ill 
 

THE PEOPLE'S INSURANCE 
 
THE 
 
 PEOPLE'S INSURANCE 
 
 Explained by 
 
 THIS CHANCELLOR OF THE EXCHEQUER 
 
 THE RIGHT HON. DAVID LLOYD GEORGE, 
 
 P.C., D.C.L., LL.D. (Wales), M.P. 
 
 THIRD EDITION, CONTAINING THE TEXT OF THE NATIONAL INSURANCE 
 
 ACT (1911), TOGETHER WITH EXPLANATIONS OF THE 
 
 INSURANCE COMMISSIONERS 
 
 
 LONDON, NEW YORK, AND TORONTO 
 HODDER AND STOUGHTON 
 
 1912 
 
RICHARD CLAY AND SONS, LIMITKD, 
 
 BRUNSWICK STREET, STAMFORD STREET, S.E., 
 
 AND BUNGAY, SUFFOLK. 
 
CONTENTS 
 
 PART I 
 
 PAGB 
 
 THE REASONS FOR NATIONAL INSURANCE AND AN OUTLINE OF THE BILL 
 
 AS INTRODUCED ........... 3 
 
 PART II 
 
 SCOPE OF THE INSURANCE SCHEMES ....... 35 
 
 (a) INSURANCE AGAINST SICKNESS. 
 
 (b) INSURANCE AGAINST UNEMPLOYMENT. 
 
 PART III 
 
 TEXT OF THE NATIONAL INSURANCE ACT, WITH SCHEDULES ... 67 
 
 PART IV 
 IN DEFENCE OF THE MEASURE . .175 
 
 PART V 
 DOUBTS AND DIFFICULTIES REMOVED 229 
 
 PART VI 
 THE MACHINERY OF THE ACT . . . . . . . . -239 
 
 INDEX .... . ... 297 
 
THE REASONS FOR NATIONAL INSURANCE AND 
 AN OUTLINE OF THE BILL AS INTRODUCED 
 
 '( 
 
From the Speech of the Right Hon. D. Lloyd George on 
 introducing the Bill in the House of Commons ', May 4, 1911 
 
 This speech and the following Memoranda refer to the original Bill, and need to 
 be read now in the light of the actual text of the Act as given in subsequent 
 
 pages. 
 
PART I 
 
 THE REASONS FOR NATIONAL INSURANCE AND AN 
 OUTLINE OF THE BILL AS INTRODUCED 
 
 I think it must be a relief to the 
 Members of the House of Commons to 
 turn from controversial questions for 
 a moment to a question which, at any 
 rate, has never been the subject of con- 
 troversy between the parties in the 
 State. I believe there is a general 
 agreement as to the evil which has to 
 be remedied. There is a general 
 agreement as to its urgency, and I 
 think I can go beyond that and say 
 there is a general agreement as to the 
 main proposals upon which the remedy 
 ought to be based. 
 
 Thirty per cent, of Pauperism attributable 
 to Sickness 
 
 In this country, as my right hon. 
 friend the President of the Local 
 Government Board (Mr. Burns) said in 
 his speech last week, 30 per cent, of 
 the pauperism is attributable to sick- 
 ness. A considerable percentage 
 would probably have to be added to 
 that for unemployment. The adminis- 
 tration of the Old Age Pensions Act 
 has revealed the fact there is a mass 
 of poverty and destitution in this coun- 
 try which is too proud to wear the 
 badge of pauperism, and* which de- 
 clines to pin that badge to its children. 
 They would rather suffer from priva- 
 tion than do so. I am perfectly cer- 
 tain if this is the fact with regard to 
 
 persons of seventy years of age, there 
 must be a multitude of people of that 
 kind before they reach that age. 
 
 The Present Insurance and the Working 
 Classes 
 
 The efforts made by the working 
 classes to insure against the troubles 
 of life indicate they are fully alive to 
 the need of some provision being made. 
 There are three contingencies against 
 which they insure death, sickness, 
 and unemployment. Taking them in 
 the order of urgency which the working 
 classes attach to them, death would 
 come first. 
 
 Against Death 
 
 There are 42,000,000 industrial 
 policies of insurance against death is- 
 sued in this country of small amounts 
 where the payments are weekly, 
 monthly, or occasionally quarterly. 
 The friendly societies, without excep- 
 tion, have funeral benefits (and that 
 accounts for about 6,000,000). The 
 collecting societies are about 
 7,000,000, and those are also death 
 benefits. Then the great industrial in- 
 surance companies have something likf 
 30,000,000 policies. There is hardly i 
 household in this country where there 
 is not a policy of insurance against 
 death. 
 
 A* 2 
 
THE PEOPLE'S INSURANCE 
 
 I will not stop to account for 
 it. After all, the oldest friendly socie- 
 ties in the world are burial societies. 
 All that I would say here is we do not 
 propose to deal with insurance against 
 death. It is no part of our scheme at 
 all, partly because the ground has been 
 very thoroughly covered, although not 
 very satisfactorily covered, and also be- 
 cause this, at any rate, is the easiest 
 part of the problem and is a part of the 
 problem which is not beset with the 
 (difficulties of vested interests. Fortun- 
 ately, all the vested interests which 
 deal with sickness and unemployment 
 are of a thoroughly unselfish and bene- 
 ficent character, and we shall be able, I 
 think, to assist them, not merely with- 
 out interfering with their rights and 
 privileges, but by encouraging them to 
 do the excellent work they have com- 
 menced and which they are doing so 
 well. 
 
 Against Sickness 
 
 Sickness comes next in the order of 
 urgency in the working-class mind. 
 There are over 6,000,000 policies 
 that is hardly the word, perhaps, for 
 friendly societies but there is provi- 
 sion made by 6,000,000 people against 
 sickness. Most of it includes a pro- 
 vision for medical aid. There are, I 
 think, about 300,000 or 400,000 mem- 
 bers who have insured for medical aid 
 alone, but I think, almost without ex- 
 ception, the friendly societies include 
 medical relief in the provision which 
 they make. That is not, I think, the 
 case with the trade unions. There are 
 700,000 members in the trade unions 
 insured for sick benefits, but I do not 
 chink that includes medical relief. In 
 addition to those, there are a good 
 many unregistered assurances at 
 works, where a man leaves a shilling a 
 
 month at the office for the purpose of 
 paying the works' doctor. I should 
 say, therefore, that between 6,000,000 
 and 7,000,000 people in this country 
 have made some provision against sick- 
 ness not all of it adequate, and a good 
 deal of it defective. 
 
 Against Unemployment 
 
 Then comes the third class, the in- 
 surance against unemployment. Here 
 not a tenth of the working classes have 
 made any provision at all. You have 
 only got 1,400,000 workmen who have 
 insured against unemployment. It is 
 true that perhaps about half of the em- 
 ployment of this country is not affected 
 by the fluctuations of trade. I do not 
 think agricultural labourers or railway 
 servants are. affected quite to the same 
 extent. Then there is provision for 
 short time in some of the trades. Tak- 
 ing the precarious trades affected by 
 unemployment, I do not believe more 
 than one-third or one-quarter of the 
 people engaged in them are insured 
 against unemployment. 
 
 That is the provision made at the 
 present moment by the working 
 classes": 42,000,000 policies against 
 death, from 6,000,000 to 7,000,000 who 
 have made some kind of provision 
 against sickness, and 1,400,000 who 
 have made some provision against un- 
 employment. 
 
 Why the Government is taking Action 
 
 Now comes the question which leads 
 up to the decision of the Government 
 to take action. 
 
 What is the explanation that only 
 a portion of the working classes have 
 made provision against sickness and 
 against unemployment? Is it that they 
 consider it not necessary? 
 
 Quite the reverse, as I shall prove by 
 figures. In fact, those who stand most 
 
THE PEOPLE'S INSURANCE 
 
 5 
 
 in need of it make up the bulk of the 
 uninsured. Why? Because very few 
 can afford to pay the premiums, and 
 pay them continuously, which enable 
 a man to provide against those three 
 contingencies. As a matter of fact, 
 you could not provide against all those 
 three contingencies anything which 
 would be worth a workman's while, 
 without paying at any rate is. 6d. or 
 2s. per week at the very lowest. There 
 are a multitude of the working classes 
 who cannot spare that, and ought not 
 to be asked to spare it, because it in- 
 volves the deprivation of children of 
 the necessaries of life. Therefore they 
 are compelled to elect, and the vast 
 majority choose, to insure against 
 death alone. Those who can afford to 
 take up two policies insure against 
 death and sickness> and those who can 
 afford to take up all three insure 
 against death, sickness, and unemploy- 
 ment, but only in that order. 
 
 Why do not the Working Classes 
 Insure against Death, Sickness, and 
 Unemployment ? 
 
 What are the explanations why they 
 do not insure against all three? 
 
 (1) Low Wages 
 
 The first is that their wages are too 
 low. I am talking now about the unin- 
 sured portion. Their wages are too 
 low to enable them to insure against 
 all three without some assistance. 
 
 (2) Difficulty of keeping up Premiums 
 
 The second difficulty, and it is the 
 greatest of all, is that during a period 
 of sickness or unemployment, when 
 they are earning nothing, they cannot 
 keep up the premiums. They may be 
 able to do it for a fortnight or three 
 
 weeks, but when times of very bad 
 trade come, when a man is out of work 
 for weeks and weeks at a time, arrears 
 run up with the friendly societies, and 
 when the man gets work, it may be at 
 the end of two or three months, those 
 are not the first arrears which have to 
 be met. There are arrears of rent, 
 arrears of the grocery bill, and arrears 
 for the necessaries of life. At any rate 
 he cannot consider his friendly society 
 only. The result is that a very con- 
 siderable number of workmen find 
 themselves quite unable to keep up the 
 premiums when they have a family to 
 look after. 
 
 Wages Spent in Other Ways 
 
 Undoubtedly there is another reason. 
 It is no use shirking the fact that a 
 proportion of workmen with good 
 wages spend them in other ways, and 
 therefore have nothing to spare with 
 which to pay premiums to friendly 
 societies. It has come to my notice, 
 in many of these cases, that the 
 women of the family make most 
 heroic efforts to keep up the pre- 
 miums to the friendly societies, and 
 the officers of friendly societies, whom 
 I have seen, have amazed me by telling 
 me of the proportion of premiums of 
 this kind paid by women out of the 
 very wretched allowance given them to 
 keep the household together. 
 
 Two Hundred and Fifty Thousand 
 Lapses a Year 
 
 I think it is well we should look all 
 the facts in the face before we come 
 to consider the remedy. What does 
 it mean in the way of lapses? I have 
 inquired of friendly societies, and, as 
 near as I can get at it, there are 
 250,000 lapses in a year. That is a 
 
THE PEOPLE'S INSURANCE 
 
 very considerable proportion of the 
 6,000,000 policies. The expectation of 
 life at twenty is, I think, a little over 
 forty years, and it means that in 
 twenty years' time there are 5,000,000 
 lapses : that is, people who supported 
 and joined friendly societies, and who 
 have gone on paying the premiums for 
 weeks, months, and even years, strug- 
 gling along, until at last, when a very 
 bad time of unemployment comes, 
 they drop out and the premium lapses. 
 It runs to millions in the course of a 
 generation. 
 
 What does that mean? It means that 
 the vast majority of the working men 
 of this country at one time or other 
 have been members of friendly socie- 
 ties, have felt the need for provision 
 of this kind, and it is only because 
 they have been driven, sometimes by 
 their own habits, but in the majority 
 of cases by circumstances over which 
 they have no control to abandon their 
 policies. 
 
 Not One-half of the Workmen Insured 
 against Sickness, not One-tenth 
 against Unemployment 
 
 That is the reason why, at the pre- 
 sent moment, not one half of the work- 
 men of this country have made any 
 provision for sickness and not one- 
 tenth for unemployment. 
 
 I think it necessary to state these 
 facts in order to show that there is a 
 real need for some system which would 
 aid the workmen over these difficul- 
 ties. I do not think there is any 
 better method, or one more practicable 
 at the present moment, than a system 
 of national insurance which would 
 invoke the aid of the State and the 
 aid of the employer to enable the work- 
 man to get over all these difficulties 
 and make provision for himself for 
 
 sickness, and, as far as the most pre- 
 carious trades are concerned, against 
 unemployment. 
 
 The Plan of the Government for Sickness 
 
 I come at once to the plan of the 
 Government. 
 
 The measure of the Govern- 
 ment will be divided into two 
 parts. The first will deal with sick- 
 ness, and the second with unemploy- r 
 ment. The sickness branch of the 
 Bill will also be in two sections; one 
 will be compulsory and the other volun- 
 tary. 
 
 The Compulsory Clauses 
 
 The compulsory part of the Bill in- 
 volves a compulsory deduction from 
 the wages of all the employed classes 
 who earn weekly wages, or whose 
 earnings are under the Income Tax 
 limit. There will be a contribution, 
 from the employer and a further con- 
 tribution from the State. There are 
 exceptions from the compulsory clause. 
 
 Exceptions from Compulsory Clauses 
 
 (a) Special Provision for Soldiers and 
 Sailors 
 
 The first will be in the Army and 
 Navy. We are making special pro- 
 vision for soldiers and sailors. It is 
 a crying scandal, I think, that at the 
 present moment there are so many 
 soldiers and sailors who have placed 
 their lives at the disposal of the coun- 
 try, and are quite ready to sacrifice 
 them, as we know from past ex- 
 perience, broken through ill-health. I 
 am talking now of ill-health not due to 
 misconduct. These men leave the Army 
 without any provision from either 
 public or private charity, and they 
 are broken men for the rest of their 
 
THE PEOPLE'S INSURANCE 
 
 lives. I think it is a crying 1 scandal 
 that that should occur in a country 
 like this, and I hope that this scheme 
 will put an end to it. There will be 
 special provision made for that. But 
 these men will not be regarded as in 
 the employed class for the purposes 
 I am about to explain. 
 
 (b) Teachers 
 
 The same thing applies to the 
 teachers, and I hope to be able, with 
 the assistance of my right hon. friend 
 the President of the Board of Educa- 
 tion, to largely strengthen their pre- 
 sent position. I think their provision 
 is very inadequate, and, compared 
 with the provision made in other coun- 
 tries, I think a very paltry allowance 
 is made for their superannuation. I 
 think the Irish case is a very bad case. 
 I have had a number of Irish teachers 
 before me, and some of them told me 
 that they were getting about i a 
 week. There are about 300 of them 
 in the workhouses. They are doing 
 their work for the Empire under very 
 trying conditions, and I shall certainly 
 consider it the duty of the Govern- 
 ment, in any scheme of superannua- 
 tion, to include the Irish teachers as 
 well. 
 
 (c) People Employed under the Crown or 
 Municipalities 
 
 We propose excepting all people 
 employed under the Crown or under 
 municipalities where, at the present 
 moment, there is no deduction from 
 their wages when they are ill, and 
 where there is some superannuation 
 allowance. There is no need to make 
 provision for them because provision 
 is already made. 
 
 (d) Commission Agents 
 
 The same thing will apply to com- 
 mission agents employed by more than 
 one person. 
 
 (e) Casual Labour 
 
 There is also an exception in the 
 case of casual labour employed other- 
 wise than for the purpose of the em- 
 ployer's trade or business. We think 
 it is vital that casual labour should 
 be included. Otherwise the same 
 thing may happen here as I am told 
 happens in Germany, where the ex- 
 clusion of casual labour is rather en- 
 couraging its growth. That is a very 
 bad thing in itself, and there is really 
 no class which it is more important 
 to include than casual labour. Casual 
 labour at docks and in warehouses will 
 be included. 
 
 (f) Golf Caddies 
 
 I think, too, that casual labour such 
 as that of golf caddies should be 
 brought in. I am making special pro- 
 vision for labour of that kind. 
 
 (g) Waiters 
 
 Hotel waiters will be another diffi- 
 culty. They are not paid salaries. I 
 am told they very often pay for the 
 privilege of waiting, and we have to 
 make special provision for them. 
 
 (h) Cab Drivers 
 
 Cab drivers are another class we 
 propose to include. 
 
 All casual labour of this kind will be 
 included. The man who offers to 
 carry your bag for sixpence you can 
 never draw in, but it is our intention 
 to attract all casual labour possible 
 within the ambit of our Bill. 
 
THE PEOPLE'S INSURANCE 
 
 The Amount of Contribution 
 
 I come to the amount of contribu- 
 tion. The workman now pays to his 
 friendly society 6d. or is. The usual 
 contribution to a friendly society is 
 something between 6d. and gd. t as far 
 as I have been able to discover, and 
 anything under that produces benefits 
 which are benefits I do not think it 
 would be worth our while to include 
 in an Act of Parliament. 
 
 The House will be interested to 
 know what German workmen have 
 to pay, because that was the 
 first great scientific experiment in 
 insurance on a national scale. It 
 has been enormously successful. 
 That is the testimony borne by all 
 classes of Germans. I have taken 
 some trouble to inquire, and the Ger- 
 man Government have been exceed- 
 ingly kind and helpful in placing 
 information at our disposal. They 
 have shown every disposition to be 
 helpful throughout, and their testimony 
 is that all classes of the community 
 are very much benefited by it. 
 
 The German Plan 
 
 In Germany the payment is in pro- 
 portion to wages, but the benefits are 
 also in proportion to wages, so that 
 the higher class of workman, who pays 
 a very high contribution, gets a very 
 substantial benefit. 
 
 There are in Germany, I think, five 
 classes of invalidity contributors, and 
 for sickness every man pays according 
 to his income. They divide their in- 
 surance into two separate branches of 
 sickness and invalidity. There are two 
 separate branches, but we propose to 
 include them in one branch. In Ger- 
 many a man who earns 305. pays lofdL 
 weekly for sickness and invalidity. 
 There are not many of those. The 
 
 man who is paid 245. a week, which 
 I think is about the average wage in 
 this country, if you were to strike an 
 average, which it is a difficult thing 
 to do the man who is paid 245. a 
 week pays gd. a week. For that 9^. 
 the benefits he gets will not be equal 
 to the benefits we shall be able to give 
 under our Bill twenty years hence. 
 The 205. a week man pays 7^d., the 
 185. man 6fd., the 155. man sfd., the 
 125. man 4fd., and the 95. man 
 
 In Germany, Benefits to Lower Classes 
 very Small 
 
 That is what the workman pays in 
 Germany, and when you come down 
 to these lower classes the benefits are 
 so small that the workmen in Germany 
 say they prefer to resort to parish relief 
 as the benefits are much too inade- 
 quate. 
 
 For that reason we have decided In 
 favour of one class, because if you 
 have a scale which is proportionate it 
 would be very difficult to give benefits 
 to the lower class except by making 
 special conditions which it would not 
 be worth our while to make. It would 
 certainly not give them a minimum 
 allowance to keep their families from 
 want. 
 
 Government Plan One Scale for all 
 Classes 
 
 So we have decided to have one scale 
 for all classes, with a provision for the 
 lowest wages. Therefore, we have 
 decided to propose a deduction of 4^. 
 for men and 3^. for women. That is 
 about a halfpenny per day and a penny 
 on Saturday, or, as somebody told me, 
 about the price of two pints of the 
 cheapest beer per week, or the price 
 of an ounce of tobacco. 
 
 Now comes the difficulty of the man 
 
THE PEOPLE'S INSURANCE 
 
 who is earning 155. a week and under, 
 and who finds it rather difficult to pay 
 4^. a week. 
 
 We meet that case by saying that a 
 man or woman who earns 2s. 6d. a' 
 day or less shall pay 3<L, 25. a day or, 
 less 2d., and is. 6d. a day or less id. 
 a week.* 
 
 Let me make a very impor- 
 tant exception. That would not in- 
 clude the cases where there is board 
 and lodging in addition to the wage.- 
 These cases are * excluded altogether. 
 This is purely the case where the wage 
 represents the whole payment. 
 
 The Difference Paid by Employer who 
 Profits by Cheap Labour 
 
 Who will pay the difference? If 
 you make the State pay the difference, 
 then it means that the employers who 
 pay high wages to their workmen will 
 be taxed for the purpose of making up 
 the diminished charge for workmen of 
 other employers who are paying less, 
 and I do not think that would be fair. 
 We have come to the conclusion that 
 the difference ought to be made up by 
 the employer who profits by cheap 
 labour, and therefore in the lowest case 
 (in the case of 155. a week and down- 
 wards) the employer will pay more. 
 
 I hope I have made it clear that our 
 scale of deduction for the workmen Is 
 a uniform one, with the exception of 
 that descending scale when you come 
 to the very lowest wages and where 
 you really cannot expect a man to pay 
 4^. a week. 
 
 Are Men of all Ages to be Included ? 
 
 There is another difficulty. Are we 
 going to include in the benefits of the 
 scheme men of all ages at the present 
 moment? If we are, on what scale? 
 
 * Under the Act as passed, 3^., id.> and ni{ 
 respectively. 
 
 Are we going to charge the man of 
 fifty more than the man of twenty-five? 
 That is a question which, of course, 
 presents itself the moment you begin to 
 consider the actuarial position, be- 
 cause, after all, sickness doubles, 
 trebles, anop quadruples as you get 
 along in life until when you get be- 
 tween sixty-five and seventy the aver- 
 age sickness in five years is fifty-two 
 weeks. It begins with three or four 
 days, then on to a week, then to a 
 fortnight, and a man as he gets on in 
 life becomes a heavier charge upon his 
 friendly society, and no society can 
 possibly take a man at fifty or forty- 
 five on the same terms as if he were 
 only sixteen or twenty unless they 
 make special provision. 
 
 A.Uniform Bate Charged 
 
 Of course, we are now starting a 
 new scheme, and the Government have 
 decided to do this : to charge a per- 
 fectly uniform rate throughout, calcu- 
 lating the loss on older lives because 
 there will be a heavy initial loss 
 as the result of that operation cal- 
 culating that loss, anticipating it, and 
 making provision to wipe it out in so 
 many years. We have made provision 
 to wipe the whole of that loss out, 
 charging a perfectly uniform rate, in 
 fifteen and a half years.* 
 
 After 15| Years, Increasing Benefits 
 
 At the end of that time, of course, 
 there will be a considerable sum that 
 will have been realised for the purpose 
 of increasing the benefits, and those 
 who will come in early will then get 
 the benefit of their thrifi by having a 
 considerable sum of money added to 
 the sum which is available for increas- 
 ing the benefits. 
 
 * Under the Act as passed, i8J years. 
 
IO 
 
 THE PEOPLE'S INSURANCE 
 
 Men Over 50 
 
 The only difference we make is with 
 regard to men over fifty. We then 
 propose to pay them reduced benefits. 
 
 Men Over 65 
 
 Men who are over sixty-five at the 
 present moment we do not propose 
 should join the scheme at all, because 
 that is an impossible undertaking ; the 
 burden would be much too heavy, and, 
 after all, we must be fair to the man 
 who comes in young with his money. 
 He must be encouraged, he must get 
 his reward for it, and if we take over 
 too heavy a burden in the way of those 
 who are at present very old, the young 
 people will suffer. I am told that is 
 the criticism in Germany, that the 
 young people do not get full value for 
 their own money and the money of 
 their employers. 
 
 We propose to admit everyone 
 up to sixty-five to insurance so 
 long as it is done within twelve 
 months after the passing of the Act. 
 We are going to give twelve months' 
 grace. If they come in after twelve 
 months they will come in on the terms 
 either of paying a rate appropriate to 
 their age or of taking reduced benefits, 
 which comes to practically the same 
 thing. 
 
 Mr. BALFOUR : Would not they 
 come in at sixteen? 
 
 Men who come in at 16 and after 16 
 
 Mr. LLOYD GEORGE : A man may 
 only start work at twenty-five, and if 
 he comes in after the first twelve 
 months he has to pay a rate appro- 
 priate to his age or to take reduced 
 benefits for his life. There will not be 
 very many such cases. The right hon. 
 Gentleman is perfectly right : the rule 
 would be that everybody would come 
 
 in at sixteen, but there may be people 
 who come in after sixteen. In that 
 case they will pay according to age or 
 take reduced benefits. We make a 
 certain exception about sixteen, be- 
 cause if a man has been training at a 
 technical college, for instance, or in 
 some other way he is usefully em- 
 ployed in training himself for life, then 
 we do not insist upon sixteen as a rigid 
 limit. 
 
 So much for the contribution by the 
 employee. 
 
 The Employer's Contribution 
 
 Now we come to the contribution of 
 the employer. What interest has the 
 employer in the matter? His interest 
 is the efficiency of his workmen, and 
 there is no doubt at all that a great 
 insurance scheme of this kind removes 
 a great strain of pressing burden and 
 anxiety from the shoulders of the work- 
 ing classes, and increases the efficiency < 
 of the workmen enormously. Work- 
 ing men have told me that many a 
 time they have gone on working at 
 their business because they dared not 
 give it up, as they could not afford 
 to, though they ought to have been 
 in the doctor's hands. This procedure 
 generally brings about a very bad- 
 breakdown, and not only that, when a 
 man is below par neither the quantity 
 nor the quality of his work is very 
 good. 
 
 German Employers' Experience of 
 Insurance 
 
 I have taken the trouble to make 
 some inquiry from the German em- 
 ployers as to their experience of insur- 
 ance from this point of view, and I 
 have got a number of answers which, 
 perhaps, later on the House would be 
 interested in having circulated. Here 
 
THE PEOPLE'S INSURANCE 
 
 is one instance I had out of many. It 
 is the opinion of an employer engaged 
 in the steel industry. He said : 
 
 "There can be no doubt that the 
 Insurance Laws, together with the 
 increase of wages, have exercised an 
 enormously beneficial influence upon 
 the health, standard of living, and the 
 efficiency of workers." 
 
 Another great employer of labour 
 says : 
 
 "That from the employers' stand- 
 point these laws pay, since the effi- 
 ciency of the workman is increased." 
 
 There is this very curious posi- 
 tion in Germany that the em- 
 ployers, and the largest employers, 
 are voluntarily offering to increase 
 their contributions to National insur- 
 ance for increased benefits. That is 
 the view taken by the employer in 
 Germany. 
 
 What the German Employer Pays 
 
 What does he pay for sickness and 
 invalidity insurance? He pays for a 
 305. a week man J^d. For a 245. a 
 week man the employer would pay 5! d. 
 and for an 185. a week man he pays 
 4*d. When it goes down below that 
 the contribution is very much lower, 
 and the benefits are very poor. 
 
 We propose that the employer 
 should pay $d. a week, the workman 
 4<1 ; a woman worker 3^., and the em- 
 ployer 3d. for man and woman alike. 
 
 The State's Contribution 
 
 1 come to the contribution of the 
 State. The advantage of the scheme 
 to the State is, of course, in a happy, 
 contented, and prosperous people. 
 The German contribution is not a very 
 large one. 1 believe it is about 
 
 ^"2,500,000, and that includes Old Age 
 Pensions. We have already got a 
 burden of ^13,000,000 a year for Old 
 Age Pensions. But let me point this 
 out to the House, that payment is 
 equivalent to something like 5^. a 
 week for employer and labourer under 
 this scheme, and it makes matters 
 very much easier. We certainly could 
 not have offered the benefits which we 
 are offering in this measure, qd. for a 
 workman and 36?. for an employer, 
 had it not been that the whole burden 
 of pensions over seventy years of age 
 had been taken over by the State. 
 The first actuarial fact borne in upon 
 me the moment I came in contact with 
 the actualities was that an enormous 
 difference was thus made in the 
 scheme, and that it greatly eased mat- 
 ters. Had it not been for that I 
 should have proposed very much 
 dearer and sterner terms both for the 
 employer and the employed. 
 
 We do not propose that the State 
 contribution should end with that 
 ^"13,000,000. We propose that the 
 State contribution shall be the equiva- 
 lent of 2d. a member. 
 
 How the Difficulties of Workmen are met 
 
 I .should like to point out how we 
 are meeting the three difficulties ex- 
 perienced by contributaries in making 
 provision for sickness. The first diffi- 
 culty is the lowness of the wages. 
 We are meeting that by a State con- 
 tribution and a contribution from the 
 employer which enables us to depress 
 all round the amount of contribution 
 demanded from the workman. More 
 than that, we have a special scale for 
 those whose wages are lower; that is 
 how we meet the case of low wages. 
 
 I want to point out how we meet the 
 case of the man who is unable to pay 
 
12 
 
 THE PEOPLE'S INSURANCE 
 
 because of sickness and of unemploy- 
 ment, because really this is the most 
 serious difficulty that the workman has 
 to encounter. We therefore propose 
 special provisions for him. 
 
 In the friendly societies, as everyone 
 knows who is acquainted with their 
 working, during sickness, whether you 
 are sick or whether you are unem- 
 ployed, you have to go on paying 
 steadily. It is true that, not being 
 societies working for profit, and being 
 really quite worthy of their name of 
 friendly societies, with a great sense 
 of brotherhood, they make special 
 efforts to spare their men the last dire 
 necessity of expulsion, but still they 
 have to get their money, and what they 
 do is this. 
 
 No Deductions from Benefits when a 
 Man is Sick 
 
 When a man is sick he may get a 
 nominal allowance of los. a week, but 
 his 6d. or his qd. will be deducted, so 
 that where he is nominally getting los. 
 he is really getting gs. 6d. That is the 
 time that 6d. is worth more than 
 2s. 6d. to a man in full wage. We 
 propose to make no deduction at all 
 from benefits, but where a man is 
 receiving sick pay we do not propose 
 that that should be counted against 
 him at all. With regard to unem- 
 ployment, there will be no deduction, 
 and the mere fact that he has failed 
 to pay from that time will not be 
 reckoned against him when we come 
 afterwards to compute the number of 
 payments he has made. 
 
 Mr. BALFOUR : It will count exactly 
 as if he had paid. 
 
 Mr. LLOYD GEORGE : That is a 
 better way to put it. 
 
 Now I come to unemployment. 
 
 How the Workman Pays during Sickness 
 and Unemployment 
 
 What is the workman to do when 
 he is out of work? How is he to pay 
 his contributions? 
 
 We propose allowing a 6 per cent, 
 margin for unemployment; that 
 means three weeks a year. As 
 long as a man is employed you de- 
 duct 4^., but we allow a margin 
 of three weeks a year for unemploy- 
 ment. That means in a cycle, say of 
 four years bad times may come once 
 every four years let us say a margin 
 of twelve weeks of unemployment. 
 
 We propose to do more than that. 
 After he has exhausted his twelve 
 weeks, if he is still unemployed, then' 
 up to 25 per cent. that means thirteen [ 
 weeks a year we still allow htm, but 
 at reduced benefits. Up to three weeks 
 there is no reduction in his benefits at 
 all. He is allowed that free margin for 
 unemployment. Beyond that, up to 
 thirteen weeks a year, he is allowed^ 
 without expulsion, or without his 
 policy lapsing rather, to go on; but 
 then there is a corresponding reduction 
 in the benefits. 
 
 I am still dealing with the difficulty 
 of a man paying his contribution dur- 
 ing sickness and unemployment, and I 
 am just showing how the Government 
 make special provision for the payment 
 of contributions in these periods. Later 
 on I will point out that it is also pro- 
 posed that what is called a Distress 
 Fund in friendly societies should be set 
 up which will help the workman to pay 
 arrears of contribution for unemploy- 
 ment or for some other reason. That 
 is the compulsory clause as far as con- 
 tributions are concerned. 
 The Voluntary Contributors 
 
 I now come to the voluntary con- 
 tributors. There are two classes of 
 voluntary contributors. 
 
THE PEOPLE'S INSURANCE 
 
 (1) The Small Tradesman, the Village 
 Blacksmith and Schoolmaster 
 
 There are persons who, whilst not 
 working for an employer, are engaged 
 in some regular occupation and are 
 mainly dependent on their earnings for 
 their livelihood. 
 
 Take the village blacksmith who 
 is not working for any employer, 
 but is depending on his earnings 
 for his livelihood. The same thing 
 will apply to the small tradesman. 
 I find looking through the lists 
 of the friendly societies, in some of 
 them there is a very high percentage of 
 men who do not belong to the em- 
 ployed class in the ordinary sense of 
 the term. For instance, in rural dis- 
 tricts, you will find that all the pub- 
 licans, all the tradesmen, the school- 
 master, the village blacksmith, and 
 the man who is joinering on his own, 
 who is not anybody's man, are mem- 
 bers of friendly societies. We propose 
 that they should be allowed to be mem- 
 bers of this insurance scheme. They 
 are really a great source of strength to 
 the friendly societies. They help them 
 in the management, and their business 
 knowledge is of infinite value. It 
 would be a great accession of strength 
 to any scheme of this kind that we 
 should still retain in it men of that 
 type. 
 
 (2) Men who have been Employed and 
 are now Working on their Own 
 Account 
 
 Then there is the other class of men, 
 those who have been employed work- 
 ing for others and have ceased to do so, 
 and are working on their own account. 
 So long as they have been contribu- 
 tors for five years we allow them still 
 to join. With regard to this class, 
 there is a difficulty in allowing them to 
 come in at any age and at all ages. 
 
 With an employed class, you have 
 always the test of employment for 
 wages, but with this class, if a man 
 is a trader, or is working on his own 
 account, doing as little or as much as 
 he likes, there is no test of that kind, 
 and unless there is some sort of check 
 you might have a rush of people who 
 are fairly old coming in at the last 
 moment to get benefits which are quite 
 out of proportion to the contribution 
 which they pay. 
 
 An Age Limit for the Voluntary Class 
 Therefore, as far as the voluntary 
 class is concerned, we are bound to 
 put a limit to the age at which they can 
 be allowed to join at the uniform rate. 
 We propose that all those of 
 that class who wish to join within six 
 months, and who are forty-five years of 
 age and under, can join at a rate which 
 covers the 4^. or 3 d. as the case may 
 be, whether they are men or women, 
 they themselves paying the employer's 
 contribution. That would mean that 
 they would pay 7<J. for men and 6d. for 
 women, and they, of course, get the 
 benefit of the State contribution. Those 
 over forty-five join at rates appropriate 
 to their ages, but they also get the 
 benefit of the State contribution for 
 what it is worth to them, and, of 
 course, it is worth a good deal. 
 
 Married Women who are not Workers 
 Another exception we are bound to 
 make to this class of voluntary contri- 
 butors. I do not think it would be 
 advisable to allow married women who 
 are not workers to join. It would be 
 very difficult to check malingering 
 almost impossible, I am told by those 
 who are working friendly societies and 
 insurance work. There is no real test 
 except the medical certificate, and that 
 is not always conclusive. It is very 
 
THE PEOPLE'S INSURANCE 
 
 difficult, doctors tell me, in these cases, 
 and it would be very dangerous to 
 allow them to come in unless you have 
 something like the test of work. You 
 have, I think, about 700,000 married 
 women who are workers and come into 
 the compulsory scheme as workers, but 
 I do not think we can possibly agree 
 to married women unless they are 
 workers. * 
 
 The Estimated Figures of Compulsory 
 
 and Voluntary Contributors 
 I will give the numbers which, of 
 course, must be approximate numbers, 
 for we have not the latest Census re- 
 turns, and therefore we have only to 
 guess at what these figures should be. 
 The estimate of population has been 
 falsified in the case of Scotland, and 
 we cannot tell at present how the esti- 
 mates will be falsified both in England 
 and Ireland. I have, therefore, to 
 state the figures which have been ar- 
 rived at by the actuaries, who have 
 given a great deal of thought to the 
 subject. We have had very able 
 actuaries at our command, but the 
 figures must, of course, be estimated 
 according to the details which they 
 have had at their disposal, and if it is 
 found subsequently that the figures are 
 wrong because the Census returns do 
 not substantiate them, it will not be 
 their fault. 
 
 First of all, as to employed 
 contributors, we anticipate that 
 9,200,000 men will be in the compul- 
 sory class, and there will be 3,900,000 
 women, making a total of 13,100,000 
 in that class. Then the voluntary con- 
 tributors will number 600,000 men and 
 200,000 women, making a total of 
 800,000. Of course, here, again, I 
 have to say that we can only guess at 
 the number of people likely to come in. 
 
 * Special provision is made for married women 
 in the Act as passed. See section 44. 
 
 Deduction in case of Young Persons 
 
 Everybody, of whatever age, who is 
 employed in this country on wages will 
 come in. There will be a deduction in 
 the case of young persons. I will state 
 later on how we are going to deal with 
 the deduction, but they will all come 
 in. Otherwise there would be a pre- 
 mium on boy labour to that extent. If 
 an employer got off without paying in 
 respect of a boy of fifteen it would be 
 an advantage to have boy labour, and 
 therefore we propose that everybody 
 should come in.* 
 
 Totals of Contributors 
 
 With the 800,000 voluntary contribu- 
 tors, the total will be 9,800,000 men, 
 4,100,000 women, making 13,900,000 
 altogether. But to that has to be 
 added 800,000 persons under sixteen 
 years of age, consisting of 500,000 
 boys and 300,000 girls. That makes a 
 grand total of 14,700,000 persons who 
 will, we hope, enjoy the Insurance 
 scheme. 
 Benefits (1) Medical Belief 
 
 Now I come to benefits. These will 
 be distributed under three or four dif- 
 ferent heads. 
 
 There will be medical relief. There 
 will be the curing side of the benefit, 
 and there will also be allowance 
 for the maintenance of a man and 
 his family during the time of his 
 sickness. I will deal first of all with 
 the medical side of relief. There is 
 no doubt that there is great reluct- 
 ance on the part of workmen to resort 
 to the Poor Law medical officer. That 
 is admitted on all hands. It was stated 
 both in the Majority and the Minority 
 Reports of the Commission. He has to 
 prove destitution, and although there is 
 a liberal interpretation placed on that 
 by Boards of Guardians, still it is a 
 
 * Later, 16 was fixed as the age at which 
 insurance should begin. 
 
THE PEOPLE'S INSURANCE 
 
 humiliation which a man does not care 
 to bear among his neighbours. 
 
 How the Doctor Fails to get Paid 
 
 What generally happens is this. 
 When a workman falls ill, if he has 
 no provision made for him, he hangs 
 on as long as he can and until he gets 
 very much worse. Then he goes to 
 another doctor and runs up a bill, and 
 when he gets well he does his very best 
 to pay that and the other, bills. He very 
 often fails to do so. I have met many 
 doctors who have told me that they 
 have hundreds of pounds of bad -debts 
 of this kind which they could not think 
 of pressing for payment of- What 
 really is done now is that hundreds of 
 thousands I am not sure that I am 
 not right in saying that millions of 
 men, women, and children get the ser- 
 vices of such doctors. The heads of 
 families get those services at the ex- 
 pense of the food of their children, or 
 at the expense of good-natured doctors. 
 Doctors are very great sufferers' in- 
 deed. One of them said to me : "A 
 man fell ill and wanted my attendance. 
 Well, I asked myself, What am I to 
 do in this case? Here is this poor 
 fellow, who owes me already g or 
 10, which he can never pay, .but how 
 can I refuse to go ? " He could not 
 refuse, and he went.' 
 
 Present Proposals Pay the Doctor's Bill 
 I do not think it right that we should 
 do our charity at the expense of the 
 medical profession. What we propose 
 to do is this. If one of the 14,700,000 
 persons, who practically include all the 
 industrial population of this country, 
 falls ill, he can command the service of 
 a competent doctor, and command it 
 with the knowledge that he can pay. 
 But not only that; the doctor whose 
 service he commands will know also 
 
 that he will be paid. That is going to 
 make a very great difference in the 
 doctoring of these people. 
 
 Doctors and their Relations with the 
 Friendly Societies 
 
 I come now to a rather delicate task, 
 because the doctors and the friendly 
 societies are at variance on the subject. 
 The doctors say that they are under- 
 paid. Well, we all say we are under- 
 paid. On the other hand, the friendly 
 societies say, "No, it is just your 
 greed." That is really the quarrel that 
 is going on at the present time, and it 
 has become very acute. 
 
 In some districts they are rural dis- 
 tricts the doctor is paid half a crown 
 per head per annum for members of 
 friendly societies. In other districts 
 the amount runs up to 6s. per head per 
 annum, but on the average the doctor- 
 ing for members of friendly societies is 
 done at 45. per head per annum. The 
 doctors say, "We cannot do it," and I 
 am inclined to agree with them. 
 
 This is not the opinion of the friendly 
 societies that I am putting before the 
 House. I have information from in- 
 dependent inquiries I have made of 
 men who have really no interest in 
 the matter men who have passed 
 through the stage of doing friendly 
 societies' work, and who are very good 
 judges. 
 
 Expense of Certain Drugs 
 
 They say that no doctor can possibly 
 afford to give expensive drugs, and 
 some of these are essential to the cure 
 of certain diseases. These drugs can- 
 not be purchased at the price paid to 
 the doctor if he is to get anything for 
 his professional services. 
 
 I am on the whole inclined to agree 
 that the doctors have got a case for in- 
 
i6 
 
 THE PEOPLE'S INSURANCE 
 
 creased payment, not as much as they 
 ask, something far short of that, but 
 at the same time something very sub- 
 stantial. The first thing which I think 
 should be done is to separate the drugs 
 from the doctors, because a patient, so 
 long as he gets something discoloured 
 and really nasty, is perfectly convinced 
 that it must be a very good medicine. 
 Therefore there ought to be no induce- 
 ment for underpaid doctors to take it 
 out in drugs. I am not sure but that 
 the Majority Report of the Poor Law 
 Commission recommended that change. 
 
 Separation of Drugs from Doctor's 
 Attendance Charges 
 
 I suggest that there should be a 
 separation of drugs from the doctor, 
 whose business should be confined to 
 prescribing. It should be for the 
 chemist to dispense. At any rate, 
 there should be a compulsory separa- 
 tion of the two. I believe in Scotland 
 that is the practice at the present 
 moment. There are only a few excep- 
 tions on the West coast where there are 
 no chemists available, and where the 
 doctor has to do the whole thing. 
 There may be cases of that kind now, 
 for you cannot expect a man to start a 
 chemist's shop in a Highland glen. 
 There the doctor would have to do both 
 the doctoring and the supplying of the 
 drugs he prescribes. Therefore we 
 propose to make provision that, if there 
 is no chemist available, the doctor 
 should be allowed to go on as at the 
 present moment, but wherever there is 
 a chemist available there should be 
 separation. 
 
 Improvement in Standard of Payment to 
 Doctors 
 
 In addition to that, I think there 
 ought to be provision for an improve- 
 ment in the standard of payment to the 
 
 doctors. Sometimes, no doubt, they 
 are quite adequately paid, but some- 
 times they certainly are not, and I think 
 financial provision ought to be made 
 in the scheme for raising the level to 
 45. I have done so, and I hope that 
 will meet the views of the House. So 
 much for doctoring. There will be free 
 doctoring for everybody who is a con- 
 tributor to the scheme. 
 
 Maternity Benefits 
 
 The second branch of medical atten- 
 tion will be in cases of maternity. 
 There are only one or two friendly 
 societies at the present moment which 
 allow any maternity benefit, but they 
 are all alive to the necessity for it, 
 and they are gradually going on to 
 establish branches for maternity bene- 
 fit. Undoubtedly there is no more 
 urgent need. Women of the working 
 classes in critical cases are neglected 
 sadly, sometimes through carelessness, 
 but oftener through poverty, and that 
 is an injury not only to the woman 
 herself, but to the children who are 
 born. A good deal of infant mortality 
 and a good deal of anaemic and rickety 
 disease among the poorer class of 
 children are very often due to the 
 neglect in motherhood. 
 
 We propose to take the maternity 
 benefit of the Hearts of Oak Society 
 which, I think, has established a most 
 successful benefit scheme in this 
 respect. We propose that there should 
 be a 305. benefit in those cases which 
 would cover the doctoring and the 
 nursing, but only conditional upon 
 those who are women workers not 
 returning to work for four weeks, for 
 I am told that in the mills there are 
 very often cases where the women 
 work up to the last moment and the 
 maternity is over in a comparatively 
 few days. I believe we ought to make 
 
THE PEOPLE'S INSURANCE 
 
 some provision in the interest of 
 humanity to prevent that from taking 
 place. 
 
 Proposals as to Suppression of Consump- 
 tion 
 
 I have now to refer to another 
 branch of medical benefit. 
 
 We propose to do something to 
 deal with the terrible scourge of con- 
 sumption. 
 
 There are, I believe, in this country 
 about four or five hundred thousand 
 persons who are suffering from tuber- 
 cular disease. From the friendly 
 societies' point of view that is a very 
 serious item, because of the dragging 
 length of the illness. The average ill- 
 ness of patients of the Foresters, I 
 think, was fifty-eight weeks. They 
 received fifty-eight weeks' allowance 
 on an average. 
 
 Prevalency of the Disease 
 
 Out of the total sick pay of the 
 Foresters about 25 per cent, was due 
 to tuberculosis. 
 
 There are 75,000 deaths every year 
 in Great Britain and Ireland from 
 tuberculosis, and, a much more serious 
 matter, if you take the ages between 
 fourteen and fifty-five among males, 
 one out of three dies of tuberculosis 
 between those ages in what should be 
 the very period of greatest strength 
 and vigour and service. It is a very 
 sinister fact that at the very period 
 which is responsible for the continued 
 life of the race one out of three between 
 those ages is stricken down by tuber- 
 culosis. It kills as many in this king- 
 dom in a single year as all the zymotic 
 diseases put together, and a very 
 terrible fact in connection with it is 
 that the moment a man is attacked 
 and compromised he becomes a recruit 
 
 in the destructive army, and proceeds 
 to injure mortally even those to whom 
 he is most attached and to scatter 
 infection and death in his own house- 
 hold. 
 
 Annual Number of Deaths from Con- 
 sumption 
 
 There are forty-three counties and 
 towns in Great Britain each with a 
 population of about 75,000, and there 
 are throughout the country 75,000 
 deaths each year from this disease. 
 If a single one of those counties or 
 towns were devastated by plague so 
 that everybody, man, woman, and 
 child, were destroyed there and the 
 place left desolate, and the same thing 
 happened a second year, I do not 
 think we would wait a single session 
 to take action. All the resources of 
 this country would be placed at the 
 disposal of science to crush out this 
 disease. 
 
 Possibility of Stamping Out the Disease 
 
 I do not say that they can cure it, 
 but doctors think they can cure it. 
 They are confident they can. Men 
 who have devoted a great deal of atten- 
 tion to the subject, and are the most 
 confident of all those who have en- 
 gaged in experiments, are full of 
 bright hopes that they can stamp it 
 out. But they can only do it if they 
 have the means, and I propose to ask 
 the House to give them. 
 
 Provision in Germany, Great Britain 
 and Ireland compared 
 
 In Germany they have done great 
 things in this respect. They have 
 established a chain of sanatoria all over 
 the country, and the results are 
 amazing. The number of cures that 
 are effected is very large. 
 
THE PEQPLE'S INSURANCE 
 
 In this country there are practically 
 only 2,000 beds in sanatoria for tuber- 
 cular patients. There are only 4,000 
 beds in sanatoria altogether, and half 
 of those are occupied by other 
 patients, so that there are only 2,000 
 beds when there are four or five hun- 
 dred thousand people suffering from 
 the disease. 
 
 Proposals of the Bill 
 
 I really think it is about time that 
 the nation as a whole, that the State, 
 should take the matter in hand, be- 
 cause the State has suffered. 
 
 The proposal of the Government is 
 that we should first of all assist local 
 charities and local authorities to build 
 sanatoria throughout the country. 
 We propose to set aside ; 1,500,000 as 
 a capital sum for the purpose of aiding 
 local people in building sanatoria. 
 
 We have already, through the muni- 
 ficence and zeal of my lion. Friend the 
 Member for Montgomery (Mr. David 
 Davies), raised a very considerable sum 
 of money, which enabled us to build a 
 succession of them right across Wales. 
 
 Maintenance of Sanatoria 
 
 If the same thing were done through- 
 out England and W T ales, Scotland, and 
 Ireland, I believe we would soon stamp 
 out the most heartrending and painful 
 disease that ever afflicted the human 
 race. We have to provide mainten- 
 ance for that. 
 
 This is our proposal : that we should 
 take a contribution of 15. per member 
 per annum for the whole of those who 
 are insured compulsorily and volun- 
 tarily, and that in addition to that the 
 State should find 4^., so that there 
 would be is. 4^. per member for the 
 purpose of raising a fund for the main- 
 tenance of these institutions. 
 
 Not an Additional Contribution, but a 
 Benefit 
 
 This is not an additional contribu- 
 tion. I am done with contributions. 
 There are no more contributions not 
 for management or anything. This is 
 purely a benefit. What we propose is 
 that out of that fund a shilling should 
 be taken from each member, and that 
 the State should add fourpence. That 
 will mean a fund of. a million a year 
 for the purpose of maintaining these 
 institutions, and I am assured by those 
 who have taken the matter carefully 
 into consideration, including the Presi- 
 dent of the Local Government Board 
 and his very able staff, that that sum 
 will enable us at any rate to do some- 
 thing for the purpose of stamping out 
 this terrible scourge. 
 
 Sick Allowance 
 
 I come next to the sick allowance 
 for the purpose of maintaining the 
 families of the sick persons who are in- 
 sured. In the friendly societies I think 
 the allowance is six months, then it is 
 dropped again to half. In some socie- 
 ties it is still further dropped, gener- 
 ally at twelve months. 
 
 Duration of Grant 
 
 I propose that the first stage should 
 be a three months' grant, because the 
 real reason why six months' allowance 
 is given is because of tubercular 
 patients. They are the people who 
 take over three months on the fund. 
 Outside of them a man is generally 
 either cured or off the fund before that 
 period. 
 
 I propose that in the first three 
 months there should be an allow- 
 ance of 105. per week. Power will be 
 given to the society to extend that to 
 twenty-six weeks if they think it neces- 
 sary. I point out later on that there 
 
THE PEOPLE'S INSURANCE 
 
 are funds for that purpose, but, per- 
 haps, at any rate, a start should be 
 made with three months at los. After- 
 wards the allowance will be reduced 
 to 55. for another three months.* After 
 that, at the end of the six months, if 
 a man is broken down altogether, 
 there is a permanent disablement 
 allowance of 55. as long 1 as he is unable 
 to earn his living- in any way. That 
 is for men. 
 
 Grant for Women 
 
 For women the contribution is lower, 
 and as we are keeping the accounts 
 separate, the actuaries say we would 
 not be justified in giving more than 
 75. 6d. per week for the first three 
 months, and then 55. f We do not pro- 
 pose to make the allowance less in 
 that case. 
 
 Waiting Period of Six Months 
 
 There will be a waiting period of six 
 months in the case of sickness. No 
 man will be allowed to get his sickness 
 allowance within six months after he 
 has joined the society. No man is en- 
 titled to claim for a disablement allow- 
 ance unless he has paid for two years. 
 In Germany this has been extended to 
 five years. 
 
 Allowance Conditional on Strict Obedi- 
 ence to Doctor's Orders 
 The allowance is conditional in every 
 case on the patient obeying the doc- 
 tor's orders a very difficult thing to 
 do. But at any rate you cannot allow 
 a man artificially to perpetuate his 
 sickness at the expense of the com- 
 munity by defying every rule that is 
 laid down for his cure by the profes- 
 sional gentleman who is in charge of 
 him. In Germany they have this 
 power. They give instructions as to 
 
 * Amended to 105-. for twenty-six weeks, 
 t Amended to *]s. 6d. for twenty-six weeks. 
 
 what a man is to do, and if he does not 
 obey them his allowance is docked, and 
 I think it is a very salutary rule. I 
 have no doubt it will be very liberally 
 interpreted, but still it is a very neces- 
 sary rule. 
 
 The Case of Illness Due to Contributor's 
 
 Own Misconduct 
 
 There is another rule. The friendly 
 societies do not admit sick allowance 
 to any man whose illness is due to his 
 own misconduct. What we have done 
 in that case is this. If a man's ill- 
 ness is due to his own misconduct we 
 do not allow him sick pay, but he is 
 entitled to a doctor, not merely for his 
 own sake, but for the sake of the 
 community, and because eventually he 
 will come back again, and he will fall 
 on the sick fund and the burden will be 
 much heavier. 
 
