- 
 tered medical practitioners who apply to be in- 
 cluded, unless in resjject of any such practitioner 
 the insurance commissioners are satisiied after 
 due enquiry that his appointment woidd be pre- 
 judicial to the efficiency of the medical service of 
 the insured. 
 
 {e) The insurance commissioners shall liave power at 
 any time after due eucjuiry to remove from the 
 list of registered medical practitioners for an}- 
 district any practitioner whose conduct is deemed 
 by them to be prejudicial to the efficiency of the 
 medical service of the insured. 
 
 {t) Each insured person shall be entitled to select from 
 the list so prepared a medical practitioner, sub- 
 ject to the consent of such practitioner, to attend 
 him when required. 
 
 Clause 14 {2), Every such committee shall also make pro- 
 vision for the supply of proper aud sufficient <:[rugs aud 
 medicines to insured persons, and no arrangement shall be 
 luade Avith a medical ])ractitioner under which he is bound 
 or agrees to ])rovide drugs or medicine for any insured per- 
 son at an inclusive fee, without the consent of the insurance 
 c<unniissioners, which consent they shall not give unless the 
 circumstaiices of any locality situate in a rural district are 
 such as to make it expedient to do so. 
 
 Clause 14 (3), Delete. 
 
 Adniinishdfioii. of lualcnut// J>c')iefit.] — Clau.se IG (li, 
 Whore the mother of the child is herself an insured person 
 maternity benefit shall be treated as a benefit for her; if she 
 18 not h(M>olf an insured i)ers(jn the benefit shall be treated 
 aa a benefit for Jier husband, and shall be administered by 
 the local Health Committee, and shall be jiayable in resjiecl 
 of a posthumous child. 
 
 Power to n/)i>rovrd societien lo subscribe to hospitals, cfc] 
 — Clause 17, Delete.
 
 ^82 NATIONAL INSURANCE BILL. 
 
 App. D. Constitution of mswcmce com)im><loners, appointment of 
 
 inspectors, <fc.] — Clause 41 {1), As soon as may be after the 
 
 passing- of this Act there shall be constituted for the pur- 
 poses of this part of this Act commissioners (to be called the 
 insurance commissioners), A^dth a central office in London, 
 and with such branch offices as the Treasury may think fit, 
 and the commissioners shall be appointed by the Treasury 
 and shall include registered medical practitioners avIio have 
 had personal experience of g-eneral practice among the 
 classes from which the insured are draAvn. 
 
 Appointment of advisory committee.] — Clause 42, The in- 
 surance conunissioners shall as soon as may be after the 
 passing- of this Act appoint an advisory committee for the 
 purpose of giving the insurance commissioners advice and 
 assistance in connection with the making and altering- of 
 regulations under this part of this Act, consisting of repre- 
 sentatives of associations of employers . and approved 
 societies and registered medical practitioners who have had 
 personal experience of g-eneral jn-actice among the classes 
 from which the insured are drawn, and of such other persons 
 as the commissioners may appoint. 
 
 [First Alternative Amendment of Clause 43.) 
 
 Appointment of local Health Committees.] — Clause 43 (I) 
 As in Bill. 
 
 (2) Such numljer of the members of the committee as 
 the insurance conunissioners, having' regard to 
 the circumstances of each case, determine, but in 
 110 case less than twelve or more tlian twenty- 
 four shall be appointed — 
 
 (a^ As to one-fourth thereof (which shall consist wholly 
 or in part of members of the local sanitary au- 
 thorities) by the county council or the council of 
 the county borough: 
 
 (b) As to one-foiu'th thereof by such approved societies 
 
 as have members resident in the county or county 
 boroug-h who are insured persons, or, if such 
 societies cannot agree upon the appointment, by 
 the insurance commissioners: 
 
 (c) As to one-fourth thereof by any association of 
 
 deposit contributors resident in the county or 
 county boroug-h which may have been formed 
 under regulations made for that purpose by the 
 insurance commissioners; provided, that if no 
 such association has been formed, such one- 
 fourth shall, subject to the approval of the
 
 APPENDIX D. 
 
 283 
 
 iiismauco commissioners, be appuiuted by the App. D. 
 other members of vhe committee, or in default 
 by the insiu-ance commissioners, from amono-st, 
 so far as practicable, such deposit contributors 
 as aforesaid. 
 
 Insert new sub-clause (d) — 
 
 (d) As to the remaining- one-fourth thereof by the 
 reg-isiered ix»edical practitioners resident in the 
 coimty or county boroug-h. 
 
 (3) As in Bill. 
 
 (4) As in Bill. 
 
 ( o) The remaining' members of the committee, not ex- 
 ceeding in number one-fourth of the members 
 appointed in manner aforesaid, shall be ap- 
 pointed by the insurance commissioners. 
 
 ( 6; As in Bill. 
 
 (7) As in Bill. 
 
 [Second Alteinadvv Anundment lu Clause 43.) 
 
 Appohitinent of local Health CotninUtees.'\—Ckni>ie 43 (^1) 
 As in Bill. 
 
 (2; As in Bill. 
 
 (3) As in Bill. 
 
 (4 J As in Bill. 
 