 Exceptions to the General Rule 
 
 Now I come to the (Exceptions. In 
 the case of persons over fifty years of 
 age at the date of insurance, the men 
 will only be entitled to 75. a week and 
 the women to 6s. a week, unless they 
 have paid five hundred contributions. 
 Men and women over sixty years of 
 age will only be entitled to 55.* Per- 
 sons under twenty-one years of age, if 
 unmarried males, will be entitled to 
 55., and, if females, to 45. f 
 
 Scheme to Check Malingering 
 
 There is another very important ex- 
 ception from the point of view of 
 checking malingering. When you 
 come to the lower rate of wages you 
 must not give a sick allowance which 
 would make it more profitable for a 
 man to be sick than to be working. 
 
 * Amended to 6s. for the first thirteen weeks, 
 and $s. for the second thirteen weeks. 
 
 f Amended to 6s. for the first thirteen weeks, 
 and 5-f. for the second thirteen weeks for males, 
 and 55-. and 45-. respectively for females. 
 
2O 
 
 THE PEOPLE'S INSURANCE 
 
 Therefore, we propose that where the 
 sick benefit is more than two-thirds of 
 the wages the amount shall be reduced. 
 But seeing- that with the low wages, 
 the insured person is either, through 
 himself or through the employer, pay- 
 ing exactly the same contribution, we 
 propose that in that case there should 
 be an alternative scheme of benefit 
 which would be the exact equivalent in 
 actuarial value. 
 
 Over-age Benefits 
 
 For instance, you might give a pen- 
 sion at sixty-five or sixty-six, as the 
 case may be, but they must submit to 
 our scheme, which will be the actuarial 
 equivalent of the amount by which 
 their benefits are reduced. 
 
 Under-age Benefits 
 
 Now I come to the person under six- 
 teen, and with regard to him we pro- 
 pose that he ^should get no sick pay 
 allowance, but that he should get 
 medical attendance and the benefit of 
 the sanatorium, and that the rest of 
 the money should be invested, in order 
 to accelerate the period of his getting 
 increased benefits. That is to pay off 
 the loss which is due to taking 
 on men of older ages, and the money 
 will be applied for the purpose of 
 wiping off that loss. The sooner you do 
 that the sooner will the young person 
 come to increased benefit, so that you 
 are really investing it for his own 
 future advantage. 
 
 An HON. MEMBER : Is that for girls 
 also? 
 
 Mr. LLOYD GEORGE : Oh, yes. After 
 paying for the doctor, after paying for 
 the sanatorium, after paying maternity 
 benefit, after paying 105. a week sick 
 allowance for men and 75. 6d. for 
 women, and the disablement allow- 
 ance of 55., there will be left a balance 
 
 of ;i, 750,000 in the hands of those 
 who administer the funds. That is the 
 actuarial calculation. 
 
 Alternative Benefits 
 
 We do not propose now to distribute 
 those benefits, because we want to give 
 an interest to those who are adminis- 
 tering the funds, to administer them 
 economically, and to declare alterna- 
 tive benefits, if they save the amounts 
 which we anticipate they can save. We 
 propose, therefore, to have a list of 
 alternative benefits, optional benefits, 
 and additional benefits. The first 
 benefits, as I have indicated, will be- 
 the compulsory minimum benefits. 
 They will be in every scheme. 
 
 Additional Benefits 
 
 I now come to the additional benefits 
 from which the society may choose, 
 with this surplus at their disposal. 
 This surplus will be ^1,750,000 im- 
 mediately the scheme begins to work, 
 but at the end of fifteen years and a 
 half, when the loss on the older per- 
 sons has been wiped out, you will then 
 have an addition of something like 
 ^5,500,000 to the fund, and, of course, 
 that will involve a further contribution 
 from the State of ^1,500,000 per 
 annum. That means ^7, 000,000, 
 which will be added to the income of 
 the scheme after this initial deficit has 
 been wiped out a surplus now of 
 nearly ^2,000,000 for additional bene- 
 fits; a further surplus of ^7,000,000 
 after declaring those benefits which I 
 have mentioned, and which will be 
 available for the declaration of addi- 
 tional benefits. 
 
 What is the kind of additional bene- 
 fits we have in mind? 
 
 Medical Treatment 
 
 The first is medical treatment, not 
 merely for the working man himself, 
 
THE PEOPLE'S INSURANCE 
 
 21 
 
 but for his family. If the societies who 
 administer the funds like to pay for 
 that, they have the money at their 
 disposal. 
 
 Increase in Sickness Benefit 
 
 An increase of the sickness and dis- 
 ablement benefit and convalescent 
 homes are other additional benefits. I 
 have a long list of additional benefits of 
 Vhat kind from which they can choose, 
 but I think the most interesting of all 
 would be that, when the fifteen years 
 and a half have elapsed, when the loss 
 has been paid off, and when you have 
 released a fund of ^7,000,000 between 
 the State and the contributors, we 
 shall then be within sight of declaring 
 either a pension at sixty-five, or, what 
 I think would be better still and I 
 propose this as an alternative if a 
 man does not choose to take his pen- 
 sion at sixty-five, but prefers to go on 
 working, he shall increase his pension 
 at a later stage in proportion to each 
 additional year he goes on working. 
 So much for the benefits. 
 
 Collection 
 
 I now come to the machinery of the 
 Bill. Collection is the first thing. We 
 shall collect our funds by means of 
 stamps. That is purely the German 
 system. A card is given to a work- 
 man ; he takes it to his employer at 
 the end of the week, the employer puts 
 on the workman's 4^. stamp and his 
 own 3^. stamp; he deducts the 4^. 
 out of the wages of the man, and he 
 pays the 3^. himself ; the card is in the 
 possession of the man, who takes it to 
 the post office, whence it is transmitted 
 to the central office. 
 
 The employer does not necessarily 
 know there is nothing on the face of 
 the card to say what society the man 
 belongs to. It is entirely a matter for 
 
 himself. The card is sent along to the 
 central office, and the whole of the 
 money is paid to the central office. 
 
 Benefits to be Distributed through 
 Friendly Societies 
 
 Then comes the question : Who is to 
 "dispense the benefits? 
 
 In this country we have fortunately 
 a number of very well-organised, well- 
 managed, well-conducted benefit socie-! 
 ties who have a great tradition behind 
 them, and an accumulation of experi- 
 ence which is very valuable when you 
 come to deal with questions like 
 malingering. We propose, as far as 
 we possibly can, to work through those 
 societies. We propose that all the 
 benefits shall be dispensed through 
 what the Bill would call "approved 
 societies." 
 
 Definition of an " Approved " Society 
 
 What are the conditions attaching to 
 an approved society? It must be a 
 society with at least 10,000 members,* 
 otherwise, it becomes a matter of very 
 great complication which is much 
 more difficult to manage from the 
 actuarial and financial point of view. 
 It must be precluded by its constitu- 
 tion from distributing any of its funds 
 otherwise than by way of benefits, 
 whether benefits under this Act or not, 
 amongst its members. It must not 
 be a dividing society; it must be a 
 benefit society which provides for sick- 
 ness and for old age. Therefore it 
 cannot be a society that divides its 
 profits at the end of each year. It 
 cannot be a society that allows any- 
 body to make a profit out of this 
 branch of its business, and it must be 
 mutual so far as this branch of its 
 business is concerned. Its affairs must 
 be subject to the absolute control of 
 
 * This limitation was abandoned. 
 
22 
 
 THE PEOPLE'S INSURANCE 
 
 its own members ; it must be self- 
 governing, and its constitution must 
 provide for the election of its com- 
 mittees and representatives and 
 officers. 
 
 Necessity for Local Committees 
 
 There are other conditions. It must 
 provide a reasonable security that the 
 funds will be dispensed in the way the 
 Act provides. It must have local 
 committees. There are several socie- 
 ties, as hon. Members know very well, 
 which have branches. There are other 
 societies which are purely central. 
 Both are very excellent societies in 
 their way. The Hearts of Oak, I 
 believe, is a centralised society. The 
 Foresters, I believe, is a society with 
 branches, and the Oddfellows the 
 same. But the societies which have 
 central control and no branches must 
 have some sort of local committees and 
 management ; otherwise it will be quite 
 impossible to distribute the beneiits, 
 and it will be very difficult to arrange 
 about doctoring and other matters. 
 
 No Interference with Funds or Man- 
 agement of the Societies 
 
 There are other things about keep- 
 ing books and so forth, and there must 
 be a valuation. We do not propose to 
 interfere in the slightest degree with 
 the funds of these friendly societies, 
 funds which they have voluntarily col- 
 lected, except to this extent: The 
 moment you have a scheme which 
 brings in 3^. from an employer and 
 3d. from the State for purposes which 
 are identical with the purposes for 
 which these other funds have been 
 accumulated, you release enormous 
 funds for other purposes. You cannot 
 allow those sums to be distributed in 
 cash amongst the members ; they must 
 
 be used for kindred purposes; and we 
 propose that the friendly societies 
 should submit schemes for the pur- 
 pose, with additional benefits, but of 
 a kindred character. 
 
 That is the only interference we pro- 
 pose with the present funds of the 
 friendly societies. We propose to 
 allow them to have the most absolute 
 right to admit members or to refuse 
 them. It is a matter I considered for 
 a very long time, whether you should 
 compel them to take members, and 1 
 came to the conclusion that it is far 
 better to leave it to ordinary free com- 
 petition amongst them. 
 
 Nature of Various Societies not Altered 
 
 A good many more societies, I have 
 no doubt, will spring up the moment 
 we have a scheme of this character, 
 and it is far better to leave it to com- 
 petition amongst them. They pride 
 themselves a good deal upon the right 
 to choose their own associates, as most 
 people do, and there are some people 
 they would not care to have forced 
 upon those societies, and I think they 
 have a right to say, " We do not want 
 them." 
 
 Not only that, some of these socie- 
 ties have purposes which are sectarian, 
 or let us say religious, and some of 
 them are political. Gloucestershire, I 
 find, is split up into Conservative 
 friendly societies and Liberal friendly 
 societies, both of them more or less 
 actuarially sound. I need hardly say 
 that if there are any sectarian or 
 political societies anywhere you can- 
 not exclude them from Ireland. I 
 think there are one or two there which 
 have purposes which are not either 
 actuarial or altogether financial, but 
 which I think are partly, perhaps, 
 political. 
 
THE PEOPLE'S INSURANCE 
 
 The Trade Unions 
 
 Then, of course, there are the trades 
 unions. Their purpose is not alto- 
 gether that of friendly societies. We 
 propose I will say later on how there 
 shall be no abuse of the power to 
 give them absolute freedom. It would 
 be quite impossible for the State to 
 administer some of their rules. Take 
 the Hearts of Oak. The Hearts of 
 Oak take power to exclude men of a 
 quarrelsome disposition. I have been 
 watching events in Parliament from 
 the solitude of Kent for some time, and 
 I have wondered how many of my 
 comrades and colleagues would survive 
 the Hearts of Oak test if it were 
 rigidly imposed on them. 
 
 Societies have Powers to Expel Un- 
 desirables 
 
 Then there are rules with regard to 
 exclusion on grounds of conduct, and 
 they interpret rules of that kind, I 
 think, very largely according to the 
 regularity with which a man pays his 
 subscriptions. After all, they are 
 clubs, and they want to have the right 
 to prevent a man who is objectionable 
 to them entering their club. I do not 
 propose to interfere with that at all. I 
 will come later on to deal with persons 
 who are not fortunate enough to get 
 admission to any of those clubs. They 
 have to be dealt with by themselves. 
 
 We propose that the societies should 
 administer and manage their business 
 in this respect exactly as they are doing 
 at the present moment. 
 
 The Age Question 
 
 You come, then, to the question of 
 age, and that is a difficult question. 
 You are now allowing men to enter 
 those societies who are giving benefits 
 at all ages, and you must not give any 
 
 sort of inducement to any society to 
 depress its age limits. Otherwise you 
 might have, say, the Hearts of Oak 
 with an average age of forty years, 
 and you might have the Foresters with 
 an average of thirty, and unless you 
 make special provision to equalise that 
 matter by a system of credits, you will 
 find that those societies whose ages 
 are very young will gain an enormous 
 advantage over those whose members 
 are of all ages. 
 
 Adjustment Suggested 
 
 We have got an adjustment, which 
 is rather a complicated one. I think, 
 for the moment, I had better let it wait 
 until the Bill comes on. We propose 
 to equalise the ages by a system of 
 credits, so that there shall be no in- 
 ducements for any society to exclude 
 any man, nominally on the ground of 
 a quarrelsome disposition, but really 
 because he is sixty years of age. 
 
 Valuation 
 
 We come now to valuation. How 
 do we propose that they shall adminis- 
 ter the fund, and what is our check? 
 We propose a valuation every three 
 years of their funds. Then we have 
 credit for their account at the centre of 
 all money paid in by their members, 
 and paid in by the employers in re- 
 spect of their members, and, of course, 
 they will have the credit of the 2d. con- 
 tributed by the State. I propose that 
 there should be a valuation of their 
 assets upon this basis. If there is a 
 surplus, then they will have power to 
 declare additional benefits, so that sur- 
 plus will be an inducement to them to 
 manage economically and carefully, 
 because a society that manages care- 
 fully and economically can declare 
 larger benefits for its members, and 
 therefore will attract larger custom, 
 
2 4 
 
 THE PEOPLE'S INSURANCE 
 
 and will have a larger number of mem- 
 bers than a society that manages its 
 affairs badly and uneconomically. 
 
 The Valuation of a Society with Branches 
 
 For valuation it is very simple to 
 take the Hearts of Oak, as you there 
 simply reckon up the whole of the value 
 of their assets but take a society with 
 branches; the branches you value 
 separately, which is more or less what 
 is done now. If there is a surplus you 
 cannot allow that branch to take the 
 whole of the surplus, otherwise you 
 would find a very healthy neighbour- 
 hood in one district declaring enormous 
 benefits; while other neighbourhoods 
 not so healthy would be very badly off 
 indeed, and people would not bear each 
 other's burdens, as I think they ought 
 to do in a system of this kind. 
 
 Inducements for Economical Administra- 
 tion of Branches 
 
 At the same time there must be an 
 inducement for the branch to be ad- 
 ministered economically, and I propose 
 they should get half of their surplus 
 and pay the other half to the centre, 
 because, on the other hand, when there 
 is a deficiency, as I shall point out 
 later, the centre must come to their 
 rescue. 
 
 Course to be Taken in C^se of Deficiency 
 
 Suppose there is a deficiency, what 
 happens? If the insurance office finds 
 there is a deficiency, and that they are 
 not in an actuarial position to pay even 
 minimum benefits, then the central in- 
 surance office will have power to do 
 one of two things, either to compel 
 them to reduce their benefits or to in- 
 crease their levy, or to make a special 
 levy. 
 
 The Real Check on Malingering 
 
 That is the real check on malinger- 
 ing. You cannot check malingering 
 by doctors' certificates. There is no 
 doctor but will tell you that there are 
 certain diseases in which it is quite 
 impossible to say whether a man is 
 shamming or not. Therefore you must 
 depend really upon each member being 
 almost a detective to spy on his asso- 
 ciates. That is really the only way to 
 do it. If a society has such a number 
 of malingerers that it becomes insolvent 
 or bankrupt, what happens is that 
 there is an additional levy, or the bene- 
 fits are depressed. 
 
 Then the members would say : 
 "Why is this? It is because 'So-and- 
 so ' is always sick. He is no more 
 sick than I am." There is no more 
 effective method for suppressing vice 
 than to make it unpopular amongst 
 the man's associates, and the same 
 thing applies to malingering. In a 
 very short time you would soon get a 
 real stop put to the malingerer, be- 
 cause the workmen themselves would 
 not stand it, and would begin to report 
 on those they considered malingerers. 
 
 Scheme for those who will not join 
 Societies 
 
 Now comes the question : What are 
 we to do with the residue? You will 
 get men who have been either rejected 
 by the societies or who have left their 
 societies through their carelessness. 
 You may find men who say; "We will 
 not join any society." You cannot 
 compel a man to join a society. If he 
 chooses to remain outside he can do 
 so, but he does it at his own cost. 
 Every inducement is offered to a man 
 in this scheme to join a society, and I 
 will show how that works. 
 
THE PEOPLE'S INSURANCE 
 
 2 5 
 
 The Post Office Contributors 
 
 We propose that all the men in a 
 county who have not joined a society 
 should be collected together in a body 
 called Post Office Contributors. You 
 will form a fund of those people. Most 
 of the people who remain outside will 
 be uninsurable lives, men who would 
 be rejected by all sorts of societies, be- 
 cause really they are ill at the time, or 
 display symptoms of illness, and they 
 are therefore quite uninsurable, or 
 they may be drunkards. Those are 
 the sort of reasons for which a society 
 now excludes them. That must neces- 
 sarily make it impossible for us to pay 
 the same benefits to the Post Office 
 Contributors as would be paid to men 
 who are in the friendly societies, be- 
 cause they contain pretty well all the 
 bad lives. It will be largely a tem- 
 porary difficulty and a dwindling one, 
 for the simple reason that in future 
 men will be taken on at the age of 
 sixteen, and at that age the vast 
 majority of people have not developed 
 any kind of fatal disease. Therefore 
 it will dwindle almost to nothing in 
 the future, and this difficulty is purely 
 temporary. It will be a body of people 
 who are not a very good insurable pro- 
 position. 
 
 Distribution of the Funds 
 
 What shall we do with them? We 
 shall distribute the funds first of all in 
 medical needs. They have paid their 
 own contribution, and there is the con- 
 tribution from the State, and the con- 
 tribution of the employer. You will 
 make a deduction for medical relief, 
 and for sanatoria, and you will distri- 
 bute the balance on purely deposit 
 principles. There are societies in this 
 country which do this thing now ; it is 
 really a kind of banking- transaction. 
 You pay an amount in and you draw 
 
 to the extent you paid in. With this 
 condition in these cases that you will 
 get a number of lives that will drop, and 
 still a balance of people who will not 
 withdraw the whole of their deposits. 
 I propose that that should go to swell 
 the fund. Therefore those who are 
 inside the Post Office Society will be 
 able to draw to that extent upon the 
 fund, and will get that additional 
 advantage. 
 
 No Inducement to become a Post Office 
 Contributor 
 
 It is quite clear there is no induce- 
 ment to join the Post Office contribu- 
 tion, and we do not want that there 
 should be. We want to give all induce- 
 ments we can to the societies to govern 
 themselves and take responsibility, and 
 as they have taken the whole of the 
 responsibility, the government must be 
 left in the hands of the societies. If 
 you put on a State representative, or 
 if you put on an employers' representa- 
 tive, you are dividing responsibility, 
 and they will always come back to you 
 and say the employer or the State 
 ought to pay an extra penny as the 
 whole responsibility is cast on them. 
 
 The only other thing I will say about 
 the Post Office Contributors is this. 
 We propose that they should have to 
 wait for fifty-two weeks after paying 
 contributions before they get any 
 relief at all. That is by way of hav- 
 ing some kinc' of test, at any rate 
 when they ente t into the Post Office 
 Society, that they are fit for labour. 
 
 Administration of the Fund 
 
 How are you to administer this 
 fund ? The Post Office cannot admini- 
 ster it because they certainly cannot go 
 on appointing doctors, and checking 
 malingering-, and managing the funds 
 generally. 
 
26 
 
 THE PEOPLE'S INSURANCE 
 
 County Health Committees 
 
 We propose therefore to set up 
 Committees that we will call County 
 Health Committees. There will be a 
 membership between nine and eighteen, 
 chosen in three batches, a third by the 
 county councils, a third by the ap- 
 proved societies in the districts, and 
 failing agreement amongst them by 
 the insurance office, and a third by the 
 Post Office insurers. We propose that 
 the State should also have a fourth of 
 the whole body to represent its in- 
 terests in the County Health Com- 
 mittee. 
 
 Administration of Sanatorium Funds 
 
 This County Health Committee we 
 propose shall administer the whole of 
 the sanatorium fund. We do not pro- 
 pose that the sanatorium funds should 
 be left to the societies, because, after 
 all, that has to be done in the 
 districts where there are no societies. 
 We propose that the whole of the 
 shilling, or, rather, is. qd. t per mem- 
 ber which goes to create the fund to 
 establish sanatoria shall be entirely in 
 the hands of the County Health Com- 
 mittee. Instead of a sanatorium for 
 each county we propose that there 
 should be grouping for the purpose 
 of sanatoria. We propose that the 
 whole of the funds of the Post Office 
 insurers, including medical relief, shall 
 also be administered by the County 
 Committee. 
 
 Possible Agreement by Society with 
 County Health Committee for Medi- 
 cal Work 
 
 We are also putting forward another 
 proposition. If any approved society 
 chooses to come to terms with the 
 County Health Committee to do its 
 medical work for it, we propose that 
 
 they shall have the power to do so, 
 and to make arrangements for that 
 purpose. But if they agree, the County , 
 Health Committees can take over the ; 
 medical part of the work of approved 
 societies if they choose to do so. It 
 is purely a matter of arrangement on 
 both sides. 
 
 A Further Power as Regards Medic al 
 Benefits or Sanatoria 
 
 There will be a further power. If a 
 County Health Committee are anxioui ; 
 to spend more money than they have 
 funds at their disposal upon either the 
 medical side or the sanatoria side, the 
 county councils have power to agree 
 to sanction further expenditure, pro-' 
 vided the Treasury also agree. One- 
 half the additional expenditure will 
 come out of the rates, and the other 
 half out of the Treasury. 
 
 A Check on the County Health Com- 
 mittee 
 
 I want to make it quite clear that 
 the County Health Committees have no t 
 right to incur expenditure and then 
 pass it on to the ratepayer. They 
 must submit the expenditure before it 
 is incurred both to the Treasury and 
 to the county council. If both those 
 bodies approve the expenditure, then 
 the County Health Committees may, if 
 they choose, incur that extra expendi- 
 ture. 
 
 Recommendations in Regard to Questions 
 of Public Health 
 
 There are one or two other functions, 
 to which I attach great importance, 
 which the County Health Committees 
 will have to discharge. They will have 
 to consider generally the needs of the 
 county and borough with regard to all 
 questions of public health, and to make 
 
THE PEOPLE'S INSURANCE 
 
 27 
 
 such reports and recommendations in 
 regard thereto as they may deem fit. 
 I shall point out later on that they have 
 power beyond that of merely making 
 reports and recommendations ; other- 
 wise those reports and recommenda- 
 tions would be thrown into the waste- 
 paper basket. There is already a 
 plethora of reports and recommenda- 
 tions, and there must be some power 
 of that kind. 
 
 Lectures, etc. 
 
 They will have power also to make 
 provision for the giving of lectures and 
 the publication of information on ques* 
 tions relating to health. This has 
 been a very important power in Ger- 
 many, because there is appalling 
 ignorance of the most elementary con- 
 ditions of health diet, air, and fresh 
 air especially, light, and the danger 
 of the excessive use of alcohol and 
 narcotics. All these questions affect the 
 health of the community. It has been 
 of enormous advantage in Germany to 
 have lectures of this kind and other 
 means of disseminating information 
 upon these points. We also hope that 
 the doctors will assist by imposing 
 conditions which will improve the 
 health of the community. 
 
 Powers in Cases of Excessive Sickness 
 
 What are the further powers of the 
 County Health Committees ? The socie- 
 ties, as I have pointed out, are respon- 
 sible for their own sickness. It is not 
 fair to make them responsible for the 
 cost of sickness that is due to some- 
 body else's fault. Sometimes there is 
 excessive sickness in a district, due to 
 bad sanitation, to bad housing condi- 
 tions, and generally to the neglect on 
 the part of the local authorities to 
 enforce such powers as they have got, 
 
 either through ignorance, through in- 
 capacity, or very often through a 
 combination of interests. 
 
 Inquiries into Cause of Excessive 
 Sickness 
 
 What we propose is that the County 
 Health Committee shall have power to 
 go to the Local Government Board 
 whenever there is excessive sickness- 
 coming on the funds of the society, and 
 apply for an inquiry into the cause of 
 that sickness. Wherever the Commis- 
 sioners of the Local Government Board 
 find that it is due to neglect by the 
 authority to discharge functions im- 
 posed by an Act of Parliament for the 
 housing of the people, or for improved 
 sanitation, they shall have the power 
 of imposing that excess, not on the 
 societies who are not at fault, but upon 
 the local authorities who are at fault. 
 That will be a much more effective 
 check than the old obsolete form of 
 mandamus. 
 
 Finance of the Scheme 
 
 I come now to the finance of the 
 scheme. In the first year the sums 
 paid by all classes of contributors 
 will amount to nearly ^20,000,000, 
 of which employers will contribute 
 nearly ^9,000,000, and the employees 
 ^11,000,000. The expenditure on 
 benefits and administration will, in 
 consequence of the waiting periods, be 
 only ^7,000,000 in 1912-13, but will 
 have risen to ^20,000,000 in 1915-16, 
 when the additional benefits begin to 
 be granted. 
 
 By 1922-23 the State contribution 
 will also have risen. In the first year 
 there will be no charge, because the 
 Act does not come into operation until 
 May ist next year. There must be 
 time to make arrangements. There 
 
 B 2 
 
28 
 
 THE PEOPLE'S INSURANCE 
 
 will be only a charge for the necessary 
 expenses of making preparation. But 
 in 1912-13 the charge on the State 
 will be ;i, 742,000; in 1913-14, 
 
 3,359>'> and in iQJS' 16 a ful1 
 year ^4,563,000. That is the ex- 
 pense, so far as the State and the con- 
 tributors are concerned, of that part of 
 the scheme. 
 
 thing which has happened once or 
 twice, but something that comes regu- 
 larly every so many years. We know 
 it will come, and we know that distress 
 will come with it ; therefore we ought 
 to take some means to alleviate the 
 misery caused by phenomena which we 
 can reckon on almost with certainty to 
 within a year or two of its advent. 
 
 Unemployment Insurance 
 
 I will now briefly outline the unem- 
 ployment insurance. My explanation 
 will be considerably curtailed, owing to 
 the fact that the Home Secretary very 
 fully explained to the House the year 
 before last the principles upon which 
 the Government intended to proceed. 
 
 The scheme only applies to one-sixth 
 of the industrial population. We pro- 
 pose to apply it only to the precarious 
 trades, which are liable to very con- 
 siderable fluctuations. The benefit will 
 be of a very simple character; it is 
 purely a weekly allowance. The 
 machinery is already set up, therefore 
 it will not be necessary to explain that. 
 The machinery will be the Labour Ex- 
 changes and the existing unions which 
 deal with unemployment. I will not 
 say anything about the suffering- 
 caused by unemployment. 
 
 All I will say is that, whoever is to 
 blame for these great fluctuations in 
 trade, the workman is the least to 
 blame. He does not guide or gear the 
 machine of commerce and industry; 
 the direction and speed are left almost 
 entirely to others. Therefore he is not 
 responsible, although he bears almost 
 all the real privation. 
 
 Possibility of Foreseeing Periods of 
 Unemployment 
 
 It is about time we did something in 
 this matter, because it is not some- 
 
 The Effort made by the Trades Unions 
 
 No real effort has been made except 
 by the trades unions. That, of course, 
 is a purely voluntary matter, and the 
 burden is a very heavy one. It only 
 applies, in their case, to very few 
 trades, and I think to only about 
 1,400,000 workmen altogether. The 
 others cannot afford it. Other trades 
 have attempted it, but have laid it 
 down because they could not afford the 
 expense. 
 
 Unsuccessful Experiments on the Con- 
 tinent 
 
 On the Continent many efforts have 
 been made, mostly failures, because 
 they were all on the voluntary prin- 
 ciple. In Cologne there was a great 
 effort. It ended in about 1,800 people 
 being insured out of a population of 
 200,000 or 300,000. There it meant 
 people who knew they would be out of 
 work, and who insured against almost 
 certain unemployment in the winter. 
 That is very little good. 
 
 I came back, after examining some 
 of these schemes, with the conviction 
 that you must have, at any rate, three 
 or four conditions. You must have a 
 trade basis, to begin with. A munici- 
 pal basis will not do; it must be a 
 trade basis, because the fluctuations are 
 according to trades. You must start 
 with the more precarious trades. The 
 scheme must be compulsory. 
 
THE PEOPLE'S INSURANCE 
 
 29 
 
 I also came to the conclusion that 
 the workmen's unsupported efforts are 
 quite useless. 
 
 Two Groups of Trades taken in the 
 Bill 
 
 These are the principles that we 
 have incorporated in our Bill. We 
 have started, first of all, by taking two 
 groups of trades, and we propose to 
 organise them individually the engin- 
 eering group and the building group. 
 They include building, construction of 
 works, ship-building, mechanical en- 
 gineering, and the construction of 
 vehicles. These are the trades in 
 which you have the most serious fluc- 
 tuations I think for a very good 
 reason. The depression seems to fall 
 more heavily on these trades ; it seems 
 to concentrate upon them, because they 
 produce the permanent instruments of 
 industry. 
 
 Unemployment Distress Allowance 
 
 We propose that in these trades a 
 fund shall be raised for the purpose of 
 paying an unemployment distress al- 
 lowance. I ought to say here that you 
 have not the same basis for actuarial 
 calculation that you have in reference 
 to sickness. It is very necessary to 
 warn, not merely the House, but rather 
 more especially the workmen upon this 
 point. You cannot say with the almost 
 certainty that you can in sickness that 
 a certain fund will produce such and 
 such benefits. In the case of sickness 
 you have nearly 100 years' experience 
 behind you, and you have the facts 
 with regard to sickness and death. 
 You have not the facts with regard to 
 unemployment, and the question is very 
 difficult. 
 
 All we know is that in certain 
 branches of trade unemployment is pre- 
 valent and appalling. Some trades 
 
 meet it by short time, but in other 
 trades you cannot do that. As a matter 
 of fact, in the building trade you may 
 get men working overtime in one place 
 at the very time when 20 per cent, of 
 the workmen are out of work in 
 another. 
 
 Proposals as to Amounts to be Paid by 
 Workman and Employer 
 
 We propose that the workman 
 should pay 2\d. per week and the em- 
 ployer 2|d., and that the State should 
 take upon itself one-fourth of the total 
 income. We propose that there should 
 be an abatement to those employers 
 who choose to pay for their workmen 
 by the year. 
 
 The extent of that abatement 
 is very considerable. If you take the 
 two contributions of employers and 
 workmen at 2jd., they come to 
 2i5. 8d. per annum. We propose 
 that the employer who will under- 
 take to insure a workman for the whole 
 of a year can do so for 155. He will 
 get the whole benefit of the reduction. 
 It is proposed that the workman shall 
 pay the full 2\d. , but that the employer 
 should get the whole benefit of the 
 abatement. It seems a Very serious 
 abatement. It is practically telling him 
 that he can take one-half if he under- 
 takes to insure the workman for a year 
 at a time. It is an inducement to him 
 to give regular employment; it is a 
 discouragement of casual labour; it is 
 a reward to the employer who keeps 
 his workmen for a whole year. It is a 
 very heavy one, but I think it worth 
 while. That is the only exception 
 made to the employer. 
 
 Benefits 
 
 We propose, by way of benefits, to 
 give, in the engineering trade, 75. per 
 week unemployed pay, and in the build- 
 
THE PEOPLE'S INSURANCE 
 
 ing- trade 65. for a maximum of fifteen 
 weeks. The number of weeks is limited 
 to fifteen, because, I again say here, 
 there is no basis of actuarial calcula- 
 tion, and you will have to watch the 
 thing. 
 
 Distress Fund 
 
 Now, you will have a huge distress 
 fund, to which the employers will con- 
 tribute very nearly ;i, 000,000 and the 
 State ;*7 00 > 000 or ^"800,000 for the 
 purpose of relieving the distress, and 
 to enable the workmen to insure where 
 otherwise they could not do it. But 
 you cannot guarantee that it will work 
 out at these figures. 
 
 Method of Working 
 
 Having consulted the very best ac- 
 tuaries at our disposal, we are firmly 
 convinced that the fund will work out 
 in this way. What will happen? The 
 workman who is out of work will go 
 to the Labour Exchange. We want 
 someone there to check him, so that 
 you will not have a man who is not 
 genuinely unemployed getting unem- 
 ployed pay. Therefore you have to do 
 this through the Labour Exchange. 
 The man will take his card and they 
 will offer him a job. If he refuses a 
 job, then comes the question : Who is 
 to decide whether he is unemployed or 
 not? We have appointed an impartial 
 court of referees to decide this; we 
 cannot leave it to the Labour Ex- 
 changes entirely, or to the workmen, to 
 decide whether the man is to take a job 
 or the 75. unemployed benefit. 
 
 Those/ Excluded from Sharing in Distress 
 Fund 
 
 There will be no payment for a work- 
 man dismissed through his own misr 
 conduct. There will be no payment 
 
 under this scheme where there is un- 
 employment by reason of strikes or 
 lock-outs, because this scheme has 
 absolutely nothing to do with them. 
 It is purely a relief scheme for unem- 
 ployment which is due to fluctuations 
 of trade. 
 
 Case of Trade Unions 
 
 Take now the trade unions which 
 insure themselves against unemploy- 
 ment. We propose in that case that 
 they should reap the benefit, but we 
 cannot possibly hand over State funds 
 certainly not employers' funds to 
 an organisation, the object of which, 
 in the main, is to fight out questions of 
 wages and conditions of labour with 
 the employers. What we propose is 
 that the trade union shall pay its un- 
 employed benefit to the men and claim 
 from the fund repayment in respect of 
 the amount which the men would have 
 been entitled to draw had they gone 
 direct to the Labour Exchanges. The 
 State in effect allows trade unions to 
 spend this money, and at the same 
 time it protects against the unfairness 
 of subsidising what after all is a war- 
 chest as the trade unions admit. 
 
 Particulars of Methods of Payment of 
 Benefits 
 
 There is no payment for the first 
 week of unemployment. Besides, no 
 man can draw more than one week's 
 benefit for five weeks of contribution, 
 so that the real loafer soon drops out. 
 The meshes of the Labour Exchange 
 net might not catch him at first, but 
 eventually and automatically he will 
 work himself out, owing to the fact 
 that he is not a regular contributor, 
 and therefore he will come to an end 
 of his right to obtain benefits. 
 
 We also propose that where there is 
 
THE PEOPLE'S INSURANCE 
 
 a society established on the Ghent 
 model for the purpose of providing un- 
 employed pay generally for the people, 
 say, in the neighbourhood, to give a 
 contribution of one-sixth to that fund 
 for the purpose of enabling them to 
 dispense unemployed pay. 
 
 Other Trades may apply for inclusion 
 
 under the Scheme 
 
 If any other trade wishes to come 
 in they are to have, what I think 
 they call in the Court of Chancery, 
 "liberty to apply." If they make out 
 their case and are prepared to make 
 their contribution, it will be possible to 
 include them in our scheme. But for 
 the moment we propose to begin to 
 work the experiment with these trades, 
 which are the very worst trades from 
 the point of view of unemployment. 
 
 Finance of Present Scheme 
 
 This scheme will apply to over 
 2,400,000 workmen. The contribu* 
 tions of the workmen will be 
 ;i, 100,000. The contributions of the 
 employers will be ^900,000. The cost 
 to the State 
 
 Mr. AUSTEN CHAMBERLAIN : But you 
 said the contribution from the work- 
 men and the employers are to be the 
 same. 
 
 Mr. LLOYD GEORGE : I thought I had 
 made it quite clear that there is a very 
 considerable abatement to the em- 
 ployer. It is equivalent to ^200,000 
 on the whole scheme to the employers 
 if they undertake the responsibility of 
 insuring the whole of their workmen 
 by the year. 
 
 The cost to the State will be approxi- 
 mately ^750,000 a year. The expendi- 
 ture will undoubtedly fluctuate with 
 the state of trade, and a fund will 
 therefore have to be created for the 
 purpose of dealing with times of very 
 great distress. That is the position as 
 
 far as both of these branches are con- 
 cerned. The total sum to be raised in 
 the first year is ^24,500,000, of which 
 the State will contribute ^2,500,000. 
 By the fourth year the State's contri- 
 bution will have risen to nearly 
 ^"5,500,000. That is the finance of the 
 scheme. 
 
 Number Benefited 
 
 I have explained to the House as 
 best I could this great matter, and I 
 thank Members for the courtesy 'with 
 which they have listened to me. I have 
 explained as best I could the details of 
 our scheme the system of contribu- 
 tions and of benefits and the machinery 
 whereby something like 15,000,000 of 
 people will be insured, at any rate 
 against the acute distress which now 
 darkens the homes of the workmen 
 wherever there is sickness and unem- 
 ployment. 
 
 Proposals at least a Partial Remedy 
 
 I do not pretend that this is a com- 
 plete remedy. Before you get a com- 
 plete remedy for these social evils you 
 will have to cut in deeper. But I think 
 it is partly a remedy. I think it does 
 more. It lays bare a good many of 
 those social evils, and forces the State, 
 as a State, to pay attention to them. 
 It does more than that. Meanwhile, till 
 the advent of a complete remedy, this 
 scheme does alleviate an immense mass 
 of human suffering, and I am going to 
 appeal, not merely to those who sup- 
 port the Government in this House, but 
 to the House as a whole, to the men 
 of all parties, to assist us. 
 
 Not a Party Measure 
 
 I can honestly say that I have en- 
 deavoured to eliminate from the 
 scheme any matter which would cause 
 legitimate offence to the reasonable 
 susceptibilities of any party in the 
 
THE PEOPLE'S INSURANCE 
 
 House. I feel that otherwise I would 
 have no right to appeal, not only for 
 support, but for co-operation. I ap- 
 peal to the House of Commons to help 
 the Government not merely to carry 
 this Bill through but to fashion it; to 
 strengthen it where it is weak, to im- 
 prove it where it is faulty. I am sure 
 if this is done we shall have achieved 
 something which will be worthy of our 
 labours. 
 
 A Measure that will Believe Untold 
 Misery in Myriads of Homes 
 
 Here we are in the year of the 
 crowning of the King. Men from 
 
 all parts of this great Empire are 
 coming not merely to celebrate the 
 present splendour of the Empire, 
 but also to take counsel together as to 
 the best means of promoting its future 
 welfare. I think that now would be 
 a very opportune moment for us in 
 the Homeland to carry through a 
 measure that will relieve untold misery 
 in myriads of homes misery that is 
 undeserved ; that will help to prevent 
 a good deal of wretchedness, and 
 which will arm the nation to fight 
 until it conquers "the pestilence that 
 walketh in darkness, and the destruc- 
 tion that wasteth at noonday." 
 
SCOPE OF THE INSURANCE SCHEMES 
 
Compiled from Explanatory Memoranda issued by the treasury ana the 
 
 Board of Trade at the time the Bill was introduced 
 Some of the -proposals explained need to be considered in the light of the 
 
 amendments adopted later. 
 
PART II 
 
 SCOPE OF THE INSURANCE SCHEMES 
 
 A. INSURANCE AGAINST SICKNESS 
 
 i. THE OBJECTS OF THE SCHEME. 
 
 To effect Insurance against Sickness 
 and Breakdown 
 
 To act as a Measure for the Reduc- 
 tion of Sickness 
 
 THE Bill is intended to effect as wide 
 an insurance as possible of the work- 
 ing population against sickness and 
 breakdown. It is also intended to 
 make the* Bill as far as possible a pre- 
 ventive measure operating to reduce 
 the amount of sickness. Both the 
 Majority and Minority Reports of the 
 Poor Law Commission call special 
 attention 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 Health Insurance and^the 
 Prevention of Sickness," the title " In- 
 validity Insurance " being by no means 
 a suitable one for English purposes. 
 
 Points of Difference from the German 
 
 Scheme : 
 (1) Administration by Friendly Societies 
 
 The plan differs from the German 
 scheme of sickness and invalidity in- 
 surances in the following respects : 
 
 It is proposed that under proper 
 safeguards the administration of the 
 
 fund should be handed over to the 
 great friendly societies either already 
 established in this country or hereafter 
 to be founded under the Act. As all 
 deficits due to malingering will have to 
 be borne either in levies or loss of 
 benefits by the members of a default- 
 ing society, and not by the State ot 
 the employer, there is every induce- 
 ment to economy. Bad management 
 will be promptly and effectively penal- 
 ised. Good management will be 
 rewarded. 
 
 In Germany the system is much more 
 bureaucratic in its management, and 
 does not nearly to the same extent 
 adopt the principle of self-government. 
 
 (2) Deficiency in starting the Scheme 
 to be wiped out in 15 to 16 years 
 
 In starting a universal scheme 
 there must necessarily 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 contributions are actuarily in- 
 adequate to ensure the benefits guaran- 
 teed by the Bill. Unless financial 
 arrangements are made to liquidate the 
 loss so arising it will fall on future 
 generations of insurers. 
 
 The finance of the present scheme 
 will be so arranged that the deficiency 
 inevitable in starting a scheme which 
 
 
THE PEOPLE'S INSURANCE 
 
 includes all ages shall in fifteen to six- 
 teen years be completely wiped out.* 
 At the end of that period the adminis- 
 trators of the funds will be in a posi- 
 tion to declare increased benefits, e.g., 
 the reduction of the pension age. 
 
 (3) Rates of Weekly Payments Produce 
 
 Proportionately Higher Rates than 
 in Germany 
 
 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 
 weekly payments, which suffice under 
 the proposed scheme to produce higher 
 benefits than those conferred by the 
 German scheme. Moreover, the Ger- 
 man Government makes no contribu- 
 tion to the cost of sickness as distin- 
 guished 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) Other Points of Difference 
 
 There are several other points of 
 difference between this scheme and the 
 German system, e.g., it is not pro- 
 posed to adopt the German plan of 
 dividing the industrial population into 
 five classes according to the rate of 
 wages earned and not, as in Ger- 
 many, to set up separate machinery 
 for sickness and invalidity. By taking 
 this course, and by the machinery 
 which has been adopted for the collec- 
 tion of contributions, the inconveni- 
 ence and trouble likely to be caused 
 to employers will be greatly 
 diminished. 
 
 There are other points of variation, 
 notably in the measure of control given 
 
 * Under the Act as passed, i8J years. 
 
 to the workmen, which will appear 
 later on. Another paper is being cir- 
 culated to give particulars of the Ger- 
 man insurancei 
 
 2. THE SCOPE OF THE SCHEME. 
 Bill will Extend to Whole of U.K. 
 
 The Bill will extend to the whole of 
 the United Kingdom. 
 
 The Bill will partly rest upon com- 
 pulsion. It is proposed that the insur- 
 ance moneys should in part be col- 
 lected at the source by deductions from 
 wages. It is therefore necessary to 
 decide how far this compulsion should 
 go that is, what classes of persons 
 should be compulsorily included and 
 what should be the position of persons 
 who choose to join the scheme volun- 
 tarily. The following proposals are 
 made : 
 
 Classes of Persons Compulsorily Included 
 The compulsory deduction from 
 wages will extend to all persons of 
 whatever nationality under contract of 
 service, whether paid by the hour, day, 
 week, month, or year, to include 
 artisans, mechanics, miners, clerks, 
 shop assistants, servants, sailors in the 
 mercantile marine, unpensionable em- 
 ployees of local authorities, railway 
 employees, golf caddies, &c., &c. 
 
 The compulsory deduction will also 
 extend to out-workers in such classes 
 of work as may be covered by Order 
 of the Home Office under the Factory 
 and Workshop Act, 1901. It will also 
 include cases of joint employment, 
 e.g., employment in a mine through 
 gangers, the mine-owner being made 
 responsible. 
 
 Exceptions to the Compulsory Inclusions 
 
 It will not extend to 
 
 (i) Agents paid by commission or 
 fees, and employed by more than one 
 employer. 
 
THE PEOPLE'S INSURANCE 
 
 3? 
 
 (2) Such persons as washerwomen, 
 sempstresses, &c., executing small 
 orders on their own account. 
 
 (3) Wives employed by husbands. 
 
 (4) Extremely precarious personal 
 employments, e.g., luggage carriers, 
 not connected with a trade or business. 
 
 (5) Casual domestic employment. 
 
 (6) Jobbing occupations, e.g. y gar- 
 deners, if working on their own 
 account. 
 
 (7) Persons receiving more than 
 160 a year from their employers by 
 way of salary. 
 
 Case of Soldiers and Sailors 
 
 (8) Soldiers and sailors, who will be 
 dealt with separately. 
 
 A reduced deduction from wages will 
 be made in these cases (the soldier, 
 sailor, &c., being cared for while in 
 the service of the Crown) to provide 
 the necessary reserve against the time 
 when the service ceases, with further 
 assistance from public funds to make 
 special provision for invalid soldiers 
 and sailors. 
 
 (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 defi- 
 nition. 
 
 Responsibility of Employers 
 
 In the case of persons employed for 
 no money wage, or appointed by one 
 person and paid by others, the em- 
 ployer will be made responsible for see- 
 ing that the person employed is in- 
 sured. 
 
 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. 
 
 Case of Occasional Employment 
 
 There is a large class of persons who 
 only go into employment occasion- 
 ally (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 wages will, therefore, be allowed 
 on request in such cases to (i) persons 
 who prove that they 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 g-o 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 pro- 
 posed 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 livelihood. It has been neces- 
 sary 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. THE CONTRIBUTIONS. 
 
 Contributions will cease at 70. 
 Persons over 65 years of age at the 
 commencement will not be taken into 
 insurance. 
 
 Rates of Contributions 
 
 The rates for employed persons will 
 be uniform 
 
 For men, 4^. a week, deductible 
 from wages. 
 
THE PEOPLE'S INSURANCE 
 
 For women, 3^. a week, deductible 
 from wages. 
 
 For the employer, 3^. a week for 
 both sexes. 
 
 The State's Contribution 
 
 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 persons of foreign 
 nationality who have not become 
 naturalised. 
 
 Variations in Apportionment of Bates 
 
 These contributions will be subject 
 to a variation in the apportionment as 
 between employer and employee in the 
 case of persons over the age of 21 
 where the person employed does not 
 receive "board and lodging," as 
 under* : 
 
 If the wages do not exceed is. 6d. 
 a day, the employer is to pay 6d. 
 for men, $d. for women; the em- 
 ployee is to pay id. 
 
 If the wages do not exceed 2s. a 
 day, the employer is to pay 5^. 
 for men, qd. for women; the em- 
 ployee is to pay 2d. 
 
 If the wages do not exceed 25. 6d. 
 a day, the employer is to pay qd. 
 for men, 3^. for women ; the em- 
 ployee 3d. 
 
 If the wages exceed 2$. 6d. a day, 
 the employer is to pay 3d. ; the 
 man 4d., the woman 3d. 
 
 Voluntary Insurance 
 
 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 *?d. (if 
 
 * For rates finally adopted, see page 165. 
 
 men), 6rf. (if women). Such persons if 
 over 45 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 7d. (or 6d.}. 
 
 4. THE BENEFITS. 
 Minimum Benefits : 
 
 The contributions have been calcu- 
 lated to enable the approved societies 
 who administer them (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 benefits. 
 
 The minimum benefits will com- 
 prise 
 
 (1) Medical Attendance 
 
 (a] Medical attendance throughout 
 life for the person insured. The 
 societies will be responsible for making 
 arrangements with doctors for attend- 
 ing upon sick members, but prohibited 
 from making any arrangement under 
 which the doctor would be required to 
 provide medicine for any insured per- 
 son. The societies will have to pro- 
 vide these expenses themselves, except 
 in special circumstances in rural dis- 
 tricts. 
 
 (2) Sanatorium Fund 
 
 (b) is. 3d. a head annually for a 
 sanatorium fund throughout life. It is 
 further proposed to pay a capital sum 
 of ;i, 500,000 into a special fund to be 
 used in making grants for building 
 sanatoria, on condition that funds are 
 also raised locally, and to make an 
 additional yearly grant of id. per mem- 
 ber to the sanatorium fund, as ex- 
 plained later. The total income avail- 
 able for preventive work is thus is. 4d. 
 
THE PEOPLE'S INSURANCE 
 
 39 
 
 a head annually, and it should be 
 added that power is taken to use the 
 additional grant of id. for research 
 purposes. 
 
 (3) Sickness Benefits* 
 
 (c) IQS. a week in sickness for men 
 and 75. 6d. a week for women for 
 13 weeks from the fourth day of sick- 
 ness in each case, and 55. for the next 
 13 weeks. Members over 50 and under 
 60, who have not made 500 contribu- 
 tions, will receive 75. a week only for 
 the first 13 weeks if men, and 65. only 
 if women; and if over 60 such mem- 
 bers will receive 55. in both cases. 
 
 (d) 5*. for the remainder of sickness. 
 
 (4) Maternity Insurance 
 
 (e) A maternity benefit pf 305. pay- 
 able from the father's insurance unless 
 the mother is an insured person, when 
 it will be paid from her insurance. 
 
 Limits of the Benefits in Certain Cases 
 (Youth and Old Age) 
 
 Benefits (c) and (d) cease at 70 for 
 both sexes. 
 
 Young (unmarried) persons under 
 the age of 21 will receive smaller bene- 
 fits under (c) and (d) at the rate of 5*. 
 for the boys and 45. for the girls.* 
 
 Boys and girls under the age of 16 
 will only be entitled to medical attend- 
 ance and sanatorium treatment, the 
 balance of their contributions being 
 accumulated in order to enable the 
 whole scheme to be extended at an 
 earlier date than would otherwise be 
 possible. 
 
 Margin of 10 Per Cent. Profit Antici- 
 pated 
 
 According to the actuarial calcula- 
 tions which have been made the pro- 
 posed contributions will provide a 
 
 * For rates of benefit finally adopted, see page 
 168. 
 
 margin of approximately 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 de- 
 ficit in fifteen to sixteen years.* 
 
 This margin will, 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. 
 
 Application of the Margin 
 
 Well-managed societies will thus 
 almost from the outset be able to make 
 a very substantial addition to the stan- 
 dard schedule of benefits, while 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 neces- 
 sity for bringing into operation the 
 special machinery necessary for deal- 
 ing with such deficiencies, viz., levies 
 upon members or reduction of benefits 
 below the standard schedule. 
 
 Additional Benefits 
 
 The additional benefits will include 
 such benefits as the following : 
 
 (1) Free Medical Attendance 
 
 (1) Free medical attendance for de- 
 pendants. 
 
 (2) Benevolent Fund 
 
 (2) Benevolent fund for distressed 
 members. 
 
 (3) Extension of Sick-pay Period 
 
 (3) Extension of period of full sick 
 pay to 26 weeks; granting sick pay 
 from first or second day of sickness; 
 
 * Under the Act as passed, 18^ years. 
 
4 o 
 
 THE PEOPLE'S INSURANCE 
 
 increasing sick pay either in all cases 
 or in the case of married men with 
 large families. 
 
 (4) Convalescent Allowance 
 
 (4) Convalescent allowances in 
 selected or necessary cases. Building 
 and maintaining convalescent homes. 
 
 (5) "Pocket Money" 
 
 (5) " Pocket money " for men in 
 hospital or convalescent homes, who 
 are being paid for. 
 
 (6) Additional Invalidity or Super- 
 annuation Benefit 
 
 (6) Additional invalidity or super- 
 annuation benefit, or addition to Old- 
 age Pension. For instance, the socie- 
 ties might (when their funds permit) 
 begin to grant a pension before 70, 
 with an option to the recipient of 
 taking an increase to his Old-age Pen- 
 sion if he prefers to wait till 70. 
 
 (7) Extension of Maternity Benefit 
 
 (7) An extension of the maternity 
 benefit. 
 
 Reduced Benefits in Certain Cases 
 
 The Bill will require the societies to 
 grant a reduced benefit under (c) and 
 (d) in cases where those benefits are 
 more than two-thirds of the wages 
 earned by the insured person com- 
 pensation for the reduction being made 
 by the grant of one or more additional 
 benefits of a value equivalent to the 
 reduction. The insurance office's con- 
 sent would be necessary to any such 
 adjustment of benefits. The power so 
 granted may also be used in other 
 cases with the consent of the insurance 
 office. 
 
 Conditions under which Benefits will 
 be Payable 
 
 The Bill will specify some of the 
 conditions under which the benefits 
 will be payable, the remainder of the 
 conditions for the minimum benefits 
 and all conditions for the grant of 
 additional benefits being left to regula- 
 tions to be drawn up with the help of 
 the Committee to be appointed under 
 the Bill. 
 
 All societies in administering the 
 benefits will be required to conform to 
 those conditions which are embodied 
 in the Bill or regulations. Those of 
 them which are not so prescribed will 
 be left to the rules of the societies : 
 
 Particulars as to Benefits (1) Medical 
 Attendance 
 
 (a) Medical attendance. This will 
 commence on entry into insurance (ex- 
 cept for the first six months of the 
 operation of the Act), and run through- 
 out life. 
 
 (2) Sanatoria 
 
 (b) The rules as to sanatoria will be 
 made by the "Local Health Com- 
 mittees," as to which see later. 
 
 (3) Sickness Benefits 
 
 (c) and (d) Temporary and perma- 
 nent sickness. The following rules or 
 regulations will apply : 
 
 (a) Notice 
 
 (i.) That notice of sickness must be 
 given to the society. 
 
 (b) Date of Commencement of Sick Pay 
 
 (ii.) That sick pay will only com- 
 mence as from the fourth day after 
 such notice has been delivered, no pay- 
 ment being in fact made for the first 
 three days. 
 
THE PEOPLE'S INSURANCE 
 
 (c) Proof of Sickness 
 
 (iii.) That the member must prove 
 that he has been rendered unfit to pro- 
 vide his maintenance by some speci- 
 fied sickness or physical or mental dis- 
 ablement. 
 
 (d) Doctors' Certificates 
 
 (iv.) Rules will be sanctioned to pre- 
 scribe the periods for which a doctor's 
 certificate will be required, i.e., 
 whether a certificate must be produced 
 once a week, or once a fortnight; and 
 to deal with the case of members resi- 
 dent at some distance from the offices 
 of their society. 
 
 (e) Behaviour of Patients 
 
 (v.) Rules will be sanctioned for the 
 behaviour of members during sickness, 
 but strict compliance with the direc- 
 tions of the doctor will be required. 
 Societies will have to arrange for 
 women visitors to visit women. 
 
 (f) Waiting Period 
 
 (vi.) A waiting period of six months 
 has been laid down for the temporary 
 sickness benefit, and of two years for 
 the permanent invalidity benefit. 
 
 (g) Refusals of Sick Pay 
 
 (vii.) Societies will be allowed to 
 follow their own rules for refusing sick 
 pay in the case of sickness brought on 
 by the member's own misconduct. 
 They will, however, be required to give 
 medical attendance in such cases, even 
 if sick pay is refused. 
 
 (h) Recurrence of Illness 
 
 (viii.) If a member has received tem- 
 porary sick pay and recovered from 
 his sickness and falls sick a second 
 time, such second sickness wUl 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 con- 
 tributions. 
 
 (i) Fines for Offences 
 
 (ix.) The societies will be given 
 power to impose 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 imposing on the funds, or for 
 refusing to obey the rules of the 
 society. They will also Be given power 
 of expulsion, as indicated later. 
 
 (j) Advances on Compensation 
 
 (x.) Sick pay (temporary and per- 
 manent) will not be paid except by way 
 of advance to persons entitled to com- 
 pensation under Act of Parliament or 
 the Common Law, 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 bene- 
 fits. 
 
 Actions at Law by Societies against 
 Individual Members 
 
 Alternatives have been inserted 
 giving the societies power (i) 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 case they will 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 commutation of a weekly 
 
4 2 
 
 THE PEOPLE'S INSURANCE 
 
 payment, and it has been left to the 
 societies, subject to appeal, to deter- 
 mine the amount of the set-off from 
 benefits under this Act when a lump 
 sum is paid. Where a lump sum is 
 awarded by the Court, the award will 
 be communicated to the approved 
 society concerned. 
 
 Maternity Benefit 
 
 (e] Maternity Benefit. Societies will 
 not be allowed to pay this benefit in 
 cash to the insured person or her hus- 
 band, but will be required to pay 
 expenses incurred up to the sum of 
 305. under prescribed conditions. 
 
 Non-assignment of Benefits. 
 
 A clause has been inserted prohibit- 
 ing the sale, transfer, pledging 1 , or 
 assignment of benefits. 
 
 No Money Benefit allowed to Inmates of 
 Hospitals, etc., unless they have 
 Family or Relatives to Support 
 
 A clause is also inserted to the effect 
 that when a member becomes an 
 inmate of a hospital, asylum, infirmary, 
 or workhouse under the charge of any 
 public authority, or of any chanty, no 
 money benefit shall be allowed unless 
 he has a wife or children or other rela- 
 tives dependent upon him for support, 
 when the amount due shall be paid for 
 their relief and maintenance. 
 
 Societies and Convalescent Homes 
 
 Societies will be given power to 
 make agreements to pay the money 
 benefit towards the maintenance of 
 members who are taken in convalescent 
 homes whose rules require the pay- 
 ment of at least one-half of the cost of 
 maintenance; and also, they will be 
 authorised to grant subscriptions, at 
 
 their discretion, to hospitals and other 
 charities, and to district nurses. 
 
 As regards Women. 
 Women, Marriage, and Employment 
 
 Women marrying and ceasing to be 
 employed within the meaning of the 
 Act will not be insured.* If they be- 
 come widows, and go into employment, 
 they wifl 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 en- 
 titled to be insured at the rate applic- 
 able to employed people (with the full 
 waiting periods). The right so given 
 to women to insure late in life is a very 
 valuable one. Married women who go 
 to work will be insured under the same 
 conditions as other persons as regards 
 arrears ; but, as already indicated, they 
 will be entitled to claim exemption if 
 their employment is irregular. Arrears 
 accruing during marriage will be 
 wiped out on widowhood. The effect 
 of these provisions is that, if an in- 
 sured woman is left an invalid at her 
 husband's death, she at once gets the 
 benefit of her own insurance. 
 
 Transfers from the Class of Employed 
 
 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 will 
 therefore desire to pose as employed 
 members in order to obtain the benefit 
 of the lower rate ; and it is necessary to 
 protect the societies and the insurance 
 funds against such imposition. 
 
 * Special provisions for married women were 
 adopted in Committee. See section 44 of Act. 
 
THE PEOPLE'S INSURANCE 
 
 43 
 
 The following rules are neces- 
 sary : 
 
 Rules (1) Evidence of Regular Em- 
 ployment 
 
 (1) Persons who enter the scheme as 
 employed members 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 furnish evidence that they 
 are regularly employed. 
 
 (2) For Voluntary Members who become 
 
 Employed 
 
 (2) Persons who go into employ- 
 ment, having been previously insured 
 as voluntary members at a higher rate 
 than the employed rate, will not be 
 treated as having become employed 
 members. If, however, they become 
 regularly employed persons, they will 
 be insured as such for what the contri- 
 butions which they pay, or have paid, 
 are worth. 
 
 (3) Non-payment of Contributions due to 
 
 various causes 
 
 (3) Non-payment of contributions by 
 employed persons will be dealt with as 
 follows : 
 
 (a) Sickness 
 
 Non-payment due to sickness will be 
 disregarded. 
 
 (b) Unemployment 
 
 Non-payment due to unemployment 
 not amounting to four weeks a year on 
 average will be disregarded. Beyond 
 this sickness benefit will be reduced or 
 postponed, but if the non-payment ex- 
 ceeds thirteen weeks a year on average 
 the member will be suspended from 
 benefits. 
 
 (c) Voluntary Members 
 
 Voluntary members who fall into 
 arrear will be dealt with specially. 
 
 (d) Members in Arrear 
 
 Members in arrear will be given the 
 right to pay arrears of contribution 
 which have occurred in the current and 
 previous calendar year with interest at 
 3 per cent. The societies will be pro- 
 tected against such payments being 
 made when sickness has commenced, 
 or just before it, with a view to ob- 
 taining full benefit, and a period of one 
 month has been proposed as a protec- 
 tion against abuse of the insurance in 
 such cases. 
 
 Persons who Enter or Re-enter Late in 
 Life 
 
 Immigrants 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 who are driven into employment 
 late in life, or who re-enter after ex- 
 clusion, should be insured for reduced 
 benefits ; they will, however, be given 
 a minimum insurance of not less than 
 55. a week, corresponding with the 
 insurance granted to a person who is 
 in the maximum amount of arrears, 
 even if the employed rate is not suffi- 
 cient to grant this minimum insurance, 
 and the society accepting such a mem- 
 ber will be given credit by the Govern- 
 ment at the expense of the whole 
 insurance for the deficit caused by so 
 accepting him according to the tables 
 which will be prepared. It may be 
 pointed out that, if such persons were 
 given the full insurance, they would be 
 treated as well as people who had pre- 
 viously insured themselves voluntarily, 
 
44 
 
 THE PEOPLE'S INSURANCE 
 
 and better than employed persons of 
 the same age who were to any extent in 
 arrear with their contributions. The 
 amounts previously paid by way of 
 voluntary insurance by any person 
 coming- on to the scheme late in life as 
 an employed person will be credited to 
 his insurance. 
 
 Exception with Persons Educated after 16 
 
 An exception will be made in favour 
 of persons whose education is con- 
 tinued beyond 16. 
 
 5. THE MACHINERY FOR THE DISTRIBU- 
 TION OF BENEFITS. 
 
 The machinery will consist of 
 
 (A) Approved societies. 
 
 (B) A post office system, set up by 
 the Government for the benefit of those 
 persons who fail or neglect to join a 
 society, or are rejected. 
 
 (A) APPROVED SOCIETIES. 
 
 The conditions of approval com- 
 prise : 
 
 Conditions of Approval 
 
 (1) Absolute self-government. 
 
 (2) Not working for a profit. 
 
 (3) Election of all committees, re- 
 presentatives, &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 in- 
 sured persons under the Act. 
 
 (5) Local as well as central control 
 of arrangements for medical attend- 
 ance and payment of sickness benefit 
 and appeals. For all questions arising 
 under the Act societies will be required 
 to provide for a final appeal to arbitra- 
 tors appointed by the insurance offices. 
 
 (6) Giving security by the deposit of 
 sufficient stock or in some other way 
 to compensate the Government for any 
 malversation by officers. 
 
 (7) Keeping separate accounts for 
 the State scheme. 
 
 (8) Complying with the provisions 
 and requirements of the Act. 
 
 Open to any Society Satisfying Condi- 
 tions to become Approved 
 It will be open to any Society which 
 satisfies the conditions to 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 contri- 
 buted in respect of benefits now in- 
 cluded in that scheme. 
 
 Ability of Friendly Societies and Trades 
 
 Unions to become Approved 
 All the great friendly societies and 
 trades unions will be able to comply 
 with these conditions. By doing so 
 they will not sacrifice their independ- 
 ence or their right to select members. 
 The Government inspection and super- 
 vision to which they will be liable is 
 only devised in the interest of the mem- 
 bers themselves to secure the proper 
 administration of the funds, and 
 should strengthen the position of the 
 managing committees in well-managed 
 societies. 
 
 Particulars as to Minimum Number of 
 
 Insured Persons 
 
 Under the heading (4), the minimum 
 of 10,000 has been adopted for Great 
 Britain, 5,000 for Ireland ; * but this 
 number will not apply to superannua- 
 tion funds established by employers. 
 It may be explained that a fairly high 
 number is necessary to prevent an un- 
 reasonable number of cases occurring 
 in which further levies from members 
 
 * The numerical limitations were abandoned. 
 
THE PEOPLE'S INSURANCE 
 
 45 
 
 might prove necessary, putting em- 
 ployers and employed to considerable 
 inconvenience. As only one employer 
 is concerned in the case of a super- 
 annuation fund, it makes less difference 
 in such a case if a levy is necessary. 
 
 Societies which Join an Association 
 
 It should be added that societies 
 which do not contain the prescribed 
 number, 10,000, will be able to join or 
 form an association or society of socie- 
 ties containing that number. The 
 terms of such association must be that 
 the societies forming it agree to con- 
 form to the conditions subsequently 
 laid down for dealing with surpluses 
 and deficits. Societies which are mem- 
 bers of such associations (whether 
 existing or to be formed) will apply for 
 approval and give security through the 
 central body of the association. Such 
 associations must make provision in 
 their rules for settling disputes and for 
 the government of the association, and 
 it is clear that societies forming such 
 associations will be able to maintain 
 a stronger independence through the*ir 
 associations than they could maintain 
 separately. 
 
 Local as well as Central Control 
 
 Under the heading (5) societies 
 which are managed by delegates, or 
 where voting by proxy or by post is 
 permitted, and which carry on business 
 at a distance from their head offices, 
 will be required to set up local com- 
 mittees elected by all the members of 
 the society residing in the district, for 
 determining claims and supervising the 
 administration of benefits in the dis- 
 trict. A district has been defined as 
 "a locality in which there are 1,000 
 members in the State insurance," and 
 societies are required to set up a com- 
 mittee for every 1,000 members as a 
 
 maximum, and further required upon 
 a request of 50 members to set up a 
 committee for every group of 250 mem- 
 bers as a minimum not more than 3 
 miles distant from the nearest branch 
 office. 
 
 Places of Meeting 
 
 Power has also been taken to pre- 
 scribe the place of meeting of societies. 
 
 Giving Security 
 
 Under heading (6) the Government 
 will 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 pre- 
 pared to make a deposit of stock up to 
 the amount of half the annual contribu- 
 tions of the members of the society in 
 the scheme. 
 
 Security will also be accepted in 
 other forms at the discretion of the 
 insurance office. 
 
 The Requirements of the Act with 
 which Approved Societies must 
 Comply. 
 
 (1) To keep their books and ac- 
 counts, so far as relates to the State 
 scheme, in the form to be prescribed 
 by the Committee with the approval of 
 the Treasury. 
 
 (2) To submit all such books and 
 accounts to Government audit when 
 required. It is proposed that the 
 Government should undertake the work 
 of auditing the State funds. 
 
 (3) To submit to a Government 
 valuation at intervals 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. 
 
THE PEOPLE'S INSURANCE 
 
 (5) In the case of societies which are 
 members of an association, to remain 
 members of the association to which 
 they belong, unless secession or dis- 
 solution is sanctioned as specified later. 
 
 (6) To provide for an appeal to 
 arbitrators appointed by the insurance 
 office in the event of any dispute be- 
 tween societies or between members 
 arising out of the operation of the Act. 
 
 (7) To conform in other respects 
 with the provisions of the Act. 
 
 Special Provisions re Superannuation 
 Funds established by Employers. 
 
 All Requirements of Acts (with one 
 exception) will apply 
 
 All the requirements of the Act, 
 except those regarding the minimum 
 number of 10,000 members, will apply 
 to such funds, if they are to be given 
 the privileges of approved societies. 
 
 Employers' Deductions 
 
 A special provision has been inserted 
 authorising employers, 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 themselves to make to 
 benefits similar in kind to those pro- 
 vided by the Bill. Such alteration of 
 the effect of any existing Act or deed 
 will only take effect as from the date 
 when the present Act comes into opera- 
 tion, and all rights, titles, and benefits 
 to which members have in any way 
 become entitled under the present con- 
 stitution of such funds before that date 
 will be preserved. The deduction will 
 be required to be limited according 
 to such an amount as can be made con- 
 sistently with the maintenance of such 
 rights, titles, and benefits. 
 
 Members' Votes on Modifications of 
 Existing Rules 
 
 Members of such funds will be given 
 the right of voting on any modifica- 
 tion of existing rules proposed under 
 the preceding paragraph, and all modi- 
 fications of existing schemes will be 
 submitted for approval. Any member of 
 such a fund will be given the right at 
 any time to transfer his subscription 
 and his employer's share with it to 
 another society, if he prefers to be in- 
 sured in that way, and the fund will 
 carry out the transfer as a transfer 
 between societies in the manner speci- 
 fied below. 
 
 Employers' Representation 
 
 It has been necessary to deal with 
 the question, of the employer's repre- 
 sentation in the management of such 
 funds, and a clause has been inserted 
 allowing the employer one-fourth re- 
 presentation if he makes himself re- 
 sponsible for the solvency of the fund, 
 and excluding him from representation 
 in other cases, except to the extent to 
 which he contributes more than the 
 proportion represented by the amount 
 payable by him under this Act. 
 
 Membership of Societies. 
 Transfers between Societies 
 
 Subject to the provisions of the 
 Bill, membership will be governed by 
 the existing rules of friendly societies. 
 Transfers from one society to another 
 will be carried out by the transfer of 
 the amount appropriate to the mem- 
 ber's age, 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 deficiency. 
 
THE PEOPLE'S INSURANCE 
 
 47 
 
 Expulsion of Members 
 
 A clause has been inserted, requiring 
 a society which expels a member, who 
 is unable to find another society to take 
 him, to pay over to the insurance office 
 the money appropriate to the member's 
 age. 
 
 Expelled members will be given a 
 right to appeal to the insurance office 
 arbitrators. 
 
 Management Expenses. 
 
 The contributions are calculated to 
 cover management expenses. A 
 separate account must be kept for 
 management expenses, and the 
 Government will contribute its propor- 
 tion of such expenses. 
 
 Emigrants. 
 Reciprocity Agreements 
 
 Members will be entitled to a trans- 
 fer to a colonial society at the usual 
 transfer rates. The insurance office 
 will compile a list of colonial societies 
 approved for the purpose, who grant 
 reciprocal treatment to their own mem- 
 bers migrating to this country. A 
 clause will provide for reciprocity with 
 colonies and foreign countries having 
 State schemes of insurance. Persons 
 in receipt of permanent sick allow- 
 ances going abroad without the con- 
 sent of their societies will forfeit 
 benefits. 
 
 Investments. 
 Investments and Availability of Funds 
 
 Any sums standing to the credit of 
 a society will be invested by the 
 Government through the National 
 Debt Commissioners. These funds 
 will be available for making loans 
 under the Housing Acts. 
 
 Equalising Conditions as between 
 Societies accepting Members of 
 Different Ages. 
 
 Inasmuch as societies will be 
 allowed to retain their own independ- 
 ence and carry on business in the 
 method to which they are accustomed, 
 some arrangements must be made to 
 equalise the position as between socie- 
 ties consisting of old or of young mem- 
 bers. 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 commence- 
 ment 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 possible variety in age-distri- 
 bution. 
 
 Reconstitution of Societies not Proposed 
 
 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 purpose of the State 
 valuation. 
 
 (2) As regards its financial position 
 if it takes the older lives into insur- 
 ance. 
 
 This has been effected in the follow- 
 ing way : 
 
 Inasmuch as the State is covenant- 
 ing 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 women) of the con- 
 tribution necessary as regards mem- 
 bers joining it at the age of 16 the 
 age when the insurance commences, 
 and as from which all calculations for 
 the purpose of the insurance have been 
 
THE PEOPLE'S INSURANCE 
 
 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. 
 
 The Working of the Paper Debt 
 
 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 insured 
 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 which 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 invest- 
 ment of the two-ninths (and one-fourth) 
 of the contributions. If a society ad- 
 mits younger members, the excess of 
 their contributions is available to pay 
 the debt credited to a neighbouring 
 society which admits older members. 
 No one society, therefore, can get an 
 advantage over another society by ad- 
 mitting members at the younger or 
 older ages. 
 
 Reasons for Imposition of Age Limit 
 
 The proportion of the contribution 
 which societies have to surrender is the 
 proportion represented by the Govern- 
 ment grant of two-ninths (or one- 
 fourth) of the benefits. It is true, 
 
 therefore, at the commencement that 
 young persons of 16 years of age in 
 fact get no value from the Govern- 
 ment grant, for the Government pays 
 two-ninths (or one-fourth) of the bene- 
 fits and takes two-ninths (or one-fourth) 
 of the contribution. But for every age 
 over 1 6 the society to which every in- 
 sured person belongs from the com- 
 mencement receives in the insurance a 
 credit appropriate to his age-risk carry- 
 ing interest at 3 per cent., and this 
 credit represents the value to him and 
 his employer of the Government insur- 
 ance. The credit is, of course, greater 
 at the higher ages, and it is for this 
 reason that a somewhat reduced insur- 
 ance is given to persons over 50 years 
 of age and that persons over 65 are 
 excluded. 
 
 Increased Benefits to Youth after a 
 Certain Period has Elapsed 
 
 It is impossible without great com- 
 plications under a universal scheme of 
 insurance with a uniform rate of 
 premium to devise a scheme under 
 which every insured person from the 
 commencement would receive exactly 
 equal treatment. Equality of treat- 
 ment 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 re- 
 ceive the full value of their own and 
 the employers' contribution, and it is 
 proposed in the Bill that when the 
 deficit has been wiped off, and it be- 
 comes possible to extend the benefits 
 conferred by the insurance, regard in 
 the extension should be had to their 
 ages when they joined the insurance. 
 The value of the promise thus made 
 to the younger generation is shown in 
 the financial statement which will be 
 circulated. 
 
THE PEOPLE'S INSURANCE 
 
 49 
 
 The 3 per cent. Basis 
 
 It should be added here that the Bill 
 proposes that the insurance fund 
 should be rolled up by the operation 
 of the provisions above explained until 
 it is sufficient to provide interest at 3 
 per cent, on all amounts then standing 
 to the credit of societies. The advan- 
 tages of this proposal are that it en- 
 ables all valuations meanwhile to be 
 conducted on a 3 per cent, basis, and 
 that it makes a capital valuation of the 
 fund unnecessary. When the scheme 
 is extended, Parliament will be able to 
 make such arrangements as may be 
 reasonable for dealing with the capital 
 account or changing the rate of interest 
 adopted for valuation purposes. 
 
 Valuation of Societies. 
 
 (A) Surpluses. 
 
 Societies with Surpluses Entitled to 
 Prepare Schemes for Granting 
 Additional Benefits 
 
 If a surplus is found upon a valua- 
 tion of a society, which is not a mem- 
 ber 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. 
 
 A Like Principle in Dealing with 
 Associations 
 
 If a society showing a surplus is a 
 member of an association 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 en- 
 
 titled to introduce additional benefits 
 for all its branches, when its central 
 fund is sufficient for the purpose, sub- 
 ject to the consent of the insurance 
 office. 
 
 (B) Deficits. 
 
 Societies with Deficits Required to 
 Prepare Schemes for Extinguishing 
 Deficiency 
 
 If a deficiency is found, the society 
 will 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. 
 
 (&) A reduction of the temporary 
 sickness benefit. 
 
 (c) A postponement of sickness bene- 
 fit, or an extension of the period of 
 twelve months mentioned above be- 
 tween payment of full sickness benefit. 
 
 All such schemes must receive the 
 approval of the insurance office. 
 
 Proceedings if such Society is Member 
 of an Association 
 
 If a society with a deficit is a mem- 
 ber of an association, the deficiency 
 must in the first instance be made good 
 from any surplus in the hands of the 
 association ; but the governing body of 
 the association, if it alleges malad- 
 ministration on the part of the branch 
 society, will be entitled, subject to an 
 appeal to the insurance office, to re- 
 fuse to make any grant from surpluses. 
 
 Powers of the Insurance Office as regards 
 Societies with Deficit 
 
 If within six months after the de- 
 claration of a deficit no such action 
 should be taken as may be reasonably 
 expected to make good the deficiency 
 in the affairs of the society within a 
 period of three years, the insurance 
 
THE PEOPLE'S 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 the 
 deficiency by any or all of the methods 
 above indicated. For the purpose of 
 these clauses further contributions will 
 be enforced if necessary by a deduction 
 from wages as indicated below. Mem- 
 bers joining 1 a society in which a defi- 
 ciency has been declared after the de- 
 claration 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 pro- 
 portion of the deficit. Any dispute 
 as to the amount of the deficit or 
 as to the adequacy of the provision 
 proposed for extinguishing it will be 
 decided 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 deficiency at any time 
 after the approval of a scheme for 
 granting additional benefits, payment 
 of such additional benefits will be sus- 
 pended. 
 
 Excessive Sickness in Certain Trades, 
 &c. 
 
 Circumstances which Warrant Inquiry, 
 and Penalty of Employer 
 
 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 fac- 
 tories in which their members are em- 
 ployed, they will be entitled to demand 
 an inquiry into the conditions of the 
 trade, shop, or factory. If it is found 
 on such inquiry that there has been 
 among members of the societies en- 
 gaged 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 Trea- 
 sury 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 so- 
 cieties through such excessive sickness. 
 This provision will, of course, ex- 
 clude any sickness or disease which is 
 a subject of compensation under the 
 Workmen's Compensation Act. 
 
 Excessive Sickness in any Locality. 
 
 The powers of societies as regards 
 such sickness will be defined later 
 under the heading "Local Health 
 Committee." 
 
 New Societies, Secessions, 
 Power of Opening New Branches 
 
 The orders and associations will have 
 the power now given to them by the 
 Friendly Societies Acts of opening new 
 branches. Such branches will give 
 security through their order or associa- 
 tion. 
 
 Conditions for Formation of new Societies 
 
 New societies which are not branches 
 of existing societies may only be opened 
 upon the insurance office being satisfied 
 with the security offered, and upon the 
 necessary minimum number of mem- 
 bers being enrolled. 
 
 Conditions for Dissolution of Approved 
 Societies 
 
 Dissolution of an approved society 
 will only be allowed with the consent 
 of the insurance office, proper provi- 
 sion being made for the State members. 
 
THE PEOPLE'S INSURANCE 
 
 Secessions from Orders and 
 Associations. 
 
 The present law will apply. Affili- 
 ated societies may only secede after 
 complying- with the terms of their 
 agreement with the order or associa- 
 tion to which they belong. The 
 further condition will be imposed that 
 'the consent of the insurance office will 
 be necessary. 
 
 Withdrawal of Approval. 
 
 The insurance office will be given the 
 right to withdraw approval from any 
 society failing to comply with the pro- 
 visions of the Act, or of any Act re- 
 gulating its constitution. The funds of 
 any such society will be used to pro- 
 vide, so far as they will go, for the 
 transfer of the members to other socie- 
 ties or to the Post Office insurance. 
 
 (B) THE POST OFFICE DEPOSIT 
 INSURANCE. 
 
 Applies to Persons not belonging to a 
 Society 
 
 Persons liable to the compulsory de- 
 duction from wages, who fail to join a 
 society or who 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 : 
 
 Method of Insurance through Post Office 
 
 The cards first issued for the collec- 
 tion of contributions (see later) will be 
 made current for a period of four or 
 five months only. After that period 
 new cards will be issued free to mem- 
 bers through the societies and to other 
 compulsorily insured persons through 
 
 the Post Office upon the name and ad- 
 dress 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 annually with seven- 
 ninths for men and three-quarters 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, but 
 the member will be entitled after six 
 months to medical attendance. If, 
 after the waiting period has expired, a 
 member falls ill, he (or she) will be 
 entitled to withdraw his (or her) con- 
 tributions including the employer's 
 share with the addition of two-ninths 
 (or one-quarter) from the State's con- 
 tribution, at the rate of ios., 75. 6d., 
 or 55., &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 withdraw- 
 able by members in sickness. 
 
 Lapses or forfeits xvill occur by the 
 member dying. 
 
 The Post Office insurance will in- 
 clude foreigners, no State grant being 
 given in such cases. 
 
 Medical attendance for persons in the 
 Post Office insurance will be provided 
 by a Local Health Committee to be set 
 up as follows : 
 
 THE LOCAL HEALTH COMMITTEE. 
 
 In connection with the 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 com- 
 mittees will not apply to Ireland. 
 
THE PEOPLE'S INSURANCE 
 
 Formation of Local Sub-Committees of 
 Health 
 
 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 by the 
 county councils or county boroughs, 
 some of whom 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 in- 
 surance office, two of whom will be 
 doctors. 
 
 The insurance office nominees will 
 join in the co-option of persons ap- 
 pointed under heading (3). 
 
 The county or borough medical 
 officer will be entitled to attend the 
 meetings of the Committee. 
 
 The insurance office is given power 
 to vary the proportions of the repre- 
 sentatives upon the Committee, and 
 this power might prove of considerable 
 importance in the event of agreements 
 for the transfer of medical attendance 
 being entered into as explained later. 
 
 Duties of Committees in Ireland 
 
 In Ireland, the duties of these Com- 
 mittees will be given to the county 
 councils (outside the large towns), and 
 the councils will also have power them- 
 selves to undertake to establish socie- 
 ties. 
 
 In counties where there are many 
 Post Office contributors, arrangements 
 are permitted for creating a separate 
 Post Office account. 
 
 Duties of Health Committees. 
 
 (1) Medical 
 
 1. To make medical arrangements 
 for persons who have been rejected by 
 or failed to join a society. 
 
 (2) Sanatoria 
 
 2. To control the whole of the ex- 
 penditure of insurance money for sana- 
 toria in the district. Patients .will be 
 required to be sent to sanatoria ap- 
 proved by the Local Government 
 Board, either existing or to be built 
 with the help of the Government grant 
 of ;i, 500,000. 
 
 (3) Public Health 
 
 3. To consider the needs of the dis- 
 trict from the point of view of public 
 health, to demand inquiries as to the 
 enforcement of the Public Health Acts, 
 the Factory Acts, and the Mines Acts, 
 and to make recommendations. If, as 
 the result of an inquiry, 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. 
 
 Insanitary Housing Conditions 
 
 Where an inquiry is ordered into in- 
 sanitary housing conditions in a neigh- 
 bourhood, power will be given to the 
 local authority to summon owners of 
 insanitary property before the Commis- 
 sioner holding the inquiry as third 
 parties with a view to passing on to 
 them the whole or a part of any levy 
 due to excessive sickness. 
 
 The inquiry will be held before a 
 Commissioner or Commissioners ap- 
 pointed by the Government Depart- 
 ment concerned in each case. 
 
 The power given to Health Com- 
 mittees to protect their members in 
 
THE PEOPLE'S INSURANCE 
 
 53 
 
 cases of the kind mentioned is a neces- 
 sary counterpoise to the liability im- 
 posed 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 neg- 
 ligence of other persons. 
 
 Power will also be given to the 
 societies separately to demand in- 
 quiries into the above matters. 
 
 (4) Lectures, etc., on Public Health 
 
 4. To provide for lectures and the 
 publication of information upon ques- 
 tions relating to health. 
 
 Local Health Committees will be 
 given power to combine for common 
 purposes, and the insurance office will 
 be empowered to form joint commit- 
 tees for neighbouring counties in 
 special circumstances. 
 
 Transfer of Medical Attendance to 
 Health Committee. 
 
 Present Unsatisfactory Condition of 
 Medical Belief under Friendly 
 Societies 
 
 The present system of medical relief 
 as organised by the friendly societies 
 cannot be regarded as entirely satis- 
 factory. Doctors employed by these 
 societies are paid an inclusive fee of 
 about 45. per member on an average. 
 This fee covers drugs and the cheaper 
 medical appliances, but is insufficient 
 to provide the more costly drugs, the 
 cost of which has to be borne by the 
 doctors themselves. 
 
 Correction in respect of Payment for 
 Drugs 
 
 To correct this it is proposed to 
 insert a clause forbidding the societies 
 to enter into any contract which pro- 
 vides for the payment of drugs by an 
 inclusive fee. This will involve a sub- 
 
 stantial 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 trenching upon the minimum 
 benefits. 
 
 Optional Handing Over by Societies of 
 Medical Relief to Health Committee 
 
 Further, the societies will be given 
 the option of handing over this part of 
 their duties to the Health Committee, 
 on such terms as may be arranged in 
 each case. If the terms arranged 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 
 afford it, for the scheme must effect a 
 considerable saving in the medical 
 charges now falling on the rates. 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 case of 
 sickness, resort to the Poor Law both 
 for medicine and maintenance. 
 
 Inspection of Societies Medical Relief 
 
 The medical treatment given by 
 societies will be made subject to in- 
 spection. 
 
 Income. 
 
 This will consist of : 
 
 (1) The proportion charged to Post 
 Office 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. 
 
 (3) The societies will also be re- 
 quired to subscribe id. or 2d. per 
 
54 
 
 THE PEOPLE'S INSURANCE 
 
 member per annum towards the ad- 
 ministrative expenses of the Com- 
 mittee. 
 
 Provision for Research 
 
 (4) The State will make an additional 
 grant of id. for every is. 3^. of the 
 sanatorium money, and it is proposed 
 to take power to use the whole or part 
 of this additional grant for research 
 purposes. 
 
 Power will be given to local authori- 
 ties to subscribe to the general pur- 
 poses of the Committee. 
 
 6. COLLECTION OF CONTRIBUTIONS. 
 
 The system to be provided for is as 
 follows : 
 
 Duties of the Employer 
 
 The employer of any person liable to 
 deduction from wages is to be respon- 
 sible for paying that person's contribu- 
 tion as well as the employer's contri- 
 bution in respect of him, and may 
 recoup himself the amount of the 
 former contribution (but not of the 
 latter) by deductions from the in- 
 sured person's wages. Such a deduc- 
 tion will only be allowed at the time 
 when the wages are paid for the period 
 for which they are paid. If the em- 
 ployed person is not paid by the person 
 employing him but by other persons, 
 the employer will be responsible for 
 seeing that he is insured. If the em- 
 ployed person gets no wages from any- 
 body, then the employer must himself 
 pay the whole amount. Deductions not 
 made at the proper time cannot be 
 made from any later payment. When 
 an employed person is out of employ- 
 ment or ill, the contributions are not 
 required to be paid. 
 
 Method of Payment of Contributions 
 
 The payment of contributions is to 
 be effected by means of adhesive 
 stamps which the employer will be able 
 to obtain at any post office and affix 
 to a card belonging to the employed 
 person. The stamps must be cancelled 
 by writing the date across them. The 
 insured person will be responsible for 
 obtaining the card and producing it to 
 the employer to be stamped. On enter- 
 ing 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 up to 
 date. When the card is in this man- 
 ner left with the employer, the em- 
 ployer will be saved the trouble of 
 stamping the card every week. 
 
 Method in respect of Casual Trades 
 
 To secure the due payment of con- 
 tributions in the case of casual trades 
 and employments, it is laid 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 wages in the same 
 week by producing his stamped and 
 dated card to any subsequent em- 
 ployer. The inclusion of casual labour 
 in insurance is of great importance. If 
 it were excluded, it would tend still 
 further to increase. 
 
 Penalties 
 
 The following penalties will be pro- 
 vided for : 
 
 (1) The employer to be liable to civil 
 proceedings for damages caused by 
 failing to insure an employee. 
 
 (2) The employer also to be liable on 
 summary conviction to a penalty for 
 every omission to stamp a card, or for 
 
THE PEOPLE'S INSURANCE 
 
 55 
 
 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 when wages 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 
 left to regulations. A general explana- 
 tion of the method to be adopted has 
 been inserted here so as to make 
 clearer the intention of the provisions 
 of the Bill. 
 
 Employee cannot Contract for Deduction 
 from his Wages of Employer's Share 
 
 A clause has been inserted to provide 
 that any covenant between employers 
 and employed, under which the em- 
 ployed agrees to the employer's de- 
 ducting from wages the employer's 
 share of the contribution, shall be void 
 and of no effect. 
 
 Card remains Property of Employee 
 
 The card will be made the property 
 of the workman, the employer having 
 no right to retain it without his con- 
 sent, or to write any comment what- 
 ever upon it. 
 
 Provisions for Casual Labour 
 
 Subject to the general rules laid 
 down above, power will be taken to 
 make regulations dealing with the con- 
 tributions of casual labourers, includ- 
 ing persons who are habitually em- 
 ployed by the hour or day, or for 
 periods less than a complete week, 
 and persons who are employed by 
 several employers in one week. It 
 will be permissible under these 
 
 regulations for a group of em- 
 ployers who between them employ a 
 group of casual labourers, or for a 
 group of casual labourers themselves, 
 to deposit the casual labourers' cards 
 with an insurance officer or at a Labour 
 Exchange or some other suitable 
 agency, to which the money for the 
 contributions would then be paid. 
 
 The Purpose of the Cards 
 
 The cards will be made current for a 
 fixed period, 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 receive a new card 
 in exchange. The stamped card be- 
 comes a voucher furnishing evidence 
 that the contributions have been duly 
 paid as it passes first from the em- 
 ployer to the insured person, then from 
 him to his society, and finally from the 
 society to the Post Office or the de- 
 partment having custody of the insur- 
 ance funds. 
 
 MISCELLANEOUS QUESTIONS. 
 
 (a) Advisory Committee 
 
 The Bill will contain provisions for 
 the setting up of a committee of em- 
 ployers and insured persons whose 
 duty it will be to advise the insurance 
 office. 
 
 (b) Double Insurance 
 
 A clause has been inserted prevent- 
 ing, under a penalty, double insurance 
 in the State scheme, and the same 
 person will not be able to draw both 
 unemployed and sick benefit. Mem- 
 bers will, of course, be entitled to 
 make what further insurance they may 
 desire voluntarily through their socie- 
 ties, or in any other way. 
 
THE PEOPLE'S INSURANCE 
 
 (c) Inspection, Insurance Office, etc. 
 
 A clause will be inserted giving the 
 Government the right to appoint 
 inspectors for the purpose of the Act, 
 and to establish an office for the pur- 
 pose of dealing with all matters arising 
 under the Act, the audit and valua- 
 tion of accounts of societies, invest- 
 ments, &c. 
 
 Inspectors and officers of the insur- 
 ance office so constituted will be given 
 wide powers as regards all matters re- 
 lating to the collection of qontribu- 
 tions, and as regards conducting in- 
 quiries into the affairs of the societies. 
 
 (d) A Penalty Clause against False 
 
 Claims, etc. 
 
 A 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 caHs; and to protect societies 
 against frauds by officials or members. 
 Existing Acts will be applied as far as 
 possible to this purpose. 
 
 Offences in connection with the pay- 
 ment of contributions have been 
 already dealt with. 
 
 (e) Out-door Belief 
 
 The existing Act with regard to 
 benefits payable by friendly societies 
 and outdoor relief granted by guar- 
 dians will be made applicable. 
 
 (f) Ejectment, etc. 
 
 A clause will be drafted suspend- 
 ing 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. 
 
 Extension of Period of Protection in case 
 
 of Sickness 
 
 Power will be given to the Judge or 
 Registrar of the County Court to ex- 
 tend the period of protection in case 
 of sickness, in no case beyond 12 
 months without a guarantee for the 
 rent, if he is satisfied that life would 
 be imperilled.* 
 
 . Malingering. 
 
 Purely State Scheme of Insurance would 
 
 foster 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 sup- 
 press it altogether, and no plan which 
 human ingenuity can devise will suc- 
 ceed in stamping it out. The best that 
 can be achieved is the compression of 
 it within limits that will not substan- 
 tially disarrange or affect the funds 
 available for honest men. The most 
 effective check in fact, the only really 
 effective check upon malingering is 
 to be found in engaging the self-in- 
 terest of the workmen themselves in 
 opposition to it. That is why a purely 
 State scheme, where the Exchequer 
 could be drawn upon to an unlimited 
 extent, would inevitably lead to un- 
 limited shamming and deception. This 
 scheme is so worked that the burden 
 of mismanagement and maladministra- 
 tion would fall on the workmen them- 
 selves. 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 unpopular vice amongst 
 them, and they xvill take the surest 
 and shortest way to discourage it. 
 
 * These provisions were modified. See section 
 68 of Act. 
 
THE PEOPLE'S INSURANCE 
 
 57 
 
 B. INSURANCE AGAINST UNEMPLOYMENT. 
 
 The scheme of insurance against un- 
 employment embodied in Part II. of the 
 National Insurance Bill provides for : 
 
 (a) Compulsory insurance in certain 
 
 scheduled trades. 
 
 (b) Encouragement of voluntary in- 
 
 surance in all trades. 
 
 The scheme applies compulsorily to 
 all workmen, skilled or unskilled, 
 organised or unorganised, in building, 
 construction of works, shipbuilding, 
 engineering, and construction of 
 vehicles. That is to say, on the one 
 hand, all workmen and their employers 
 are liable to contribute to an unem- 
 ployment fund in respect of employ- 
 ment in these trades, and, on the other 
 hand, all workmen who have thus con- 
 tributed are entitled when unemployed 
 to certain payments from the fund. 
 The definition of the term " workman " 
 is such as to exclude foremen and 
 clerks as well as all persons under 18 
 years of age, and power 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. Workmen 
 under the Crown, unless they are estab- 
 lished, i.e., pensionable, are included, 
 but power is taken to adapt the provi- 
 sions of the scheme to their special cir- 
 cumstances. 
 
 Method of Collection of Contributions 
 
 The income of the unemployment 
 
 fund is raised by contributions from 
 a Wkmen, employers, and the State. 
 
 \\ 
 
 The workman's contribution is 2%d. for 
 each period of employment of a week 
 or less, and the employer's contribution 
 is also 2%d. for each period of employ- 
 ment of a week or less, subject to the 
 provision for compounding described 
 below. The State contribution to the 
 unemployment fund is one-third of 
 the total contributions from workmen 
 and employers. The State is respon- 
 sible in the first instance for the cost 
 of administration, but 10 per cent, of 
 the income of the unemployment fund 
 will be paid over in aid of administra- 
 tive expenditure. The workman's and 
 employer's contribution will, as a rule, 
 be paid together by the employer's 
 purchasing a special insurance 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 without obtain- 
 ing from him an insurance book 
 and without affixing thereto week by 
 week a $d. stamp to represent the joint 
 contribution. An employer who has 
 affixed a stamp in this way will be en- 
 titled to deduct half the value of the 
 stamp from the workman's wages. 
 No contributions are required while the 
 workman is unemployed for any cause. 
 
 The benefit provided consists of 
 weekly payments to the workman 
 whilst unemployed provided that he 
 fulfils certain statutory conditions and 
 is free of certain disqualifications. 
 
 The statutory conditions are, that the 
 workman should have been employed in 
 an insured trade for 26 weeks, should 
 
 c 
 
THE PEOPLE'S INSURANCE 
 
 have made application for benefit in 
 the prescribed manner and have been 
 continuously unemployed since the date 
 of application, should be capable of 
 work and unable to obtain suitable em- 
 ployment, and should not have ex- 
 hausted his right to benefit. 
 
 Conditions under which Benefit is 
 Withheld 
 
 Notwithstanding the fulfilment of the 
 statutory conditions, a workman may 
 be disqualified for receiving benefit on 
 the following grounds for the period 
 stated in each case : 
 
 (a) If he has lost employment 
 through a strike or lock-out, for 
 so long as the strike or lock-out 
 continues ; 
 
 (6) if he has lost employment 
 through misconduct or has 
 voluntarily left employment 
 without just cause, for six weeks 
 from the date of losing or leav- 
 ing employment; ~~ 
 
 (c) if he has been imprisoned, for a 
 
 period of six weeks after leaving 
 prison ; 
 
 (d) while he is an inmate of any 
 
 public institution; 
 
 (e) while he is resident temporarily 
 
 or permanently outside the 
 United Kingdom. 
 
 Amount and Duration of Benefit 
 
 No benefit will be paid for the first 
 week of any period of unemployment. 
 Thereafter benefit can be drawn at the 
 rate of 75. a week by workmen en- 
 gaged in engineering, shipbuilding, and 
 construction of vehicles, and 65. a week 
 by workmen engaged in house building- 
 
 and works of construction, up to a 
 maximum in each case of 15 weeks of 
 benefit in any 12 months. It is pro- 
 vided in addition that not more 
 than one week of benefit can be 
 drawn by any man for every five 
 weekly contributions paid by him. This 
 rule, while it will not be felt by men 
 who work steadily in youth and only 
 make large claims on the fund in ex- 
 ceptional trade 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 work- 
 men already working at an insured 
 trade before the commencement of the 
 Act. 
 
 Variations in Rates of Benefit 
 
 The rates and periods of benefit men- 
 tioned above are those proposed in the 
 first instance. Power is given, how- 
 ever, to the Board of Trade by regula- 
 tion 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 contribu- 
 tions, more elaborate procedure, in- 
 volving a public inquiry and hearing of 
 objections, is required, on the lines of 
 the procedure for making special 
 orders under the Factory Acts. All 
 such changes may relate either to the 
 insured trades as a whole or k 
 single trade or branch thereof. 
 
THE PEOPLE'S INSURANCE 
 
 59 
 
 Administration of the Scheme 
 
 The administration of the scheme 
 will take place principally 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 Offi- 
 cer." The workman will be entitled to 
 receive such benefit as the insurance 
 officer allows, subject to his remaining 
 unemployed and continuing to sign the 
 register daily during working hours. 
 
 Court of Referees 
 
 If the workman is dissatisfied with 
 the decision of the insurance officer in 
 any case, he will have a right of ap- 
 pealing to a Court of Referees, consist- 
 ing of one or more members from a 
 panel of persons chosen to represent 
 workmen, with an impartial chairman. 
 It is contemplated that Courts of Re- 
 ferees 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 
 cases. No charge will be made to the 
 workman for appealing to a Court of 
 Referees, and if sent for to attend he 
 will receive travelling .expenses. If 
 the Court of Referees and the in- 
 surance 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. The 
 appeal to the umpire will serve 
 to harmonise the principles on 
 
 which Courts of Referees and insur- 
 ance officers decide cases. Districts 
 not covered by Labour Exchanges will 
 be dealt with through local offices in 
 the nature of sub-post offices. 
 
 Two Main Principles 
 
 The foregoing paragraphs set out the 
 framework of the compulsory scheme. 
 There are, however, a number of sub- 
 sidiary provisions which will be best 
 understood by reference to two main 
 underlying principles : 
 
 (1) That provision for unemploy- 
 
 ment, whether through insur- 
 ance or in other forms, must not 
 be such as to create unemploy- 
 ment, and should, if possible, 
 tend to diminish unemployment; 
 
 (2) That compulsory provision for 
 
 unemployment should be accom- 
 panied by arrangements for pre- 
 serving and encouraging volun- 
 tary provision. 
 
 DIMINUTION OF UNEMPLOYMENT. 
 
 As regards the first principle the 
 avoidance of any tendency to encour- 
 age or increase unemployment by pro- 
 viding for it attention may be called 
 to the following points. 
 
 Close Alliance with Labour Exchanges 
 
 In the first place, provision for un- 
 employment through insurance is 
 throughout closely linked up with the 
 machinery already established for 
 diminishing unemployment, namely, 
 the Labour Exchanges. Workmen 
 claiming unemployment benefit through 
 
 V 
 
 C 2 
 
6o 
 
 THE PEOPLE'S INSURANCE 
 
 an Exchange will automatically be 
 registered as applicants by the Ex- 
 change for employment, and if the 
 Exchange can find them suitable work, 
 they will be required to take that work 
 in place of drawing benefit. They will 
 no longer be held to be "unable to 
 obtain suitable employment." The in- 
 surance scheme, it is hoped, will greatly 
 increase the efficiency of the Exchanges, 
 first by bringing to them all the unem- 
 ployed workmen who apply for benefit, 
 and second, and consequentially, by in- 
 ducing employers to send to them for 
 the men who will necessarily be there. 
 
 It is to the Interest of all Parties to 
 Diminish Unemployment 
 
 In the second place, the burden of 
 providing benefit is thrown upon work- 
 men, employers, and State in such a 
 way as to give each of these parties an 
 interest in diminishing unemployment, 
 i.e., preventing unnecessary idleness 
 with a view to diminishing the burden. 
 The benefits of the scheme are not 
 guaranteed by the State. It is neces- 
 sary, indeed, to make some provision 
 for the possibility of an exceptionally 
 severe depression of trade which might 
 exhaust the fund temporarily, and this 
 is done by allowing the Treasury to 
 make an advance. 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 contribution, or of the rates 
 and periods of benefit, such as may 
 serve to repay the advance and restore 
 the solvency of the fund. Further, 
 if it is found over a period of 
 years that the rates of contri- 
 bution are either too low or too high 
 
 in view of the benefits given, it is con- 
 templated 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 re- 
 corded in them. In this way it 
 is made to the interest of both 
 employers and workmen to reduce un- 
 employment, if they can, with a view 
 to obtaining a reduction or avoiding an 
 increase of contributions when the re- 
 vision takes place. The periodical 
 revision of contributions requires a 
 special order, made after public inquiry 
 and hearing of objections, and Can only 
 be undertaken at intervals of five years 
 or more. The contributions of em- 
 ployers or workmen cannot be raised 
 by such a revision by more than one 
 penny per workman per week. 
 
 Provisions to Encourage Regularity of 
 Employment 
 
 In the third place, a number of 
 specific provisions are inserted in the 
 Bill with a view to encouraging 
 regularity of employment or otherwise 
 diminishing the burdens on the fund. 
 
 (a) A minimum contribution of 2\d. 
 each is required from em- 
 ployers and workmen for every 
 separate period of employment 
 of a week or less. 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 em- 
 ployers are required to pay more 
 frequent contributions than the 
 
THE PEOPLE'S INSURANCE 
 
 61 
 
 more regular workmen and their 
 employers. 
 
 (b) Any employer, in place of paying 
 
 in each week the joint contribu- 
 tion of 5^. as it becomes due in 
 respect of any particular work- 
 man, may pay in advance at a 
 rate of 155. for that workman 
 for the whole year, continuing 
 to deduct from the workman the 
 ordinary contribution for each 
 week of employment. This rate 
 represents a substantial reduc- 
 tion of the employer's contribu- 
 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 55) recover from the un- 
 employment fund the amount, if 
 any, by which his own contribu- 
 tions (exclusive of those of the 
 employer and the State) exceed 
 the amount of benefits drawn by 
 him from the fund, with com- 
 pound interest at 2\ per cent. 
 
 (d) In the case of workmen put on 
 
 short time during a period of 
 trade depression, the contribu- 
 tions both of employers and of 
 workmen may be remitted alto- 
 gether. This will give an ad- 
 vantage to employers who adopt 
 the plan of working short time 
 in times of depression instead of 
 dismissing some men and keep- 
 ing the rest on full time. 
 
 (e) In the case of workmen engaged 
 
 through a Labour Exchange, the 
 Labour Exchange may by ar- 
 rangement with the employer 
 undertake on his behalf the 
 whole duty of keeping and 
 stamping insurance books, and 
 
 further, may treat all the suc- 
 cessive periods of employment 
 of the same or different work- 
 men engaged by that employer 
 through the Exchange as a 
 single continuous period of em- 
 ployment of one workman. In 
 other words, an employer who 
 uses the Exchange may pay ac- 
 cording to the amount of labour 
 he has in fact used, even though 
 the employment has been dis- 
 continuous, and though he has 
 not always had the same man. 
 Correspondingly, a man en- 
 gaged through the Labour 
 Exchange by one or more 
 employers with whom an 
 arrangement has been made will 
 be allowed to pay a single con- 
 tribution per week, however 
 many separate engagements he 
 has had. 
 
 (/) Any workman who becomes re- 
 peatedly unemployed through 
 lack of skill or knowledge may 
 be required to attend a suitable 
 course of technical instruction, 
 and if he fails to do so or to 
 profit by such instruction, this 
 fact may be taken into account 
 in considering what is suitable 
 employment for him. 
 
 The combined effect of these provi- 
 sions is to give a substantial advantage 
 both to the employer and to the work- 
 man in respect of regular and continu- 
 ous employment as compared with 
 casual engagements. This discrimina- 
 tion is justified both equitably and 
 actuarially by the saving to the unem- 
 ployment fund which results from the 
 diminution of claims for unemployment 
 benefit. 
 
62 
 
 THE PEOPLE'S INSURANCE 
 
 PRESERVATION AND ENCOURAGEMENT OF 
 VOLUNTARY INSURANCE. 
 
 Provision is made in the following 
 ways for the preservation and encour- 
 agement of voluntary insurance against 
 unemployment. 
 
 Through an Association of Workmen 
 
 In the first place, an association of 
 workmen in the insured 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 Ex- 
 change, but through the association. 
 The association will thereafter claim a 
 refund from the unemployment fund of 
 the sums to which the individual mem- 
 ber would have been entitled. The 
 association may thus be the channel 
 for the distribution of the statu- 
 tory 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 mem- 
 ber of the association will be concerned 
 only with the rules of his own associa- 
 tion, and in place of having to attend 
 at the Labour Exchange to get, say, 
 75., and at the association office to get 
 another 4 s. or 55., he will be able to 
 get the whole us. or I2S. from his 
 association, leaving the latter subse- 
 quently to settle with the unemploy- 
 ment fund. In order to secure the 
 interest 6f the association in economical 
 distribution and to encourage provision 
 of benefits beyond the statutory mini- 
 mum, 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 repay- 
 ments under this clause (79) the asso- 
 ciation will be entitled to participate 
 in the subsidy payable under the 
 scheme of voluntary insurance de- 
 scribed in the next paragraph. 
 
 Subsidy from Board of Trade 
 
 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 125. 
 a week) expended on such benefits, 
 exclusive, in the case of an Association 
 which has made an arrangement under 
 Section 105 of any sum repaid to the 
 Association under that arrangement. 
 This provision, which is applicable to 
 all trades and all classes of employees, 
 thus adds on to the limited compulsory 
 insurance scheme a scheme for uni- 
 versal voluntary insurance through 
 associations. 
 