 (o) The lemaining- members of the committee, not ex- 
 ceeding- in number one-third of the members 
 aj)pointed in manner aforesaid, shall be ap- 
 pointed by the insurance commissioners, and 
 shall include members to the number of at least 
 one-fourth of the whole committee, .selected 
 _ from registered medical ])ractitioners nominated 
 ' by the registered medical practitioners residing- • 
 in the county or county borough. 
 
 I 6) As in Bill. 
 
 (7) As in Bill. 
 
 Appointinent of local medical cuiitiiiitteen.y-iiiiw clause 
 to follow clau.se 44 — 
 
 (Ij A local ]u(3dical committee shall be formed in the 
 area of each county and county l)oroug-h consist- 
 ing of registered medical practitioners elected 
 by the registered medical ])ractitioners who are 
 engaged in medical ])ractico in such county or 
 county borough. 
 2i Tlio nuialiei- of inoinborH of each medical com- 
 mittee and the mode of election and term of otfico
 
 ■i^4 
 
 NATIONAL INSURANCE BILL. 
 
 j\pp. J). of such members shall be determined by the iu- 
 
 surance commissioners. 
 
 (3) The local medical committee shall be consulted hj 
 the local Health Committee on all matters affect- 
 ing the arrangements with registered medical 
 practitioners to give attendance and treatment 
 to the insiued and shall discharge such other 
 duties and exercise such powers as shall be deter- 
 mined by the insurance commissioners. 
 
 Income.'] — Clause 45 (1), All sums available for medical, 
 maternity, and sanatorium benefit in a county or county 
 borough, and all sums payable in respect of administrative 
 expenses in any year, shall be paid or credited to the local 
 Health Committee at the commencement of that year.
 
 APPENDIX E. 2®'^ 
 
 APPENDIX E. App.E. 
 
 AMENDMENTS DESIEED BY THE 
 PHARMACEUTICAL SOCIETY OF GREAT BRITAIN. 
 
 Desired amendments wight be given effect to by the sub- 
 joined alterations, which are indimted by putting the 
 new n-ording in hold type. 
 
 Clause 14, section (2): 
 
 " Every such (;approved) society or (local health) coiu- 
 niittee shall, subject to regulations on a scale 
 system to be framed by the insurance com- 
 missioners, make provisiou for the supply to in- 
 suited persons of pro])er and sufficient drugs and 
 medicines by duly qualified pharmacists or 
 others carrying on the business of a pharma- 
 ceutical chemist, or chemist and druggist, 
 under the provisions of clause 3 of the Poisons 
 and Pharmacy Act, 1908; and n<j arrangemeni 
 shall be made ^Wth a medical practitioner under 
 •which he is bound or agrees to ])rovide drugs or 
 medicine for any insured person at an inclusive 
 fee, without the consent of the insurance commis- 
 sioners, Avhich consent thev shall not ^ive unless 
 the circumstances of any locality situate in a rural 
 district are such as to make it exi)0(Hent to do so." 
 
 Clause 41, section (Ij: anent insurance ruimui.ssioners. 
 
 " As soon as may be after the passing of this Act there 
 shall be coustituted for the juirposes of this pari 
 of this Act conunissioners (to be called the in- 
 surance conuui.>5sioners; with central office in 
 London, and with branch offices as the Treasury 
 may think fit, and the comniissionors shall be ;>])- 
 l)ointod bv the Troasiirv and shall include 
 representatives of the General Medical Coun- 
 cil and the Councils of the Pharmaceutical 
 Society of Great Britain and the Pharmaceu- 
 tical Society of Ireland."
 
 286 NATIONAL INSURANCE BILL. 
 
 App. E. Clause 42: aiieiit advisory committee. 
 
 " The insurance commissioners shall, as soon as may be 
 after the passing- of this Act, appoint an advisory 
 committee for the purpose of giving- the insur- 
 ance commissioners advice and assistance in con- 
 nection with the making and altering of regula- 
 tions under this part of this Act, consisting of 
 representatives of associations of employers and 
 approved societies, and of duly qualified medi- 
 cal practitioners and duly qualified pharma- 
 cists, and such otJier persons as the commissioners 
 may appoint." 
 
 Clause 43, section (5): anent local Health Committee. 
 
 " The remaining membei-s of the committee, not ex- 
 c^eeding in number one-foui'th of the members ap- 
 ])ointed in manner aforesaid, shall be appointed by 
 the insui-ance commissioners, but so that of the 
 members so appointed, two at least shall be duly 
 qualified medical practitioners, and two at 
 least shall be duly qualified pharmacists." 
 
 FEINTED BY C. F. EQ-WOETH, 88, FBTTBB LANE, B.C.
 
 Los Angeles 
 This book is DUE on the last date stamped below. 
 
 i^L^ ^ 'yj{\L-'lS)f 
 
 « 
 
 ?»L2!>tS^ 
 
 
 6 
 
 FormL9 — 15m-10,'48(B1039)444 
 
 Oi^lViJiKSiTY of CALIFUKM 
 AT 
 LOS ANGELES 
 LIBRARY
 
 Illlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 
 
 AA 000 572 020 6