 Possible Extension to other Trades 
 
 While the compulsory part of the 
 scheme is limited at the outset to the 
 trades mentioned, power is given to the 
 Board of Trade to extend it to other 
 trades by special order involving the 
 procedure already described. 
 
 Miscellaneous Provisions 
 
 Miscellaneous provisions, e.g., for 
 inspection of workplaces so as to see 
 that cards of men engaged are being 
 duly stamped; for making unemploy- 
 ment benefit inalienable; and for ex- 
 cluding consideration of any benefit 
 
THE PEOPLE'S INSURANCE 
 
 under the Bill when Boards of Guar- 
 dians are making a grant of outdoor 
 relief, are contained in the general part 
 of the National Insurance Bill (Part 
 III). 
 
 Estimate of Number of Persons Affected 
 by the Scheme 
 
 It is estimated that 2,421,000 work- 
 people of 1 8 years of age and up- 
 wards will come within the compulsory 
 insurance scheme at the outset, and 
 
 that these will be divided into two 
 groups as follows : 
 
 Engineering, shipbuilding, and con- 
 struction of vehicles, 1,100,000. 
 
 Building and works of construction, 
 1,321,000. 
 
 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 unem- 
 ployment benefits other than travelling 
 
 pay. 
 
TEXT OF THE NATIONAL INSURANCE ACT, 1911 
 
ARRANGEMENT OF SECTIONS 
 
 PART I. 
 
 NATIONAL HEALTH INSURANCE. 
 Insured Persons. 
 
 Section. 
 
 1. Insured persons. 
 
 2. Exemptions. 
 
 Contributions. 
 
 insured persons, em- 
 
 by 
 
 the Treasury. 
 
 3. Contributions 
 
 ployers, and _ 
 
 4. Rates and rules for contributions by 
 
 employed contributors and their em- 
 ployers. 
 
 5. Rates and rules for contributions by 
 
 voluntary contributors. 
 
 6. Change from voluntary rate to employed 
 
 rate and vice versd. 
 
 7. Power to make regulations for the pay- 
 
 ment of contributions. 
 
 Benefits. 
 
 8. Benefits. 
 
 9. Reduced rates of benefit in certain cases. 
 
 10. Reduced rates of benefits where contribu- 
 
 tions are in arrear. 
 
 11. Provisions in the case of contributors 
 entitled to compensation or damages. 
 
 12. Provisions in the case of contributors 
 
 who are inmates of hospitals, &c. 
 
 13. Power to vary benefits in certain cases. 
 
 Administration of Benefits. 
 
 14. Administration of benefits by approved 
 
 societies or the Insurance Committee. 
 
 15. Administration of medical benefit. 
 
 16. Administration of sanatorium benefit. 
 
 17. Power to extend sanatorium benefit to 
 
 dependants. 
 
 18. Administration of maternity benefit. 
 
 19. Punishment of husband in certain cases 
 
 of neglect. 
 
 20. Reinsurance for the purposes of maternity 
 
 benefit. 
 
 21. Power to subscribe to hospitals, &c. 
 
 22. Power of councils of boroughs and dis- 
 
 tricts to contribute to certain expendi- 
 ture on medical and sanatorium 
 benefits. 
 
 Approved Societies. 
 
 23. Conditions for the approval of approved 
 
 societies. 
 
 24. Power of societies to undertake business 
 
 under Part I. 
 
 25. Special provisions for employers' provi- 
 
 dent funds, &c. 
 
 
 Section. 
 
 26. Security to be given by approved societies. 
 
 27. Provisions as to approved societies. 
 
 28. Secessions, &c. 
 
 29. Withdrawal of approval. 
 
 Membership of Approved Societies and 
 Transfer of Members. 
 
 30. Admission of insured persons to member- 
 
 ship in approved societies.' 
 
 31. Transfer from one approved society to 
 
 another. 
 
 32. Transfers to foreign and colonial societies. 
 
 33. Transfer values of emigrants who remain 
 
 members of approved societies. 
 
 34. Prohibition against double insurance. 
 
 Accounts: Valuations: Surplus and Deficit. 
 
 35. Approved societies to keep proper ac- 
 
 counts. 
 
 36. Valuations of approved societies. 
 
 37. Surplus. 
 
 38. Deficit. 
 
 39. Pooling arrangements in the case of 
 
 small societies. 
 
 40. Special provisions with regard to societies 
 
 with branches. 
 
 41. Power to separate men's and women's 
 
 fund. 
 
 Deposit Insurance. 
 
 42. Provisions as to deposit contributors. 
 
 43. Transfer from approved society to deposit 
 
 insurance and vice versa. 
 
 Provisions as to Special Classes of Insured 
 Persons. 
 
 44. Special provisions with respect to married 
 
 women. 
 
 45. Special provisions as to aliens. 
 
 46. Special provisions with regard to persons 
 
 in the naval or military service of the 
 Crown. 
 
 47. Special provisions where employer liable 
 
 to pay wages during sickness. 
 
 48. Special provisions as to the mercantile 
 
 marine. 
 
 49. Provisions as to persons over sixty five at 
 
 commencement of Act. 
 
 50. Special provisions as to seasonal trades. 
 
 51. Special provisions as to inmates of charit- 
 
 able homes, &c. 
 
 52. Special provision as to persons becoming 
 
 certificated teachers. 
 
 53. Application to other persons in the service 
 
 of the Crown. 
 
 c* 2 
 
68 
 
 THE PEOPLE'S INSURANCE 
 
 Financial Provisions. 
 
 Section.. 
 
 54. National Health Insurance Fund. 
 
 55. Reserve values. 
 
 56. Transactions between the Insurance Com- 
 
 missioners and societies. 
 
 Insurance Commissioners : Advisory Com- 
 mittee. 
 
 57. Constitution of Insurance Commissioners, 
 
 appointment of inspectors, &c. 
 
 58. Appointment of advisory committee. 
 
 Insurance Committees. 
 
 S9- Appointment of Insurance Committees. 
 60. Powers and duties of Insurance Com- 
 mittees. 
 or. Income. 
 02. Local medical committee. 
 
 Excessive Sickness. 
 
 13. Inquiries into causes of excessive sick- 
 ness, &c. 
 
 Supplementary Provisions. 
 
 64. Provision of sanatoria, &c. 
 
 65. Power to Insurance Commissioners to 
 
 make regulations, &c. 
 
 66. Determination of questions by Insurance 
 
 Commissioners. 
 
 67. Disputes. 
 
 68. Protection against distress and execution 
 
 in certain cases. 
 
 69. Offences. 
 
 70. Civil proceedings against employer for 
 
 neglecting to pay contributions. 
 
 71. Repayment of benefits improperly paid. 
 
 72. Provisions as to application of the exist- 
 
 ing funds of friendly societies. 
 
 73. Provisions as to existing employers' pro- 
 
 vident funds. 
 
 74. Provisions as to minors who are mem- 
 
 bers of approved societies. 
 
 75. Power for societies to register under 
 
 Friendly Societies Act, 1896. 
 
 76. Application of Acts of Parliament to 
 
 approved societies and sections. 
 
 77. Powers of the Local Government Board. 
 
 78. Power to remove difficulties. 
 
 79. Interpretation. 
 
 So. Application to Scotland. 
 
 81. Application to Ireland. 
 
 82. Establishment of Commissioners for 
 
 Wales. 
 
 83. Joint Committee of Commissioners. 
 
 PART II. 
 UNEMPLOYMENT INSURANCE. 
 
 Section. 
 
 84. Right of workmen in insured trades to 
 
 unemployment benefit. 
 
 85. Contributions by workmen, employers, 
 and the Treasury. 
 
 86. Statutory conditions for receipt of unem- 
 
 ployment benefit. 
 
 87. Disqualifications for unemployment bene- 
 
 fit. 
 
 88. Determination of claims. 
 
 89. Appointment of umpire, insurance officers, 
 
 inspectors, &c. 
 
 90. Courts of referees. 
 
 91. Regulations. 
 
 92. Unemployment fund. 
 
 93. Treasury advances. 
 
 94. Refund of part of contributions paid by 
 
 employer in the case of workmen con- 
 tinuously employed. 
 
 95. Repayment of part of contributions by 
 
 workmen in certain cases. 
 
 96. Refund of contributions paid in respect of 
 
 workmen working short time. 
 
 97. Saving for occasional employment in 
 
 rural neighbourhoods. 
 
 98. Payment of contributions in case of 
 
 Reservists or Territorials during train- 
 ing. 
 
 99. Provisions with respect to workmen en- 
 
 gaged through labour exchanges. 
 
 100. Subsidiary provisions. 
 
 101. Offences and proceedings for recovery of 
 
 contributions, &c. 
 
 102. Periodical revision of rates of contribu- 
 
 tion. 
 
 103. Power to extend to other trades. 
 
 104. Exclusion of subsidiary occupations. 
 
 105. Arrangements with associations of work- 
 
 men in insured trade who make pay- 
 ments to members whilst unemployed. 
 
 1 06. Repayments to associations who make 
 
 payments to persons, whether work- 
 men in insured trade or not, whilst 
 unemployed. 
 
 107. Interpretation and application. 
 
 PART III. 
 GENERAL. 
 
 108. Provisions as to stamps. 
 
 109. Outdoor relief. 
 
 no. Priority of claims for contributions due 
 
 by bankrupt employers, 
 in. Benefits to be inalienable. 
 
 112. Powers of inspectors. 
 
 113. Procedure for making special orders. 
 
 114. Provisions as to birth certificates. 
 
 115. Short title arid commencement. 
 
 SCHEDULES. 
 
PART III 
 
 TEXT OF THE NATIONAL INSURANCE ACT, 1911 
 
 An Act to provide for Insurance against Loss of Health and for the Prevention 
 and Cure of Sickness, and for Insurance against Unemployment, and for purposes 
 incidental thereto. [16 December, 1911] 
 
 BE it enacted by the King's most 
 Excellent Majesty, by and with the 
 advice and consent of the Lords Spiri- 
 tual and Temporal, and Commons, in 
 this present Parliament assembled, and 
 by the authority of the same, as 
 follows : 
 
 PART I. 
 
 NATIONAL HEALTH INSURANCE. 
 Insured Persons. 
 
 i. (i) Subject to the provisions of 
 this Act, all persons of the age of six- 
 teen and upwards who are employed 
 within the meaning of this part of this 
 Act shall be, and any such persons who 
 are not so employed but who possess 
 the qualifications hereinafter mentioned 
 may be, insured in manner provided in 
 this part of this Act, and all persons 
 so insured (in this Act called " insured 
 persons ") shall be entitled in the man- 
 ner and subject to the conditions pro- 
 vided in this Act to the benefits in 
 respect of health insurance and pre- 
 vention of sickness conferred by this 
 Part of this Act. 
 
 (2) The persons employed within the 
 meaning of this Part of this Act (in 
 this Act referred to as "employed 
 contributors ") shall include all per- 
 
 sons of either sex, whether British 
 subjects or not, who are engaged 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 Com- 
 missioners hereinafter constituted may 
 with the approval of the Treasury, by 
 a special order made in manner 
 hereinafter provided, provide for in- 
 cluding 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, either unconditionally or sub- 
 ject to such conditions as may be 
 specified in the order. 
 
 (3) The persons not employed within 
 the meaning of this Part of this Act 
 who are entitled to be insured persons 
 include all persons who either 
 
 (a) are engaged in some regular oc- 
 
 cupation and are wholly or 
 mainly dependent for their liveli- 
 hood on the earnings derived by 
 them from that occupation; or 
 
 (b) have been insured persons for 
 
 a period of five years or 
 
 upwards ; 
 
 and the persons possessing such quali- 
 fications who become or continue to be 
 
7 
 
 THE PEOPLE'S INSURANCE 
 
 insured persons are in this Act referred 
 to as voluntary contributors : Provided 
 always that no person whose total 
 income from all sources exceeds one 
 hundred and sixty pounds a year shall 
 be entitled to be a voluntary contri- 
 butor unless he has been insured under 
 this Part of this Act for a period of 
 five years or upwards. 
 
 (4) Except as hereinafter provided, 
 nothing in this section shall require 
 or authorise a person of the age of 
 sixty-five or upwards not previously 
 insured under this Part of this Act to 
 become so insured. 
 
 Exemptions 
 
 2. (i) Where any person employed 
 within the meaning of this Part of this 
 Act proves that he is either 
 
 (a) in receipt of any pension or in- 
 
 come of the annual value of 
 twenty-six pounds or upwards 
 not dependent upon his personal 
 exertions ; or 
 
 (b) ordinarily and mainly dependent 
 
 for his livelihood upon some 
 
 other person, 
 
 he shall be entitled to a certificate ex- 
 empting him from the liability to be- 
 come or to continue to be insured under 
 *his Part of this Act. 
 
 (2) All claims for exemption shall be 
 made to, and certificates of exemption 
 granted by, the Insurance Commis- 
 sioners in the prescribed manner and 
 subject to the prescribed conditions, 
 and may be so made and granted 
 before, as well as after, the commence- 
 ment of this Act: Provided that the 
 regulations of the Insurance Commis- 
 sioners may provide for claims under 
 this section being made to, and certifi- 
 cates granted by, approved societies 
 and Insurance Committees hereinafter 
 constituted. 
 
 Contributions. 
 
 Contributions by Insured Persons, Em- 
 ployers, and the Treasury 
 
 3. Except as otherwise provided by 
 this Act, the funds for providing the 
 benefits conferred by this Part of this 
 Act and defraying the expenses of the 
 administration of those benefits shall 
 be derived as to seven-ninths (or, in 
 the case of women, three-fourths) 
 thereof from contributions made by or 
 in respect of the contributors by 
 themselves or their employers, and as 
 to the remaining two-ninths (or, in the 
 case of women, one-quarter) thereof 
 from moneys provided by Parliament. 
 
 Rates and Rules for Contributions by 
 Employed Contributors and their 
 Employers 
 
 4. (i) The contributions payable in 
 respect of employed contributors shall 
 be at the rate specified in Part I. of 
 the Second Schedule to this Act (here- 
 inafter referred to as the employed 
 rate), and shall comprise contributions 
 by the contributors and contributions 
 by their employers at the rates speci- 
 fied in that Part of that schedule, and 
 shall be payable at weekly or other 
 prescribed intervals : Provided that in 
 the case of an employed contributor, 
 of the age of twenty-one or upwards 
 whose remuneration does not include 
 the provision of board and lodging by 
 the employer and the rate of whose 
 remuneration does not exceed two 
 shillings a working day, such part of 
 the contributions payable in respect of 
 him as is specified in the said schedule 
 shall be paid out of moneys provided 
 by Parliament. 
 
 (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), 
 
THE PEOPLE'S INSURANCE 
 
 and also on behalf of the employed 
 contributor the contributions payable 
 by such contributor, and shall be en- 
 titled to recover from the contributor 
 by deduction from his wages or other- 
 wise the amount of the contributions so 
 paid by him on behalf of the contribu- 
 tor in accordance with the rules set 
 out in the Third Schedule to this Act. 
 
 (3) Contributions in respect of em- 
 ployed contributors shall cease to be 
 payable on their attaining the age of 
 seventy. 
 
 (4) The employer of a person who 
 though 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 
 
 an insured person, he has become 
 employed within the meaning of 
 this Part of this Act after attain- 
 ing the age of sixty-five ; or 
 
 (b) that he has obtained and still 
 holds* a certificate of exemption 
 under this Part of this Act ; 
 
 shall be liable to pay the like contri- 
 butions as would have been payable as 
 employer's contributions if such per- 
 son had been an employed contributor, 
 and such contributions shall be carried 
 to such account and dealt with in such 
 manner as may be prescribed by regu- 
 lations made by the Insurance Com- 
 missioners, and those regulations may 
 provide for applying the sums standing 
 to the credit of the account, or any 
 part thereof, for the benefit of any 
 persons in respect of whom contribu- 
 tions have been so paid, in the event 
 of such persons subsequently becom- 
 ing employed contributors. 
 
 Rates and Rules for Contributions by 
 Voluntary Contributors 
 
 5. (i) The contributions payable by 
 voluntary contributors shall be at the 
 
 rate appropriate to their age at the 
 date of their entry into insurance ascer- 
 tained in accordance with a table to 
 be prepared by the Insurance Commis- 
 sioners (hereinafter referred to as the 
 voluntary rate) and shall be paid by 
 the voluntary contributors at weekly 
 or other prescribed intervals : 
 Provided that 
 
 (a) In the case of a person who 
 
 enters into insurance within six 
 months after the commencement 
 of this Act, the voluntary rate 
 shall, if he is below the age of 
 forty-five at the date of entering 
 into insurance, be the same as 
 the employed rate, and if he is 
 of the age of forty-five or up- 
 wards, be such rate, ascertained 
 according to a table to be pre- 
 pared 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 
 three-fourths, of the benefits con- 
 ferred by this Part of this Act ; 
 
 (b) Where a person, having been an 
 
 employed contributor for five 
 years or upwards, becomes a 
 voluntary contributor the rate of 
 contribution payable by him 
 shall continue to be the employed 
 rate. 
 
 (2) Contributions by voluntary con- 
 tributors shall cease to be payable on 
 their attaining the age of seventy. 
 
 Change from Voluntary Rate to Em- 
 ployed Rate and vice versa 
 
 6. (i) Where an insured person has 
 become a member of an approved 
 society as a voluntary contributor, the 
 rate of contributions payable in respect 
 of him shall notwithstanding that he 
 becomes employed within the meaning 
 
THE PEOPLE'S INSURANCE 
 
 of this Part of this Act, remain the 
 voluntary rate, unless at any time after 
 becoming so employed he gives notice 
 in the prescribed manner of his wish 
 to be transferred to the employed rate. 
 
 (2) Where he gives such notice the 
 rate payable in respect 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 payable had 
 he not previously been insured, sub- 
 ject to such addition as may according 
 to tables prepared by the Insurance 
 Commissioners represent the value at 
 that time of the contributions pre- 
 viously paid by him. 
 
 (3) Where he does not give such 
 notice, and until he does so, the con- 
 tributions payable 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 em- 
 ployed rate, and the contributions so 
 paid by the employer shall be treated as 
 in part satisfaction of the contributions 
 at the voluntary rate payable by the 
 contributor, and if the contributor fails 
 to pay the balance he shall be deemed 
 to be in , irrear 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, 
 he shall be deemed to be in arrear, as 
 from the date when he so became a 
 voluntary contributor, to the amount 
 of the difference between the aggregate 
 contributions paid by or in respect of 
 him since his entry into insurance and 
 the aggregate of the contributions 
 which would have been payable by him 
 had he throughout been 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 re- 
 serve value (if any) which would have 
 been credited to that society in respect 
 of him had he originally become a 
 voluntary contributor shall be can- 
 celled. 
 
 Power to make Regulations for the 
 Payment of Contributions 
 
 7. Subject to the provisions of this 
 Act, the Insurance Commissioners may 
 make regulations providing for any 
 matters incidental to the payment and 
 collection of contributions payable 
 under this Part of this Act, and in par- 
 ticular for 
 
 (a) payment of contributions whether 
 
 by means of adhesive or other 
 stamps affixed to or impressed 
 upon books or cards, or other- 
 wise, and regulating the manner, 
 times, and conditions in, at, and 
 under which such stamps are to 
 be affixed or impressed, or pay- 
 ments are otherwise to be made ; 
 
 (b) the entry in or upon books or 
 
 cards of particulars of contribu- 
 tions paid and benefits dis- 
 tributed in the case of the in- 
 sured persons to whom such 
 books or cards belong ; 
 
 (c) the issue, sale, custody, produc- 
 
 tion, and delivery up of books 
 or cards and the replacement of 
 books or cards which have been 
 lost, destroyed, or defaced. 
 
 Benefits 
 
 Benefits. 
 
 8. (i) Subject to the provisions of 
 this Act the benefits conferred by this 
 Part of this Act upon insured persons 
 are 
 
 (a) Medical treatment and attend- 
 ance, including the provision of 
 
THE PEOPLE'S INSURANCE 
 
 73 
 
 proper and sufficient medicines 
 and such medical and surgical 
 appliances as may be prescribed 
 by regulations to be made by 
 the Insurance Commissioners (in 
 this Act called "medical bene- 
 fit"); 
 
 (b) Treatment in sanatoria or other 
 
 institutions or otherwise when 
 suffering from tuberculosis, or 
 such other diseases as the Local 
 Government Board with the ap- 
 proval of the Treasury may 
 appoint (in this Act called 
 " sanatorium benefit ") ; 
 
 (c) Periodical payments whilst ren- 
 
 dered incapable of work by some 
 specific disease or by bodily or 
 mental disablement, of which 
 notice has been given, com- 
 mencing from the fourth day 
 after being so rendered inca- 
 pable of work and continuing 
 for a period not exceeding 
 twenty-six weeks (in this Act 
 called " sickness benefit ") ; 
 
 (d) In the case of the disease or 
 
 disablement continuing after the 
 determination of sickness bene- 
 fit, periodical payments so long 
 as so rendered incapable of work 
 by the disease or disablement (in 
 this Act called "disablement 
 benefit ") ; 
 
 (e) Payment in the case of the con- 
 
 finement of the wife or, where 
 the child is a posthumous child, 
 of the widow of an insured 
 person, or of any other woman 
 who is an insured person, of a 
 sum of thirty shillings (in this 
 Act called " maternity benefit ") ; 
 (/) In the case of persons entitled 
 under this Part of this Act to 
 any of the further benefits men- 
 tioned in Part II. of the Fourth 
 Schedule to this Act (in this Act 
 
 called " additional benefits ") 
 such of these benefits as they 
 may be entitled to. 
 
 (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 specified in Part I. of the 
 Fourth Schedule to this Act. 
 
 (3) In the case of insured persons 
 who have attained the age of seventy, 
 the right to sickness benefit and dis- 
 ablement benefit shall cease. 
 
 (4) No insured person shall be 
 entitled to any benefit during any 
 period when he is resident either tem- 
 porarily or permanently outside the 
 United Kingdom. 
 
 Provided that, if a person is tempor- 
 arily resident in the Isle of Man or the 
 Channel Islands, he shall not, whilst so 
 resident, be disentitled to benefits other 
 than medical benefit, and that, if with 
 the consent of the society or committee 
 by which the benefit is administered a 
 person is temporarily resident outside 
 the United Kingdom elsewhere than in 
 the Isle of Man or the Channel Islands, 
 the society or committee may allow 
 him, whilst so resident, to continue to 
 receive sickness or disablement benefit, 
 and that a person resident out of the 
 United Kingdom shall not be dis- 
 entitled to maternity benefit in re- 
 spect of the confinement of his wife, 
 if his wife at the time of her con- 
 finement is resident in the United 
 Kingdom. 
 
 (5) Where an insured person, having 
 been in receipt of sickness benefit, re- 
 covers from the disease or disablement 
 in respect of which he receives such 
 benefit, any subsequent disease or dis- 
 ablement, or a recurrence of the same 
 disease or disablement, shall be deemed 
 to be a continuation of the previous 
 disease or disablement, unless in the 
 
74 
 
 THE PEOPLE'S INSURANCE 
 
 meanwhile a period of at least twelve 
 months has elapsed, and at least fifty 
 weekly contributions have been paid 
 by or in respect of him : 
 
 (6) Where a woman confined of a 
 child is herself an insured person, and 
 is a married woman, or, if the child 
 is a posthumous child, a widow, she 
 shall be entitled to sickness benefit or 
 disablement benefit (as the case may 
 be) in respect of her confinement in 
 addition to the maternity benefit to 
 which she or her husband may be en- 
 titled, but, save as aforesaid, a woman 
 shall not be entitled to sickness benefit 
 or disablement benefit for a period of 
 four weeks after her confinement un- 
 less suffering from disease or disable- 
 ment not connected directly or in- 
 directly with her confinement. 
 
 Medical benefit shall not include any 
 right to medical treatment or attend- 
 ance in respect of a confinement. 
 
 (7) Where a pension or superannua- 
 tion allowance is payable by an ap- 
 proved society in whole or in part as an 
 additional benefit under this Part of 
 this Act, or out of any fund to which 
 contributions have been made in ac- 
 cordance with paragraph (10) of Part 
 II. of the Fourth Schedule to this Act, 
 it may be made a condition of the grant 
 of the pension or allowance that a mem- 
 ber of the society shall, whilst in re- 
 ceipt of such pension or allowance, be 
 excluded in whole or in part from his 
 right to sickness benefit and disable- 
 ment benefit, or to either of such 
 benefits. 
 
 (8) Notwithstanding anything in this 
 Part of this Act, no insured person 
 shall be entitled 
 
 (a) to medical benefit during the first 
 
 six months after the commence- 
 ment of this Act; 
 
 (b) to sickness benefit unless and 
 
 until twenty-six weeks have 
 
 elapsed since his entry into in- 
 surance, and at least twenty-six 
 weekly contributions have been 
 paid b3 r 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 
 weekly contributions have been 
 paid by or in respect of him ; 
 
 (d) to maternity benefit unless and 
 
 until twenty-six, or in the case 
 . of a voluntary contributor fifty- 
 two weeks have elapsed since: 
 his entry into insurance, and at 
 least twenty-six, or in the case 
 of a voluntary contributor fifty- 
 two, weekly contributions have 
 been paid by or in respect of him. 
 (9) As soon as the sums credited to 
 approved societies as reserve values 
 in respect of persons who enter into 
 insurance within one year after the 
 commencement of this Act have been 
 written off in manner provided by this 
 Part of this Act, the benefits payable 
 to insured persons under this Part of 
 this Act shall be extended in such 
 manner as Parliament may determine. 
 
 Reduced Bates of Benefit in Certain 
 Cases 
 
 9. (i) In the case of insured per- 
 sons who are under the age of twenty- 
 one years and unmarried, sickness 
 benefit and disablement benefit shall be 
 at the reduced rates specified in Table 
 B. in Part I. of the Fourth Schedule to 
 this Act: 
 
 Provided that where any such per- 
 son, being a member of an approved 
 society, proves that one or more 
 members of his family are wholly or 
 mainly dependent upon him, the 
 society shall dispense with such 
 reduction. 
 
 (2) Where in the case of any insured 
 
THE PEOPLE'S INSURANCE 
 
 persons the rate of sickness benefit or 
 disablement benefit (as the case may 
 be) exceeds two-thirds of the usual 
 rate of wages or other remuneration 
 earned by such persons, the rate of 
 such benefit may 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. 
 
 (3) The rate of sickness benefit 
 shall be reduced in accordance with 
 Table C. in Part I. of the Fourth 
 Schedule to this Act in the case of any 
 insured person who becomes an em- 
 ployed contributor within one year 
 after the commencement of this Act, 
 and is at the date of so becoming an 
 employed contributor of the age of fifty 
 years or upwards and the number of 
 weekly contributions paid by or in re- 
 spect of him is at the date of any claim 
 by him for such benefit less than five 
 hundred. 
 
 (4) In the case of every person who, 
 not having been previously insured 
 under this Part of this Act, becomes 
 an employed contributor subsequently 
 to the expiration of one year from the 
 commencement of this Act, and is, at 
 the time of so becoming an employed 
 contributor, of the age of seventeen or 
 upwards, the rate of sickness benefit 
 to which he is entitled shall (unless he 
 proves that his time since he attained 
 the age of seventeen has been spent in 
 a school or college, in indentured ap- 
 prenticeship or otherwise under instruc- 
 tion without wages or otherwise in the 
 completion of his education, or unless 
 he undertakes himself to pay the differ- 
 ence between the voluntary rate and 
 
 the employed rate, or pays to the Insur- 
 ance Commissioners, 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 Commis- 
 sioners, but not in any case less than 
 five shillings a week : 
 
 Provided that if at any time subse- 
 quently such person would become en- 
 titled to sickness benefit at a higher 
 rate if he were treated as having be- 
 come an employed contributor as from 
 the time when he attained the age of 
 seventeen, or as from the expiration of 
 one year after the commencement of 
 this Act, whichever date may be the 
 later, and as being in arrear for all con- 
 tributions which, had he become an 
 employed contributor at that date, 
 would have been payable in respect of 
 him between that date and the date 
 when he actually became an employed 
 contributor, he shall, if he so elects, be 
 entitled to be so treated. 
 
 Reduced Rates of Benefits where Con- 
 tributions are in Arrear 
 
 10. (i) Where an insured person 
 being a member of an approved society 
 is in arrear to an amount greater than 
 thirteen weekly contributions a year on 
 the average since his entry into insur- 
 ance, his right to benefits under this 
 Part of this Act other than medical 
 benefit, sanatorium benefit, and mater- 
 nity benefit shall be suspended, and 
 where he is in arrears to an amount 
 greater than twenty-six weekly con- 
 tributions a year on the average since 
 his entry into insurance his right to 
 medical benefit, sanatorium benefit, 
 and maternity benefit shall be sus- 
 pended, and at the expiration of the 
 calendar year next after the date when 
 he becomes suspended from all 
 
4 
 
 THE PEOPLE'S INSURANCE 
 
 benefits any sums credited to the society 
 in respect of him, calculated in the 
 prescribed manner, shall, if his right to 
 benefits still continues to be suspended, 
 be carried to such account and dealt 
 with in such manner as may be pre- 
 scribed for the benefit (except so far as 
 such sums comprise sums in respect of 
 a reserve value) of the society or <my 
 other society to which such person may 
 subsequently be transferred : 
 
 Provided that if at any time after 
 suspension from any such benefits he 
 becomes employed within the meaning 
 of this part of this Act he shall be 
 entitled to those benefits at such rate, 
 after the lapse of such time and after 
 the payment of such number of con- 
 tributions, as would have been ap- 
 plicable to his case had he not previ- 
 ously been an insured person, but if he 
 so elects at any time the benefits to 
 which he is entitled shall be such as he 
 would be entitled to, were the period 
 from the time of his original entry into 
 insurance taken as a whole. 
 
 (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 deferred, proportionately 
 to the amount of arrears in accordance 
 with the Table in the Fifth Schedule to 
 this Act. 
 
 (3) Where a voluntary contributor is 
 in arrears he shall be liable to such 
 proportionate reduction of benefits as 
 may be prescribed. 
 
 (4) In calculating arrears of contri- 
 butions, no account shall be taken of 
 any arrears accruing 
 
 (a) during any period when the per- 
 son in question has been, or but 
 for this section or any other pro- 
 vision of this Act disentitling a 
 
 person to such benefit would 
 have been, in receipt of sickness 
 benefit or disablement benefit; 
 or 
 
 (b) in the case of a woman who, be- 
 
 ing an insured person, is herself 
 entitled to maternity benefit dur- 
 ing two weeks before and four 
 weeks after her delivery, or 
 in the case of maternity benefit 
 payable in respect of the post- 
 humous child of an insured 
 person, during the period sub- 
 sequent to the father's death ; or 
 
 (c) in the case of an employed con- 
 
 tributor during the first twelve 
 months after the commencement 
 of this Act ; 
 
 but, save as aforesaid, contributions 
 shall be deemed to be payable in re- 
 spect of every week from the date of 
 entry into insurance. 
 
 (5) Where an insured person has 
 paid any arrears of contributions pay- 
 able by or in respect of him which 
 accrued during the calendar year cur- 
 rent at the date of payment and the 
 previous calendar year, he shall be 
 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 subsequently within 
 one month thereafter becomes in- 
 capable of work by reason of disease 
 or disablement, he shall for the pur- 
 poses 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 such pay- 
 ment 
 
 (6) Any approved society may, if it 
 thinks fit, excuse any part of the 
 arrears which may have accrued due by 
 or in respect of any member who is an 
 employed contributor during any period 
 of unemployment not exceeding such 
 part as would have been payable by 
 
THE PEOPLE'S INSURANCE 
 
 77 
 
 the employer had the member continued 
 in his last employment, and in such case 
 the amount of the arrears of that mem- 
 ber shall be reduced accordingly. 
 
 (7) The average amount of arrears 
 for the purposes of this section shall be 
 calculated in such manner as the In- 
 surance Commissioners may prescribe. 
 
 Provisions in the case of Contributors 
 entitled to Compensation or 
 Damages 
 
 ii. (i) Where an insured person 
 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 Compensation Act, 1906, 
 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 disable- 
 
 ment benefit shall be paid to 
 such person in respect of that in- 
 jury or disease in any case where 
 any weekly sum or the weekly 
 value of any lump sum paid or 
 payable by way of compensation 
 or damages is equal to or greater 
 than the benefit otherwise pay- 
 able to such person, and where 
 any such weekly sum or the 
 weekly value of any such lump 
 sum is less than the benefit in 
 question, such part only of the 
 benefit shall be paid as, together 
 with the weekly sum or the 
 weekly value of the lump sum, 
 will be equal to the benefit : 
 
 (b) The weekly value of any such 
 
 lump sum as aforesaid may be 
 determined by the society or 
 committee by which the sickness 
 and disablement benefits pay- 
 able to such person are admin- 
 istered, but if the insured person 
 
 is aggrieved by such determina- 
 tion, the matter shall be settled 
 in manner provided by this Part 
 of this Act for settling disputes 
 between insured persons and 
 societies or committees : 
 (c) Where an agreement is made as 
 to the amount of such compen- 
 sation as aforesaid, and the 
 amount so agreed is less than 
 ten shillings a week, or as to 
 the redemption of a weekly pay- 
 ment by a lump sum under the 
 Workmen's Compensation Act, 
 1906, the employer shall, vithin 
 three days thereafter, or such 
 longer time as may be pre- 
 scribed, send to the Insurance 
 Commissioners, or to the so- 
 ciety or committee concerned, 
 notice in writing of such agree- 
 ment giving the prescribed par- 
 ticulars thereof, and proviso 
 (d) to paragraph (9) of the 
 Second Schedule of the Work- 
 men's Compensation Act, 1906 
 (which relates to the powers 
 of registrars of county courts 
 to refuse to record memo- 
 randa of agreements and to refer 
 the matter to the judg'e) shall, 
 in cases where the workman is 
 an insured person, apply to 
 agreements as to the amount of 
 compensation, in like manner as 
 to agreements as to the redemp- 
 tion of weekly payments by 
 lump sums : 
 
 (2) Where an insured person appears 
 to be entitled to any such compensation 
 or damages as aforesaid and unreason- 
 ably refuses or neglects to take pro- 
 ceedings to enforce his claim, it shall 
 be lawful for the society or committee 
 concerned, either 
 
 (a) at its own expense, to take in 
 the name and on behalf of such 
 person such proceedings, in 
 
THE PEOPLE'S INSURANCE 
 
 which case any compensation or 
 damages recovered shall be 
 held by the society or com- 
 mittee as trustee for the insured 
 person; or 
 
 (b) to withhold payment of any 
 benefit to which apart from this 
 section such person would be 
 entitled. 
 
 In the event of the society or committee 
 concerned taking proceedings as afore- 
 said, and failing in the proceedings, it 
 shall be responsible for the costs of the 
 proceedings as if it were claiming on 
 its own account. 
 
 (3) Nothing in this section shall pre- 
 vent the society or committee paying 
 to an insured person benefit by way 
 of advance pending the settlement of 
 his claim for compensation or damages, 
 and any advance so made shall, with- 
 out prejudice to any other method of 
 recovery, be recoverable by deductions 
 from or suspension of any benefits 
 which may subsequently become pay- 
 able to such person. 
 
 Provisions in the case of Contributors 
 who are Inmates of Hospitals, etc. 
 
 12. (i) No payment shall be made 
 on account of sickness, disablement or 
 maternity benefit to or in respect of 
 any person during any period when the 
 person to or in respect of whom the 
 benefit is payable is an inmate of any 
 workhouse, hospital, asylum, con- 
 valescent home, or infirmary, sup- 
 ported by any public authority or out 
 of any public funds or by a charity, or 
 voluntary subscriptions, or of a sana- 
 torium or similar institution approved 
 under this Part of this Act. 
 
 (2) During such period as aforesaid 
 the sum which would otherwise have 
 been payable on account of any such 
 benefit to or in respect of 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, after 
 consultation whenever possible 
 with such person, thinks fit; or 
 
 (b) if such person, being a member 
 
 of an approved society, is an in- 
 mate of a sanatorium or similar 
 institution in which he is re- 
 ceiving treatment in accordance 
 with the provisions of this part 
 oi this Act, and has no depen- 
 dants, shall be paid to the Insur- 
 ance Committee towards the 
 general purposes thereof; or 
 
 (c) If such person, being a member 
 
 of an approved society, is an in- 
 mate of a hospital, asylum, con- 
 valescent home, or infirmary 
 supported by charity or by 
 voluntary subscriptions and has 
 no dependants, shall, if an 
 agreement for the purpose has 
 been made between the society 
 or committee and the hospital, 
 asylum, convalescent home, or 
 infirmary, be paid, in whole or 
 in part, according to such agree- 
 ment, towards the maintenance 
 of such person in the hospital, 
 asylum, convalescent home, or 
 infirmary : 
 
 Provided that 
 
 (i) any part of such sum which is 
 not so applied as aforesaid may, 
 if the society or committee 
 thinks fit, be applied in the pro- 
 vision of any surgical appli- 
 ances required for the insured 
 person or otherwise for his 
 benefit; and 
 
 (ii) if such an inmate as aforesaid 
 is a married woman or widow, 
 and the sums so payable or ap- 
 plicable as aforesaid include the 
 
THE PEOPLE'S INSURANCE 
 
 79 
 
 sums which would have been 
 payable both on account of sick- 
 ness or disablement benefit and 
 on account of maternity benefit, 
 no part of the sum which would 
 otherwise be payable on account 
 of maternity benefit shall be paid 
 or applied for the relief or main- 
 tenance of her dependants, but 
 such sum may be paid to the 
 hospital, asylum, convalescent 
 home, or infirmary of which she 
 is an inmate as aforesaid in like 
 manner as if she had no depen- 
 dants. 
 
 (iii) where any person who is entitled 
 to any benefit under this Part of 
 this Act, or a woman whose 
 husband is entitled to maternity 
 benefit in respect of her confine- 
 ment, applies for admission to 
 any workhouse infirmary, ad- 
 mission thereto shall not be re- 
 fused on the ground only of the 
 right to such benefit. 
 
 Power to vary Benefits in Certain Cases 
 13. (i) Any approved society may 
 submit to the Insurance Commission- 
 ers a scheme for substituting any of 
 the additional benefits for sickness 
 benefit and disablement benefit or 
 either of those benefits or any part 
 thereof, and the scheme may provide 
 as respects the members of the society 
 to whom the scheme applies that any 
 such benefits shall be abolished or the 
 rate thereof reduced or, in the case of 
 sickness benefit, the commencement 
 thereof postponed ; and the scheme 
 may contain such incidental and con- 
 sequential provisions as appear neces- 
 sary for adapting the other provisions 
 of this Part of this Act to the members 
 to whom the scheme applies. 
 
 (2) The scheme shall apply either to 
 all members of the society or to any 
 specified class thereof or to any mem- 
 
 bers of the society who may elect to 
 come under the scheme, according as 
 may be provided by the scheme. 
 
 (3) A scheme made under this sec- 
 tion shall not have any effect unless 
 and until confirmed by the Insurance 
 Commissioners, and the Insurance 
 Commissioners shall not confirm any 
 such scheme unless satisfied that the 
 value of the additional benefits con- 
 ferred by the scheme is equivalent to 
 the value of the benefits for which they 
 are substituted, and that, in view of 
 the special circumstances of the mem- 
 bers or class of members intended to 
 come under the scheme, there is good 
 reason for substituting the additional 
 benefits conferred by the scheme for 
 the benefits for which they are sub- 
 stituted. 
 
 (4) Nothing in this section or in any 
 scheme made thereunder shall affect 
 the amount of any reserve value to be 
 credited to a society in respect of a 
 member, and such reserve values shall 
 be calculated as if the scheme had not 
 been made. 
 
 Administration of Benefits. 
 
 Administration of Benefits by Approved 
 Societies or the Insurance Committee 
 
 14. (i) Sickness benefit, disable- 
 ment benefit, and maternity benefit 
 shall be administered, in the case of 
 insured persons who are members of 
 an approved society, by and through 
 the society, or a branch thereof, and 
 in other cases by and through the 
 Insurance Committees ; medical and 
 sanatorium benefits shall in all cases be 
 administered by and through the Insur- 
 ance Committees, additional benefits 
 shall be administered by the society or 
 branch of which the persons entitled 
 thereto are members, except where 
 such benefits are in the nature of 
 medical benefits, in which case they 
 
8o 
 
 THE PEOPLE'S INSURANCE 
 
 shall be administered by and through 
 the Insurance Committees. 
 
 (2) Subject to the provisions of this 
 Part of this Act, an approved society 
 may, with the consent of the Insurance 
 Commissioners, provide for the appli- 
 cation of its existing rules or make 
 new rules with regard to the manner 
 and time of paying or distributing and 
 mode of calculating benefits, suspen- 
 sion of benefits, notices and proof of 
 disease or disablement, behaviour dur- 
 ing disease or disablement, and the 
 visiting of sick or disabled persons, 
 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 in- 
 sured person who is guilty of any 
 breach of any such rule, or of any im- 
 position or attempted imposition in re- 
 spect of any benefit under this Part of 
 this Act, and may from time to time 
 with the like consent alter or repeal 
 any such rules; but 
 
 (a) no fine imposed under any such 
 
 rule shall exceed ten shillings 
 or, in the case of repeated 
 breaches of rules, twenty shil- 
 lings ; 
 
 (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 by 
 visitors appointed by the society 
 shall provide that women shall 
 not be visited otherwise than by 
 women ; 
 
 (d) every such rule relating to be- 
 
 haviour during disease or dis- 
 ablement shall be in the pre- 
 scribed form ; 
 
 (e) No such rule shall prescribe any 
 
 penalty, nor shall any insured 
 person be subject to any 
 penalty, whether by suspension 
 
 of benefit or otherwise, on ac- 
 count of the refusal by any such 
 person to submit to a surgical 
 operation, or vaccination, or 
 inoculation of any kind unless 
 such refusal in the case of a 
 surgical operation of a minor 
 character is considered by the 
 society, or on appeal the Insur- 
 ance Commissioners, unreason- 
 able; 
 
 (/) No such rule shall provide for 
 inflicting as a penalty for breach 
 of rules or imposition or at- 
 tempted imposition on the part 
 of an insured person suspension 
 of maternity benefit in respect 
 of the confinement of his wife, 
 where his wife has not herself 
 been guilty of any such breach, 
 imposition, or attempted im- 
 position. 
 
 (3) The Insurance Committee 
 shall, subject to the approval of the 
 Insurance Commissioners, make rules 
 in respect of any of the matters men- 
 tioned in the last preceding sub- 
 section with regard to the administra- 
 tion of benefits by the committee. 
 
 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 dis- 
 ablement 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 not thereby become dis- 
 entitled to medical benefit. 
 
 (5) Where under any Act regulating 
 the constitution of a society which 
 becomes an approved society the 
 rules of the society are required to 
 be registered, any rules approved 
 
THE PEOPLE'S INSURANCE 
 
 81 
 
 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 regis- 
 tered. 
 
 Administration of Medical Benefit 
 
 15. (i) Every Insurance Committee 
 shall for the purpose of administering 
 medical benefit make arrangements 
 with duly qualified medical practi- 
 tioners in accordance with regulations 
 made by the Insurance Commissioners. 
 
 (2) The regulations made by the In- 
 surance Commissioners shall provide 
 for the arrangements made beinp- sub- 
 ject to the approval of the Insurance 
 Commissioners and being such as to 
 secure that insured persons shall, save 
 as hereinafter provided, receive ade- 
 quate medical attendance and treat- 
 ment from the medical practitioners 
 with whom arrangements are so made, 
 and shall require the adoption by every 
 Insurance Committee of such system 
 as will secure 
 
 (a) the preparation and publication 
 
 of lists of medical practitioners 
 who have agreed to attend and 
 treat insured persons whose 
 medical benefit is administered 
 by the committee; 
 
 (b) a right on the part of any duly 
 
 qualified medical practitioner 
 who is desirous of being in- 
 cluded in any such list as afore- 
 said of being so included, but 
 where the Insurance Commis- 
 sioners, after such inquiry as 
 may be prescribed,' are satisfied 
 that his continuance in the list 
 would be prejudicial to the 
 efficiency of the medical service 
 of the insured, they may remove 
 his name from the list; 
 
 (c) a right on the part of any in- 
 
 sured person of selecting, at 
 
 such periods as may be pre- 
 scribed, from the appropriate list 
 the practitioner by whom he 
 wishes to be attended and 
 treated, and, subject to the con- 
 sent of the practitioner so 
 selected, of being attended and 
 treated by him ; 
 
 (d) the distribution amongst and, so 
 
 far as practicable, under ar- 
 rangements made by the several 
 practitioners whose names are 
 on the lists of the insured per- 
 sons who, after due notice, have 
 failed to make any selection, or 
 who have been refused by the 
 practitioner whom they have 
 selected ; 
 
 (e) the provision of medical attend- 
 
 ance and treatment, on the same 
 terms as to remuneration as 
 those arranged with respect 
 to insured persons, to mem- 
 bers of any friendly society 
 which, or a separate section of 
 which, becomes an approved 
 society who were such members 
 at the date of the passing of 
 this Act, and who are not en- 
 titled to medical benefit under 
 this part of this Act by reason 
 either that they are of the age 
 of sixty-five or upward at the 
 date of the commencement of 
 this Act, or that being subject 
 to permanent disablement at 
 that date they are not qualified 
 to become insured persons : 
 Provided that if the Insurance Com- 
 missioners are satisfied, after inquiry, 
 that the practitioners included in any 
 list are not such as to secure an ade- 
 quate medical service in any area, they 
 may dispense with the necessity of the 
 adoption of such system as aforesaid 
 as respects that area, and authorise 
 the Committee to make such other ar- 
 
82 
 
 THE PEOPLE'S INSURANCE 
 
 rangements as the Commissioners may 
 approve or the Commissioners may 
 themselves make such arrangements 
 as they think fit, or may suspend the 
 right to medical benefit in respect of 
 any insured persons in the area for 
 such period as they think fit, and pay 
 to each such person a sum equal to 
 the estimated cost of his medical benefit 
 during that period, and where the Com- 
 missioners take any such action them- 
 selves they shall retain and apply for 
 the purpose such part of the sums pay- 
 able to the Insurance Committee in 
 respect of medical benefit as may be 
 required. 
 
 (3) The regulations made by the In- 
 surance Commissioners shall authorise 
 the Insurance Committee by which 
 medical benefit is administered to re- 
 quire any persons whose income ex- 
 ceeds a limit to be fixed by the Com- 
 mittee, and to allow any other persons, 
 in lieu of receiving medical benefit 
 under such arrangements as aforesaid, 
 to make their own arrangements for 
 receiving medical attendance and treat- 
 ment (including medicines and ap- 
 pliances), and in such case the Com- 
 mittee shall, subject to the regulations, 
 contribute from the funds out of which 
 medical benefit is payable towards the 
 cost of medical attendance and treat- 
 ment (including medicines and ap- 
 pliances) for such persons sums not 
 exceeding in the aggregate the amounts 
 which the Committee would otherwise 
 have expended in providing medical 
 benefit for them. 
 
 (4) The regulations shall provide that, 
 in the case of persons who are entitled 
 to receive medical attendance and treat- 
 ment under any system or through any 
 institution existing at the time of the 
 passing of this Act, and approved by 
 the Insurance Committee and the 
 Insurance Commissioners, such medical 
 
 attendance and treatment may be 
 treated as, or as part of, their medical 
 benefit under this Part of this Act, and 
 may provide for the Committee con- 
 tributing towards the expenses thereof 
 the whole or any part of the sums 
 which would be contributed in the case 
 of persons who have made their own 
 arrangements as aforesaid, so, how- 
 ever, that such regulations shall secure 
 that no person be deprived of his right, 
 if he so elects, of selecting the duly 
 qualified medical practitioner by whom 
 he wishes to be attended and treated, 
 in accordance with the foregoing pro- 
 visions of this section. 
 
 (5) Every such Committee shall also 
 make provision for the supply of proper 
 and sufficient drugs and medicines and 
 prescribed appliances to insured per- 
 sons in accordance with regulations 
 made by the Insurance Commissioners, 
 which shall provide for the arrange- 
 ments made being subject to the ap- 
 proval of the Insurance Commissioners, 
 and being such as to enable insured 
 persons to obtain from any persons, 
 firms, or bodies corporate with whom 
 arrangements have been made such 
 drugs, medicines, and appliances if 
 ordered by the medical practitioner by 
 whom they are attended, and shall 
 require the adoption by every In- 
 surance Committee of such a system as 
 will secure 
 
 (a) The preparation and publication 
 
 of lists of persons, firms, and 
 bodies corporate who have 
 agreed to supply drugs, 
 medicines, and appliances to 
 insured persons whose medical 
 benefit is administered by the 
 Committee, according to such 
 scale of prices as may be fixed 
 by the Committee ; 
 
 (b) A right on the part of any per- 
 
 son,, firm, or body corporate 
 
THE PEOPLE'S INSURANCE 
 
 desirous of being 1 included in any 
 such list as aforesaid, of being 
 so included, for the purpose of 
 supplying such drugs, medicines, 
 and appliances as such person, 
 firm, or body corporate is en- 
 titled by law and authorised by 
 the Committee to supply except 
 in cases where the Insurance 
 Commissioners after inquiry are 
 satisfied that the inclusion or 
 continuance of the person, firm, 
 or body corporate in such list 
 would be prejudicial to the effi- 
 ciency of the service : 
 Provided that 
 
 (i) If the Insurance Commissioners 
 are satisfied that the scale of 
 prices fixed by the Committee 
 is reasonable, but that the 
 persons, firms, or bodies cor- 
 porate included in any list are 
 not such as to secure an 
 adequate and convenient supply 
 of drugs, medicines, and ap- 
 pliances in any area, they may 
 dispense with the necessity of 
 the adoption of such system as 
 aforesaid as respects that area 
 and authorise the committee to 
 make such other arrangements 
 as the Commissioners may 
 approve ; 
 
 (ii) Except as may be provided by 
 regulations made by the Insur- 
 ance Commissioners, no ar- 
 rangement shall be made by 
 the Insurance Committee with 
 a medical practitioner under 
 which he is bound or agrees to 
 supply drugs or medicine to any 
 insured persons ; 
 
 (iii) Subject to the regulations made 
 by the last foregoing proviso 
 the regulations shall prohibit 
 arrangements for the dispensing 
 of medicines being made with 
 
 persons other than persons, 
 firms, or bodies corporate en- 
 titled to carry on the business 
 of a chemist and druggist under 
 the provisions of the Pharmacy 
 Act, 1868, as amended by the 
 Poisons and Pharmacy Act, 
 1908, who undertake that all 
 medicines supplied by them to 
 insured persons shall be dis- 
 pensed either by or under the 
 direct supervision of a registered 
 pharmacist or by a person who, 
 for three years immediately prior 
 to the passing of this Act, has 
 acted as a dispenser to a duly 
 qualified medical practitioner or 
 a public institution ; 
 (iv) Nothing in this Act shall inter- 
 fere with the rights and privi- 
 leges conferred by the Apothe- 
 caries Act, 1815, upon any 
 person qualified under that Act 
 to act as an assistant to any 
 apothecary in compounding and 
 dispensing medicines. 
 (6) There shall in each year be paid 
 to the Insurance Committee for 
 each county or county borough out of 
 moneys credited to a society which has 
 members resident in the county or 
 county borough such sum in respect of 
 the medical benefit of such members 
 and the cost of administration thereof 
 as may be agreed between the society 
 and committee or, in default of agree- 
 ment, may be determined by the Insur- 
 ance Commissioners. 
 
 (7) If in any year the amount payable 
 to an Insurance Committee in respect 
 of all persons for the administration of 
 whose medical benefit it is responsible 
 is insufficient to meet the estimated 
 expenditure thereon, the Committee 
 may, through the Insurance Com- 
 missioners, transmit to the Treasury 
 and to the council of the county or 
 
8 4 
 
 THE PEOPLE'S INSURANCE 
 
 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 may 
 if they think fit and if satisfied that 
 the amounts so payable and the pro- 
 posed expenditure are reasonable and 
 proper in the circumstances sanction 
 the expenditure. 
 
 (8) The Treasury and the council of 
 the county or county borough sanction- 
 ing any such expenditure as aforesaid 
 shall thereupon each be liable to make 
 good, in the case of the Treasury out 
 of moneys provided by 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 so sanctioned by them and ex- 
 pended by the Insurance Committee 
 on medical benefit in the course of the 
 year in excess of the amounts so pay- 
 able to the Insurance Committee as 
 aforesaid. 
 
 Administration of Sanatorium Benefit 
 
 1 6. (i) For the purpose of adminis- 
 tering sanatorium benefit Insurance 
 Committees shall make arrangements, 
 to the satisfaction of the Insurance 
 Commissioners : 
 
 (a) with a view to providing treat- 
 ment for insured persons suffer- 
 ing from tuberculosis or any 
 other such disease as aforesaid 
 in sanatoria and other institu- 
 tions, with persons or local 
 authorities (other than poor law 
 authorities) having the manage- 
 ment of sanatoria or other in- 
 stitutions approved by the Local 
 Government Board, which treat- 
 ment it shall be lawful for a 
 local authority to provide as 
 respects insured persons resident 
 
 outside as well as respects those 
 resident within their area; and 
 (b) with a view to providing treat- 
 ment for such persons otherwise 
 than in sanatoria or other in- 
 stitutions, with persons and 
 local authorities (other than poor 
 law authorities) undertaking 
 such treatment in a manner ap- 
 proved by the Local Government 
 Board, which treatment (includ- 
 ing the appointment of officers 
 for the purpose) it shall be law- 
 ful for a local authority, if so 
 authorised by the Local Govern- 
 ment Board, to undertake. 
 
 (2) The sums available for defraying 
 the expenses of sanatorium benefit in 
 each year shall be 
 
 (a) one shilling and threepence in re- 
 
 spect of each insured 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 payable out of moneys 
 provided by Parliament : 
 Provided that the Insurance Com- 
 missioners may retain the whole or 
 any part of the sums so payable out of 
 moneys provided by Parliament to be 
 applied in accordance with regulations 
 made by the Commissioners for the 
 purposes of research. 
 
 (3) An insured person shall not be 
 entitled to sanatorium benefit unless the 
 Insurance Committee recommends the 
 case for such benefit. 
 
 (4) An Insurance Committee may, 
 out of the sums available for defray- 
 ing the expenses of sanatorium treat- 
 ment, defray in whole or in part the 
 expenses of the conveyance of an in- 
 sured person to or from any sanatorium 
 or institution to which he may be sent 
 
THE PEOPLE'S INSURANCE 
 
 for treatment therein, or may make 
 advances for the purpose. 
 
 Power to extend Sanatorium Benefit to 
 Dependants 
 
 17. (i) The Insurance Committee 
 for any county or county borough may, 
 if it thinks fit, extend sanatorium 
 benefit to the dependants of the insured 
 persons resident in the county, or any 
 part of the county, or in the county 
 borough, or any class of such depen- 
 dants, and in such case the arrange- 
 ments to be made by the committee 
 shall include arrangements for the 
 treatment of such dependants, and the 
 sums available for sanatorium benefit 
 shall be applicable to the purpose. 
 
 (2) If in any year the amount avail- 
 able for defraying the expenses of 
 sanatorium benefit is insufficient to 
 meet the estimated expenditure on 
 sanatorium benefit for insured per- 
 sons and such dependants the In- 
 surance Committee may, through the 
 Insurance Commissioners, transmit to 
 the Treasury and the council of the 
 county or county borough an account 
 showing the estimated expenditure for 
 the purpose and the amount of the 
 sums available for defraying the ex- 
 penses of sanatorium benefit, and the 
 Treasury and council may, if they think 
 fit, sanction such expenditure. 
 
 (3) The Treasury and the council of 
 the county or county borough sanction- 
 ing such expenditure as aforesaid shall 
 thereupon each be liable to make good, 
 in the case of the Treasury out of 
 moneys provided by Parliament, and 
 in the case of the council of the 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 so sanctioned by them and ex- 
 pended by the Insurance Committee 
 en sanatorium benefit for insured per- 
 
 sons and their dependants in the course 
 of the year in excess of the amount 
 available for defraying the expenses of 
 the committee on sanatorium benefit. 
 
 Administration of Maternity Benefit 
 
 1 8. (i) Where the mother of the 
 child is herself an insured person, and 
 is not the wife, or, in the case of a 
 posthumous child, the widow, of an in- 
 sured person, maternity benefit shall be 
 treated as a benefit for her and shall be 
 administered in cash or otherwise by 
 the approved society of which she is a 
 member, or if she is not a member of 
 any society by the Insurance Com- 
 mittee; in any other case the benefit 
 shall be treated as a benefit for her 
 husband and shall be administered in 
 cash or otherwise by the approved 
 society of which he is a member, or if 
 he is not a member of any such society 
 by the Insurance Committee, and 
 shall be payable in respect of a post- 
 humous child, as if the husband were 
 still alive. 
 
 Provided always that the mother 
 shall decide whether she shall be at- 
 tended by a duly qualified medical prac- 
 titioner or by a duly certified midwife, 
 and shall have free choice in the selec- 
 tion of such practitioner or midwife, 
 but if, in the case of a midwife being 
 selected, a duly qualified medical prac- 
 titioner is subsequently summoned in 
 pursuance of the rules made under the 
 Midwives Act, 1902, the prescribed fee 
 shall, subject to regulations made by 
 the Insurance Commissioners, be re- 
 coverable as part of the maternity 
 benefit. 
 
 (2) In deciding whether or not they 
 shall make an order under the Bastardy 
 Laws Amendment Act, 1872, for the 
 payment of the expenses incidental to 
 the birth of a child, the justices shall 
 not take into consideration the fact that 
 
86 
 
 THE PEOPLE'S INSURANCE 
 
 the mother of the child is entitled to 
 receive maternity benefit under this 
 Part of this Act. 
 
 Punishment of Husband in certain Cases 
 of Neglect 
 
 19. Without prejudice to any other 
 legal liability, where, under the imme- 
 diately foregoing section, which relates 
 to the administration of maternity 
 benefit, of this Act, maternity benefit 
 is given or paid to the husband, it shall 
 be the duty of the husband to make 
 adequate provision to the best of his 
 power for the maintenance and care of 
 his wife during her confinement, and 
 for a period of four weeks after her 
 delivery, and if he neglects or refuses 
 to do so, he shall be liable upon sum- 
 mary conviction to imprisonment with 
 or without hard labour, for any term 
 not exceeding one month. 
 
 Eeinsurance for the Purposes of Mater- 
 nity Benefit 
 
 20. For the purpose of the adminis- 
 tration of maternity benefit the Insur- 
 ance Commissioners may, if they think 
 fit, by special order provide for the 
 reinsurance with them of the liabilities 
 of all approved societies in respect of 
 maternity benefit, and the order may 
 provide for the method of calculating 
 the premiums to be charged against 
 the several societies in respect of such 
 reinsurances and may contain such 
 other incidental consequential, and 
 supplemental provisions as may appear 
 necessary for the purpose. 
 
 Power to Approved Societies to subscribe 
 
 to Hospitals, etc. 
 
 21. It shall be lawful for an ap- 
 proved society or Insurance Com- 
 mittee to grant such subscriptions or 
 donations as it may think fit to hos- 
 pitals, dispensaries and other charitable 
 
 institutions, or for the support of dis- 
 trict nurses, and to appoint nurses for 
 the purpose of visiting and nursing in- 
 sured persons, and any sums so ex- 
 pended shall be treated as expenditure 
 on such benefits under this Part of this 
 Act as may be prescribed. 
 
 Power of Councils of Boroughs and 
 Districts to Contribute to certain 
 Expenditure on Medical and Sana- 
 torium Benefits 
 
 22. (i) The council of any borough 
 or urban or rural district may agree 
 with the council of the county in which 
 the borough or district is situate to re- 
 pay to the latter council the whole or 
 any part of the sums payable by that 
 council in accordance with the pro- 
 visions of this Part of this Act towards 
 the excess expenditure on medical or 
 sanatorium benefit so far as such excess 
 is properly attributable to the borough 
 or district, and any sums payable by 
 the council of the borough or district 
 in pursuance of such an agreement 
 shall be payable in the case of a 
 borough out of the borough fund or 
 borough rate, and in any other case as 
 part of the general expenses incurred 
 by the council in the execution of the 
 Public Health Acts. 
 
 (2) The agreement may provide that 
 the county council shall not raise any 
 sum on account of any expenditure in- 
 curred by them under this Part of this 
 Act for the purpose to which the agree- 
 ment relates within the borough or 
 urban or rural district the council of 
 which has entered into such agreement, ; 
 during the continuance of such agree- 
 ment. 
 
 Approved Societies. 
 
 Conditions for the Approval of 
 
 Approved Societies 
 23. (i) Any society, that is to say, 
 any body of persons, corporate or un- 
 
THE PEOPLE'S INSURANCE 
 
 87 
 
 incorporate (not being a branch of 
 another such body), registered or 
 established under any Act of Parlia- 
 ment, or by Royal Charter, or if not 
 so registered or established, having a 
 constitution of such a character as may 
 be prescribed which complies with the 
 requirements of this Act relating to 
 approved societies, may be approved 
 by the Insurance Commissioners, and 
 if so approved shall be an approved 
 society for the purposes of this Part 
 of this Act : 
 
 Provided that where any society 
 establishes for the purposes of this Part 
 of this Act a separate section consist- 
 ing of insured persons, whether with 
 or without honorary members not 
 being insured persons, and so con- 
 stituted as to comply with the require- 
 ments of this Act relating to approved 
 societies, such separate section may be 
 approved by the Insurance Commis- 
 sioners, and if so approved shall be an 
 approved society, and the provisions of 
 this Part of this Act relating to the con- 
 ditions of approval of societies and to 
 approved societies shall apply only to 
 such separate section of the society. 
 
 (2) No society shall receive the ap- 
 proval of the Insurance Commissioners 
 unless it satisfies the following condi- 
 tions : 
 
 (i) It must not be a society carried 
 
 on for profit; 
 
 (ii) Its constitution must provide to 
 the satisfaction of the Insurance 
 Commissioners for its affairs 
 being subject to the absolute 
 control of its members being 
 insured persons or, if the rules 
 of the society so provide, of its 
 members whether insured per- 
 sons or not, including provision 
 for the election and removal of 
 the committee of management 
 or other governing body of the 
 
 society, in the case of a society 
 whose affairs are managed by 
 delegates elected by members by 
 such delegates, and in other 
 cases in such manner as will 
 secure absolute control by its 
 members. 
 
 (iii) If the society has honorary mem- 
 bers, its constitution must pro- 
 vide for excluding such honorary 
 members from the right of vot- 
 ing in their capacity of members 
 of the society on all questions 
 and matters arising under this 
 Part of this Act. 
 
 (3) Applications for approval under 
 this section may be made and approval 
 granted at any time before or after the 
 commencement of this Act, and the In- 
 surance Commissioners may grant 
 approval either unconditionally or sub- 
 ject to the condition of the society 
 taking within such time as the Com- 
 missioners may allow such steps as 
 may be necessary to make the society 
 comply with the requirements of this 
 part of this Act relating to approved 
 societies. 
 
 Power of Societies to undertake Business 
 under Part I 
 
 24. (i) It shall be lawful for any 
 body of persons, corporate or unincor- 
 porate, established before the passing 
 of this Act which is desirous of trans- 
 acting insurance business under this 
 Part of this Act, or of making any 
 amendments in its constitution, or ad- 
 ministration, or contributions, or bene- 
 fits, or otherwise which may be neces- 
 sary or expedient in consequence of the 
 passing of this Act, notwithstanding 
 anything in the provisions of the Acts 
 under which it is established or regis- 
 tered or carried on, or of its memoran- 
 dum or articles of association, rules, 
 or other instrument governing its con- 
 
88 
 
 THE PEOPLE'S INSURANCE 
 
 stitution or defining its objects, to do 
 all such acts and things (including the 
 establishment of a separate section as 
 aforesaid) as may be necessary for the 
 purpose of enabling the body to under- 
 take the transaction of such business 
 as soon as may be after the passing of 
 this Act and, if the instrument regu- 
 lating the constitution of the body con- 
 tains provisions requiring any interval 
 to elapse before action can be taken, 
 such provisions shall not apply to 
 action taken for the purposes afore- 
 said. 
 
 (2) Subsections (3) and (4) of section 
 seventy of the Friendly Societies Act, 
 1896, shall not apply to any resolutions 
 for amalgamation or transfer of en- 
 gagements when the resolution is made 
 expressly for the purposes of this 
 Part of this Act. 
 
 (3) This section shall come into 
 operation on the passing of this Act 
 and shall not continue in force beyond 
 the expiration of one year from the 
 commencement of this Act, except so 
 far as may be necessary to enable a 
 society which has undertaken the trans- 
 action of insurance business under this 
 Part of this Act to continue to transact 
 such business. 
 
 Special Provision for Employers' Provi- 
 dent Funds, etc. 
 
 25. (i) Where a society consists of 
 persons entitled to rights in a super- 
 annuation or other provident fund 
 established for the benefit of persons 
 employed by one or more employers, 
 the society may be approved, notwith- 
 standing that the employer is en- 
 titled to representation on the com- 
 mittee or other body administering 
 the fund, to an extent not exceeding 
 one quarter of the total number of the 
 body, if the employer, in addition to the 
 
 employer's contributions payable by 
 him under this Part of this Act, is re- 
 sponsible for the solvency of the fund 
 or for the benefits payable thereout, or 
 is liable to pay a substantial part of, or 
 to make substantial contributions to, 
 or substantially to supplement, the 
 benefits payable out of the fund : 
 
 Provided that no such society as 
 aforesaid shall be approved unless by 
 its constitution it is prohibited so far 
 as concerns the benefits under this Part 
 of this Act from refusing to allow a 
 member to transfer to another approved 
 society, and from refusing to allow a 
 member who is discharged from or 
 leaves the employment of the employer 
 and is unable to obtain admission to 
 another approved society on account of 
 the state of his health to continue a 
 member, and urless its constitution 
 provides for the election of the mem- 
 bers of the committee of management 
 (other than the employer's representa- 
 tives) by ballot : 
 
 Provided also that no such society 
 shall be approved if the employer makes 
 membership of such society a condi- 
 tion of employment. 
 
 (2) Where, for the purpose of 
 enabling any such society to become 
 an approved society, it is necessary to 
 make any alteration in the existing 
 rules or constitution of the society 
 which it is not competent for the society 
 under its existing constitution to make 
 a scheme for the purpose may be sub- 
 mitted for the approval of the Insurance 
 Commissioners. 
 
 (3) Where such a scheme has been| 
 approved by the Insurance Commis- 
 sioners, the Act or deed constituting 
 the society shall have effect subject to 
 the provisions of the scheme, but the 
 Insurance Commissioners shall not ap- 
 prove any such scheme unless they rre 
 satisfied that the members of th\ 
 
THE PEOPLE'S INSURANCE 
 
 89 
 
 society have been given an opportunity 
 of voting by ballot thereon, and that 
 the scheme makes proper provision for 
 safeguarding existing rights and 
 interests. 
 
 Security to be Given by Approved 
 Societies 
 
 26. (i) Every approved society and 
 every society desirous of becoming an 
 approved society shall give such 
 security as the Insurance Commis- 
 sioners may consider sufficient to pro- 
 vide against any malversation or mis- 
 appropriation by officers of the society 
 of any funds coming to the hands of 
 he society under this part of this 
 \ct, and in determining the amount 
 the security to be required the 
 Commissioners shall have regard to 
 he amount of the funds so coming 
 nto the hands of the society. Provided 
 hat no security shall be required from 
 any society which proves to the In- 
 surance Commissioners that the only 
 unds coming into the hands of the 
 society under this Part of this Act are 
 such funds as are required for reim- 
 Dursing to the society sums previously 
 expended by the society under this Part 
 this Act. 
 
 (2) In the case of an approved 
 society with branches having insured 
 Dersons among their members, security 
 shall be given in respect of each such 
 branch by the society. 
 
 (3) 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 where security 
 is given by way of deposit of securities 
 the society which made the deposit may 
 with the consent of the Insurance Com- 
 missioners, substitute other securities 
 for the securities for the time being 
 deposited. 
 
 (4) Any dividends or interest arising 
 from securities deposited by an ap- 
 proved society under this section shall 
 be paid to the society. 
 
 Provisions as to Approved Societies 
 
 27. (i) Every approved society 
 shall, as respects the administration of 
 the affairs of the society under this Part 
 of this Act, make proper provision by 
 rules to the satisfaction of the Insur- 
 ance Commissioners for the govern- 
 ment of the society, and if a society 
 with branches 
 
 (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 benefits 
 
 by the branches as respects in- 
 sured persons who are members 
 of such branches; 
 
 (d) for the keeping of proper books 
 
 of account by the branches in 
 any case where separate ac- 
 counts are usually kept by those 
 branches ; 
 
 (e) for depriving of or suspending 
 
 from the right of administering 
 benefits under this Part of this 
 Act any branch which is guilty 
 of maladministration of those 
 benefits, or is t convicted of any 
 offence under any Act, and for 
 providing in such a case for 
 their administration by the 
 society or otherwise. 
 (2) Every approved society and every 
 branch thereof shall comply with any 
 regulations made by the Insurance 
 Commissioners 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 pay- 
 ment, of any offices or other buildings 
 
THE PEOPLE'S INSURANCE 
 
 under the control of a Government 
 department (including offices or build- 
 ings occupied by or in connection with 
 a labour exchange) or belonging to or 
 under the management of a local 
 authority, but subject to the consent 
 of the Government department or the 
 local authority concerned. 
 
 (3) 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 until so registered shall have 
 effect as if they had been duly regis- 
 tered. 
 
 Secessions, etc. 
 
 28. (i) No branch of an approved 
 society, having insured persons among 
 its members, shall be entitled to secede 
 or withdraw from the society without 
 the consent of the Insurance Com- 
 missioners; but such consent shall not 
 be given unless the seceding or with- 
 drawing branch complies with the 
 conditions of approval requisite in the 
 case of approved societies, and on any 
 such consent being given the branch 
 shall be subject in all respects to the 
 provisions and requirements of this 
 Part of this Act relating to approved 
 societies. 
 
 Provided that such consent shall not 
 be required if the branch makes provi- 
 sion to the satisfaction of the Insur- 
 ance Commissioners for the transfer to 
 other approved societies or to other 
 branches of the society from which it 
 is seceding or withdrawing of such of 
 its members as are insured persons. 
 
 (2) An approved society or a branch 
 thereof shall not be dissolved without 
 the sanction of the Insurance Com- 
 missioners, and any such dissolution, 
 so far as it affects members who are 
 
 insured persons, shall be carried out 
 in the prescribed manner. 
 
 (3) No branch of an approved 
 society shall be expelled from the 
 society unless proper provision is made 
 to the satisfaction of the Insurance 
 Commissioners with respect to any 
 members of the branch who are insured 
 persons. 
 
 (4) This section shall have effect 
 notwithstanding anything contained in 
 any Act regulating the constitution of 
 the society. 
 
 Withdrawal of Approval 
 
 9. Where an approved society or a 
 branch of any approved society fails 
 to comply with any of the provisions 
 or requirements of this Part of this 
 Act relating to approved societies, or 
 where such a society or branch or the 
 body of which the society forms a 
 separate section is convicted of any 
 offence under any Act regulating its 
 constitution or under any other Act, the 
 Insurance Commissioners may with- 
 draw their approval, and thereupon 
 the society shall cease to be an ap- 
 proved society, and the Insurance 
 Commissioners shall make such pro- 
 vision as they may consider necessary 
 with respect to members of the society 
 who are insured persons, 
 
 Membership of Approved Societies and 
 Transfer of Members. 
 
 Admission of Insured Persons to Mem- 
 bership in Approved Societies 
 
 30. (i) Subject to the provisions of 
 this Act, any insured person and any 
 person entitled to become an insured 
 person may apply to an approved 
 society for membership therein. 
 
 (2) An approved society shall be en- 
 titled, in accordance with its rules, to 
 admit or reject any such applicant, or 
 
THE PEOPLE'S INSURANCE 
 
 to expel any of its members being in- 
 sured persons; provided that no such 
 application shall be refused solely on 
 the ground of the age of the applicant. 
 (3) This section shall come into 
 operation on the passing of this Act. 
 
 Transfer from One Approved Society to 
 Another 
 
 31. (i) 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 ap- 
 proved society, there shall be trans- 
 ferred to such other society in respect 
 of such person a sum representing the 
 liability under this Part of this Act of 
 the first-mentioned society in respect of 
 him (in this Act .called "transfer 
 value ") calculated in accordance with 
 tables to be prepared by the Insurance 
 Commissioners. 
 
 Provided that such transfer value 
 shall not be so transferred in any case 
 where the first-mentioned society 
 proves that the insured person volun- 
 tarily ceased to be a member of that 
 society without the consent of the 
 society, and that that consent was not 
 unreasonably withheld. 
 
 (2) This section shall apply to trans- 
 fers from one branch of an approved 
 society to another branch of the same 
 or any society in like manner as it 
 applies to transfers from one society to 
 
 another society. 
 % 
 
 Transfers to Foreign and Colonial 
 Societies 
 
 32. (i) If an insured person ceases 
 to be permanently resident in the 
 United Kingdom and becomes a mem- 
 ber of any society or institution estab- 
 lished in a British possession or foreign 
 country, of a kind similar to an ap- 
 
 proved society, which is approved by 
 the Insurance Commissioners, or of 
 any branch established outside the 
 United Kingdom of an approved 
 society, the transfer value of such 
 person, or, in the case of a deposit 
 contributor, the amount standing to 
 his credit in the Post Office fund, shall 
 be paid to such society or institution 
 or branch ; but no such payment shall 
 be made unless the Insurance Com- 
 missioners are satisfied that the 
 society, institution, or branch in ques- 
 tion gives corresponding rights to any 
 of its members becoming resident in 
 the United Kingdom. 
 
 (2) Where an arrangement has been 
 made with the Government of any 
 British possession or with 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 approved society or the 
 Post Office fund, and members of any 
 such society or institution may be 
 transferred to approved societies or to 
 the Post Office fund, it shall be law- 
 ful 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 en- 
 titled ; 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. 
 
 Transfer Values of Emigrants who re- 
 main Members of Approved Societies 
 
 33. If a person who has for not less 
 than five years been a member of an 
 approved society for the purposes of 
 this Part of this Act has ceased per- 
 manently to reside in the United Kirig- 
 
 D 2 
 
THE PEOPLE'S INSURANCE 
 
 dom, and does not join such a society, 
 branch, or institution as is in the last 
 foregoing section mentioned, and the 
 approved society is willing to permit 
 him to remain a member of the society 
 and to become entitled to benefits in- 
 dependently of this Act, the society 
 may, subject to regulations by the 
 Insurance Commissioners, transfer 
 from the account of the society under 
 this Part of this Act to the credit of 
 the society independently of this Act 
 such sum as would have been trans- 
 ferred to the Post Office fund had the 
 member ceased to be a member of the 
 society and become a deposit con- 
 tributor, and so much of any reserve 
 value which may have been credited to 
 the society in respect of him as would 
 in such a case have been cancelled 
 shall be cancelled. 
 
 Prohibition against Double Insurance 
 
 34. A person shall not be or 
 attempt to become a member for the 
 purposes of this Part of this Act of 
 more than one approved 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 ap- 
 proved society under this part of this 
 Act becoming a member of the same 
 or any other society independently of 
 this Act, or prevent a deposit con- 
 tributor becoming a member of any 
 society independently of this Act, or 
 affect the right of an approved society 
 to reject or expel from membership any 
 person 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 pro- 
 visions of this Part of this Act, all 
 
 rules made by a society which becomes 
 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. 
 
 Accounts: Valuations: Surplus and 
 Deficit. 
 
 Approved Societies to Keep Proper 
 Accounts 
 
 35- ( J ) Every approved society and 
 every branch of an approved 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 
 Commissioners, and, when re- 
 quired, 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 defi- 
 
 ciency being shown upon any 
 such valuation, comply with the 
 provisions relating to surpluses 
 and deficiencies hereinafter con- 
 tained ; 
 
 (d) Render such returns as the Insur- 
 
 ance Commissioners may re- 
 quire. 
 
 (2) Regulations made under this sec- 
 tion shall provide for a separate account 
 being kept showing the amount ex- 
 pended on administration, and for 
 limiting the amount which may be 
 carried to that account out of the con- 
 tributions under this Part of this Act, 
 and for requiring any deficiency in such 
 account (if not otherwise defrayed) to be 
 met forthwith oy a special levy. 
 
THE PEOPLE'S INSURANCE 
 
 93 
 
 (3) The provisions of this part of this 
 Act relating- to accounts, audit, valua- 
 tion, 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 provi- 
 sions of any Act regulating the consti- 
 tution of the society or branch as deal 
 with the like matters. 
 
 (4) In the case of a society or branch 
 transacting other business besides that 
 of insurance business under this part of 
 this Act, all funds and credits of the 
 society or branch under this Part of 
 this Act shall be as absolutely the 
 security of the members for the pur- 
 poses of this Part of this Act as if they 
 belonged to a society or branch carry- 
 ing on no other business than such in- 
 surance business, and shall not be liable 
 for any contracts of the society or 
 branch for which they would not have 
 been liable had the business of the 
 society or branch been only that of such 
 insurance, and shall not be applied 
 directly or indirectly for any purposes 
 other than -those of insurance business 
 under this Part of this Act. 
 
 Where a separate section of a society 
 has been established and such separate 
 section is an approved society under 
 this Part of this Act, the expression 
 " society " in this subsection means the 
 society of which the separate section 
 has been established and not the 
 separate section. 
 
 Valuations of Approved Societies 
 
 36. (i) A valuation 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 be ap- 
 pointed by or with the approval of the 
 Treasury at the expiration of every 
 three years dating from the commence- 
 ment of this Act, or at such other times 
 
 as the Insurance Commissioners ap- 
 point, the times so appointed may be 
 at shorter or longer intervals than 
 three years and at regular or irregular 
 intervals, and may apply to all ap- 
 proved societies or any particular 
 society or societies. 
 
 (2) Every such valuation shall be 
 made on such basis as may be pre- 
 scribed. 
 
 Surplus 
 
 37. (i) If upon any such valuation a 
 surplus (certified by the valuer to be 
 disposable) is found, the following pro- 
 visions shall apply : 
 
 (a) If the society is not a society 
 
 with branches the society may 
 submit to the Insurance Com- 
 missioners a scheme for dis- 
 tributing out of such surplus 
 any one or more additional 
 benefits among insured persons 
 who are members thereof for 
 the purposes of this Part of this 
 Act, and upon any such scheme 
 being sanctioned by the In- 
 surance Commissioners the 
 society may distribute such 
 additional benefit or benefits in 
 accordance with the provisions 
 thereof : 
 
 (b) If the society is a society with 
 
 branches, any surplus in the 
 central fund of the society, in- 
 cluding any surplus transferred 
 from the branches to the society 
 under the provisions of this 
 section, shall, subject to the 
 provisions of the next succeed- 
 ing section of this Act, be ap- 
 plied in the first instance to- 
 wards making good any defici- 
 ency shown by any of its 
 branches; and the society may 
 distribute the balance of the 
 surplus, after making good de- 
 
94 
 
 THE PEOPLE'S INSURANCE 
 
 ficiencies as aforesaid, amongst 
 such of its branches as have a 
 surplus in proportion to the 
 amounts of such surpluses, and 
 the sum so apportioned to a 
 branch shall be treated as an 
 addition to the disposable sur- 
 plus of that branch : 
 (c) If on the valuation of a branch 
 of an approved society a surplus 
 is shown in respect of such 
 branch, there shall be trans- 
 ferred to the central body or 
 other central authority of the 
 society of which it is a branch 
 one-third of the surplus, and the 
 branch may, with the approval of 
 the society, submit to the Insur- 
 ance Commissioners a scheme 
 for distributing out of the re- 
 maining two-thirds of such sur- 
 plus, together with any such 
 addition as aforesaid, any one or 
 more additional benefits, and 
 upon any such scheme being 
 sanctioned by the Insurance 
 Commissioners, the branch may 
 distribute such additional bene- 
 fit or benefits in accordance 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 
 branch, no additional benefits 
 shall be distributed under the 
 scheme until such deficiency is 
 extinguished and a surplus 
 shown. 
 
 (2) A scheme made under this sec- 
 tion 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 reduction, 
 suspension, or deprivation of the addi- 
 
 tional benefits conferred by the scheme 
 in the case of members who are in 
 arrears, and may make a correspond- 
 ing reduction in the amount to which 
 such members are to be deemed to be 
 in arrears for the purpose of reckoning 
 the rate of sickness benefit. 
 
 (3) No surplus and no part of any 
 surplus shall be applied for the purpose 
 of paying any benefits payable on death 
 or any benefits other than one or more 
 of the additional benefits specified in 
 Part II. of the Fourth Schedule to this 
 Act. 
 
 Deficit 
 
 38. (i) If upon any such valuation 
 a deficiency is found, the following pro- 
 visions shall apply : 
 
 (a) If the deficiency is shown by a 
 branch of an approved society, 
 three-quarters, or, if the society 
 thinks fit, the whole thereof, 
 shall, in the first place, so far 
 as possible, be made good out of 
 any surplus available for that 
 purpose in the hands of the 
 central body or other central 
 authority of the society : 
 
 Provided that the society 
 may, if it is satisfied that the 
 deficiency is due to any malad- 
 ministration on the part of the 
 branch in question, with . the 
 consent of the Insurance Com- 
 missioners, refuse to make good 
 any part of the deficiency out 
 of such surplus. 
 
 (b) Subject as aforesaid, every de- 
 ficiency shall be made good in 
 accordance with a scheme for 
 that purpose to be prepared by 
 the society, or, in the case of a 
 deficiency in a branch, subject 
 to the approval of the society 
 and submitted to the Insurance 
 Commissioners for their sane- 
 
THE PEOPLE'S INSURANCE 
 
 95 
 
 tion; such a scheme shall pro- 
 vide for making good the defici- 
 ency, 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 
 by way of increase of the 
 weekly rate of contributions 
 upon members of the society 
 or branch being insured 
 persons ; 
 
 (ii) By reducing the rate of 
 sickness benefit either for the 
 whole period during which 
 sickness benefit is payable or 
 for any part thereof ; 
 
 (iii) By deferring the day 
 as from which sickness benefit 
 becomes payable; 
 
 (iv) By reducing the period 
 during which sickness benefit 
 is payable; 
 
 (v) By increasing the period 
 which is required by this 
 Part of this Act to elapse 
 between two periods of 
 disease or disablement to 
 prevent the one being treated 
 as a continuation of the other ; 
 (vi) By any other method 
 approved by the Insurance 
 Commissioners, 
 
 and on the sanction of the In- 
 surance Commissioners being 
 given to the scheme the society 
 or branch shall proceed to make 
 good the deficiency in accord- 
 ance therewith : 
 
 (c) Payment of the amount of any 
 compulsory levy, made in 
 accordance with a scheme sanc- 
 tioned under this section, may 
 be enforced in such manner as 
 may be provided by the rules 
 of the society or branch; and 
 
 where those rules so provide, it 
 shall be lawful for the society 
 or branch in the case of any 
 member to enforce payment of 
 the amount of the levy by 
 giving notice in the prescribed 
 manner to the employer of 
 such member requiring 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 to be paid by 
 the employer on behalf of the 
 member, and all the provisions 
 of this Part of this Act relating 
 to the payment of such contri- 
 butions and the recovery thereof 
 from members shall apply 
 accordingly : 
 
 (d) If a member chargeable with a 
 
 levy falls into arrears his 
 arrears shall reckon as though 
 the total sum thereof, inclusive 
 of the levy, consisted of the con- 
 tributions payable by or in re- 
 spect of him had no levy been 
 made : 
 
 (e) If within six months after the 
 
 declaration of a deficiency, or 
 where an inquiry as to excessive 
 sickness is pending under this 
 Part of this Act, such longer 
 period as the Insurance Com- 
 missioners determine, such 
 scheme, as aforesaid, has not 
 been submitted to and sanctioned 
 by the Insurance Commis- 
 sioners, or if at any time there- 
 after it appears to the Insurance 
 Commissioners that the society 
 or branch to which the scheme 
 relates is not enforcing the pro- 
 visions of the scheme, the In- 
 surance Commissioners may 
 take over the administration of 
 the affairs of the society or 
 
9 6 
 
 THE PEOPLE'S INSURANCE 
 
 branch under this Part of this 
 Act, and shall, as soon as pos- 
 sible thereafter, take such steps 
 as they may think necessary to 
 make good the deficiency by 
 any or all of the methods men- 
 tioned in paragraph (b) of this 
 section, and for that purpose 
 they shall be entitled to exercise 
 all or any of the powers given 
 to the society or branch by this 
 Part of this Act : 
 
 (/) The Insurance Commissioners 
 after taking over the administra- 
 tion of the affairs of any society 
 or branch shall within a reason- 
 able time, not exceeding three 
 years, make arrangements for 
 the restoration to the society or 
 branch of its powers of self- 
 government or, failing that, for 
 the transfer of the members of 
 the society or branch, being in- 
 sured persons, to other approved 
 societies or branches or to the 
 Post Office fund : 
 
 (g) Any question or dispute arising 
 between the Insurance Com- 
 missioners and the society or 
 branch in respect of the amount 
 of the deficiency, or as to the 
 adequacy of any scheme pro- 
 posed for making it good, shall 
 be submitted to an independent 
 valuer to be appointed by the 
 Lord Chief Justice, and such 
 valuer shall, subject to the pro- 
 visions of this Act and of the 
 regulations thereunder, act, so 
 far as practicable, on his own 
 knowledge and experience, and 
 shaft have power to determine 
 how and by what parties the 
 costs of proceedings, including 
 his own remuneration, not ex- 
 
 ceeding such amount as the 
 Treasury may prescribe, are to 
 be defrayed, and his decision 
 shall be final and conclusive : 
 
 (h) A scheme made under this section 
 shall not affect any person who 
 becomes a member of the 
 society or branch after the date 
 as at which the valuation was 
 made, or any member over 
 seventy years of age : 
 
 (i) Any insured person who having 
 been a member of the society or 
 branch at the date as at which 
 the valuation disclosing the de- 
 ficiency was made is transferred 
 to another society or to another 
 branch of the same or any other 
 society before the deficiency is 
 made good, shall be liable to 
 any levy or reduction of benefits 
 which has been or may be made 
 in respect of such deficiency in 
 like manner in all respects as 
 if he had not ceased to be a 
 member, and if the transfer 
 took place before the scheme 
 imposing the levy or reduction 
 of benefits was sanctioned, such 
 adjustment in the amount of 
 any transfer value paid in re- 
 spect of him shall be made as 
 the circumstances require. 
 (2) Any member liable to a levy pay- 
 able at intervals may relieve himself 
 of the liability thereto, and a member 
 subject to a diminution of benefits by 
 virtue of any such scheme may, with 
 the consent of the society or branch, 
 acquire a right to undiminished bene- 
 fits on payment to the Insurance Com- 
 missioners of the capitalised value of 
 the levy or diminution of benefits, as 
 the case may be, ascertained in the 
 prescribed manner. 
 
THE PEOPLE'S INSURANCE 
 
 97 
 
 Pooling Arrangements in the Case of 
 Small Societies. 
 
 39. (i) Subject to the provisions of 
 this section all approved societies 
 which at the date of any valuation have 
 less than five thousand insured persons 
 as members, for the purposes of this 
 Part of this Act, shall, for the purposes 
 of the valuation 
 
 (a) if they have joined an association 
 
 formed under this section, be 
 associated with the other socie- 
 ties in the same association; 
 and 
 
 (b) if they have not joined any such 
 
 association, be grouped together 
 according to the localities in 
 which they carry on business. 
 
 (2) Any such societies may, with the 
 consent of the Insurance Commis- 
 sioners, form for the purposes of this 
 section an association with a central 
 financial committee, provided that the 
 aggregate number of insured persons 
 who are members of the associated 
 societies is not less than five thousand, 
 and the conditions on which a society 
 shall be entitled or allowed to join, or 
 having joined to secede from, an asso- 
 ciation, shall be such as may be pre- 
 scribed. 
 
 (3) Any such society which has not 
 joined any such association as afore- 
 said, and which carries on business in 
 any county or county borough, shall, 
 for the purposes of this section, be 
 grouped with the other unassociated 
 societies carrying on business in the 
 same county or county borough. 
 
 (4) The provisions of this Part of 
 this Act as to the application of sur- 
 pluses of branches of societies with 
 branches shall apply to such associated 
 and grouped societies as if all the 
 societies in any association or group 
 
 were branches of a single society, sub- 
 ject to the following modifications : 
 
 (a) A reference to the central finan- 
 
 cial committee in the case of an 
 association, and to the Insur- 
 ance Committee for the county 
 or county borough in the case of 
 a group, shall be substituted for 
 the reference to the central 
 authority of the society ; 
 
 (b) The approval of the central 
 
 financial committee or Insurance 
 Committee shall not be required 
 to any scheme prepared by an 
 associated or grouped society 
 for the distribution of any 
 surplus. 
 
 (5) Where an associated or grouped 
 society is a society with branches, the 
 provisions of this Part of this Act re- 
 lating to surpluses and deficiencies of 
 societies with branches (except those 
 requiring the approval of a society to 
 a scheme prepared by a branch as to 
 the distribution of a surplus or the 
 making good of a deficiency) shall not 
 apply to the society, but each branch 
 shall, for the purposes of this section, 
 be deemed to be a separate society. 
 
 (6) For the purposes of this section 
 a society shall be deemed to carry on 
 business only in the county or county 
 borough in which its registered office 
 or other principal place of business is 
 situate : 
 
 Provided that where of the insured 
 persons who are members of a grouped 
 society at the date of any valuation 
 more than one hundred or more than 
 one-sixth reside in some county or 
 county borough other than that in 
 which the registered office or other 
 principal place of business is situate 
 the proper proportion of any surplus 
 or deficiency of the society shall, if 
 application for the purpose is made by 
 
 D+ 
 
9 8 
 
 THE PEOPLE'S INSURANCE 
 
 any of the Insurance Committees con- 
 cerned, be apportioned to the Insurance 
 Committee of that other county or 
 county borough, such proportion to be 
 determined, in default of agreement 
 between the Insurance Committees 
 concerned, by the Insurance Commis- 
 sioners. 
 
 (7) The Insurance Commissioners 
 may exempt from this section any 
 society consisting- of persons entitled 
 to rights in a superannuation or 
 other provident fund established 
 for the benefit of persons employed 
 by one or more employers, if the 
 employer, in addition to the con- 
 tributions payable by him under this 
 part of this Act, is responsible for the 
 solvency of the fund, or for the bene- 
 fits payable thereout, or is liable to 
 pay a substantial part of, or to make 
 substantial contributions to, or sub- 
 stantially to supplement the benefits 
 payable out of the fund, and this sec- 
 tion shall not apply to any society to 
 which such an exemption has been 
 granted. 
 
 (8) Except so far as relates to the 
 power of refusing to make good any 
 part of a deficiency due to maladminis- 
 tration on the part of any society, 
 nothing in this section shall be con- 
 strued as conferring on any central 
 financial committee or Insurance Com- 
 mittee any powers of control over the 
 administration of associated or grouped 
 societies. 
 
 Special Provisions with Regard to 
 Societies with Branches 
 
 40. (i) Where a society with 
 branches is so organised that the 
 branches in different geographical 
 areas are grouped together for the pur- 
 poses of this section, the branches in 
 any such area may, if and to such 
 extent as the rules of the society so 
 
 provide, and if the number of members 
 of the branches being insured persons, 
 in the area exceeds five thousand, be 
 treated for the purposes of the pro- 
 visions of this Part of this Act relating 
 to valuations, surpluses, and defici- 
 encies as if they formed a separate 
 society. 
 
 (2) The rules of any society with 
 branches may provide for the branches 
 reinsuring with the society their liabili- 
 ties in respect of any of the benefits 
 under this Part of this Act, or if the 
 society is so organised as aforesaid for 
 such reinsurance either with the society 
 or with the group. 
 
 (3) Where a society with branches 
 has among its members insured persons 
 who are not members of any branch, 
 and the benefits of such members are 
 administered by the society itself, such 
 members shall be treated for the pur- 
 poses of this Part of this Act relating 
 to valuations, surpluses, and defici- 
 encies as if they formed a separate 
 branch. 
 
 Power to Separate Men's and Women's 
 Funds 
 
 41. Where an approved society, 
 not being a society with branches, has 
 amongst its members both men and 
 women, and the rules of the society 
 so provide, the provisions of this Part 
 of this Act with respect to valuations, 
 surpluses, and deficiencies shall apply 
 to the society as if it were a society 
 consisting of two branches, the one 
 comprising the male members, and 
 the other comprising the female 
 members. 
 
 Deposit Insurance. 
 Provisions as to Deposit Contributors 
 
 42. Until the first day of January 
 nineteen hundred and fifteen, the fol- 
 
THE PEOPLE'S INSURANCE 
 
 99 
 
 lowing 1 provisions shall apply in the case 
 of insured persons (in this Act referred 
 to as deposit contributors) who have 
 not joined an approved society within 
 the prescribed time, or who, having 
 been members of an approved society, 
 have been expelled or have resigned 
 therefrom and have not within the pre- 
 scribed time joined another approved 
 society : 
 
 (a) Contributions by or in respect of 
 
 a deposit contributor shall be 
 credited to a special fund to be 
 called the Post Office fund : 
 
 (b) The sums required for the pay- 
 
 ment of any sickness, disable- 
 ment, or maternity benefit pay- 
 able to a deposit contributor, 
 except so far as they are pay- 
 able 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 
 suspended on the sums standing 
 to his credit in that fund being 
 exhausted, except that his right 
 to medical benefit and sana- 
 torium benefit shall continue 
 until the expiration of the then 
 current year, and that the In- 
 surance Committee, if it has 
 funds available for the purpose 
 and thinks fit so to do, may allow 
 him to continue to receive medi- 
 cal benefit or sanatorium benefit 
 or both such benefits after the 
 expiration of such year : 
 
 (c) Such sum as may be prescribed 
 
 shall in each year be payable in 
 respect of each deposit contri- 
 butor towards the expenses in- 
 curred by the Insurance 
 Committee in the administration 
 of benefits : 
 
 (d) Such sum as the Insurance 
 
 Committee may, with the con- 
 sent of the Insurance Commis- 
 sioners, determine shall in each 
 year be payable in respect of 
 each deposit contributor for the 
 purposes of the cost of medical 
 benefit : 
 
 (e) The sums payable in respect of 
 a deposit contributor for the 
 purposes of medical benefit and 
 sanatorium benefit, and towards 
 the expenses of administration, 
 shall, except so far as they are 
 payable out of moneys provided 
 by Parliament, be deducted at 
 the commencement of each year 
 from the amount standing to his 
 credit in the Post Office fund, 
 and if at the commencement of 
 any year the amount so stand- 
 ing- to his credit is insufficient 
 to provide such sums, he shall 
 not, unless the Insurance 
 Committee consents, and except 
 subject to such conditions as 
 that committee may impose, be 
 entitled to any benefits during 
 that year : 
 
 (/) Upon the death of a deposit con- 
 tributor four-sevenths (or in the 
 case of a woman one-half) of 
 the amount standing to his 
 credit in the Post Office fund 
 shall be paid to his nominee or, 
 in default of a nomination, to 
 the person entitled to receive the 
 sum as if it were money pay- 
 able on the death of a member 
 of a registered friendly society, 
 and the balance thereof shall 
 be forfeited, and sections fifty- 
 six to sixty-one of the Friendly 
 Societies Act, 1896, as amended 
 by any subsequent enactment, 
 shall, subject to the prescribed 
 adaptations, apply accordingly : 
 (g) Where a deposit contribu- 
 
100 
 
 THE PEOPLE'S INSURANCE 
 
 tor proves to the satisfaction of 
 the Insurance Committee that 
 he has permanently ceased to 
 reside in the United Kingdom, 
 four-sevenths (or in the case of 
 a woman one-half) of the 
 amount standing to his credit in 
 the Post Office fund may be paid 
 to him. 
 
 Transfer from Approved Society to 
 Deposit Insurance and vice-versa 
 
 43. (i) 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 fails to become within the pre- 
 scribed time a member of another ap- 
 proved society, then 
 
 (a) if he becomes a deposit con- 
 
 tributor, his transfer value shall 
 be carried to his credit in the 
 Post Office fund : Provided that 
 if a reserve value has been 
 credited to the society in re- 
 spect of him, such part of that 
 reserve value as is still outstand- 
 ing (or if the amount so out- 
 standing exceeds the transfer 
 value such part of the reserve 
 value as is equal to the transfer 
 value) shall be cancelled, and 
 the amount, if any, by which the 
 transfer value exceeds the 
 amount so cancelled shall be 
 carried to the credit of the de- 
 posit contributor; 
 
 (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 prescribed. 
 (2) If an insured person who is a 
 deposit contributor subsequently be- 
 comes a member of an approved 
 society for the purposes of this Part of 
 this Act, there shall be transferred to 
 
 the society the amount standing to his 
 credit in the Post Office fund : 
 Provided that 
 
 (a) if that amount exceeds the value 
 
 of the contributions 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 trans- 
 ferred 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 insured person shall be 
 treated as being in arrear to the 
 amount of the deficiency. 
 
 Provisions as to Special Classes of 
 Insured Persons. 
 
 Special Provisions with respect to 
 Married Women 
 
 44. (i) Where a woman who 
 has before marriage been an in- 
 sured person, marries, she shall be sus- 
 pended from receiving the ordinary 
 benefits under this Part of this Act 
 until the death of her husband, and if 
 she is a member of an approved society 
 one-third of her transfer value shall 
 be carried to a separate account called 
 the married women's suspense account, 
 6ut if at any time after the death of 
 her husband she becomes an employed 
 contributor, 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, and there shall be 
 transferred from the married women's 
 suspense account to the society of 
 which she is a member the proper re- 
 serve value calculated according to 
 tables to be prepared by the Insurance 
 Commissioners : 
 
THE PEOPLE'S INSURANCE 
 
 101 
 
 Provided that where a woman 
 who has been employed within the 
 meaning 1 of this Part of this Act 
 before marriage proves that she 
 continues to be so employed after 
 marriage, she shall not be so 
 suspended so long as she continues 
 to be so employed, and that where a 
 married woman so suspended from the 
 ordinary benefits becomes employed 
 within the meaning of this Part of this 
 Act before the death of her husband, 
 contributions shall thereupon again 
 become payable in respect of her, 
 and she shall cease to be sus- 
 pended from receiving the ordinary 
 benefits, but, subject to regulations 
 made by the Insurance Commissioners, 
 she shall for the purposes of those 
 benefits be treated as if she had not 
 previously been an insured person. 
 
 (2) Where a married woman being a 
 member of an approved society is so 
 suspended from the ordinary benefits as 
 aforesaid, she may, if she so elects 
 within one month after such suspen- 
 sion, or, subject to the consent of the 
 society, after the expiration of that 
 month, and notwithstanding that she 
 is not engaged in any regular occupa- 
 tion become whilst so suspended a 
 voluntary contributor, subject to the 
 following modifications, but not other- 
 wise : 
 
 (a) The rate of contributions payable 
 
 by her shall be threepence a 
 week; 
 
 (b) The benefits to which she shall 
 be entitled shall be 
 
 (i) medical benefit; and 
 (ii) sickness benefit and dis- 
 ablement benefit at the rates 
 and subject to the conditions 
 specified in Table D. of Part I. 
 of the Fourth Schedule to this 
 Act; 
 
 (c) No part of her contributions 
 
 shall nc retained by the In- 
 surance Commissioners for the 
 purpose of discharging their 
 liabilities to approved societies 
 in respect of the reserve values 
 created under this Act : 
 Provided that where a married 
 woman elects not to become such a 
 voluntary contributor she shall be 
 entitled to have a sum equal to the 
 remaining two-thirds of her transfer 
 value applied in accordance with regula- 
 tions of the Insurance Commissioners 
 towards the payment of any of the 
 benefits specified in Part III. of the 
 Fourth Schedule to this Act until the 
 same is exhausted, except that where 
 a reserve value was credited to the 
 society in respect of such woman at 
 the date of her entrance into insurance 
 so much of such sum as aforesaid as 
 may be prescribed shall not be so 
 applied but shall be written off the 
 amount of the reserve values credited to 
 the society. 
 
 (3) Where the husband of a married 
 woman who has been so suspended 
 from ordinary benefits as aforesaid and 
 who is a member of an approved society 
 dies, she may, if she is qualified to 
 become a voluntary contributor, and 
 elects to do so within one month after 
 the death of her husband, become an 
 ordinary voluntary contributor paying 
 contributions at the rate which would 
 have been applicable to the case had she 
 become such a contributor at the date 
 of her entry into insurance : 
 
 Provided that she may, whether or 
 not so qualified, if she so elects within 
 one month after the death of her hus- 
 band, continue to be or become a volun- 
 tary contributor on the same terms and 
 subject to the same conditions as above 
 provided as respects married women. 
 
 In either such case there shall be 
 transferred from the married women's 
 
IO2 
 
 THE PEOPLE'S INSURANCE 
 
 suspense account to ' the society ' the 
 proper reserve value calculated as 
 aforesaid. 
 
 (4) Where a married woman who 
 was at the date of her marriage a 
 deposit contributor is by virtue of this 
 section suspended from the ordinary 
 benefits under this Part of this Act, 
 two-thirds of the sum standing- to her 
 credit in the Post Office fund shall be 
 applied in accordance with the regula- 
 tions of the Insurance Commissioners 
 towards the payment of any of the 
 benefits specified in Part III. of the 
 Fourth Schedule to this Act until the 
 same is exhausted. 
 
 (5) Where a woman who was a 
 married woman at the commence- 
 ment of this Act at any time sub- 
 sequently 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 not- 
 withstanding that at the time of so 
 becoming she is over the age of six- 
 teen or upwards. 
 
 (6) Where any arrears of contribu- 
 tions have 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. 
 
 (7) Except as provided by this sec- 
 tion a' married woman shall not be 
 entitled to become a voluntary contri- 
 butor, 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. 
 
 (8) If a woman, whilst a voluntary 
 contributor at such reduced rates of 
 benefit as are provided by this section, 
 becomes employed within the meaning 
 of this Part of this Act she shall be 
 entitled to a certificate (to be granted 
 
 in manner hereinbefore provided) 
 exempting her from liability to become 
 an employed contributor, so, however, 
 that such exemption shall not exempt 
 the employer from his liability to pay 
 contributions in respect of her, or de- 
 prive him of his right to recover such 
 part of those contributions as is pay- 
 able on her behalf, but of each weekly 
 contribution so paid by the employer 
 threepence shall be treated as her con- 
 tribution as a voluntary contributor and 
 the balance shall be applied for her 
 benefit in such manner as the society 
 may determine. 
 
 (9) If at any time the married 
 women's suspense account is insuffi- 
 cient to meet the liabilities imposed on 
 it by this section the deficiency shall be 
 made good out of the sums retained by 
 the Insurance Commissioners for dis- 
 charging their liabilities in respect of 
 the reserve values created by this Act. 
 
 (10) Transfer value for the purposes 
 of this section shall be calculated in 
 such manner as the Insurance Commis- 
 sioners may prescribe. 
 
 (n) Where a woman is a member of 
 an approved society at the time when 
 she is entitled to exercise an option 
 under this section, it shall be the duty 
 of the society to give her full informa- 
 tion as to the nature of her rights. 
 
 (12) Where a deficiency has been 
 found in respect of the society or branch 
 of which a woman is a member at a 
 valuation previous to the time when she 
 became suspended from ordinary bene- 
 fits under this Part of this Act, and that 
 deficiency has not been made good at 
 the time of her marriage, or where a 
 woman is in arrears at that time, such 
 adjustments in the sums transferred to 
 the married women's suspense account, 
 and in the balance of her transfer value, 
 and in the rates of benefit to which she 
 is entitled under this section, shall be 
 
THE PEOPLE'S INSURANCE 
 
 103 
 
 made as the Insurance Commissioners 
 may prescribe. 
 
 (13) Save as aforesaid, the provisions 
 of this Part of this Act shall apply to 
 a woman who has been married, both 
 during and after coverture, in like 
 manner as if she had never been 
 married. 
 
 (14) This section shall apply in the 
 case of a woman whose marriage has 
 been dissolved or annulled, or who has 
 for a period of not less than two years 
 been actually separated from or 
 deserted by her husband, as if her 
 husband had died at the date at which 
 such dissolution or annulment took 
 effect, or, as the case may require, at 
 the expiration of such period of two 
 years. 
 
 Special Provisions as to Aliens 
 
 45. (i) This Part of this Act shall 
 apply to persons of the age of seven- 
 teen or upwards at the date of entry 
 into insurance who are not British sub- 
 jects, subject to the following modifica- 
 tions : 
 
 (a) No such person shall be qualified 
 to become a member of an ap- 
 proved society for the purposes 
 of this part of this Act except 
 upon the terms and subject to 
 the conditions hereinafter men- 
 tioned ; 
 
 (b) No part of the benefits to which 
 
 such persons may become en- 
 titled shall be paid out of 
 moneys provided by Parliament ; 
 
 (c) The rate of sickness, disable- 
 
 ment, and maternity benefit 
 shall, as respects a deposit con- 
 tributor, 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 otherwise 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 administration of benefits, 
 shall, in the case of such 
 persons, be paid out of moneys 
 provided by Parliament. 
 
 (2) Where such a person becomes a 
 member of an approved society 
 the following provisions shall have 
 effect : 
 
 (i) The contributions payable by or 
 in respect of such person shall 
 be credited to the society ; 
 
 (ii) The society shall in each year 
 pay to the Insurance Committee 
 the whole of sums payable in re- 
 spect of such person for medical 
 benefit and sanatorium benefit ; 
 
 (iii) The rate and conditions of sick- 
 ness benefit, and disablement 
 benefit, and maternity benefit 
 shall be such as may be deter- 
 mined by the society; 
 
 (iv) Such person shall not be deemed 
 to have joined an approved 
 society for the purposes of the 
 provisions of this Part of this 
 Act relating to reserve values, 
 and no part of the contributions 
 of such person shall be retained 
 by the Insurance Commissioners 
 towards the discharge of their 
 liabilities in respect of reserve 
 values. 
 
 (3) A woman who, having 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 not be subject to 
 the provisions of this section if her 
 husband is dead, or the marriage has 
 been dissolved or annulled, or she has 
 for a period of not less than two years 
 been actually separated from or de- 
 serted by her husband. 
 
io 4 
 
 THE PEOPLE'S INSURANCE 
 
 (4) This section shall not apply to 
 any person who, on the fourth day of 
 May nineteen hundred and eleven, was 
 a member of a society which, or a 
 separate section of which, becomes an 
 approved society, and had then been 
 resident in the United Kingdom for 
 five years or upwards, or to any person 
 who is transferred to an approved 
 society or the Post Office fund in pur- 
 suance of an arrangement with the 
 Government of any foreign State. 
 
 Special Provisions with regard to Persons 
 in the Naval and Military Service of 
 the Crown 
 
 46. (i) For the purpose of pro- 
 viding seamen, marines, and soldiers 
 with such benefits during their term of 
 service and after their return to civil 
 life as are hereinafter in this section 
 mentioned, there shall be deducted 
 from the pay of every seaman and 
 marine within the meaning of The 
 Naval and Marine Pay and Pensions 
 Act, 1865, and of every soldier of the 
 regular forces (other than soldiers of 
 his Majesty's Indian forces, the Royal 
 Malta Artillery, and native soldiers 
 of any regiment raised outside the 
 United Kingdom), the sum of one 
 penny halfpenny a week, and there shall 
 be contributed by the Admiralty and 
 the Army Council respectively, out of 
 moneys provided by Parliament for 
 Navy and Army services in respect of 
 every such seaman, marine, and soldier 
 who has joined an approved society in 
 the manner hereafter mentioned the 
 sum of one penny halfpenny per week 
 and in respect of every other such 
 seaman, marine, and soldier such sum 
 per week as may be prescribed : Pro- 
 vided that no such deduction shall be 
 made from the pay of a seaman, marine, 
 or soldier who has completed the period 
 of his first engagement and has re- 
 
 engaged for pension unless he so elects 
 within the prescribed time, and that 
 no contribution shall be made by the 
 Admiralty or Army Council in respect 
 of any week in respect of which such 
 a deduction is not made. 
 
 (2) A seaman, marine, or soldier 
 (a) who was at the date of his entry 
 or enlistment an insured person 
 and had joined and was at that 
 date a member of an approved 
 society; or 
 
 (6) who within six months from the 
 date of his entry or enlistment 
 or, in the case of a seaman, 
 marine, or soldier serving at the 
 commencement of this Act, 
 within six months after the com- 
 mencement of this Act, or within 
 such longer period as may be 
 prescribed, joins an approved 
 society for the purposes of this 
 Part of this Act ; 
 
 shall for the purposes of this part of 
 this Act be treated as if he were an 
 employed contributor, subject until his 
 discharge to the following modifica- 
 tions : 
 
 (i) The employed rate shall be three 
 pence, and the deductions made 
 from his pay and the contribu- 
 tions made in respect of him by 
 the Admiralty or Army Council 
 shall be treated as the contribu- 
 tions paid in respect of him ; 
 (ii) He shall not be entitled to 
 medical benefit, sanatorium 
 benefit, sickness benefit, or dis- 
 ablement benefit ; 
 
 (iii) Maternity benefit shall be pay- 
 able notwithstanding that both 
 he and his wife are resident out- 
 side the United Kingdom at the 
 date of the confinement, and the 
 society may arrange with the 
 Admiralty or Army Council for 
 the administration of the benefit 
 
THE PEOPLE'S INSURANCE 
 
 105 
 
 through the Admiralty or Army 
 Council ; 
 
 (iv) The sum to be retained out of 
 each weekly contribution by the 
 Insurance Commissioners to- 
 wards the discharge .of their 
 liabilities in respect of reserve 
 values shall be one penny, and 
 the remaining five-ninths of a 
 penny shall be paid out of the 
 Navy and Army insurance fund 
 hereinafter constituted. 
 (3) With respect to seamen, marines, 
 and soldiers who have not joined an 
 approved society as aforesaid the fol- 
 lowing provisions shall have effect : 
 
 (a) The sums so deducted and the 
 contributions so made as afore- 
 said in respect of such men shall 
 be paid into the national health 
 insurance fund, and out of such 
 sums there shall be retained by 
 the Insurance Commissioners 
 towards discharging their liabili- 
 ties in respect of the reserve 
 values created under this part of 
 this Act the like amount as if 
 such men were members of ap- 
 proved societies, and the balance 
 shall be credited to a special 
 fund to be called the Navy and 
 Army insurance fund ; 
 
 (b) There shall also be paid into the 
 
 Navy and Army insurance fund 
 in each year out of moneys pro- 
 vided by Parliament a sum equal 
 to two-ninths of the amount, 
 calculated in the prescribed 
 manner, which would have been 
 payable in that year in respect 
 of medical, sanatorium, sickness 
 and disablement benefits (in- 
 cluding expenses of administra- 
 tion) had all seamen, marines, 
 and soldiers from whose pay 
 deductions are made under this 
 section been members o( ap- 
 
 proved societies and entitled to 
 such benefits as employed con- 
 tributors ; 
 
 (c) The weekly contributions to be 
 
 made by the Admiralty and 
 Army Council in respect of such 
 men shall be such as may from 
 time to time be required to keep 
 the Navy and Army insurance 
 fund solvent; 
 
 (d) If any such man was at the date 
 
 of his entry or enlistment a 
 deposit contributor he shall, for 
 the purpose of dealings with 
 the sum standing to his credit 
 in the Post Office fund be treated 
 as if the Navy and Army in- 
 surance fund had been an ap- 
 proved society, and he had at 
 the date of his entry or enlist- 
 ment become a member of that 
 society ; 
 
 (e) In the case of a seaman, marine, 
 
 or soldier serving at the com- 
 mencement of this Act there 
 shall be credited to the Navy 
 and Army insurance fund such 
 reserve value as would have 
 been credited to an approved 
 society had he at that date be- 
 come a member of the society as 
 an employed contributor. Pro- 
 vided that no such reserve value 
 shall be credited to that fund if 
 at the date aforesaid he had 
 completed the period of his first 
 engagement and had re-engaged 
 for pension, unless he elects 
 to have deductions made from 
 his pay or unless, not having so 
 elected, he becomes on discharge 
 entitled to benefits payable out 
 of that fund as hereinafter men- 
 tioned ; 
 
 (/) Every such man shall, until dis- 
 charged, be entitled to maternity 
 benefit payable out of the Navy 
 
io6 
 
 THE PEOPLE'S INSURANCE 
 
 and Army insurance fund, and 
 shall be entitled to such benefit 
 notwithstanding that both he 
 and his wife are at the date of 
 the confinement resident outside 
 the United Kingdom, and the 
 benefit shall be administered by 
 the Admiralty and Army Council 
 either directly or through In- 
 surance Committees. 
 (g) On the discharge of a seaman, 
 marine, or soldier, from whose 
 pay deductions have been made 
 and continue to be made up to 
 the date of his discharge, there 
 shall be debited to the Navy 
 and Army insurance fund and if 
 he becomes a member of an ap- 
 proved society witHin the pre- 
 scribed time from his discharge 
 there shall be credited to that 
 society, or if he does not become 
 a member of such a society 
 within the prescribed time from 
 his discharge there shall, unless 
 he becomes entitled to benefits 
 out of the Navy and Army in- 
 surance fund as hereinafter men- 
 tioned, 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 throughout his 
 period of service, or in the case 
 of a man serving at the date of 
 the commencement of this Act 
 since that date, and if he be- 
 comes a deposit contributor, so 
 much of the reserve value, if 
 any, credited to the Navy and 
 Army Insurance Fund in respect 
 of him shall be cancelled as 
 would have been cancelled had 
 he been transferred from an 
 approved society to the Post 
 Office fund : 
 
 (h) A man discharged from service 
 as a seaman, marine, or soldier 
 who proves that the state of his 
 health is such that he cannot 
 obtain admission to an approved 
 society may, if he so elects, on 
 making application to the In- 
 surance Commissioners in the 
 prescribed manner within three 
 months of his discharge, or 
 such longer time as may be pre- 
 scribed, become, subject to regu- 
 lations made by the Insurance 
 Commissioners after consultation 
 with the Admiralty and Army 
 Council, entitled to benefits 
 (other than additional benefits) 
 provided under this Part of this 
 Act at the full rate, the cost of 
 which benefits shall be payable 
 out of the Navy and Army in- 
 surance fund, and such benefits 
 shall be administered by In- 
 surance Committees or otherwise 
 in such manner as may be pre- 
 scribed by such regulations as 
 aforesaid, and any contributions 
 paid under this Part of this Act 
 by or in respect of him shall be 
 paid into that fund ; 
 Provided that . 
 
 (i) no deduction from benefits shall 
 be made on account of any pen- 
 sion to which a man may be 
 entitled ; 
 
 (ii) the rate of sickness benefit shall 
 be reduced, in the case of a man 
 who entered into insurance when 
 of the age of seventeen or up- 
 wards or who is in arrears, to 
 the like extent as it would be 
 reduced had he been an em- 
 ployed contributor and a mem- 
 ber of an approved society who 
 entered into insurance at the like 
 age or who is in arrears to the 
 like extent, so however that the 
 
THE PEOPLE'S INSURANCE 
 
 107 
 
 rate of sickness benefit shall in 
 no case be reduced below five 
 shilling's a week ; 
 
 (iii) there shall in each year be repaid 
 to the Navy and Army Insurance 
 Fund, out of moneys provided 
 by Parliament, a sum equal to 
 two-ninths of the amount ex- 
 pended out of the fund on such 
 benefits as aforesaid, including 
 the expenses of administration, 
 (iv) if a man who is so entitled to 
 benefits payable out of the Navy 
 and Army Insurance Fund at 
 any time becomes a member of 
 an approved society for the pur- 
 poses of this Part of this Act he 
 shall cease to be entitled to bene- 
 fits payable out of that fund, 
 and there shall be debited to that 
 fund and credited to such society 
 the transfer value which would 
 have been so debited and 
 credited if he had been at that 
 time transferred from one 
 approved society to another 
 approved society. 
 
 (4) In the application of this part of 
 this Act to a man who is or has been 
 a seaman, marine, or soldier, and to 
 whom this section applies 
 
 (i) the date of his entry or enlistment 
 as a seaman, marine, or soldier, 
 or, if he was serving at the com- 
 mencement of this Act, the date 
 of that commencement shall, 
 unless he was an insured person 
 at the date of his entry or enlist- 
 ment, be treated as the date of 
 his entry into insurance ; 
 (ii) deductions from pay, with 
 the corresponding contributions 
 made by the Admiralty and 
 Army Council* shall be treated 
 as payments of contributions at 
 the employed rate for the pur- 
 pose of reckoning the number of 
 
 contributions made in respect of 
 him, arrears, and transfer value, 
 and for the purpose of qualifica- 
 tions for becoming a voluntary 
 contributor. 
 
 (iii) a seaman, marine, or soldier 
 during his term of service shall, 
 if he has joined an approved 
 society as aforesaid before his 
 entry or enlistment, be deemed 
 to reside in that part of the 
 United Kingdom in which he 
 resided immediately before his 
 entry or enlistment, or, if after 
 his entry or enlistment, in the 
 part of the United Kingdom in 
 which the registered office or 
 other principal place of business 
 of the society or branch which 
 he has joined is situate, and in 
 any other case in England, and 
 all persons entitled to benefits 
 payable out of the Navy and 
 Army Insurance Fund shall be 
 deemed to reside in England. 
 
 (5) Discharge shall in the case of a 
 seaman, marine, or soldier who on the 
 completion of any term of service is 
 transferred to a reserve include such 
 transfer. 
 
 (6) This section shall not apply to a 
 seaman, marine, or soldier who entered 
 or enlisted before the age of sixteen 
 until he attains that age, and on attain- 
 ing that age shall apply to him as if he 
 had entered or enlisted at the time when 
 he attained that age. 
 
 (7) The foregoing provisions of this 
 section shall, subject to such adapta- 
 tions and modifications as may be 
 prescribed, apply to men belonging to 
 the Naval Reserves when employed on 
 service during war or any emergency 
 and to men of the Army Reserve when 
 called out on permanent service and to 
 men of the Territorial Force when 
 called out on embodiment, but, except 
 
io8 
 
 THE PEOPLE'S INSURANCE 
 
 as aforesaid, shall not apply to any 
 such men. 
 
 (8) Where a man of the Naval Re- 
 serves, the Army Reserve, or the Terri- 
 torial Force is being trained and is 
 in receipt of pay out of the moneys 
 provided by Parliament for Navy or 
 Army services, he shall, for the pur- 
 poses of this Part of this Act, be 
 deemed whilst so training, to be em- 
 ployed within the meaning of this Part 
 of this Act and to be in the sole em- 
 ployment of the Crown. Provided that 
 this subsection shall not apply to a man 
 who was not immediately before the 
 training an insured person, except in 
 such cases and under such circum- 
 stances as may be specified in a special 
 order made by the Insurance Commis- 
 sioners. 
 
 Special Provisions where Employer liable 
 to pay Wages during Sickness 
 
 47. (i) The Insurance Commis- 
 sioners shall from time to time make 
 special orders specifying any classes of 
 employment in which a custom or prac- 
 tice is shown to their satisfaction to 
 prevail according to which the persons 
 employed receive full remuneration 
 during periods of disease or disable- 
 ment, or any part thereof, and where 
 the custom or practice is confined to 
 certain localities, the order shall also 
 specify the localities in which the cus- 
 tom prevails, and, subject to the pro- 
 visions of this section, the order may 
 contain such incidental, supplemental, 
 and consequential provisions as appear 
 necessary for adapting the other pro- 
 visions of this Part of this Act to cases 
 under this section. 
 
 (2) It shall be lawful for any em- 
 ployer who employs persons in any 
 class of employment specified in any 
 such order, within a locality (if the 
 
 custom is confined to certain localities) 
 so specified, to give to the Insurance 
 Commissioners the prescribed notice, 
 and thereupon the employer shall, as 
 respects nil such persons, be subject to 
 the liabilities, and this Part of this Act 
 shall apply in respect of all such per- 
 sons, subject to the modifications 
 hereinafter mentioned. 
 
 (3) The employer shall be liable to 
 pay full remuneration to every such 
 person during any period or periods 
 not exceeding six weeks in the aggre- 
 gate in any one year during which such 
 person may be suffering from any 
 disease or disablement commencing 
 while such person is in his employ- 
 ment, notwithstanding that such per- 
 son may have left his employment be- 
 fore the expiration of that time : 
 
 Provided that if any such person is 
 engaged for a term of not less than 
 six months certain, the employer shall 
 be liable to pay full remuneration 
 during any period of disease or dis- 
 ablement lasting less than six weeks, 
 and for the first six weeks of any 
 period of disease or disablement last- 
 ing more than six weeks, notwith- 
 standing that the aggregate exceeds 
 six weeks, but where any such period 
 extends beyond the term of the engage- 
 ment, the employer shall not be liable 
 to make any payment in respect of any 
 part thereof after the expiration of 
 such term. 
 
 (4) This Part of this Act shall apply 
 in respect of persons so employed as 
 aforesaid, subject to the following- 
 modifications : 
 
 (a) Sickness benefit shall not be 
 payable in respect of any period 
 during which full remuneration 
 is payable by the employer 
 under this section, but for the 
 purpose of calculating the rate 
 and duration thereof, shall be 
 
THE PEOPLE'S INSURANCE 
 
 109 
 
 deemed to have been paid for 
 six weeks before the date as 
 from which it becomes actually 
 payable : 
 
 (b) The employed rate shall be re- 
 
 duced by two pence (or, where 
 the employed contributor is a 
 woman, one penny halfpenny) : 
 
 (c) The weekly contributions pay- 
 
 able by the employer shall be 
 reduced by one penny (or, where 
 the employed contributor is a 
 woman, one halfpenny), and 
 the weekly contributions pay- 
 able by the employed contribu- 
 tor shall be reduced by one 
 penny : 
 
 (d) There shall be credited to the 
 
 approved society of which any 
 such person is a member, or, if 
 he is a deposit contributor, to 
 his account in the Post Office 
 fund, the difference between 
 the amount of contributions at 
 such reduced rate actually paid 
 in respect of him and the 
 amount which would have been 
 paid if those contributions had 
 been at the full rate, and the 
 amount of that difference shall 
 be treated as having- been ex- 
 pended on sickness benefit, and 
 the proper proportion thereof 
 shall accordingly be paid out of 
 moneys provided by Parlia- 
 ment : 
 
 (e) Contributions shall not be pay- 
 
 able in respect of any period of 
 disease or disablement during 
 which full remuneration is pay- 
 able under this section if the 
 prescribed notice has been 
 Driven : 
 
 (/) The rules of an approved society 
 or Insurance Committee as to 
 notices and proof of disease and 
 disablement may extend to 
 
 periods of disease and disable- 
 ment during which full re- 
 muneration is payable under 
 this section. 
 
 (5) Where a person on ceasing to 
 be so employed becomes temporarily 
 unemployed, paragraphs (b) and (d) of 
 the last foregoing subsection shall con- 
 tinue to apply in respect of him, and 
 sickness benefit shall not be payable in 
 respect of the first six weeks of any 
 period of disease or disablement, com- 
 mencing after he ceased to be so em- 
 ployed, but for the purpose of calcu- 
 lating the rate and duration thereof 
 shall be deemed to have been paid 
 during those six weeks, and notwith- 
 standing anything in this Part of this 
 Act a disease or disablement shall not 
 for the purposes of sickness benefit 
 be treated as a continuation of a 
 previous disease or disablement un- 
 less the medical practitioner attend- 
 ing such person certifies that it in 
 fact is so. 
 
 (6) Where such a person as afore- 
 said ceases to be employed within the 
 meaning of this Part of this Act, and 
 is entitled to become a voluntary con- 
 tributor paying contributions at the 
 employed rate, paragraphs (b) and (d) 
 of subsection (4) shall, if he becomes a 
 voluntary contributor, continue to 
 apply in respect of him, and sickness 
 benefit shall not be payable in respect 
 of the first six weeks of any period of 
 disease or disablement commencing 
 after he became a voluntary contribu- 
 tor, but, for the purpose of calculating 
 the rate and duration thereof, shall be 
 deemed to have been paid during those 
 six weeks, and notwithstanding any- 
 thing in this Part of this Act a disease 
 or disablement shall not, for the pur- 
 poses of sickness benefit, be treated as 
 a continuation of a previous disease or 
 disablement unless the medical prac- 
 
I 10 
 
 THE PEOPLE'S INSURANCE 
 
 titioner attending such person certifies 
 that it in fact is so : 
 
 Provided that if any such person at 
 any time wishes to become an ordinary 
 voluntary contributor, he may become 
 such after the payment of twenty-six 
 weekly contributions at the full rate, 
 or if the society of which he is a mem- 
 ber consents after the payment of such 
 less number of such contributions as 
 the society may appoint. 
 
 (/) Where any employers wish to 
 avail themselves of the provisions of 
 this section as respects the persons 
 employed by them in a class of em- 
 ployment, or in a locality in which no 
 such custom or practice as aforesaid 
 exists, they may apply to the Insur- 
 ance Commissioners, and the Com- 
 missioners, if, after ascertaining 1 the 
 views of the persons so employed, they 
 think fit, may make a special order ex- 
 tending the provisions of this section 
 as respects the applicants to the class 
 of employment or locality mentioned in 
 the application as if it were a class of 
 employment or locality in which such 
 a custom or practice as aforesaid pre- 
 vailed. 
 
 (8) Any question as to whether an 
 employer is entitled to avail himself of 
 the provisions of this section as re- 
 spects any persons employed by him 
 shall be determined by the Insurance 
 Committee, subject to appeal to the 
 Insurance Commissioners. 
 
 (9) The payment of contributions 
 purporting to be at the reduced rate 
 authorised by this section as respects 
 any persons employed by an employer 
 in any class of employment^ shall be 
 conclusive evidence that he is, as re- 
 spects those persons and all other per- 
 sons employed by him in the same 
 class of employment in the same 
 locality, under the liability imposed by 
 this section. 
 
 (10) An employer who has given 
 such notice as aforesaid may, by 
 giving three months' previous notice 
 to the Insurance Committee, with- 
 draw his notice as from the commence- 
 ment of the next calendar year, and in 
 such case, as from that date this sec- 
 tion shall cease to apply in respect of 
 the persons employed by him in the 
 class of employment to which the 
 notice of withdrawal relates. 
 
 (n) None of the provisions of this 
 section shall apply as respects any per- 
 son employed at a rate of remuneration 
 which is less than ten shillings a week. 
 
 (12) Nothing in this section shalf re- 
 lieve any employer from any legal 
 liability to pay wages during sickness 
 to any person employed by him in 
 accordance with any established 
 custom. 
 
 Special Provisions as to the Mercantile 
 Marine. 
 
 48. In the application of this Part 
 of this Act to masters, seamen, and 
 apprentices to the sea service and the 
 sea fishing service, the following pro- 
 visions shall have effect : 
 
 (i) Neither sickness benefit nor dis- 
 ablement benefit shall be paid to 
 a master, seaman, or apprentice 
 suffering from any disease or 
 disablement in respect of any 
 period during which the owner 
 of the ship is under the Mer- 
 chant Shipping Act, 1894, as 
 amended by any subsequent 
 enactment or otherwise, liable 
 to defray the expense of the 
 necessary surgical and medical 
 advice and attendance and medi- 
 cine, and of his maintenance, but 
 for the purpose of calculating 
 the rate and duration of sick- 
 ness benefit such benefit shall be 
 
THE PEOPLE'S INSURANCE 
 
 1 1 1 
 
 deemed to have been paid from 
 the commencement of the dis- 
 ease or disablement until the 
 determination of such liability 
 as aforesaid, and he shall not be 
 entitled to medical benefit 
 during such period : 
 (2) In the case of masters, seamen, 
 and apprentices serving on 
 foreign-going ships or ships en- 
 gaged in regular trade on 
 foreign stations, the employed 
 rate and the employers' contri- 
 butions shall each be reduced by 
 one penny a week, and every 
 four weekly contributions paid 
 in any calendar year by a 
 master, seaman, or apprentice 
 whilst serving on such a ship 
 shall, for the purposes of deter- 
 mining the number of contribu- 
 tions to be paid by him in that 
 year and for the purposes of cal- 
 culating arrears, be treated as 
 five such contributions : 
 Provided that 
 
 (a) nothing in this provision 
 shall affect the number of em- 
 ployer's contributions to be 
 paid in respect of such a 
 master, seanfan, or appren- 
 tice, but no employer's con- 
 tributions paid in respect 
 of any week in respect of 
 which no contribution is pay- 
 able by the master, seaman, or 
 apprentice shall be taken into 
 account in reckoning the 
 amount of his arrears ; 
 
 (b) there shall be credited 
 to the approved society of 
 which the master, seaman, or 
 apprentice is a member, or if 
 he is a deposit contributor to 
 his account in the Post Office 
 fund, a sum equal to two- 
 fifths of the amount of the con- 
 
 tributions actually paid in re- 
 spect of him, and an equal 
 sum shall be treated as having 
 been expended on sickness 
 benefit, and the proper pro- 
 portion thereof shall accord- 
 ingly be paid out of moneys 
 provided by Parliament : 
 
 (3) A master, seaman, or apprentice 
 
 who is neither domiciled nor has 
 a place of residence in the United 
 Kingdom shall not be deemed to 
 be employed within the meaning 
 of this Part of this Act but the 
 employer shall be liable to pay 
 the same contributions in re- 
 spect of him as would otherwise 
 have been payable by him as 
 employer's contributions, except 
 in cases where the ship is en- 
 gaged in regular trade on for- 
 eign stations : 
 
 (4) The Board of Trade shall, as soon 
 
 as may be after the passing of 
 this Act, cause a society to be 
 formed, to be called the Sea- 
 men's National Insurance 
 Society, of which, any masters, 
 seamen, and apprentices to the 
 sea service and the sea fishing 
 service who are employed within 
 the meaning of this Part of this 
 Act shall be entitled to become 
 members, but nothing in this 
 section shall prevent any such 
 person joining another approved 
 society instead of the society so 
 formed : 
 
 (5) The affairs of the Seamen's 
 
 National Insurance Society shall 
 be managed by a committee con- 
 , stituted in accordance with a 
 scheme to be prepared by the 
 Board of Trade with the ap- 
 proval of the Insurance Commis- 
 sioners, comprising representa- 
 tives of the Board of Trade, of 
 
I 12 
 
 THE PEOPLE'S INSURANCE 
 
 shipowners, and of members of 
 the society in equal proportions, 
 and the society shall, notwith- 
 standing anything- in this Part 
 of this Act, become an approved 
 society : 
 
 (6) All contributions paid by em- 
 
 ployers in respect of masters, 
 seamen, or apprentices who are 
 neither domiciled nor have a 
 place of residence in the United 
 Kingdom, and consequently 
 deemed not to be employed 
 within the meaning of this Part 
 of this Act, shall be credited to 
 the Seamen's National Insurance 
 Society : 
 
 (7) In addition to medical, sana- 
 
 torium, sickness, disablement, 
 and maternity benefits, mem- 
 bers of the Seamen's National 
 Insurance Society shall be en- 
 titled to such other benefits as 
 may be provided under a scheme 
 to be prepared by the committee 
 of management, with the ap- 
 proval of the Board of Trade and 
 the Insurance Commissioners, 
 and such other benefits shall in- 
 clude pensions for masters and 
 seamen with long sea service, 
 and the scheme may provide for 
 preference being given to mas- 
 ters and seamen who have 
 served in foreign-going ships or 
 ships engaged in foreign trade 
 over those who have served in 
 the coasting and home trade 
 ships, and such preference may 
 be proportionate to the length 
 of time spent in the first-men- 
 tioned service : Provided that 
 (a) the schemes shall provide 
 for making a proper proportion 
 of the sums credited to the Sea- 
 men's National Insurance 
 Society under the last foregoing 
 
 sub-section applicable towards 
 the payments of pensions 
 or superannuation allowances 
 granted by other approved socie- 
 ties to members with such sea 
 service that, had they been mem- 
 bers of the Seamen's National 
 Insurance Society, they would 
 have been entitled to pensions 
 under the scheme ; and 
 
 (b) in the case of the transfer 
 of a member of the society to 
 another approved society, the 
 transfer value payable in respect 
 of him shall be calculated with 
 reference to the liabilities of the 
 society for benefits other than 
 such pensions as aforesaid : 
 
 (8) The rules of the Seamen's 
 
 National Insurance Society shall 
 provide for allowing a member 
 who leaves the sea service and 
 is unable to obtain admission to 
 another approved society on ac- 
 count of the state of his health 
 to continue a member of the 
 Seamen's National Insurance 
 Society for the purposes of this 
 Part of this Act, and the rules 
 of that society may provide that 
 a member of the society who 
 has fulfilled the conditions en- 
 titling him to such pension as 
 aforesaid shall not be deprived 
 of his right to the pension by 
 reason only that he has ceased 
 to be a member of the society at 
 the time when the pension first 
 becomes payable or ceases so to 
 be at any subsequent time : 
 
 (9) Where a master, seaman, or ap- 
 
 prentice is at the commence- 
 ment of this Act a member of a 
 society 'which becomes an ap- 
 proved society he may, if that 
 society and the Seamen's 
 National Insurance Society so 
 
THE PEOPLE'S INSURANCE 
 
 agree, continue to be a member 
 of the first-mentioned society for 
 the purposes of benefits under 
 this Part of this Act other than 
 pension, and becomes a member 
 of the last-mentioned society for 
 the purposes of pension only, and 
 in such case the balance of the 
 contributions payable in respect 
 of him (after deducting the sums 
 to be retained by the Insurance 
 Commissioners towards dis- 
 charging their liabilities in re- 
 spect of reserve values) shall be 
 divided between the two societies 
 in such proportion as they may 
 agree : 
 
 (10) Expressions in this section have 
 the same meaning, as in the 
 Merchant Shipping Acts, 1894 
 to 1907, but the expressions 
 "foreign-going ships" and 
 "home-trade ships " include 
 ships engaged in the sea fishing 
 service, and the expression 
 "ship engaged in regular trade 
 on foreign stations " means a 
 ship engaged regularly in trade 
 between ports outside the 
 British Islands when trading be- 
 tween such ports, but for the 
 purposes of this provision a ship 
 shall not be deemed not to be 
 engaged in such a trade by rea- 
 son only that she puts into a 
 port in the United Kingdom for 
 the purpose of survey or repair. 
 
 (n) The provisions of this Part of 
 this Act affecting the employed 
 rate and the rates of contribu- 
 tions of employers and con- 
 tributors in Ireland, and depriv- 
 ing insured persons in Ireland 
 of medical benefit, shall not 
 apply to any such master, sea- 
 man, or apprentice, unless he 
 has a permanent place of resi- 
 
 dence in Ireland and is not a 
 member of the Seamen's 
 National Insurance Society ; 
 and, in the case of a master, sea- 
 man, or apprentice serving on a 
 foreign-going ship or a ship en- 
 gaged in foreign trade to whom 
 such provisions do apply the 
 amount by which the, employed 
 rate and the employer's con- 
 tributions are to be reduced shall 
 be one halfpenny a week : 
 (12) Members of the Seamen's 
 National Insurance Society 
 shall for the purposes of this 
 Part of this Act be deemed 
 to reside in England, and 
 the medical benefit and sana- 
 torium benefit of such members 
 shall be administered by the 
 society instead of by the Insur- 
 ance Committee, and the pro- 
 visions of this Part of this Act 
 relating to the administration of 
 those benefits shall apply ac- 
 cordingly subject to such modi- 
 fications as may be prescribed ; 
 but nothing in this provision 
 shall prevent the society agree- 
 ing with Insurance Committees 
 for the administration of those 
 benefits by the Committees in 
 relation to individual members of 
 the society. 
 
 Provisions as to Persons over Sixty-five 
 at Commencement of Act. 
 
 49. (i) If any person who is of the 
 age of sixty-five or upwards and under 
 the age of seventy at the commence- 
 ment of this Act is employed within 
 the meaning of this Part of this Act, 
 the like contributions shall, until 
 he attains the age of seventy, be 
 payable by his employer in re- 
 spect of him as in the case of em- 
 ployed contributors, and the provisions 
 
114 
 
 THE PEOPLE'S INSURANCE 
 
 of this Part of this Act relating to the 
 payments of contributions and the re- 
 covery thereof shall apply accordingly. 
 
 (2) For every weekly contribution 
 made by or in respect of such a person 
 there shall be contributed out of moneys 
 provided by Parliament the sum of two 
 pence. 
 
 (3) If such a person becomes a mem- 
 ber of an approved society for the pur- 
 poses of this section all contributions 
 payable in respect of him under this 
 section (including contributions out of 
 moneys provided by Parliament) shall 
 be credited to the society, and he shall 
 become entitled to such benefits as the 
 society may determine, but no reserve 
 value shall be credited to the society in 
 respect of him and no part of the con- 
 tributions payable in respect of him 
 shall be retained by the Insurance 
 Commissioners towards the discharge 
 of their liabilities in respect of reserve 
 values. 
 
 (4) If such a person does not become 
 a member of an approved society as 
 aforesaid he shall become a deposit 
 contributor, and accordingly all con- 
 tributions payable in respect of him 
 (including contributions out of moneys 
 provided by Parliament) shall be car- 
 ried to his credit in the Post Office 
 fund, but the benefits to which he be- 
 comes entitled shall be such as may be 
 determined by the Insurance Com- 
 mittee. 
 
 (5) No part of the cost of benefits 
 under this section shall be payable out 
 of moneys provided by Parliament. 
 
 Special Provisions as to Seasonal Trades 
 50. Whee it is proved to the satis- 
 faction of the Insurance Commissioners 
 that a trade or business carried on by 
 any employers is of a seasonal nature 
 and subject to periodical fluctuation, 
 and those employers systematically em- 
 
 ploy persons throughout the year and 
 work short time during the season 
 when the trade or business is de- 
 pressed, the Insurance Commissioners 
 may make a special order reducing, as 
 respects such persons, the employed 
 rate and the contributions payable by 
 the employers and contributors to such 
 extent and for such period in the year 
 as may be specified in the order, and in- 
 creasing such rate and contributions to 
 a corresponding extent and for a cor- 
 responding period during the remainder 
 of the year, and the order may contain 
 such incidental, supplemental, and con- 
 sequential provisions as may appear 
 necessary for adapting the other pro- 
 visions of this Part of this Act to cases 
 under this section. 
 
 Special Provisions as to Inmates of 
 Charitable Homes, etc. 
 
 51. (i) Where the managers of any 
 institution carried on for charitable or 
 reformatory purposes prove that the 
 persons who are inmates of and sup- 
 ported by the institution receive main- 
 tenance and medical attendance when 
 sick, the Insurance Commissioners may 
 grant a certificate of exemption to those 
 managers, and where such a certificate 
 of exemption is granted any such in- 
 mates who are employed by the man- 
 agers of the institution shall not in 
 respect of such employment be deemed 
 to be employed within the meaning of 
 this Part of this Act : 
 
 Provided that it shall be a condition 
 of such exemption that the managers 
 shall be liable to pay in respect of any 
 such inmate who, having been an in- 
 mate of the institution for more than 
 six months, leaves the institution, the 
 following sums : 
 
 (a) In the case of a person who was 
 at the time of entering the in- 
 stitution below the age of six- 
 
THE PEOPLE'S INSURANCE 
 
 JI 5 
 
 teen, such capital sum as will 
 he sufficient to secure him bene- 
 fits under this Part of this Act 
 at the full rate ; 
 
 (b) In the case of a person who was 
 at the time of entering 1 the in- 
 stitution of the age of sixteen 
 or upwards, and who was at 
 that time an insured person, and 
 a member of an approved so- 
 ciety, a sum equal to the value, 
 calculated in the prescribed 
 manner, of the contributions 
 which, apart from this ser.tion, 
 would have been payable in 
 respect of him during the time 
 he was in the institution. 
 (2) Every such inmate as aforesaid 
 shall, if he was an insured person, 
 before entering the institution, be sus- 
 pended from benefits whilst he is such 
 an inmate, and if he was at such time 
 a member of an approved society and 
 has been an inmate of the institution 
 for a period exceeding six months the 
 time during which he is in the institu- 
 tion shall be disregarded for the pur- 
 pose of reckoning- arrears. 
 
 Special Provision as to Persons be- 
 coming Certificated Teachers 
 
 52. Where a person who has been 
 employed to teach in a public ele- 
 mentary school ceases to be employed 
 within the meaning of this part of this 
 Act by reason of becoming a teacher 
 to whom the Elementary School 
 Teachers (Superannuation) Act, 1898, 
 applies, and does not become a volun- 
 tary contributor, there shall be paid 
 to the Board of Education by the ap- 
 proved society of which he is a mem- 
 ber, or, if he is not a member of an 
 approved society, out of the amount 
 standing to his credit in the Post Office 
 fund, a sum equal to the value calcu- 
 
 lated in the prescribed manner of the 
 contributions paid by or in respect of 
 him under this Part of this Act since 
 he first began to teach in a public ele- 
 mentary school, or if the amount stand- 
 ing to his credit is less than that sum 
 then the whole amount so standing to 
 his credit; and the sum so paid to the 
 Board of Education shall be placed by 
 them to his credit in the Deferred An- 
 nuity Fund in accordance with the 
 rules for the time being applicable 
 thereto. 
 
 Application to Other Persons in the 
 Service of the Crown 
 
 53. (i) This Part of this Act shall 
 apply to persons employed by or under 
 the Crown, other than those with re- 
 spect to whom special provision is 
 made by this Part of this Act, in like 
 manner as if the employer 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. 
 
 (2) The provisions of this Act relat- 
 ing to reduced insurance in cases where 
 the employer is liable to pay wages 
 during sickness shall extend in respect 
 of persons employed by or under the 
 Crown to cases where two-thirds only 
 of the full remuneration are payable 
 during periods, or parts of periods, of 
 disease or disablement if such re- 
 muneration is so payable for not less 
 than three months in any year, and 
 those provisions shall apply accord- 
 ingly as if two-thirds of the full re- 
 muneration were substituted for the 
 full remuneration, and as if three 
 months were substituted for six weeks 
 as the maximum amount of time during 
 any 'year such remuneration is payable. 
 
n6 
 
 THE PEOPLE'S INSURANCE 
 
 Financial Provisions. 
 National Health Insurance Fund 
 
 54. (i) All sums received in re- 
 spect 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 
 benefits 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 management of the In- 
 surance Commissioners, and the sums 
 required to meet expenditure properly 
 incurred by approved societies and 
 Insurance Committees for the pur- 
 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 Parlia- 
 ment shall be paid in such manner and 
 at such times as the Treasury may 
 determine. 
 
 (3) The Insurance Commissioners 
 shall ascertain periodically what sums 
 standing in the National Health 
 Insurance Fund to the credit of 
 the several societies and of the 
 Post Office fund and of the Navy and 
 Army insurance fund are available 
 for investment and the amount so 
 ascertained shall, so far as not required 
 under the provisions of this Part of this 
 Act to be paid over to societies for in- 
 vestment, or to be retained for invest- 
 ment on their behalf, or for the dis- 
 charge of liabilities of societies, be 
 carried to a separate account, called the 
 Investment Account, and shall be paid 
 over to the National Debt Commis- 
 sioners and by them invested in accord- 
 ance with regulations made by the 
 Treasury in any securities which are for 
 the time being authorised by Parlia- 
 ment as investments for savings banks 
 
 funds, but those Commissioners shall in 
 making the investment give preference 
 to stock or bonds issued under the pro- 
 visions of the Acts relating to borrow- 
 ing for raising capital for the pur- 
 poses of the local loans funds 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 : 
 
 Provided that nothing in this provi- 
 sion shall prevent the Insurance Com- 
 missioners paying over to the National 
 Debt Commissioners for temporary 
 investment, pending the ascertainment 
 of the amount available for investment 
 as aforesaid, any sums in the National 
 Health Insurance Fund not required to 
 meet current liabilities. 
 
 (4) There shall be credited to the 
 Post Office fund and to the Navy and 
 Army insurance fund interest at the 
 prescribed rate per annum on the sums 
 from time to time standing to the credit 
 of those funds in the investment 
 account. 
 
 (5) The accounts of the National 
 Health Insurance Fund shall be 
 audited by the Comptroller and 
 Auditor-General in such manner as the 
 Treasury may direct. 
 
 (6) The National Debt Commis- 
 sioners shall present to Parliament 
 annually an account of the securities in 
 which moneys forming part of the said 
 fund are for the time being invested. 
 
 Reserve Values 
 
 55. (i) The Insurance Commis- 
 sioners shall cause tables to be pre- 
 pared showing, in cases in which such 
 provision is necessary, the capital sums 
 (in this Part of this Act referred to as 
 " reserve values ") which it is neces- 
 sary to provide in respect of members 
 entering into insurance at ages over 
 
THE PEOPLE'S INSURANCE 
 
 117 
 
 the age of sixteen to meet the esti- 
 mated loss (if any) arising through the 
 acceptance by an approved society of 
 such persons as members upon the 
 terms and conditions as regard contri- 
 butions and benefits prescribed by this 
 Part of this Act. 
 
 (2) On a person of the age of seven- 
 teen or upwards joining an approved 
 society for the purposes of this Part of 
 this Act, there shall be credited to the 
 society the reserve value (if any) appro- 
 priate to such person in accordance 
 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 
 paid by or in respect of an insured 
 person who is a member of an ap- 
 proved society other than a voluntary 
 contributor who entered into insurance 
 within six months after the commence- 
 ment of this Act and at the date of 
 that entry was of the age of forty-five 
 years or upwards there shall be retained 
 by the Insurance Commissioners the 
 sum of one penny and five-ninths (or 
 in the case of women one penny half- 
 penny), and the amounts so retained 
 shall, together with any other moneys 
 available for the purpose, be applied in 
 manner provided by this Part of this 
 Act towards discharging the liabilities 
 of the Insurance Commissioners to 
 approved societies in respect of the 
 reserve values created by this section. 
 
 (4) The Insurance Commissioners 
 shall periodically apportion amongst 
 the several societies, including the 
 Navy and Army Insurance Fund, the 
 sums retained by them and the 
 sums, if any, otherwise available 
 for the discharge of such liabilities 
 as aforesaid in proportion to the 
 amount of reserve values for the time 
 
 being credited to the several socie- 
 ties, and shall credit to each society 
 the amo'unt so apportioned, and any 
 balance of the sums so credited to a 
 society, after providing for interest en 
 the reserve values for the time being 
 credited to the society, shall be written 
 off the amount of the reserve values so 
 credited. 
 
 (5) If any person is convicted of 
 the offence of knowingly making any 
 false statement as to his age in any 
 declaration made for the purpose of 
 obtaining a reserve value to be credited 
 to an approved society in respect of 
 him, the reserve value shall be can- 
 celled, and the member of the society 
 in respect of whom it was credited shall 
 be treated as if he had entered into in- 
 surance after the expiration of one year 
 from the commencement of this Act. 
 
 Transactions between the Insurance 
 Commissioners and Societies 
 
 56. (i) The Insurance Commis- 
 sioners shall, subject to the approval 
 of the Treasury, make regulations with 
 respect to crediting and debiting to the 
 several societies sums received and 
 paid by the Insurance Commissioners 
 on behalf of or to societies and as to 
 the payments to be made by and to 
 the Commissioners to and by societies, 
 and those regulations shall, amongst 
 other things 
 
 (a) provide for crediting to each 
 
 society the contributions paid 
 by or in respect of the members 
 of the society after deducting 
 the amounts retained thereout 
 for discharging the liabilities of 
 the Insurance Commissioners in 
 respect of reserve values : 
 
 (b) require the Insurance Commis- 
 
 sioners, on carrying any sum to 
 the credit of an approved 
 
n8 
 
 THE PEOPLE'S INSURANCE 
 
 society in the investment ac- 
 count, to pay over to the society 
 for investment, or, at the re- 
 quest of the society, to retain 
 for investment on behalf of the 
 society, four-sevenths, or, so 
 far as the sums are attributable 
 to women, one-half, .of the 
 amount so credited to the 
 society ; 
 
 (c) provide for crediting to each 
 
 society interest at the pre- 
 scribed rate per annum on the 
 sums for the time being stand- 
 ing to the credit of the society 
 in the investment account; 
 
 (d) provide for the discharge of debit 
 
 balances in such manner as the 
 Insurance Commissioners deter- 
 mine, either by the reduction of 
 the reserve values credited to 
 the society or out of the pro- 
 ceeds of the realisation of se- 
 curities held by the society or 
 by the Commissioners on behalf 
 of the society, and out of the 
 sums standing to the credit of 
 the society in the investment 
 account proportionately : 
 Provided that, in the case of any 
 society which gives notice to that 
 effect to the Insurance Commissioners, 
 no part of the sums carried to credit of 
 the society in the investment account 
 shall be paid over to the society or 
 retained by the Commissioners for in- 
 vestment on its behalf, but the whole 
 amount shall remain to the credit of 
 the society in the investment account, 
 and in such case the regulations made 
 under the foregoing provisions shall 
 apply to the society subject to the pre- 
 scribed modifications. 
 
 (2) Every approved society shall in- 
 vest any sums paid to the society for 
 investment, and shall for the purpose 
 have power to invest in any securities 
 
 in which trustees are for the time being 
 by law empowered to invest trust 
 funds, or in any stocks, mortgages, or 
 other securities issued by any local 
 authority within the meaning of the 
 Local Loans Act, 1875, an d charged 
 on any rates levied by or on the order 
 or precept of such authority, or in any 
 other securities for the time being 
 approved by the Insurance Commis- 
 sioners. 
 
 (3) Where, at the request of a 
 society, the Insurance Commissioners 
 instead of paying over any sum to the 
 society retain such sum for investment 
 on behalf of the society, they shall in- 
 vest such sum in accordance with the 
 directions of the society in any securi- 
 ties in which the society might have 
 invested it had it been paid over to 
 the society, and shall from time to time 
 vary such investments in accordance 
 with the like directions, and shall pay 
 over to the society all sums received 
 by way of interest or dividend on the 
 investments held by them on behalf of 
 the society. 
 
 (4) Every approved society shall 
 apply the sums received by way of in- 
 terest or dividend on investments held 
 by the society or by the Insurance 
 Commissioners on behalf of the society 
 towards the cost of the benefits under 
 this Part of this Act of the members of 
 the society and the cost of the adminis- 
 tration of those benefits, or otherwise, 
 as the Insurance Commissioners may 
 prescribe. 
 
 Insurance Commissioners : Advisory 
 Committee. 
 
 Constitution of Insurance Commissioners, 
 Appointment of Inspectors, etc. 
 
 57. (i) As soon as may be after the 
 passing of this Act there shall be con- 
 stituted for the purposes of this part of 
 
THE PEOPLE'S INSURANCE 
 
 119 
 
 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, and of 
 the Commissioners so appointed one at 
 least shall be a duly qualified medical 
 practitioner who has had personal ex- 
 perience of general practice. 
 
 (2) The Insurance Commissioners 
 may sue and be sued, and may for all 
 purposes be described by that name, 
 and shall have an official seal which 
 shall be officially and judicially noticed, 
 and such seal shall be authenticated by 
 any Commissioner or the secretary to 
 the Commissioners, or some person 
 authorised by the Commissioners to 
 act on behalf of the secretary. 
 
 (3) The Insurance Commissioners 
 may appoint such officers, inspectors, 
 referees, and servants, for the purposes 
 of this part of this Act as the Commis- 
 sioners, subject to the approval of the 
 Treasury as to number, may determine, 
 and there shall be paid out of moneys 
 provided by Parliament to the Commis- 
 sioners and to such officers, inspectors, 
 referees, and servants, such salaries or 
 remuneration as the Treasury may de- 
 termine; and any expenses incurred by 
 the Treasury (including the remunera- 
 tion of valuers and auditors appointed 
 by the Treasury) or the Commissioners 
 in carrying- this Part of this Act into 
 effect, to such extent as the Treasury 
 may sanction, shall be defrayed out of 
 moneys provided by Parliament. 
 
 (4) Every document purporting to 
 be an order or other instrument issued 
 by the Insurance Commissioners and 
 to be sealed with the seal of the Com- 
 missioners authenticated in manner pro- 
 vided by this section, or to be signed 
 by the Secretary to the Commissioners 
 or any person authorised by the Com- 
 
 missioners to act on behalf of the secre- 
 tary, shall be received in evidence and 
 be deemed to be such order or instru- 
 ment without further proof, unless the 
 contrary is shown. 
 
 (5) The Insurance Commissioners 
 may empower any inspector appointed 
 by them 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 
 report as to any such branch as afore- 
 said made by an inspector under this 
 subsection shall be communicated to 
 the central body or other central au- 
 thority of the society. 
 
 Appointment of Advisory Committee 
 
 58. The Insurance Commissioners 
 shall as soon as may be after the pass- 
 ing 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 representatives of associations of 
 employers and approved societies, of 
 duly qualified medical practitioners who 
 have personal experience of general 
 practice, and of such other persons as 
 the Commissioners may appoint, of 
 whom two at least shall be women. 
 
 Insurance Committees. 
 
 Appointment of Insurance Committees 
 
 59. (i) An Insurance Committee 
 shall be constituted for every county 
 and county borough. 
 
 (2) Every such committee shall con- 
 sist of such number of members as the 
 Insurance Commissioners, having re^ 
 gard to the circumstances of each case, 
 
120 
 
 THE PEOPLE'S INSURANCE 
 
 determine, but in no case less than 
 forty, or more than eighty of whom 
 
 (a) three-fifths shall be appointed in 
 
 such manner as may be pre- 
 scribed by regulations of the 
 Insurance Commissioners so as 
 to secure representation of the 
 insured persons resident in the 
 county or county borough who 
 are members of approved socie- 
 ties, and who are deposit con- 
 tributors in proportion, as nearly 
 as may be, to their respective 
 numbers ; 
 
 (b) one-fifth shall be appointed by 
 
 the council of the county or 
 county borough ; 
 
 (c) two members shall be elected in 
 
 manner provided by regulations 
 made by the Insurance Commis- 
 sioners, either by any associa- 
 tion of duly qualified medical 
 practitioners resident in the 
 county or county borough which 
 may have been formed for that 
 purpose under such regulations, 
 or, if no such association has 
 been formed, by such practi- 
 tioners ; 
 
 (d) one member or, if the total 
 
 number of the committee is 
 sixty or upwards, two members, 
 or if the total number of the 
 committee is eighty, three mem- 
 bers, shall be duly qualified 
 medical practitioners appointed 
 by council of the county or 
 county borough ; 
 
 (e) the remaining members shall be 
 
 appointed by the Insurance 
 Commissioners : 
 Provided that 
 
 (i) The regulations with respect to 
 the appointment of members 
 to represent insured persons 
 shall provide for conferring on 
 the approved societies which 
 
 have members resident in the 
 county or county borough the 
 power of appointing the repre- 
 sentatives of such members, 
 and, where an association of 
 the deposit contributors resi- 
 dent in the county or county 
 borough has been formed 
 under such regulations as 
 aforesaid, for conferring on 
 such association the power of 
 appointing the representatives 
 of the deposit contributors; 
 (ii) Of the members appointed by 
 the council of the county or 
 county borough two at least 
 shall be women, and of the 
 members appointed by the 
 Insurance Commissioners one 
 at least shall be a duly 
 qualified medical practitioner 
 and two at least shall be 
 women. 
 
 (3) The Insurance Commissioners 
 may, where any part of the cost of 
 medical benefit or sanatorium benefit is 
 defrayed by the council of the county 
 or county borough, increase the repre- 
 sentation of the council and make a 
 corresponding diminution in the repre- 
 sentation of the insured persons. 
 
 (4) The Insurance Commissioners 
 may make regulations as to the ap- 
 pointment, quorum, term of office, 
 and rotation of members and proceed- 
 ings generally (including the appoint- 
 ment of sub-committees consisting 
 wholly or partly of members of the 
 committee) of the committee, and the 
 employment of officers and the provi- 
 sion of offices by the committee, in- 
 cluding the use by the committee, with 
 or without payment, of any offices of 
 a local authority, but subject to the 
 consent of such authority, and any 
 such regulations may provide for the 
 constitution of district insurance com- 
 
THE PEOPLE'S INSURANCE 
 
 121 
 
 mittees, and for apportioning amongst 
 the several district insurance com- 
 mittees any of the powers and duties of 
 the Insurance Committee and regu- 
 lating the relations of district insurance 
 committees to the Insurance Committee 
 and to one another : 
 
 Provided that the regulations so 
 made shall require the Insurance 
 Committee of every county (except in 
 cases where, owing to special circum- 
 stances, the Commissioners consider it 
 unnecessary) within six months after 
 the commencement of this Act to pre- 
 pare after consultation with the county 
 council and submit for approval to the 
 Commissioners a scheme for the ap- 
 pointment of district insurance com- 
 mittees for the county and prescribing 
 the area to be assigned to each such 
 committee, and in particular the 
 scheme shall provide for the appoint- 
 ment of a district insurance com- 
 mittee for each borough including 
 the City of London and a metropolitan 
 borough) within the county having a 
 population of not less than ten thou- 
 sand, and for each urban district within 
 the county with a population of not less 
 than twenty thousand, but if the Insur- 
 ance Committee, or, on appeal, the 
 Insurance Commissioners consider it 
 expedient in the case of any such 
 borough (outside London) or urban dis- 
 trict any adjoining areas may be 
 grouped with such borough or urban 
 district, for the purpose of the 
 appointment of a district insurance 
 committee. 
 
 (5) Any Insurance Committee may, 
 and shall if so required by the 
 Insurance Commissioners, combine 
 with any one or more other Insurance 
 Committees for all or any of the pur- 
 poses 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 
 precribed. 
 
 Powers and Duties of Insurance Com- 
 mittees 
 
 60. (i) The Insurance Committee 
 of a county or county borough shall, 
 in addition to the other powers and 
 duties conferred or imposed on it by 
 this Part of this Act, have the following 
 powers and duties : 
 
 (a) It shall make such reports as to 
 
 the health of insured persons 
 within the county or county 
 borough as the Insurance Com- 
 missioners, after consultation 
 with the Local Government 
 Board, may prescribe, and shall 
 furnish to them such statistical 
 and other returns as they may 
 require, and may make to them 
 such other reports on the health 
 of such persons and the condi- 
 tions affecting the same, and 
 may make such suggestions 
 with regard thereto as it may 
 think fit, and the Insurance 
 Commissioners shall forward to 
 the councils of the counties, 
 boroughs, and urban and rural 
 districts, which appear to them 
 to be affected by or interested 
 in any such reports, returns, 
 or suggestions, copies of such 
 reports, returns, and sug- 
 gestions, and the reports and 
 returns so made shall include 
 such reports and returns as will 
 enable an analysis and classifi- 
 cation to be made of the persons 
 who are deposit contributors; 
 
 (b) It shall make such provision for 
 
 the giving of lectures and the 
 publication of information on 
 questions relating to health as 
 it thinks necessary or desirable, 
 
122 
 
 THE PEOPLE'S INSURANCE 
 
 and may, if it thinks fit, for that 
 purpose make arrangements 
 with local education authorities, 
 universities, and other institu- 
 tions; 
 
 (c) It shall keep proper books and 
 accounts in the prescribed form 
 and shall, when required, sub- 
 mit such accounts to audit by 
 auditors appointed by the 
 Treasury. 
 
 (2) For the purpose of assisting 
 Insurance Committees in the exer- 
 cise and performance of their powers 
 and duties under this Part of this Act, 
 and with a view to promoting co-opera- 
 tion between such committees and the 
 councils of counties, boroughs, and 
 urban and rural districts, any medical 
 officer of health may, at the request of 
 an Insurance Committee and with the 
 consent of the council by whom he is 
 appointed, attend meetings of the com- 
 mittee and give such advice and assist- 
 ance as is in his power. 
 
 (3) For the purposes of this section 
 the council of a borough includes the 
 mayor, aldermen, and commons of the 
 City of London in common council 
 assembled, and the council of a metro- 
 politan borough. 
 
 Income 
 
 61. (i) All sums available for 
 sanatorium benefit in a county or 
 county borough, and all sums payable 
 in respect of the members of approved 
 societies and deposit contributors resi- 
 dent in the county or county borough 
 for the purposes of medical benefit 
 and administrative expenses in any 
 year, shall be paid or credited to the 
 Insurance Committee at the com- 
 mencement of that year. 
 
 (2) There shall also be paid to the 
 Insurance Committee in every year 
 
 by each approved society, having 
 members who are insured persons resi- 
 dent in the county or county borough, 
 in respect of each such member, the 
 sum of one penny towards the adminis- 
 trative expenses of the Committee : 
 
 Provided that if the special cir- 
 cumstances of any county are such 
 that the Insurance Commissioners 
 consider that the travelling expenses 
 of the members of the committee 
 should be repaid to them by the com- 
 mittee, the Insurance Commissioners 
 may authorise such repayment, and in 
 such case may increase the said sum 
 of one penny to such sum, not exceed- 
 ing twopence, as they may determine. 
 
 (3) It shall be lawful for any local 
 authority, out of any fund or rate out 
 of which the expenses of the authority 
 are payable, to subscribe such sums as 
 it may think fit towards the general 
 purposes of the Insurance Committee. 
 
 Local Medical Committees 
 
 62. Where a local medical com- 
 mittee has been formed for any county 
 or county borough or for any area for 
 which a district committee has been 
 formed and the Insurance Com- 
 missioners are satisfied that such 
 committee is representative of the duly 
 qualified medical practitioners resident 
 in the county or county borough 
 or such area as aforesaid they 
 shall recognise such committee, and 
 where a local medical committee has 
 been so recognised it shall, subject to 
 regulations made by the Insurance 
 Commissioners, be consulted by the 
 Insurance Committee or district com- 
 mittee as the case may be on all general 
 questions affecting the administration 
 of medical benefit, including the ar- 
 rangements made with medical practi- 
 tioners giving attendance and treat- 
 
THE PEOPLE'S INSURANCE 
 
 123 
 
 ment to insured persons, and shall 
 perform such other duties, and shall 
 exercise such powers as may be deter- 
 mined by the Insurance Commis- 
 sioners. 
 
 Excessive Sickness. 
 
 Inquiries into Causes of Excessive 
 Sickness, etc. 
 
 63. (i) Where it is alleged by 
 the Insurance Commissioners or by any 
 approved society or Insurance Com- 
 mittee that the sickness which has 
 taken place among any insured persons 
 being, in the case where the allegation 
 is made by a society or committee, per- 
 sons for the administration of whose 
 sickness and disablement benefits the 
 society or committee is responsible, 
 is excessive, and that such excess is 
 due to the conditions or nature of 
 employment of such persons, or to bad 
 housing or insanitary conditions in 
 any locality, or to an insufficient or 
 contaminated water supply, or to the 
 neglect on the part of any person or 
 authority to observe or enforce the 
 provisions of any Act relating to 
 the health of workers in factories, 
 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 Commis- 
 sioners or the society or committee 
 making such allegation may send to 
 the person or authority alleged to be in 
 default a claim for the payment of the 
 amount of any extra expenditure 
 alleged to have been incurred by reason 
 of such cause as aforesaid, and if the 
 Commissioners, society, or committee 
 and such person or authority fail to 
 arrive at any agreement on the subject 
 
 may apply to the Secretary 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 competent person to hold an inquiry. 
 
 (2) If upon such inquiry being held 
 it is proved to the satisfaction of the 
 persons holding the inquiry that the 
 amount of such sickness 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 in- 
 fectious disease, during any less 
 period ; 
 
 been in excess of the average expecta- 
 tion of sickness by more than 10 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 hold- 
 ing the inquiry to have been incurred 
 under this Part of this Act by any socie- 
 ties or committees where the allegation 
 is made by the Insurance Commis- 
 sioners, or if the allegation is made 
 by a society or committee 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 
 employment or to any neglect on 
 the part of any employer to ob- 
 serve or enforce any such Act 
 or regulation as aforesaid, it 
 shall be made good by the em- 
 ployer : 
 
 (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 autho- 
 
 E 2 
 
I2 4 
 
 THE PEOPLE'S INSURANCE 
 
 rity to observe or enforce any 
 such Act or regulation or such 
 precautions as aforesaid, it shall 
 be made good by such local 
 authority as appears to the per- 
 son holding the inquiry to have 
 been in default, or if due to the 
 insanitary condition of any par- 
 ticular premises shall be made 
 good either by such authority or 
 by the owner, lessee, or occupier 
 of the premises who is proved to 
 the satisfaction of the person 
 holding the inquiry to be re- 
 sponsible : 
 
 (c) Where the excess or such part 
 thereof as aforesaid is due to an 
 insufficient or contaminated 
 water supply, it shall be made 
 good by the local authority, 
 company, or person by whom 
 the water is supplied, or who 
 having imposed upon them the 
 duty of affording a water supply 
 have refused or neglected to do 
 so, unless the local authority, 
 company, or person prove that 
 such insufficiency or contamina- 
 tion was not due to any default 
 on the part of the authority, 
 company, or person, but arose 
 from circumstances over which 
 it had no control. 
 
 (3) Where any such inquiry as afore- 
 said 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, lessee, 
 or occupier of any premises which are 
 the subject-matter of the inquiry, and 
 where it is proved that 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, lessee, or occu- 
 pier, the person holding the inquiry may 
 order the owner, lessee, or occupier to 
 
 repay to the local authority the amount 
 of the extra expenditure or part thereof 
 which has been so caused. 
 
 (4) For the purpose of this sectiori 
 the average expectation of sickness 
 shall be calculated in accordance with 
 the tables prepared by the Insurance 
 Commissioners for the purpose of 
 valuations under this Part of this Act, 
 but any excessive sickness attributable 
 to any disease or disablement which 
 is due to any disease or injury in 
 respect of which damages or compen- 
 sation are payable under the Em- 
 ployers' Liability Act, 1880, or the 
 Workmen's Compensation Act, 1906, 
 or at common law, shall not be taken 
 into account. 
 
 (5) The Insurance Commissioners 
 shall make regulations as to the pro- 
 cedure on inquiries under this section, 
 and a person hclding an inquiry 
 under this section shall have all such 
 powers as an inspector of the Local 
 Government Board has for the pur- 
 poses of an inquiry under the Public 
 Health Acts, and shall have power to 
 order how and by what parties costs, 
 including such expenses as the Secre- 
 tary of State or Local Government 
 Board may certify to have been in- 
 curred 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 in- 
 curred by it. 
 
THE PEOPLE'S INSURANCE 
 
 125 
 
 (6) Without prejudice to any other 
 method of recovery, any sum ordered 
 under this section to be paid by a local 
 authofity 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 in- 
 directly out of that account to the local 
 authority. 
 
 (7) For the purposes of this section 
 any expenditure on any benefit adminis- 
 tered by an Insurance Committee shall 
 be deemed to be expenditure of that 
 Committee, but any sums paid to any 
 such Committee under this section to 
 meet extra expenditure on sickness 
 benefit or disablement benefit shall be 
 dealt with for the benefit of deposit 
 contributors in accordance with regula- 
 tions made by the Insurance Commis- 
 sioners. 
 
 (8) Where under this section any 
 sum is paid to the Insurance Com- 
 missioners, the Insurance Commis- 
 sioners shall apply the same in dis- 
 charge of any expenses incurred by 
 the Commissioners under this section, 
 and shall distribute the balance 
 amongst the societies and committees 
 which appear to the Commissioners 
 to have incurred extra expense on 
 account of the excessive sickness in 
 such proportions as the Commissioners 
 think just. 
 
 (9) Where an association of deposit 
 contributors resident in any county or 
 county borough has been formed 
 under regulations made by the In- 
 surance Commissioners, the Insurance 
 Committee for the county or county 
 borough shall, if so required by the 
 association, take proceedings under 
 this section on behalf and at the expense 
 of the association. 
 
 Supplementary Provisions. 
 Provision of Sanatoria, etc. 
 
 64. (i) If under any other Act of 
 the present session any sum is made 
 available for the purposes of the 
 provision of or making grants in aid 
 to sanatoria and other institutions 
 for the treatment of tuberculosis or 
 such other diseases as the Local 
 Government Board with the approval 
 of the Treasury may appoint, such sum 
 shall be distributed by the Local 
 Government Board with the consent of 
 the Treasury in making grants for 
 those purposes, and the Treasury 
 before giving their consent shall con- 
 sult with the Insurance Com- 
 missioners : 
 
 Provided that such sum shall be ap- 
 portioned between England, Wales, 
 Scotland, and Ireland in proportion to 
 their respective populations ascer- 
 tained in accordance with the returns 
 of the census taken in the year nine- 
 teen hundred and eleven. 
 
 (2) If any such grant is made to a 
 county council, the Local Government 
 Board may authorise the county council 
 to provide any such institution, and 
 where so authorised the county council 
 shall have power to erect buildings, 
 and to manage and maintain the 
 institution, and for that purpose to 
 enter into agreements and make ar- 
 rangements with Insurance Committees 
 and other authorities and persons, 
 and to do all such things as may 
 be necessary for the purposes afore- 
 said, and any expenses of the county 
 council, so far as not defrayed out of 
 the grant, shall be defrayed out of the 
 county fund as expenses for general 
 County purposes or, if the order of the 
 Local Government Board so directs, as 
 expenses for special county purposes 
 
126 
 
 THE PEOPLE'S INSURANCE 
 
 charged on such part of the county as 
 may be provided by the order. 
 
 (3) For the purpose of facilitating co- 
 operation amongst county councils, 
 county borough councils, and other 
 local authorities (not being Poor Law 
 authorities) for the provision of such 
 sanatoria and other institutions as 
 aforesaid, the Local Government Board 
 may by order make such provisions as 
 appear to them necessary or expedient 
 by the constitution of joint committees, 
 joint boards, or otherwise, for the joint 
 exercise by such councils and authori- 
 ties of their powers in relation thereto, 
 and any such order may provide how, 
 in what proportions, and out of what 
 funds or rates the expenses of provid- 
 ing such institutions, 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. 
 
 (4) An Insurance Committee may, 
 with the consent of the Insurance Com- 
 missioners, enter into agreements with 
 any person or authority (other than 
 a Poor Law authority) that, in con- 
 sideration of such person or authority, 
 providing treatment in a sanatorium 
 or other institution or otherwise 
 for persons recommended by the 
 committee for sanatorium benefit, 
 the committee will contribute out 
 of the funds available for sanatorium 
 benefit towards the maintenance of 
 the institution or provision of such 
 treatment such annual or other pay- 
 ment, and, subject to such condi- 
 tions and for such period as may be 
 agreed, and any such agreement shall 
 be binding on the committee and their 
 successors, and any sums payable by 
 
 the committee thereunder may be paid 
 by the Insurance Commissioners and 
 deducted from the sums payable to the 
 committee for the purposes of sana- 
 torium benefit. 
 
 Power to Insurance Commissioners to 
 make Begulations, etc. 
 
 65. The Insurance Commissioners 
 may make regulations 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 
 prescribing anything which under this 
 Part of this Act or any such schedules 
 is to be prescribed, and generally for 
 carrying this Part of this Act into 
 effect, and any regulations so made 
 shall be laid before both Houses of 
 Parliament as soon as may be after 
 they are made, and shall have effect 
 as if enacted in this Act : 
 
 Provided that if an Address is pre- 
 sented to His Majesty by either House 
 of Parliament within the next subse- 
 quent twenty-one days on which that 
 House has sat next after any such 
 regulation is laid before it praying that 
 the regulation may be annulled, His 
 Majesty in Council may annul the regu- 
 lation, and it shall thenceforth be void, 
 but without prejudice to the validity of 
 anything previously done thereunder. 
 
 Determination of Questions by Insurance 
 Commissioners 
 
 66. (i) If any question arises 
 (a) as to whether any employment 
 or any class of employment 
 is or will be employment 
 within the meaning of this 
 Part of this Act or as to 
 whether a person is entitled 
 to become a voluntary con- 
 tributor; or 
 
THE PEOPLE'S INSURANCE 
 
 127 
 
 (b) as to the rate of contributions 
 
 payable by or in respect of 
 any insured person ; or 
 
 (c) as to the rates of contributions 
 
 payable in respect of an em- 
 ployed contributor by the 
 employer and the contribu- 
 tor respectively ; 
 
 the question shall be determined by the 
 Insurance Commissioners, in accord- 
 ance 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 paragraph (a), he 
 may appeal therefrom to the 
 county court, with a further 
 right of appeal upon any ques- 
 tion of law to such judge of the 
 High Court as may be selected 
 for the purpose by the Lord 
 Chancellor 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 who is or is about to 
 become a member of an ap- 
 proved society, by the society. 
 (iii) the Insurance Commissioners 
 may, if they think fit, instead of 
 themselves deciding whether any 
 class of employment is or will be 
 employment within the meaning - 
 of this Part of this Act, submit 
 the question for decision to the 
 High Court in such summary 
 manner as subject to rules of 
 court may be directed by the 
 court, and the court, after hear- 
 ing such parties and taking such 
 evidence (if any), as it thinks 
 just, shall decide the question, 
 and the decision of the court 
 shall be final. 
 
 (2) This section shall come into opera- 
 tion on the passing of this Act. 
 
 Disputes 
 
 67. (i) Subject to the provisions of 
 the foregoing section, 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 claim- 
 ing through him ; 
 
 (b) An approved society or branch 
 
 thereof, and any person who has 
 ceased to be a member for the 
 purposes of this Part of this Act 
 of such society or branch, or any 
 person claiming through him ; 
 
 (c) An approved society and any 
 
 branch thereof; 
 
 (d) Any two or more branches of an 
 
 approved society, 
 
 relating to anything done or omitted 
 by such persons, society, or branch (as 
 the case may be) under this Part of this 
 Act, or any regulation made there- 
 under, shall be decided in accordance 
 with the rules of the society, but any 
 party to such dispute may in such cases 
 and in such manner as may be pre- 
 scribed appeal from such decision to 
 the Insurance Commissioners. 
 
 (2) Every dispute between an in- 
 sured person and the Insurance Com- 
 mittee, relating to anything done or 
 omitted by such person or the Insur- 
 ance Committee under this Part of this 
 Act, or any regulation made hereunder, 
 shall be decided in the prescribed man- 
 ner by the Insurance Commissioners. 
 
 (3) The Insurance Commissioners 
 may authorise referees appointed by 
 them to decide any appeal or dispute 
 submitted to the Insurance Commis- 
 sioners under this section. 
 
 (4) The Insurance Commissioners 
 
128 
 
 THE PEOPLE'S INSURANCE 
 
 may make regulations as to the pro- 
 cedure on any such appeal or dispute, 
 and such regulations may apply to 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 proceed- 
 ings under this section, and any deci- 
 sion given by the Insurance Commis- 
 sioners or a referee under this section 
 shall be final and conclusive. 
 
 Protection against Distress and Execution 
 in Certain Cases 
 
 68. (i) Where the medical prac- 
 titioner attending on any insured per- 
 son in receipt of sickness benefit certi- 
 fies that the levying of any distress or 
 execution upon any goods or chattels 
 belonging to such insured person and 
 being on premises occupied by him, or 
 the taking of any proceedings in eject- 
 ment or for the recovery of any rent or 
 to enforce any judgment in ejectment 
 against such person, would endanger 
 his life, and such certificate has been 
 sent to the Insurance Committee and 
 has been recorded in manner herein- 
 after provided, it shall not be lawful 
 during any period named in the certi- 
 ficate for any person to levy any such 
 distress or execution or to take any 
 such proceedings or to enforce any 
 such judgment against the insured 
 person : 
 
 Provided that, if any person desirous 
 of levying such distress or execution or 
 taking such proceedings or enforcing 
 such judgment disputes the accuracy 
 of the certificate, he may apply to the 
 registrar of the county court, who, if 
 he is of opinion that the certificate 
 should be cancelled or modified, may 
 make an order cancelling or modifying 
 it, and no appeal shall lie against any 
 such order or a refusal to make any 
 such order. 
 
 (2) A certificate granted for the pur- 
 pose of this section shall continue in 
 force for one week or such less period 
 as may be named in the certificate, 
 but may be renewed from time to time 
 for any period not exceeding one week, 
 up to but not beyond the expiration of 
 three months from the date of the 
 grant of the original certificate, but 
 no such renewal shall have effect 
 unless sent to the Insurance Com- 
 mittee and recorded as aforesaid : 
 
 Provided that the protection con- 
 ferred by this section shall not extend 
 beyond the expiration of one month 
 from such date if on demand being 
 made by the person desirous of levy- 
 ing such distress or execution, or tak- 
 ing such proceedings, or enforcing 
 such judgment proper security is not 
 given for payment of rent thereafter 
 to become due from the. insured person 
 or the amount of the judgment debt, as 
 the case may be, and any dispute as to 
 the sufficiency of the security shall be 
 determined by the registrar of the 
 county court, whose decision shall be 
 final and not subject to appeal. 
 
 (3) If any person knowingly levies or 
 attempts to levy any such distress or 
 execution or takes any such proceed- 
 ings or enforces or attempts to enforce 
 any such judgment in contravention of 
 this section, he shall be liable on sum- 
 mary conviction to a fine not exceeding 
 fifty pounds. 
 
 (4) A certificate or renewal thereof 
 granted under this section shall forth- 
 with be sent to the Insurance Com- 
 mittee, and the Committee shall, unless 
 it has reason to suspect its genuine- 
 ness, record it in a special register 
 without fee, and such register shall at 
 all reasonable times be open to inspec- 
 tion ; and where so recorded its 
 genuineness shall not be questioned in 
 any proceedings against a sheriff or 
 
THE PEOPLE'S INSURANCE 
 
 129 
 
 other officer for failure to levy any dis- 
 tress or execute any warrant. 
 
 (5) Where the time within which a 
 warrant may be executed is limited any 
 period during which the warrant can- 
 not be executed by reason of the provi- 
 sions of this section shall be disre- 
 garded in computing the time within 
 which the warrant may be executed. 
 
 Offences 
 
 69. (i) If for the purpose of 
 obtaining any benefit or payment or 
 the crediting of a reserve value 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 im- 
 prisonment for a term not exceeding 
 three months, with or without hard 
 labour. 
 
 (2) If any employer has failed to 
 pay any contributions which, under 
 this Part of this Act, he is liable to 
 pay in respect of an employed contri- 
 butor, or if any such employer, any 
 insured person, or any other person is 
 guilty of any other contravention of, 
 or non-compliance with, any of the 
 requirements of this Part of this 
 Act, or the regulations made there- 
 under 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 employer 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 pay, 
 which sum when paid shall be treated 
 as a payment in satisfaction 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, or, if 
 the matter is one which the In- 
 surance Comnjittee is competent to 
 decide, in conformity with its decision. 
 
 Civil Proceedings against Employer for 
 Neglecting to Pay Contributions 
 
 70. (i) Where an employer has 
 failed or neglected to pay any contri- 
 butions 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 employment, and by 
 reason thereof that person has been de- 
 prived 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 proceedings against 
 the employer 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 Insur- 
 ance Commissioners a sum equal to the 
 value so ascertained, which sum when 
 paid shall be carried to the credit of the 
 society of which such person is a mem- 
 ber, and thereupon such person shall 
 thenceforth be entitled to receive from 
 the society benefits at the same rate as 
 he would have been entitled to had the 
 contributions been properly paid, to- 
 gether with the difference between the 
 amount of the benefits (if any) he has 
 actually received and the benefits he 
 would have received had the contribu- 
 tions been properly paid. 
 
 (2) Proceedings may be taken under 
 either this or the last preceding section 
 notwithstanding that proceedings have 
 also been taken under the other sec- 
 tion in respect of the same failure or 
 neglect to pay contributions. 
 
130 
 
 THE PEOPLE'S INSURANCE 
 
 Repayment of Benefits Improperly Paid 
 
 71. 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 personal representatives, shall be 
 liable to repay to the Insurance Com- 
 missioners the amount of such pay- 
 ment or benefit, and any such amount 
 may be recovered as a debt due to the 
 Crown and when so recovered shall be 
 carried to the credit of the society of 
 which such person was a member, or 
 if he was not a member of any ap- 
 proved society, of the Post Office fund. 
 
 Provisions as to Application of Existing 
 Funds of Friendly Societies 
 
 72. (i) Every registered friendly 
 society which provides benefits similar 
 to any of those conferred by this 
 Part of this Act shall submit to 
 the Registrar of Friendly Societies 
 a scheme for continuing, abolishing, 
 reducing, or altering such benefits 
 as respects members who become 
 insured persons and for continuing, 
 abolishing, or reducing the contribu- 
 tions of such members, so, however, 
 that the combined effect of the altera- 
 tion of the benefits and contributions 
 shall not prejudicially affect the sol- 
 vency of the society, and, if the 
 scheme or a supplementary scheme 
 shows on an actuarial valuation that, 
 owing to the alterations in the benefits 
 and contributions effected by the 
 scheme, any part of the existing funds 
 of the society is set free as not being 
 required to meet the liabilities of the 
 society, the scheme or the supplement- 
 ary scheme shall provide for the 
 application of the part of the funds 
 so set free in any one or more of the 
 following ways : 
 
 (a) towards the cost of the provision 
 
 of other or increased benefits 
 payable by the society inde- 
 pendently of this Part of this 
 Act to existing members whether 
 insured persons or not ; 
 
 (b) in reduction of the contributions 
 
 payable by such members in re- 
 spect of the benefits payable by 
 the society independently of this 
 Part of this Act ; 
 
 (c) towards the payment or repay- 
 
 ment of contributions payable 
 under this Part of this Act by 
 such of its existing members as 
 are entitled and elect to receive 
 benefits under this Part of this 
 Act through the society. 
 
 (2) This section shall apply to 
 branches of registered societies in like 
 manner as to societies : Provided that 
 a society with branches may, if it so 
 desires (subject always to the exercise 
 of any right of a branch, expressly con- 
 ferred by the rules of the society, to 
 dispose of any of its funds for the 
 benefit solely of the members of the 
 branch), submit a scheme applicable to 
 all its branches and it shall be compe- 
 tent for the society to provide by its 
 scheme for the application of the whole 
 or any part of any sums so set free 
 towards the discharge of any deficien- 
 cies in any of its branches which may 
 be found to exist on such actuarial 
 valuation as aforesaid. 
 
 (3) Any scheme adopted by a society 
 or branch of a society in accordance 
 with its rules and when confirmed by 
 the Registrar of Friendly Societies 
 shall be deemed to be incorporated in 
 the registered rules cf the society or 
 branch and may be amended accord- 
 ingly, so, however, that no amendment 
 shall be inconsistent with the provisions 
 of this section. 
 
 (4) This section shall apply to sea- 
 
THE PEOPLE'S INSURANCE 
 
 men, marines, and soldiers, from 
 whose pay deductions are made under 
 this Part of this Act as if they were in- 
 sured persons, and for the purposes of 
 this section " existing " means existing 
 at the passing of this Act. 
 
 (5) This section shall come into 
 operation on the passing of this Act. 
 
 Provisions as to Existing Employers' 
 Provident Funds 
 
 73. (i) Where at the passing of this 
 Act a superannuation or other provident 
 fund has been established for the bene- 
 fit of the persons employed by one or 
 more employers the provisions of the 
 last foregoing section shall apply with 
 the necessary adaptations, and with 
 this modification that where under the 
 Act, deed, or other instrument 
 establishing the fund or otherwise any 
 sum is payable by the employer to- 
 wards benefits secured by the Act or 
 deed, and those benefits include bene- 
 fits similar to any of those conferred 
 by this Part of this Act, the scheme 
 may provide for allowing the employer 
 to deduct from any contributions pay- 
 able by him as aforesaid towards 
 benefits of a nature similar to those 
 under this Part of this Act an amount 
 not exceeding the amount of the em- 
 ployer's contributions payable by him 
 under this Part of this Act. 
 
 (2) Where the fund is one out of 
 which pensions or superannuation 
 allowances are payable, and it is proved 
 to the satisfaction of the Insurance 
 Commissioners that the rearrangements 
 required in consequence of this Part of 
 this Act will, upon a valuation under 
 the existing rules of the fund, affect 
 prejudicially the sum available for the 
 payment of pensions ;r superannuation 
 allowances, the Insurance Commis- 
 sioners may grant a certificate authoris- 
 
 ing the value of the prospective exten- 
 sion of benefits under this part of this 
 Act when the reserve values have been 
 written off as hereinbefore provided, to 
 be brought into account in the valua- 
 tion of the assets available for the dis- 
 charge of the liabilities of the fund in 
 respect of pensions and superannuation 
 allowances. 
 
 Provisions as to Minors who are Members 
 of Approved Societies 
 
 74. Any member of an approved 
 society who is a minor may execute all 
 instruments and give all acquittances 
 necessary to be executed or given 
 under the rules of such society, but 
 shall not be a member of the com- 
 mittee, or a trustee, manager, or 
 treasurer of such society or any branch 
 thereof. 
 
 Power for Societies to Register under 
 Friendly Societies Act, 1896. 
 
 75' Any society for the purpose of 
 carrying on business under this Act, 
 either alone or together with any pur- 
 pose mentioned in section eight, sub- 
 section (i), of the Friendly Societies 
 Act, 1896, may, after the passing of 
 this Act, be registered as a friendly 
 society under the Friendly Societies 
 Act, 1896, notwithstanding that the 
 contributions under this Act are not 
 voluntary. 
 
 Application of Acts of Parliament to 
 Approved Societies and Sections. 
 
 76. (i) Except in so far as may be 
 inconsistent with this Part of this Act, 
 any business transacted under this Part 
 of this Act by any approved society 
 shall be treated as part of the ordinary 
 business transacted by societies of the 
 class to which that society belongs, 
 
 E* 2 
 
132 
 
 THE PEOPLE'S INSURANCE 
 
 and any enactment applying to the 
 society in relation to the transaction 
 of such ordinary business shall apply 
 accordingly in relation to the business 
 transacted by the society under this 
 Part of this Act. 
 
 (2) This section shall apply to an 
 approved society which is a separate 
 section of another body, subject to the 
 necessary adaptation. 
 
 Powers of the Local Government Board 
 77. (i) The Local Government 
 Board may, for the purposes of their 
 powers and duties under this Part of 
 this Act, hold such local inquiries and 
 investigations as they may think fit, 
 and the Board and their inspectors 
 shall have for the purposes of such an 
 inquiry the same powers as they respec- 
 tively have for the purposes of an in- 
 quiry under the Public Health Acts, and 
 the expenses incurred by the Board in 
 respect of such inquiries and other pro- 
 ceedings under this Part of this Act 
 (including the salary of any inspector 
 or officer of the Board engaged in the 
 inquiry or proceedings, not exceeding 
 three guineas a day) shall be paid by 
 such authorities and persons and out 
 of such funds and rates as the Board 
 may by order direct, and the Board may 
 certify the amount of the expenses so 
 incurred, and any sum so certified and 
 directed by the Board to be paid by the 
 authority or person shall be a debt from 
 that authority or person to the Crown : 
 Provided that this provision shall not 
 apply to inquiries with respect to re- 
 sponsibility for excessive sickness. 
 
 (2) Any approval given by the Local 
 Government Board under this Part of 
 this Act may be given for such term, 
 and subject to such conditions as the 
 Board may think fit, and the Board 
 shall have power to withdraw any 
 approval which they have given. 
 
 (3) The Local Government Board 
 may make it a condition of any ap- 
 proval to be given, or grant of money 
 to be made under this Part of this Act, 
 that the Board shall have such powers 
 of inspection as may be agreed. 
 
 Power to Remove Difficulties 
 
 78. If any difficulty arises with re- 
 spect to the constitution of Insurance 
 Committees, or the advisory com- 
 mittee, or otherwise in bringing into 
 operation this Part of this Act, the In- 
 surance Commissioners, with the con- 
 sent of the Treasury, may by order 
 make any appointment and do anything 
 which appears to them necessary or 
 expedient for the establishment of such 
 committees or for bringing this Part 
 of this Act into operation, and any such 
 order may modify the provisions of 
 this Act so far as may appear neces- 
 sary or expedient for carrying the 
 order into effect : 
 
 Provided that the Insurance Com- 
 missioners shall not exercise the 
 powers conferred by this section after 
 the first day of January, nineteen hun- 
 dred and fourteen. 
 
 Interpretation 
 
 79. For the purposes of this part of 
 this Act unless the context otherwise 
 requires 
 
 The expression "branch," in relation 
 to a society, shall not include 
 any branch of the society which 
 is not itself separately regis- 
 tered ; 
 
 The expression "disease or disable- 
 ment " means such disease or 
 disablement as would entitle an 
 insured person to sickness or dis- 
 ablement benefit ; 
 
 The expression "dependants," in 
 relation to any person, includes 
 
THE PEOPLE'S INSURANCE 
 
 133 
 
 such persons as the approved 
 society or Insurance Commit- 
 tee shall ascertain to be wholly 
 or in part dependent upon his 
 earnings ; 
 
 A person whose normal occupation 
 is employment within the mean- 
 ing of this Part of this Act shall 
 for the purpose of reckoning the 
 number and rate of contributions 
 be deemed to continue to be an 
 employed contributor notwith- 
 standing that he is temporarily 
 unemployed, but if such period 
 of unemployment extends beyond 
 twelve months, he shall not con- 
 tinue to be an employed contri- 
 butor unless the approved society 
 of which he is a member or, if 
 he is not a member of such a 
 society, the Insurance Com- 
 mittee is satisfied that his unem- 
 ployment is due to inability to 
 obtain employment, and is not 
 due to any change in his normal 
 occupation ; 
 
 The suspension of a member of an 
 approved society from benefits 
 under this Part of this Act shall 
 not be deemed to deprive the 
 member of his membership; 
 " membership of an approved 
 society " means membership for 
 the purposes of this Part of this 
 Act: 
 
 The expression " valuer " means a 
 person possessing actuarial 
 qualifications as may be ap- 
 proved by the Treasury ; 
 
 The expression " county " means ad- 
 ministrative county ; 
 
 The Scilly Isles shall be deemed to 
 be a county and the council of 
 those Isles the council of a 
 county, but the Insurance 
 Committee for the Scilly Isles 
 shall be constituted in such 
 
 manner as the Insurance Com- 
 missioners prescribe 
 
 Monmouthshire shall be deemed to 
 form part of Wales; 
 
 A person shall be deemed according 
 to the law in England, Wales, 
 and Ireland, as well as accord- 
 ing to the law in Scotland, not 
 to have attained the age of 
 seventeen until the commence- 
 ment of the seventeenth anni- 
 versary of the day of his birth, 
 and similarly with respect to 
 other ages. 
 
 Application to Scotland 
 
 So. This Part of this Act in its 
 application to Scotland shall be subject 
 to the following modifications : 
 (i) For the purpose of carrying this 
 Part of this Act into effect in 
 Scotland there shall be consti- 
 tuted, as soon as may be after 
 the passing of this Act, Com- 
 missioners for Scotland (to be 
 called the Scottish Insurance 
 Commissioners) with a central 
 office in Edinburgh, and with 
 such branch offices in Scotland 
 as the Treasury may think fit, 
 and the Scottish Insurance 
 Commissioners of whom one at 
 least shall be a duly qualified 
 medical practitioner shall be ap- 
 pointed by the Treasury, and 
 may appoint such officers, in- 
 spectors, referees, and servants 
 for the purposes aforesaid as 
 the Scottish Insurance Commis- 
 sioners, subject to the approval 
 of the Treasury, may deter- 
 mine, and the provisions of this 
 Part of this Act with respect to 
 the payment of the salaries and 
 remuneration of the Insurance 
 Commissioners, and the officers, 
 
*34 
 
 THE PEOPLE'S INSURANCE 
 
 inspectors, referees, and ser- 
 vants appointed by them, and 
 with respect to the payment of 
 the expenses incurred by the 
 Treasury or the Insurance Com- 
 missioners in carrying this Part 
 of this Act into effect shall, 
 with the necessary modifica- 
 tions, apply to the payment of 
 the salaries and remuneration 
 of the Scottish Insurance Com- 
 missioners and the officers, in- 
 spectors, referees, and servants 
 appointed by them and to the 
 payment of expenses incurred 
 by the Treasury or the Scottish 
 Insurance Commissioners in 
 carrying- this Part of this Act 
 into effect in Scotland, and for 
 the purpose aforesaid the Scot- 
 tish Insurance Commissioners, 
 and the officers, inspectors, 
 referees, and servants appointed 
 by them shall respectively have 
 all the like powers and duties 
 as are by the foregoing provi- 
 sions of this Act conferred and 
 imposed on the Insurance Com- 
 missioners and the officers, in- 
 spectors, referees, and servants 
 appointed by them, and refer- 
 ences in those provisions to the 
 Insurance Commissioners shall 
 be construed as references to 
 the Scottish Insurance Commis- 
 sioners ; 
 
 (2) All sums received from con- 
 tributions under this Part of 
 this Act in respect of insured 
 persons resident in Scotland, 
 and all sums paid out of 
 moneys provided by Parlia- 
 ment in respect of benefits 
 under this Part of this Act to 
 such persons, and the expenses 
 of administration of such bene- 
 fits shall be paid into a fund to 
 
 be called the Scottish National 
 Health Insurance Fund, under 
 the control and management of 
 the Scottish Insurance Commis- 
 sioners, and the sums required 
 to meet expenditure properly in- 
 curred by approved societies 
 and Insurance Committees for 
 the purposes of such benefits, 
 and the administration of such 
 benefits shall be paid out of 
 that fund, and the foregoing 
 provisions of this Act, with re- 
 spect to the National Health 
 Insurance Fund, shall, with the 
 necessary modifications, apply 
 to the Scottish National Health 
 Insurance Fund accordingly ; 
 
 (3) The expression " Local Govern- 
 
 ment Board " means the Local 
 Government Board for Scot- 
 land (in this section referred to 
 as the Board) : Provided that as 
 regards the making of regula- 
 tions respecting sums payable 
 out of the Local Taxation (Scot- 
 land) Account the said expres- 
 sion means the Secretary for 
 Scotland ; the expression " Local 
 Taxation Account " means the 
 Local Taxation (Scotland) Ac- 
 count; and the expression "in- 
 spector of the Local Govern- 
 ment Board " includes a person 
 acting under section seven or 
 section eight of the Public 
 Health (Scotland) Act, 1897; 
 
 (4) The expression " county 
 
 borough " means a burgh or 
 police burgh within the meaning 
 of the Local Government (Scot- 
 land) Act, 1889 (in this section 
 referred to as the Act of 1889), 
 containing within the police 
 boundaries thereof according to 
 the census of nineteen hundred 
 and eleven a population of 
 
THE PEOPLE'S INSURANCE 
 
 '35 
 
 twenty thousand or upwards, 
 and includes the burgh of Dum- 
 fries and the police burgh of 
 Maxwelltown, as if they were a 
 single burgh, and all other 
 burghs and police burghs shall, 
 for the purposes of this Part 
 of this Act, be held to be 
 within the county, and un- 
 less already represented on the 
 county council shall, for the 
 purposes of this Part of this 
 Act, be represented thereon as 
 may be determined by the Secre- 
 tary for Scotland : Provided 
 that references to the council of 
 a county borough shall, in the 
 case of Dumfries and Maxwell- 
 town, be construed as refer- 
 ences to a joint committee of the 
 town councils thereof which 
 shall from time to time be ap- 
 pointed subject to the pro- 
 visions of section seventy-six of 
 the Act of 1889 : 
 
 (5) References to a county and the 
 
 county council thereof shall, as 
 regards 
 
 (a) the counties of Kinross 
 and Clackmannan ; and 
 
 (b) the counties of Elgin and 
 Nairn ; 
 
 be construed in each case as 
 references respectively to a com- 
 bination of the two recited 
 counties and to a joint commit- 
 tee of the county councils thereof 
 which shall from time to time be 
 appointed subject to the provi- 
 sions of section seventy-six of 
 the Act of 1889 : 
 
 (6) The minimum number of an In- 
 
 surance Committee for any area 
 containing a population of less 
 than forty thousand shall be 
 twenty-five instead of forty ; and, 
 where a number less than forty 
 
 is fixed, the constitution of the 
 committee may be varied as may 
 be prescribed, so, however, that 
 the proportion of members to be 
 appointed by insured persons 
 and by a county or town council 
 and the number of members 
 possessing a medical qualifica- 
 tion shall not be altered. 
 
 (7) No person except a medical prac- 
 
 titioner qualified as such shall be 
 qualified for appointment as 
 member of an Insurance Com- 
 mittee by a county or town coun- 
 cil unless he is a member of a 
 local authority within the county 
 under the Public Health (Scot- 
 land) Act, 1897, or of the town 
 council, as the case may be ; but 
 this requirement shall not apply 
 to women if women so qualified 
 are not available ; 
 
 (8) Before submitting for approval a 
 
 scheme prescribing areas to be 
 assigned to district commit- 
 tees the Insurance Committee 
 of a county shall consult with 
 the county council, or any com- 
 mittee thereof appointed for the 
 purpose, and shall consider any 
 representation received from 
 them; 
 
 (9) Where, owing to sparseness of 
 
 population, difficulties of com- 
 munication, or other special cir- 
 cumstances, they consider it 
 desirable, an Insurance Com- 
 mittee shall have power, with 
 the consent of the Scottish 
 Insurance Commissioners, to 
 modify or suspend any benefits 
 for the administration of which 
 they are responsible; but where 
 such modification or suspension 
 takes place provision shall be 
 made by the committee, with the 
 like consent, for the increase of 
 
'38 
 
 THE PEOPLE'S INSURANCE 
 
 ferred annuity fund under that 
 Act, and to the Board of Educa- 
 tion, shall be construed, respec- 
 tively, as references to section 
 fourteen of the Education (Scot- 
 land) Act, 1908, and a scheme 
 thereunder, to the Scottish 
 Teachers' Superannuation Fund, 
 and to the Scotch Education 
 Department. 
 
 Application to Ireland 
 
 81. This Part of this Act, in its 
 application to Ireland, shall be sub- 
 ject to the following modifications : 
 (i) For the purpose of carrying this 
 Part of this Act into effect in 
 Ireland there shall be consti- 
 tuted, as soon as may be after 
 the passing of this Act, Com- 
 missioners for Ireland (to be 
 called the Irish Insurance Com- 
 missioners) with a central office 
 in Dublin, and with such branch 
 offices in Ireland as the Treasury 
 may think fit, and the Irish In- 
 surance Commissioners of 
 whom one at least shall be a 
 duly qualified medical prac- 
 titioner, shall be appointed by 
 the Treasury, and may ap- 
 point such officers, inspectors, 
 referees, and servants for the 
 purposes aforesaid as the Irish 
 Insurance Commissioners, sub- 
 ject to the approval of the 
 Treasury, may determine, and 
 the provisions of this part of this 
 Act with respect to the payment 
 of the salaries and remuneration 
 of the Insurance Commissioners 
 and the officers, inspectors, 
 referees, and servants appointed 
 by them, and with respect to the 
 payment of the expenses in- 
 curred by the Treasury or the 
 
 Insurance Commissioners in car- 
 rying this Part of this Act into 
 effect shall, with the necessary 
 modifications, apply to the pay- 
 ment of the salaries and re- 
 muneration of the Irish Insur- 
 ance Commissioners and the 
 officers, inspectors, referees, 
 and servants appointed by them 
 and to the payment of expenses 
 incurred by the Treasury or the 
 Irish Insurance Commissioners 
 in carrying this Part of this Act 
 into effect in Ireland, and for 
 the purpose aforesaid the Irish 
 Insurance Commissioners and 
 the officers, inspectors, referees, 
 and servants appointed by them 
 shall respectively have all the 
 like powers and duties as are 
 by the provisions of this 
 Act conferred and imposed on 
 the Insurance Commissioners 
 and the officers, inspectors, 
 referees, and servants appointed 
 by them, and references in those 
 provisions to the Insurance 
 Commissioners shall be con- 
 strued as references to the 
 Irish Insurance Commissioners; 
 (2) All sums received from contribu- 
 tions under this Part of this Act 
 in respect of insured persons 
 resident in Ireland and all sums 
 paid out of moneys provided by 
 Parliament in respect of benefits 
 under this Part of this Act to 
 such persons, and the expenses 
 of administration of such benefits 
 shall be paid into a fund to be 
 called the Irish National Health 
 Insurance Fund under the con- 
 trol and management of the 
 Irish Insurance Commissioners, 
 and the sums required to meet 
 expenditure properly incurred 
 by approved societies and In- 
 
THE PEOPLE'S INSURANCE 
 
 137 
 
 (12) Expenses incurred by a county 
 council under this Part of this 
 Act shall be defrayed out of the 
 general purposes rate; provided 
 that, notwithstanding 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 purposes of this Part 
 of this Act, held to be within 
 the county ; and provided further 
 that with respect to every burgh 
 within the meaning of 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 applic- 
 able, have effect as if such ex- 
 penses were expenditure therein 
 mentioned ; 
 
 (13) Expenses incurred by a town 
 council under this part of this 
 Act (whether under requisition 
 from the county council or other- 
 wise) shall be defrayed out of 
 the public health general assess- 
 ment, but shall not be reckoned 
 in any calculation as to the 
 statutory limit of that assess- 
 ment; and references to the 
 borough fund or borough rate 
 shall be construed accordingly; 
 
 (14) The expression "borough" and 
 the expression " urban district " 
 mean burgh or police burgh 
 within the meaning of the Act 
 of 1889, and the expressions 
 " rural district " and " council of 
 a rural district," unless incon- 
 sistent with the context, mean 
 respectively a district of a 
 county within the meaning of 
 the said Act and the district 
 
 committee thereof : Provided 
 that the population limit pre- 
 scribed for boroughs and urban 
 districts in the subsection of 
 this Act relating to the appoint- 
 ment of district committees for 
 these areas shall not apply ; 
 
 (15) The expression "Lord Chief 
 Justice " means the Lord Presi- 
 dent of the Court of Session ; 
 
 (16) The expression "county court" 
 means the sheriff court ; and in 
 lieu of an appeal from the 
 county court upon any question 
 of law there shall be substituted 
 an appeal from the sheriff upon 
 any question of law in terms of 
 sub-section (17) (b) of the Second 
 Schedule to the Workmen's 
 Compensation Act, 1906; pro- 
 vided that the decision of either 
 division of the Court of Session 
 on such appeal shall be final; 
 
 (17) The expression "workhouse" 
 means poorhouse ; " coverture " 
 means marriage; "levy any dis- 
 tress or execution " means use 
 any diligence ; " ejectment " 
 means removing; "amount of 
 judgment debt " means amount 
 decerned for; '* registrar of the 
 county court " means court 
 exercising jurisdiction in the 
 proceedings; "public elemen- 
 tary school " means public 
 school; "Public Health Acts" 
 means the Public Health (Scot- 
 land) Act, 1897 and 1907; 
 " Local Loans Act, 1875," means 
 the Local Authorities Loans 
 (Scotland) Acts, 1891 and 1893 ; 
 and " High Court " means Court 
 of Session; 
 
 (18) Unless inconsistent with the 
 context, references to the Ele- 
 mentary School Teachers' Super- 
 annuation Act, 1898, to the de- 
 
I 3 8 
 
 THE PEOPLE'S INSURANCE 
 
 ferred annuity fund under that 
 Act, and to the Board of Educa- 
 tion, shall be construed, respec- 
 tively, as references to section 
 fourteen of the Education (Scot- 
 land) Act, 1908, and a scheme 
 thereunder, to the Scottish 
 Teachers' Superannuation Fund, 
 and to the Scotch Education 
 Department. 
 
 Application to Ireland 
 
 81. This Part of this Act, in its 
 application to Ireland, shall be sub- 
 ject to the following modifications : 
 (i) For the purpose of carrying this 
 Part of this Act into effect in 
 Ireland there shall be consti- 
 tuted, as soon as may be after 
 the passing- of this Act, Com- 
 missioners for Ireland (to be 
 called the Irish Insurance Com- 
 missioners) with a central office 
 in Dublin, and with such branch 
 offices in Ireland as the Treasury 
 may think fit, and the Irish In- 
 surance Commissioners of 
 whom one at least shall be a 
 duly qualified medical prac- 
 titioner, shall be appointed by 
 the Treasury, and may ap- 
 point such officers, inspectors, 
 referees, and servants for the 
 purposes aforesaid as the Irish 
 Insurance Commissioners, sub- 
 ject to the approval of the 
 Treasury, may determine, and 
 the provisions of this part of this 
 Act with respect to the payment 
 of the salaries and remuneration 
 of the Insurance Commissioners 
 and the officers, inspectors, 
 referees, and servants appointed 
 by them, and with respect to the 
 payment of the expenses in- 
 curred by the Treasury or the 
 
 Insurance Commissioners in car- 
 rying this Part of this Act into 
 effect shall, with the necessary 
 modifications, apply to the pay- 
 ment of the salaries and re- 
 muneration of the Irish Insur- 
 ance Commissioners and the 
 officers, inspectors, referees, 
 and servants appointed by them 
 and to the payment of expenses 
 incurred by the Treasury or the 
 Irish Insurance Commissioners 
 in carrying this Part of this Act 
 into effect in Ireland, and for 
 the purpose aforesaid the Irish 
 Insurance Commissioners and 
 the officers, inspectors, referees, 
 and servants appointed by them 
 shall respectively have all the 
 like powers and duties as are 
 by the provisions of this 
 Act conferred and imposed on 
 the Insurance Commissioners 
 and the officers, inspectors, 
 referees, and servants appointed 
 by them, and references in those 
 provisions to the Insurance 
 Commissioners shall be con- 
 strued as references to the 
 Irish Insurance Commissioners; 
 (2) All sums received from contribu- 
 tions under this Part of this Act 
 in respect of insured persons 
 resident in Ireland and all sums 
 paid out of moneys provided by 
 Parliament in respect of benefits 
 under this Part of this Act to 
 such persons, and the expenses 
 of administration of such benefits 
 shall be paid into a fund to be 
 called the Irish National Health 
 Insurance Fund under the con- 
 trol and management of the 
 Irish Insurance Commissioners, 
 and the sums required to meet 
 expenditure properly incurred 
 by approved societies and In- 
 
THE PEOPLE'S INSURANCE 
 
 139 
 
 surance Committees for the pur- 
 poses of such benefits, and the 
 administration of such bene- 
 fits shall be paid out of that fund 
 and the foregoing provisions of 
 this Act with respect to the 
 National Health Insurance Fund 
 shall with the necessary modifi- 
 cations apply to the Irish 
 National Health Insurance Fund 
 accordingly ; 
 
 (3) The provisions of this part of this 
 Act conferring a right to ex- 
 emption shall extend to any per- 
 son employed in harvesting or 
 other agricultural work who 
 proves 
 
 (a) that he is an Irish mi- 
 gratory labourer, that is to 
 say, a person who, having a 
 permanent home at some place 
 in Ireland, has temporarily re- 
 removed to some other place 
 in Ireland or to Great Britain 
 for the purpose of obtaining 
 such employment ; and 
 
 (b) that he ordinarily re- 
 sides at such permanent home 
 for not less than twenty-six 
 weeks in the year and is not 
 employed within the meaning 
 of this Part of this Act whilst 
 so resident; 
 
 and any contributions paid in 
 Great Britain by the employer 
 of a person holding a certificate 
 of exemption by virtue of this 
 provision shall be transferred to 
 the Irish Insurance Commis- 
 sioners for the purpose of being 
 carried to such account and 
 being dealt with in such manner 
 as may be prescribed by the 
 regulations made in that behalf 
 by the Irish Insurance Commis- 
 sioners ; 
 (4) Employment in Ireland as an 
 
 outworker, where the wages 
 or other remuneration derived 
 from the employment are not 
 the principal means of liveli- 
 hood of the person employed, 
 shall be deemed to be included 
 amongst the excepted employ- 
 ments specified in Part II. of the 
 First Schedule to this Act ; 
 
 (5) The reference to the Lord Chan- 
 
 cellor shall be construed as a 
 reference to the Lord Chancellor 
 of Ireland; 
 
 The reference to the Lord 
 Chief Justice shall be construed 
 as a reference to the Lord Chief 
 Justice of Ireland ; 
 
 The reference to the Local 
 Government Board as regards 
 the making of regulations with 
 respect to payments out of the 
 local taxation account shall be 
 construed as a reference to the 
 Lord Lieutenant and other 
 references to the Local Govern- 
 ment Board shall be con- 
 strued as references to the Local 
 Government Board for Ireland, 
 and the reference to the Local 
 Taxation Account shall be con- 
 strued as a reference to the 
 Local Taxation (Ireland) Ac- 
 count ; 
 
 (6) A reference to the Housing of 
 
 the Working Classes (Ireland) 
 Acts, 1890 to 1908, shall be sub- 
 stituted for the reference to 
 the Housing of the Working 
 Classes Acts, 1890 to 1909, 
 a reference to the Public 
 Health (Ireland) Acts, 1878 to 
 1907, shall be substituted for 
 the reference to the Public 
 Health Acts and a reference to 
 the rate or fund applicable to 
 the purposes of the Public 
 Health (Ireland) Acts, 1878 to 
 
(40 
 
 THE PEOPLE'S INSURANCE 
 
 1907, shall be substituted for 
 any reference to the borough 
 rate or borough fund ; 
 (7) (a) If it appears to any county 
 council that, having regard to 
 the number of employed con- 
 tributors resident in the county 
 who are not members of any 
 society approved under the fore- 
 going provisions of this Act it 
 is desirable that steps should be 
 taken by the council for the 
 establishment 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 Irish Insurance 
 Commissioners a scheme for the 
 establishment 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 officers 
 subject to the approval of the 
 council ; 
 
 (iii) the delegation of powers 
 to committees; 
 
 (iv) the giving of security by 
 means of a charge upon the 
 county fund or otherwise ; 
 
 (v) the restriction of member- 
 ship to insured persons resident 
 in the county not being mem- 
 bers of any other approved 
 society ; 
 
 (vi) the reduction of benefits 
 below the minimum rates fixed 
 by this Part of this Act ; and 
 
 (vii) such other matters as 
 may appear necessary and in 
 particular such further modifica- 
 tions of the provisions of this 
 
 Part of this Act with respect to 
 approved societies as may be re- 
 quired for the purpose of adapt- 
 ing those provisions to the case 
 of a county society ; 
 
 (c) Where such a scheme has been 
 
 approved by the Irish 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 pur- 
 poses of this Part of this Act ; 
 
 (d) A county council desirous of sub- 
 
 mitting a scheme under this sec- 
 tion 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 pro- 
 posed county society, and gener- 
 ally for the formation of the 
 society ; 
 
 (8) The provisions with respect to the 
 appointment of Insurance Com- 
 mittees shall have effect subject 
 to the following modifications, 
 namely : 
 
 The number of members of an 
 Insurance Committee shall 
 be twenty-four, and of that 
 number 
 
 (a) twelve shall be ap- 
 pointed in such manner as 
 may be prescribed by regula- 
 tions of the Irish Insurance 
 Commissioners so as to secure 
 representation of the insured 
 persons resident in the county 
 or county borough who are 
 members of approved socie- 
 ties, and who are deposit con- 
 tributors in proportion as 
 
THE PEOPLE'S INSURANCE 
 
 141 
 
 nearly as may be to their 
 respective numbers, and the 
 regulations so made shall pro- 
 vide for conferring on the ap- 
 proved societies which have 
 members resident in the 
 county or county borough the 
 power of appointing repre- 
 sentatives of such members, 
 and where an association of 
 deposit contributors resident 
 in the county or county bor- 
 ough has been formed under 
 such regulations as aforesaid 
 for conferring on such associa- 
 tion the power of appointing 
 the representatives of the de- 
 posit contributors; 
 
 (b) eight (of whom at least 
 one shall be a member of a 
 local sanitary authority and at 
 least two shall be women) 
 shall be appointed by the 
 council of the county or county 
 borough; and 
 
 (c) four (of whom at least 
 two shall be duly qualified 
 medical practitioners) shall be 
 appointed by the Irish Insur- 
 ance Commissioners ; 
 Provided that the Irish Insur- 
 ance Commissioners may, where 
 any part of the cost of sana- 
 torium benefit is defrayed by the 
 council of the county or county 
 borough, increase the represen- 
 tation of the council and make 
 a corresponding 'diminution in 
 the representation of the insured 
 persons ; 
 
 (9) An insured person in Ireland 
 shall not be entitled to medical 
 benefit under this Part of this 
 Act, and the provisions with 
 respect to medical benefit shall 
 not apply : 
 
 Provided that medical benefit 
 
 for an insured person being a 
 member of an approved society 
 shall be deemed to be included 
 amongst the additional benefits 
 specified in Part II. of the 
 Fourth Schedule to this Act and 
 that such medical benefit when 
 provided shall be administered 
 by the Insurance Committee 
 in accordance with the provi- 
 sions of this Part of this Act 
 unless the Irish Insurance Com- 
 missioners otherwise direct ; 
 
 (10) As respects employed contribu- 
 tors in Ireland, the employed 
 rate shall be the rate specified in 
 Part II. of the Second Schedule 
 to this Act, and the contributions 
 by the contributors and contri- 
 butions by the employers shall 
 be at the rates specified in Part 
 II. instead of the rates specified 
 in Part I. of that schedule, and 
 there shall be credited to the 
 society of which any employed 
 contributor in Ireland is a mem- 
 ber or, if he is a deposit con- 
 tributor, to his account in the 
 Post Office fund, the difference 
 between the amount of contribu- 
 tions actually paid by or in 
 respect of him at the rate speci- 
 fied in Part II. of the Second 
 Schedule to this Act and the 
 amount which would have been 
 paid if those contributions had 
 been at the rate specified in 
 Part I. of that schedule, and the 
 amount of that difference shall 
 be treated as having been ex- 
 pended on benefits and the 
 proper proportion thereof shall 
 accordingly be paid out of 
 moneys provided by Parliament ; 
 
 (n) The foregoing provisions of this 
 section as to the crediting of 
 differences shall apply in the case 
 
142 
 
 THE PEOPLE'S INSURANCE 
 
 of voluntary contributors resi- 
 dent in Ireland, with the 
 modification that where the 
 voluntary rate is not the same 
 as the employed rate the dif- 
 ference to be credited shall be 
 the difference between the 
 amount of contributions actually 
 paid at the voluntary fate and 
 the amount which would have 
 been paid if the contributor had 
 been a voluntary contributor 
 resident in Great Britain : 
 
 Provided that in the case of a 
 married woman resident in Ire- 
 land becoming a voluntary con- 
 tributor at reduced rates of bene- 
 fit under the special provisions 
 with respect to married women, 
 the rate of contributions pay- 
 able by her shall be one penny 
 halfpenny a week instead of 
 three pence a week, and the 
 difference to be credited shall be 
 one penny halfpenny a week 
 accordingly ; 
 
 (12) In ascertaining the volun- 
 tary rate applicable to volun- 
 tary contributors in Ireland 
 in cases where that rate is not 
 the same as the employed rate, 
 regard shall be had both to the 
 provisions of this section as to 
 the crediting of differences and 
 to the proportion of benefits to 
 be paid out of the contributions 
 payable by or in respect of such 
 contributors ; 
 
 (13) Rules of an approved society 
 or Insurance Committee under 
 this Part of this Act may pro- 
 vide for the inspection of medical 
 relief registers by officers of the 
 society or committee at all rea- 
 sonable times and for the fur- 
 nishing to the society or com- 
 mittee of such medical certifi- 
 
 cates as may be necessary for 
 the purposes of the administra- 
 tion of the benefits administered 
 by the society or committee and 
 for the payment by the society 
 or committee to duly qualified 
 medical practitioners of such re- 
 muneration in respect of the 
 furnishing of those certificates 
 as the Irish Insurance Commis- 
 sioners may sanction, and all 
 payments so made by the society 
 or committee shall be treated as 
 expenses of administering the 
 benefits aforesaid ; 
 
 (14) If a grant is made to a county 
 council or county borough coun- 
 cil out of any sum made avail- 
 able under any other Act of the 
 present session for the purposes 
 of the provision of or making 
 grants in aid to sanatoria and 
 other institutions for the treat- 
 ment of tuberculosis or such 
 other diseases as the Local 
 Government Board may with the 
 approval of the Treasury ap- 
 point, 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 by Part 
 II. of the Tuberculosis Preven- 
 tion (Ireland) Act, 1908, in like 
 manner as if those purposes 
 were purposes authorised by 
 that Part of that Act, and any 
 expenses of the council so far as 
 not defrayed out of the grant 
 shall be defrayed in manner pro- 
 vided by that Part of that Act ; 
 (15) For the purposes of proceed- 
 ings in Ireland under the provi- 
 sions of this part of this Act 
 relative to disputes regulations 
 of the Irish Insurance Commis- 
 sioners may apply all or any of 
 
THE PEOPLE'S INSURANCE 
 
 the provisions of the Common 
 Law Procedure (Ireland) Act, 
 1856, with respect to arbitration ; 
 
 (16) The special provisions with 
 respect to the reduction of con- 
 tributions in cases where the 
 employer is liable to pay wages 
 during sickness shall have effect, 
 subject to the modification that 
 where the rate of contributions 
 payable by the employed con- 
 tributor is one halfpenny a week 
 the weekly contributions pay- 
 able by the employer shall be 
 reduced by one penny halfpenny 
 (or, if the employed contributor 
 is a woman, one penny), and the 
 weekly contributions payable by 
 the employed contributor shall 
 be reduced by one halfpenny; 
 
 (17) In the special provisions as to 
 persons becoming certificated 
 teachers, references to the Board 
 of Education, to the Elementary 
 School Teachers (Superannua- 
 tion) Act, 1898, and to a public 
 elementary school shall respec- 
 tively be construed as references 
 to the Superintendent of the 
 Teachers' Pension Office, to the 
 National School Teachers (Ire- 
 land) Act, 1879, an d to a national 
 school, and any sums paid to the 
 Superintendent of the Teachers' 
 Pension Office in pursuance of 
 those provisions shall be carried 
 to the Pension Fund established 
 under the last-mentioned Act, 
 and shall be dealt with in 
 accordance with rules under that 
 Act; 
 
 (18) As respects insured persons in 
 Ireland " six-elevenths " shall be 
 substituted for " four-sevenths " 
 and (in the case of women) 
 " four-ninths " shall be substi- 
 tuted for "one-half"; 
 
 '(19) For the reference to the re- 
 gistrar of the county court there 
 shall be substituted a reference 
 to a magistrate appointed under 
 the Constabulary (Ireland) Act, 
 1836. 
 
 (20) For references to a duly certified 
 midwife, there shall be sub- 
 stituted references to a midwife 
 having such qualifications as 
 may be prescribed. 
 
 Establishment of Commissioners for 
 Wales 
 
 82. (i) For the purpose of carrying 
 this Part of this Act into effect in Wales 
 there shall be constituted, as soon as 
 may be after the passing of this Act, 
 Commissioners for Wales (to be called 
 the Welsh Insurance Commissioners) 
 with a central office in such town in 
 Wales as the Treasury may determine, 
 and with such branch offices in Wales 
 as the Treasury may think fit, and the 
 Welsh Insurance Commissioners of 
 whom one at least shall be a duly 
 qualified medical practitioner, shall 
 be appointed by the Treasury, and may 
 appoint such officers, inspectors, re- 
 ferees, and servants for the purposes 
 aforesaid as the Welsh Insurance Com- 
 missioners, subject to the approval of 
 the Treasury, may determine, and the 
 provisions of this Part of this Act with 
 respect to the payment of the salaries 
 and remuneration of the Insurance 
 Commissioners, and the officers, in- 
 spectors, referees, and servants ap- 
 pointed by them, and with respect to 
 the payment of the expenses incurred 
 by the Treasury or the Insurance Com- 
 missioners in carrying this Part of this 
 Act into effect shall, with the necessary 
 modifications, apply to the payment of 
 the salaries and remuneration of the 
 Welsh Insurance Commissioners and 
 
A 44 
 
 THE PEOPLE'S INSURANCE 
 
 the officers, inspectors, referees, and 
 servants appointed by them, and to the 
 payment of expenses incurred by the 
 Treasury or the Welsh Insurance Com- 
 missioners in carrying this Part of this 
 Act into effect in Wales, and for the 
 purpose aforesaid the Welsh Insurance 
 Commissioners and the officers, in- 
 spectors, referees, and servants ap- 
 pointed by them shall respectively have 
 all the like powers and duties as 
 are by the provisions of this Act 
 conferred and imposed on the Insur- 
 ance Commissioners and the officers, 
 inspectors, referees, and servants ap- 
 pointed by them, and references in 
 those provisions to the Insurance Com- 
 missioners shall be construed as refer- 
 ences to the Welsh Insurance Com- 
 missioners. 
 
 (2) All sums received from contribu- 
 tions under this Part of this Act in 
 respect of insured persons resident in 
 Wales, and all sums paid out of 
 moneys provided by Parliament in re- 
 spect of benefits under this Part of this 
 Act to such persons, and the expenses 
 of administration of such benefits 
 shall be paid into a fund to be 
 called the Welsh National Health In- 
 surance Fund, under the control and 
 management of the Welsh Insurance 
 Commissioners, and the sums required 
 to meet expenditure properly incurred 
 by approved societies and Insurance 
 Committees for the purposes of such 
 benefits, and the administration of such 
 benefits shall be paid out of that fund, 
 and the foregoing provisions of this 
 Act, with respect to the National 
 Health Insurance Fund, shall, with the 
 necessary modifications, apply to the 
 Welsh National Health Insurance Fund 
 accordingly. 
 
 (3) The powers of the Local Govern- 
 ment Board with respect to the dis- 
 tribution of any sum available for the 
 
 purpose of the provision of or making 
 grants in aid to sanatoria and other 
 institutions shall, as respects the part 
 thereof apportioned to Wales, be exer- 
 cised by the Welsh Insurance Commis- 
 sioners. 
 
 (4) If before or within twelve months 
 after the commencement of this Act 
 there is established for Wales by royal 
 charter an association for the purpose 
 of providing sanatoria and other in- 
 stitutions for the treatment and preven- 
 tion of tuberculosis or such other dis- 
 eases as the Local Government Board, 
 with the approval of the Treasury, may 
 appoint, the Welsh Insurance Commis- 
 sioners in making and the Treasury in 
 approving grants from any such sum 
 as is in the last preceding subsection 
 mentioned shall have regard to the 
 provision of such institutions which 
 may have been made, or may be pro- 
 posed to be made, by the association. 
 
 Joint Committee of Commissioners 
 
 83. (i) There shall be constituted 
 as soon as may be after the passing of 
 this Act, in accordance with regula- 
 tions to be made by the Treasury, a 
 joint committee of the several bodies of 
 Commissioners appointed for the pur- 
 poses of this Part of this Act, consist- 
 ing of such members of each such body 
 selected in such manner as may be pro- 
 vided by the regulations and of a 
 chairman and other members (not ex- 
 ceeding two in number) to be ap- 
 pointed by the Treasury, and the chair- 
 man shall not by reason of his office 
 be incapable of being elected to or 
 voting in the Commons House of 
 Parliament. 
 
 (2) The joint committee may make 
 such financial adjustments as may be 
 necessary between the several funds, 
 under the control and management of 
 
THE PEOPLE'S INSURANCE 
 
 the several bodies of Commissioners, 
 and shall exercise and perform such 
 powers and duties of the several 
 bodies of Commissioners under this 
 Part of this Act, either alone or jointly 
 .with any of those bodies, as may be 
 provided by such regulations. 
 
 (3) Amongst the powers so exercise- 
 able by the joint committee shall be 
 included a power of making regula- 
 tions as to the valuation of societies 
 and branches which have amongst 
 their members persons resident in 
 England, Scotland, Ireland, and 
 Wales, or any two or any three of such 
 parts of the United Kingdom, and the 
 regulations so made shall require that, 
 for the purposes of the provisions of 
 this Part of this Act relating to valua- 
 tions, surpluses, deficiencies, and 
 transfers, the members resident in each 
 such part shall be treated as if they 
 formed a separate society. 
 
 (4) Regulations made by the Trea- 
 sury under this section shall be laid 
 before Parliament as soon as may be 
 after they are made, but if an Address 
 is presented to His Majesty by either 
 House of Parliament within the next 
 subsequent twenty-one days on which 
 that House has sat next after any such 
 regulation is laid before it, praying 
 that the regulation may be annulled, 
 His Majesty in Council may annul the 
 regulation and it shall thenceforth be 
 void, but without prejudice to the 
 validity of anything previously done 
 thereunder. 
 
 PART II. 
 UNEMPLOYMENT INSURANCE. 
 
 Right of Workmen in Insured Trades to 
 Unemployment Benefit 
 
 84. Every workman who, having 
 been employed in a trade mentioned in 
 
 the Sixth Schedule to this Act (in this 
 Act referred to as "an insured trade"), 
 is unemployed, and in whose case the 
 conditions laid down by this Part of 
 this Act (in this Act referred to as 
 "statutory conditions") are fulfilled, 
 shall be entitled, subject to the provi- 
 sions of this Part of this Act, to receive 
 payments (in this Act referred to as 
 " unemployment benefit ") at weekly or 
 other prescribed intervals at such rates 
 and for such periods as are authorised 
 by or under the Seventh Schedule to 
 this Act, so long as those conditions 
 continue to be fulfilled, and so long as 
 he is not disqualified under this Act 
 for the receipt of unemployment 
 benefit : 
 
 Provided that unemployment benefit 
 shall not be paid in respect of any 
 period of unemployment which occurs 
 during the six months following the 
 commencement of this Act. 
 
 Contributions by Workmen, Employers, 
 and the Treasury 
 
 85. (i) 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 contri- 
 butions by employers of such work- 
 men and partly from moneys provided 
 by Parliament. 
 
 (2) Subject to the provisions of this 
 Part of this Act, every workman em- 
 ployed within the United Kingdom in 
 an insured trade, and every employer 
 of any such workman, shall be liable 
 to pay contributions at the rates speci- 
 fied in the Eighth Schedule to this Act. 
 
 (3) Except 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 payable by himself, and 
 
146 
 
 THE PEOPLE'S INSURANCE 
 
 also on behalf of and to the exclusion 
 of the workman, the contribution pay- 
 able by such workman, and subject to 
 such regulations shall be entitled not- 
 withstanding the provisions of any Act 
 or any contract to the contrary, to re- 
 cover from the workman by deductions 
 from the workman's wages or from any 
 other payment due from him to the 
 workman the amount of the contribu- 
 tions 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 other payment due to the work- 
 man, or otherwise recover from the 
 workman by any legal process the con- 
 tributions payable by the employer 
 himself. 
 
 (5) Subject to the provisions of this 
 Part of this Act, 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 par- 
 ticular 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 de- 
 
 livery up of books or cards and 
 the replacement of books or 
 cards which have been lost, de- 
 stroyed, or defaced. 
 
 (6) A contribution shall be made in 
 each year out of moneys provided by 
 Parliament equal to one-third of the 
 total contributions received from em- 
 ployers and workmen during that year, 
 and the sums to be contributed in any 
 year shall be paid in such manner and 
 
 at such times as the Treasury may 
 determine. 
 
 Statutory Conditions for Receipt of 
 Unemployment Benefit 
 
 86. The statutory conditions for 
 the receipt of unemployment benefit by 
 any workman are 
 
 (1) that he proves that he has been 
 
 employed as a workman in an 
 insured trade in each of not 
 less than twenty-six separate 
 calendar weeks in the preceding 
 five years ; 
 
 (2) that he has made application for 
 
 unemployment benefit in the 
 prescribed manner, and proves 
 that since the date of the appli- 
 cation he has been continuously 
 unemployed ; 
 
 (3) that he is capable of work but 
 
 unable to obtain suitable em- 
 ployment ; 
 
 (4) that he has not exhausted his 
 
 right to unemployment 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 
 
 (a) an offer of employment in a 
 
 situation vacant in consequence 
 of a stoppage of work due to a 
 trade dispute; or 
 
 (b) an offer of employment in the 
 
 district where he was last or- 
 dinarily employed at a rate of 
 wage lower, or on conditions 
 less favourable, than those 
 which he habitually obtained in 
 his usual employment in that 
 district, or would have obtained 
 had he continued to be so em- 
 ployed; or 
 
 (c) an offer of employment in any 
 
 other district at a rate of wage 
 
THE PEOPLE'S INSURANCE 
 
 lower or on conditions less 
 favourable than those generally 
 observed in such district by 
 agreement between associations 
 of employers and of workmen, 
 or, failing any such agreement, 
 than those generally recognised 
 in such districts by good em- 
 ployers. 
 
 Disqualifications for Unemployment 
 Benefit 
 
 87. (i) A workman who has lost 
 employment by reason of a stoppage 
 of work which is due to a trade dispute 
 at the factory, workshop, or other pre- 
 mises at which he was employed shall 
 be disqualified for receiving unemploy- 
 ment benefit so long as the stoppage of 
 work continues, except in a case where 
 he has, during the stoppage of work, 
 become bond fide employed elsewhere 
 in an insured trade. 
 
 Where separate branches of work 
 which are commonly carried on as 
 separate businesses in separate prem- 
 ises are in any case carried on in 
 separate departments on the same 
 premises, each of those departments 
 shall, for the purposes of this pro- 
 vision, be deemed to be a separate fac- 
 tory or workshop or separate premises, 
 as the case may be. 
 
 (2) A workman who loses employ- 
 ment through misconduct or who 
 voluntarily leaves his employment 
 without just cause shall be disqualified 
 for receiving unemployment benefit for 
 a period of six weeks from the date 
 when he so lost employment. 
 
 (3) A workman shall be disqualified 
 for receiving unemployment benefit 
 whilst he is an inmate of any prison or 
 any workhouse or other institution sup- 
 ported wholly or partly out of public 
 funds, and whilst he is resident tem- 
 
 H7 
 
 porarily or permanently outside the 
 United Kingdom. 
 
 (4) A workman shall be disqualified 
 for receiving unemployment benefit 
 while he is in receipt of any sickness 
 or disablement benefit or disablement 
 allowance under Part I. of this Act. 
 
 Determination of Claims 
 
 88. (i) All claims for unemploy- 
 ment benefit under this Part of this Act, 
 and all questions whether the statutory 
 conditions are fulfilled 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 s disqualified for receiving 
 or continuing to receive such benefit, 
 or otherwise arising in connection with 
 such claims, shall be determined by 
 one of the officers appointed under this 
 Part of this Act for determining such 
 claims for benefit (in this Act referred 
 to as " insurance officers ") : 
 Provided that 
 
 (a) in any case where unemploy- 
 ment benefit is refused or 
 is stopped, or where the 
 amount of the benefit allowed 
 is not in accordance with the 
 claim, the workman may re- 
 quire the insurance officer to 
 report the matter to a court 
 of referees constituted in ac- 
 cordance with this Part of this 
 Act, and the referees after 
 considering the circumstances 
 may make to the insurance 
 officer such recommendations 
 on the case as they may think 
 proper, and the insurance 
 officer shall, unless he dis- 
 agrees, give effect to those 
 recommendations. If the in- 
 surance officer disagrees with 
 
148 
 
 THE PEOPLE'S INSURANCE 
 
 any such recommendation 
 he shall, if so requested 
 by the court of referees, refer 
 the recommendation, with his 
 reasons for disagreement, to 
 the umpire appointed under 
 this Part of this Act, whose 
 decision shall be final and 
 conclusive ; 
 
 (b) the insurance officer in any 
 case in which he considers it 
 expedient to do so may, in- 
 stead of himself determining 
 the claim or question, refer it 
 to a court of referees, who 
 shall in such case determine 
 the question, and the decision 
 of the court of referees shall 
 be final and conclusive. 
 
 (2) Nothing in this section shall be 
 construed as preventing an insurance 
 officer or umpire, or a court of re- 
 ferees, on new facts being brought to 
 his or their knowledge, revising a deci- 
 sion 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 
 recommendation, and the foregoing 
 provisions of this section shall apply 
 accordingly, without prejudice to the 
 retention of any benefit which may 
 have been received under the decision 
 or recommendation which has been 
 revised. 
 
 (3) The Arbitration Act, 1889, shall 
 not apply to proceedings 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 regula- 
 tions may apply all or any of the 
 provisions of the Common Law Pro- 
 cedure (Ireland) Act, 1856, with respect 
 to arbitration. 
 
 Appointment of Umpire, Insurance 
 Officers, Inspectors, etc. 
 
 89. (i) For the purposes of this 
 Part of this Act an umpire may b( 
 appointed by His Majesty and insur- 
 ance 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 appointed to 
 act for such areas as the Board direct. 
 
 (2) The Board of Trade may appoint 
 such other officers, inspectors, and ser- 
 vants for the purposes of this Part of 
 this Act as the Board may, with the 
 sanction of the Treasury, determine, 
 and there shall be paid out of moneys 
 provided by Parliament to the umpire 
 and insurance 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 to such amount as may be 
 sanctioned by the Treasury shall be 
 defrayed out of moneys provided by 
 Parliament : 
 
 Provided that such sum as the Trea- 
 sury may direct, not exceeding one- 
 tenth of the receipts, other than ad- 
 vances by the Treasury, paid into the 
 unemployment fund on income account 
 shall, in accordance with regulations 
 made by the Treasury, be applied as 
 an appropriation in aid of money pro- 
 vided by Parliament for the purpose of 
 such salaries, remuneration, and ex- 
 penses. 
 
 Courts of Referees 
 
 90. (i) A court of referees for the 
 purposes of this Part of this Act shall 
 consist of one or more members chosen 
 to represent employers, with an equal 
 number of members chosen to repre- 
 
THE PEOPLE'S INSURANCE 
 
 149 
 
 sent workmen, and a chairman ap- 
 pointed 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 consti- 
 tution of courts of referees shall be 
 determined by regulations made by the 
 Board of Trade. 
 
 (4) The regulations of the Board of 
 Trade may further provide for the 
 reference to referees chosen from the 
 panels constituted under this section, 
 for consideration and advice, of ques- 
 tions bearing upon the administration 
 of this Part of this Act, and for the 
 holding of meetings of referees for the 
 purpose. 
 
 (5) The Board of Trade may pay 
 such remuneration to the chairman and 
 other members of a court of referees 
 and such travelling and other allow- 
 ances (including compensation for loss 
 of time) to persons required to attend 
 before any such court, and such other 
 expenses in connection with any re- 
 ferees, as the Board, with the sanction 
 of the Treasury, determine, and any 
 such payments shall be treated as ex- 
 penses incurred by the Board of Trade 
 in carrying this Part of this Act into 
 effect. 
 
 Regulations 
 
 91. (i) The Board of Trade may 
 make regulations for any of the pur- 
 poses for which regulations 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 permitting workmen who are 
 
 employed under the same em- 
 ployer partly in an insured trade 
 and partly not in an insured trade 
 to be treated with the consent of 
 the employer as if they were 
 wholly employed in an insured 
 trade; and 
 
 (b) for giving employers and work- 
 
 men and the Board of Trade an 
 opportunity of obtaining a 
 decision by the umpire ap- 
 pointed under this Part of this 
 Act on any question whether 
 contributions under this Part of 
 this Act are payable in respect 
 of any workman or class of 
 workmen, and for securing that 
 a workman, in whose case con- 
 tributions have been paid in ac- 
 cordance with any such decision, 
 shall, as respects any unemploy- 
 ment benefit payable in respect 
 of those contributions, be 
 treated as a workman employed 
 in an insured trade, and for 
 securing that employers and 
 workmen shall be protected from 
 proceedings and penalties in 
 cases where, in accordance with 
 any such decision, they have 
 paid or refrained from paying 
 contributions; and 
 
 (c) for prescribing the evidence to 
 
 be required as to the fulfilment 
 of the conditions and qualifica- 
 tions for receiving or continuing 
 to receive unemployment bene- 
 fit, and for that purpose requir- 
 ing the attendance of workmen 
 at such offices or places and at 
 such times as may be required ; 
 and 
 
 (d) for prescribing the manner in 
 
150 
 
 THE PEOPLE'S INSURANCE 
 
 which claims for unemployment 
 benefit may 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 officers, courts of 
 referees, and umpire, and the 
 mode in which any question may 
 be raised as to the continuance, 
 in the case of a workman in re- 
 ceipt of unemployment benefit, 
 of such benefit, and for making 
 provision with respect to the ap- 
 pointment of a deputy umpire in 
 the case of the unavoidable ab- 
 sence or incapacity of the 
 umpire; and 
 
 (e) with respect to the payment of 
 contributions and benefits during 
 any period intervening between 
 any application for the decision 
 of any question or any claim for 
 benefit, and the final determina- 
 tion of the question or claim ; 
 and 
 
 (/) for providing that where any 
 workmen are employed in or 
 for the purposes of the business 
 of any person, but are not 
 actually employed by that per- 
 son, that person may be treated 
 for the purposes of this Part of 
 this Act as their employer in- 
 stead of their actual employer, 
 and for allowing that person to 
 deduct from any payments made 
 by him to the actual employer 
 any sums paid by him as con- 
 tributions on behalf of the work- 
 men, and for allowing the actual 
 employer to recover the like 
 sums from the workmen ; and 
 generally for carrying this Part 
 of this Act into effect, and any 
 regulations so made shall have 
 effect as if enacted in this Act. 
 
 Any regulations made under this 
 section for giving an opportunity of 
 obtaining a decision of the umpire 
 may be brought into operation as soon 
 as may be after the passing of this 
 Act. 
 
 (2) The regulations may, with the 
 concurrence of the Postmaster-General, 
 provide for enabling claimants of un- 
 employment benefit to make their 
 claims for unemployment benefit under 
 this Act through the Post Office, and 
 for the payment of unemployment 
 benefit through the Post Office. 
 
 (3) All regulations made under this 
 section shall be laid before each House 
 of Parliament as soon as may be after 
 they are made, and if an address is 
 presented to His Majesty by either 
 House of Parliament within the next 
 subsequent forty days on which that 
 House has sat next after any such regu- 
 lation is laid before it, praying that the 
 regulation may be annulled, it shall 
 thenceforth be void, but without pre- 
 judice to the validity of anything pre- 
 viously done thereunder, or to the 
 making of any new regulation. 
 
 Unemployment Fund 
 
 92. (i) For the purposes of this 
 Part of this Act there shall be estab- 
 lished under the control and manage- 
 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 provided 
 by Parliament, and out of which 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 unemploy- 
 ment fund shall be audited by the 
 
THE PEOPLE'S INSURANCE 
 
 Comptroller and Auditor-General in 
 such manner as the Treasury may 
 direct. 
 
 (3) Any moneys forming part of the 
 unemployment fund may from time to 
 time be paid over to the National Debt 
 Commissioners and by them 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 moneys. 
 
 (4) The National Debt Commis- 
 sioners shall present to Parliament 
 annually an account of the securities in 
 which moneys forming part of the said 
 fund are for the time being invested. 
 
 Treasury Advances 
 
 93. (i) The Treasury may out of 
 the Consolidated Fund or the growing 
 produce thereof advance on the security 
 of the unemployment fund any sums 
 required for the purpose of discharging 
 the liabilities of that fund under this 
 Part of this Act : Provided that the 
 total amount of advances outstanding 
 at any time shall not exceed three mil- 
 lion pounds. 
 
 (2) If whilst any part of any such 
 advance is outstanding it appears to 
 the Treasury that the unemployment 
 fund is insolvent, the Board of Trade 
 shall, if the Treasury so direct, by 
 order, make such temporary modifica- 
 tions in any of the rates of contribu- 
 tion, or the rates or periods of unem- 
 ployment benefit, and during such 
 period, as the Board of Trade think fit, 
 and as will on the whole, in the 
 opinion of the Treasury, be sufficient 
 to secure the solvency of the unem- 
 ployment fund : 
 
 Provided that no order made under 
 this subsection shall reduce the weekly 
 
 rate of unemployment benefit below the 
 sum of five shillings, or shall increase 
 the rates of contribution from em- 
 ployers or workmen by more than one 
 penny per workman per week, or in- 
 crease those rates unequally as between 
 employers and workmen, and no such 
 order shall remain in force more than 
 three months after all the advances and 
 interest thereon have been repaid, or 
 come into force until one month after 
 it is made. 
 
 (3) An order under this section shall 
 not be made so as to be in force at any 
 time while any previous order made 
 under this section is in force. 
 
 (4) On any such order being made 
 the Board of Trade shall cause the 
 order, together with a special report 
 as to the reasons for making the 
 order, to be laid before Parliament. 
 
 (5) The Treasury may for the pur- 
 pose of providing for the issue of sums 
 out of the Consolidated Fund under this 
 section, or for the repayment to that 
 fund of all or any part of the sums so 
 issued, or for paying off any security 
 issued under this section, so far as that 
 payment is not otherwise provided for, 
 borrow money by means of the issue of 
 Exchequer bonds or Treasury bills, and 
 all sums so borrowed shall be paid into 
 the Exchequer. 
 
 (6) The principal of and interest on 
 any Exchequer bonds issued under this 
 section shall be charged on and pay- 
 able out of the Consolidated Fund of 
 the United Kingdom or the growing 
 produce thereof. 
 
 (7) Notwithstanding anything in any 
 other Act, money in the hands of the 
 National Debt Commissioners for the 
 reduction of the National Debt shall 
 not be applied to purchasing, reducing, 
 or paying off any Exchequer bonds or 
 Treasury bills issued under this sec- 
 tion. 
 
I 5 2 
 
 THE PEOPLE'S INSURANCE 
 
 Refund of Part of Contributions Paid 
 by Employer in the case of Workmen 
 Continuously employed 
 
 94. (i) The Board of Trade shall, 
 on the application of any employer made 
 within one month after the termination 
 of any calendar year, or other pre- 
 scribed period of twelve months, refund 
 to such employer out of the unemploy- 
 ment fund a sum equal to one-third of 
 the contributions (exclusive of any con- 
 tributions refunded to him under any 
 other provisions of this Part of this Act) 
 paid by him on his own behalf during 
 that period in respect of any workman 
 who has been continuously in his ser- 
 vice through the period, and in respect 
 of whom not less than forty-five contri- 
 butions have been paid during the 
 period. 
 
 (2) For the purpose of meeting any 
 change in the period for which any 
 refund of contributions is to be made 
 under the foregoing provisions of this 
 section, or for the purpose of making 
 provision for any period which may 
 elapse between the date on which con- 
 tributions commenced to be payable 
 under this Part of this Act, and the 
 date on which the first period for the 
 refund of contributions under the fore- 
 going provisions of this section com- 
 mences, the Board of Trade may, so 
 far as necessary for the purpose, apply 
 the provisions of this section to any 
 period less than twelve months, sub- 
 ject to such proportionate reduction of 
 the number of contributions required as 
 they direct, and this section shall take 
 effect as regards any such period of less 
 than twelve months as so applied. 
 
 Repayment of Part of Contributions by 
 Workmen in Certain Cases 
 
 95. (i) If it is shown to the satis- 
 faction of the Board of Trade by any 
 
 workman or his personal representa- 
 tives that the workman has paid con- 
 tributions in accordance with the pro- 
 visions of this Part of this Act in 
 respect of five hundred weeks or up- 
 wards, and that the workman has 
 reached the age of sixty, or before his 
 death had reached the age of sixty, the 
 workman or his representatives shall be 
 entitled 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 un- 
 employment fund under this Act, to- 
 gether with compound interest at the 
 rate of two and a half per cent, per 
 annum calculated in the prescribed 
 manner. 
 
 (2) A repayment to a workman under 
 this section shall not affect his liability 
 to pay contributions under this Part of 
 this Act, and, if after any such repay- 
 ment he becomes entitled to unem- 
 ployment benefit, he shall be treated as 
 having paid in respect of the period for 
 which the repayment has been made 
 the full number of contributions which 
 is most nearly equal to five-eighths of 
 the number of contributions actually 
 paid during that period. 
 
 Refund of Contributions Paid in respect 
 of Workmen Working Short Time 
 
 96. (i) If any employer satisfies the 
 Board of Trade that during any period 
 of depression in his business workmen 
 employed by him have been systematic- 
 ally working short time, and that during 
 such period he has paid contributions 
 under this Part of this Act on behalf of 
 such workmen, as well as on his own 
 behalf, without recovering such con- 
 tributions from such workmen either 
 by way of deductions from wages or 
 otherwise, there shall be refunded to 
 him out of the unemployment fund in 
 
THE PEOPLE'S INSURANCE 
 
 '53 
 
 accordance with regulations made by 
 the Board of Trade the contributions 
 so paid by him in respect of those 
 workmen (including 1 those paid on be- 
 half of the workmen as well as those 
 paid on his own behalf), for the period 
 or such part thereof as in the circum- 
 stances may seem just : 
 
 Provided that, except in a case where 
 the working of short time has been 
 effected by stopping the work for some 
 day in the week which has been usually 
 recognised as a working day of at least 
 four hours in the trade and district, 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 recognised 
 as constituting a full week's work at 
 that time in the trade and district. 
 
 (2) Any employer who desires to 
 take advantage of this section may 
 make an application to the Board of 
 Trade with a view to obtaining their 
 ruling as to the circumstances under 
 which, and the means by which, he 
 proposes to effect a reduction of work- 
 ing hours, and the Board of Trade 
 may, if they think fit, on the necessary 
 information being supplied, give their 
 ruling as to whether the circumstances 
 are such, and the proposed means of 
 reducing working hours are such, as to 
 satisfy the requirements of this 
 section. 
 
 Saving for Occasional Employment in 
 Rural Neighbourhoods 
 
 97. Where a workman is employed 
 in a district which is rural in its 
 character, and the workman usually 
 follows in that district some occu- 
 pation other than an insured trade, 
 and is employed in an insured trade 
 occasionally only, contributions under 
 this Part of this Act shall not be pay- 
 
 able in respect of the workman, except 
 in cases where the employer and the 
 workman agree that contributions shall 
 be payable notwithstanding this pro- 
 vision. 
 
 Payment of Contributions in case of 
 Reservists or Territorials during 
 Training , 
 
 98. Where a man of the Naval Re- 
 serves, the Army Reserve, or the Terri- 
 torial Force, is being trained and is in 
 receipt of pay out of the moneys pro- 
 vided by Parliament for Navy or Army 
 services, and immediately before the 
 training was employed in an insured 
 trade, he shall, for the purposes of this 
 Part of this Act, be deemed, whilst so 
 training, to be in the employment of 
 the Crown in an insured trade. 
 
 Provisions with respect to Workmen 
 Engaged through Labour Exchanges 
 
 99. (i) The Board of Trade may in 
 such cases, and on such conditions as 
 the Board may prescribe, make an 
 arrangement with any employer liable 
 to pay contributions under any part of 
 this Act whereby in respect of workmen 
 engaged by him through a Labour Ex- 
 change, or in his employ at the date 
 of such arrangement, the performance 
 of all or any of the duties required 
 under any part of this Act to be per- 
 formed by the employer in respect of 
 those workmen, whether on his own 
 behalf or on behalf of the workmen, 
 shall be undertaken on behalf of the 
 employer by the Labour Exchange, and 
 whereby in respect of such workmen 
 different periods of employment, 
 whether of the same workmen or dif- 
 ferent workmen, may for the purposes 
 of the employer's contributions under 
 this Part of this Act, but not for the 
 purposes of a refund of any part of the 
 
THE PEOPLE'S INSURANCE 
 
 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 em- 
 ployment during which a workmen en- 
 gaged through a Labour Exchange is 
 employed by one or more employers 
 with whom such an arrangement has 
 been made, may, subject to regulations 
 made by the Board of Trade, on the 
 application of the workman, be treated 
 for the purposes of his contributions 
 under this Part of this Act as a con- 
 tinuous period of employment under 
 one employer, and those regulations 
 may provide for the refund of part of 
 his contributions under this Part of 
 this Act accordingly. 
 
 Subsidiary Provisions 
 
 100. (i) If the repeated failure of 
 any insured workman to obtain or re- 
 tain employment appears to the insur- 
 ance officer to be wholly or partly due 
 to defects in skill or knowledge, the in- 
 surance officer may, if he thinks fit, 
 for the purpose of testing the skill or 
 knowledge of the workman, offer to 
 arrange for the attendance of the work- 
 man at a suitable place for the purpose, 
 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 pro- 
 duce satisfactory evidence of his com- 
 petence, or if as a result of the 
 test the insurance officer considers 
 that the skill or knowledge of the 
 workman is defective, and that there 
 is no reasonable prospect of such de- 
 fects being remedied, such facts shall 
 be taken into consideration in deter- 
 mining what is suitable employment for 
 the workman. 
 
 If in any case as a result of 
 the test the insurance officer con- 
 siders that the skill or knowledge 
 of the workman is defective, but 
 that there t is a reasonable pros- 
 pect of the defects being remedied by 
 technical instruction, the insurance 
 officer may, subject to any directions 
 given by the Board of Trade, pay out 
 of the unemployment fund all or any of 
 the expenses incidental to the provision 
 of the instruction, if he is of opinion 
 that the charge on the unemployment 
 fund in respect of the workman is likely 
 to be decreased by the provision of the 
 instruction. 
 
 (2) The regulations of the Board of 
 Trade made under this Part of this Act 
 shall provide for the return to a work- 
 man who is not a workman in an in- 
 sured trade and to his employer of any 
 contributions paid by them respectively 
 under the belief that the workman was 
 a workman in an insured trade, sub- 
 ject, in the case of the workman's con- 
 tributions, to the deduction of any 
 amount received by him in respect of 
 unemployment benefit under a similar 
 belief. 
 
 (3) Where under regulations made 
 by the Board of Trade any sum has 
 been paid out of the unemployment 
 fund by way of reward for the return 
 of a book or card which has been lost, 
 the person responsible for the custody 
 of the book or card at the time of its 
 loss shall be liable to repay the sum so 
 paid, not exceeding one shilling, in 
 respect of any one occasion. 
 
 Offences and Proceedings for Recovery 
 of Contributions, etc. 
 
 10 1. (i) If for the purpose of ob- 
 taining any benefit or payment under 
 this Part of this Act, either for himself 
 or for any other person, or for the pur- 
 
THE PEOPLE'S INSURANCE 
 
 '55 
 
 pose of avoiding any payment to be 
 made by himself under this Part of this 
 Act, or enabling any other person to 
 avoid any such payment, any person 
 knowingly makes any false statement 
 or false representation, he shall be 
 liable on summary conviction to im- 
 prisonment for a term not exceeding 
 three months, with or without hard 
 labour. 
 
 (2) If any employer or workman has 
 failed to pay any contributions which 
 he is liable under this Part of this Act 
 to pay, or if any employer or workman 
 or any other person refuses or neglects 
 to comply with any of the requirements 
 of this Part of this Act, or the regula- 
 tions made thereunder, he shall for 
 each offence be liable on summary con- 
 viction to a fine not exceeding ten 
 pounds, and also, where the offence is 
 failure or neglect to make any contri- 
 bution 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 
 (not exceeding five pounds), which 
 sum, when paid, shall be treated as' 
 a payment in satisfaction of the con- 
 tributions 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 preventing the Board of 
 Trade from recovering any sums due 
 to the unemployment fund by means of 
 civil proceedings, and all such sums 
 shall be recoverable in such proceed- 
 ing's as debts due to the Crown. 
 
 (5) If it is found at any time that a 
 
 person has been in receipt of unemploy- 
 ment benefit under this Part of this 
 Act whilst the statutory conditions 
 were not fulfilled in his case or whilst 
 he was disqualified for receiving un- 
 employment benefit, he 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 ful- 
 filled 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. 
 
 (6) In any proceedings under this 
 section, or in any proceedings involv- 
 ing any question as to the payment of 
 contributions under this Part of this 
 Act, or for the recovery of any sums 
 due to the unemployment fund, the 
 decision of the umpire appointed under 
 this Part of this Act on any question 
 arising, whether the trade in which the 
 workman is or has been employed is 
 an insured trade or not shall be conclu- 
 sive for the purpose of these proceed- 
 ings, and if no such decision has been 
 obtained and the decision of the ques- 
 tion is necessary for the determination 
 of the proceedings the question shall be 
 referred, in accordance with the regu- 
 lations made under this Part of this 
 Act, to the umpire for the purpose of 
 obtaining such a decision. 
 
 Periodical Revision of Bates of Con- 
 tribution 
 
 102. If at any time after the expira- 
 tion of seven years from the commence- 
 ment of this Act it appears to the 
 Board of Trade that the unemployment 
 fund is insufficient or more than suffi- 
 cient to discharge the liabilities imposed 
 upon the fund under this Part of this 
 Act, or that the rates of contribution 
 
 F 2 
 
i S 6 
 
 THE PEOPLE'S INSURANCE 
 
 are excessive or deficient as respects 
 any particular insured trade, or any 
 particular branch of any such trade, the 
 Board may, with the sanction of the 
 Treasury, by special order made in 
 manner hereinafter 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 prescribed 
 by the order shall as from such date as 
 may be specified in the order be sub- 
 stituted as respects trades or branches 
 thereof to which it relates for the rates 
 prescribed by this Act : 
 
 Provided that where such a revision 
 has been made no further revision 
 under this section shall be made before 
 the expiration of seven years from the 
 last revision, and that no order under 
 this section shall increase the rates of 
 contribution from employers or work- 
 men by more than one penny per work- 
 man per week above the rates specified 
 in the Eighth Schedule to this Act, or 
 shall vary such rates unequally as be- 
 tween employers and workmen. 
 
 Power to Extend to Other Trades 
 
 103. If it appears to the Board that 
 it is desirable to extend the provisions 
 of this Part of this Act to workmen in 
 any trade other than an insured trade, 
 or to vary the definition of " workman " 
 with respect to the age of the persons 
 included therein, either generally or for 
 any particular insured trade, or any 
 particular branch of any such trade, the 
 Board may, with the consent of the 
 Treasury, make, in manner herein- 
 after provided, a special order extend- 
 
 ing this Part of this Act to such work- 
 men or so varying the definition of 
 "workman," as the case may be, either 
 without modification or subject to such 
 modifications of rates of contribution 
 or rates or periods of benefit as may be 
 contained in the order, and on any such 
 order being made, this Part of this Act 
 shall, subject to the modifications (if 
 any) contained in the order, apply as if 
 the trade mentioned in the order were 
 an insured trade, or as if the definition 
 of "workman" were varied in accord- 
 ance with the order, as the case may 
 be, and as if the rates of contribution 
 and the rates and periods of benefit 
 mentioned in the order were the rates 
 of contribution and the rates and 
 periods of benefit provided by this Part 
 of this Act in respect of such trade : 
 
 Provided that no such order shall be 
 made if the person holding the 
 inquiry in relation to the order 
 reports that the order should not be 
 made, or if the order would, in the 
 opinion of the Treasury, increase the 
 contribution to the unemployment fund 
 out of moneys provided by Parliament 
 to a sum exceeding one million pounds 
 a year before the expiration of three 
 years from the making of the order, 
 and that the rates of contribution men- 
 tioned in the order shall not exceed the 
 rates specified in the Eighth Schedule 
 to this Act, and shall be imposed 
 equally as between employers and 
 workmen. 
 
 Exclusion of Subsidiary Occupations 
 
 104. The Board of Trade may, if in 
 any case they consider that it is desir- 
 able, by special order exclude from the 
 occupations which are to be deemed 
 employment in an insured trade for the 
 purpose of this Part of the Act 
 
THE PEOPLE'S INSURANCE 
 
 (a) Any occupation which appears to 
 
 them to be common to insured 
 and uninsured trades alike, and 
 ancillary only to the purposes of 
 an insured trade ; and 
 
 (b) Any occupation which appears to 
 
 them to be an occupation in a 
 business which, though con- 
 cerned with the making- of parts 
 or the preparation of materials 
 for use in connection with an in- 
 sured trade, is mainly carried on 
 as a separate business or in 
 connection with trades other 
 than insured trades ; 
 and on any such order being made the 
 occupation to which the order relates 
 shall not be treated as employment in 
 an insured trade for the purposes of 
 this Part of this Act. 
 
 Any special order made under this 
 section may be made so as to cover one 
 or more occupations. The provisions 
 of this Part of this Act as to the laying 
 of regulations before Parliament and 
 the presentation of an Address thereon 
 shall apply to special orders made under 
 this section. 
 
 Arrangements with Associations of 
 Workmen in Insured Trade who 
 make Payments to Members whilst 
 Unemployed 
 
 105. (i) The Board of Trade may, 
 on the application of any association of 
 workmen the rules of which provide for 
 payments to its members, being work- 
 men in an insured trade, or any class 
 thereof, whilst unemployed, make an 
 arrangement with such association 
 that, in lieu of paying unemployment 
 benefit under this part of this Act to 
 workmen who prove that they are 
 members of the association, there shall 
 be repaid periodically to the associa- 
 
 tion out of the unemployment fund 
 such sum as appears 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 arrange- 
 ment had been made, but in no case 
 exceeding three-fourths of the amount 
 of the payments made during that 
 period by the association to such work- 
 men as aforesaid whilst unemployed. 
 
 (2) The council or other governing 
 body of any association of workmen 
 which has made such an arrangement 
 as aforesaid shall be entitled to treat 
 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 payable by 
 those members to the association, and, 
 notwithstanding anything in the rules 
 of the association to the contrary, may 
 reduce the rates of subscription of 
 those members accordingly. 
 
 (3) For the purpose of determining 
 whether a workman 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 him by way of unem- 
 ployment benefit shall be deemed to 
 have been so paid. 
 
 (4) The Board of Trade may make 
 regulations for giving effect to this sec- 
 tion, and for referring to the umpire 
 appointed under this Part of this Act 
 any question which may arise under 
 this section. 
 
 (5) The fact that persons other than 
 workmen can be members of an asso- 
 ciation shall not prevent the associa- 
 tion being treated as an association of 
 workmen for the purposes of this se< 
 tion, if the association is substantially 
 an association of workmen. 
 
i 5 8 
 
 THE PEOPLE'S INSURANCE 
 
 Repayments to Associations who make 
 payments to Persons, whether 
 Workmen in Insured Trade or not, 
 whilst Unemployed 
 
 106. (i) The Board of Trade may, 
 with the consent of the Treasury, and 
 on such conditions and either annually 
 or at such other intervals as the Board 
 may prescribe, repay out of moneys 
 provided by Parliament to any associa- 
 tion of persons not trading for profit 
 the rules of which provide for pay- 
 ments to persons whilst unemployed, 
 whether workmen in an insured trade 
 or not, such part (in no case exceeding- 
 one-sixth) as they think fit, of the 
 aggregate amount which the associa- 
 tion has expended on such payments 
 during the preceding year or other pre- 
 scribed period, exclusive of the sum (if 
 any) repaid to the association in re- 
 spect of such period in pursuance of an 
 arrangement under the last foregoing 
 section, and exclusive in the case of 
 payments which exceed twelve shillings 
 a week of so much of those payments 
 as exceeds that sum. 
 
 (2) No repayment shall be made 
 under this section in respect of any 
 period before the expiration of six 
 months from the commencement of this 
 Act. 
 
 (3) The Board of Trade may make 
 regulations for giving effect to this 
 section, and for determining the mode 
 in which questions arising under this 
 section shall be settled. 
 
 Interpretation and Application 
 
 107. (i) For the purposes of this 
 Part of this Act 
 
 The expression "workman" 
 means any person of the 
 age of sixteen or upwards 
 employed wholly or mainly by 
 
 way of manual labour, who 
 has entered into or works 
 under a contract of service 
 with an employer, whether 
 the contract is expressed or 
 implied, is oral or in writing, 
 and in relation to a person 
 whilst unemployed means a 
 person who, when employed, 
 fulfilled the conditions afore- 
 said, but does not include an 
 indentured apprentice ; 
 
 Contributions made by an em- 
 ployer on behalf of a workman 
 shall be deemed to be contri- 
 butions by the workman ; 
 
 Two periods of unemployment of 
 not less than two days each, 
 separated by a period of not 
 more than two days, during 
 which the workman has not 
 been employed for more than 
 twenty-four hours, or two 
 periods of unemployment of 
 not less than one week each, 
 separated by an interval of not 
 more than six weeks, shall be 
 treated as a continuous 
 period of unemployment, and 
 the expression "continuously 
 unemployed " shall have a 
 corresponding meaning; 
 
 Temporary work provided by a 
 central body or distress com- 
 mittee under the Unemployed 
 Workmen Act, 1905, or to- 
 wards the provision of which 
 any such central body or dis- 
 tress committee has contri- 
 buted under that Act, shall 
 not be deemed to be employ- 
 ment in an insured trade. 
 
 A workman shall not be deemed to 
 be unemployed whilst he is 
 following any remunerative 
 occupation in an insured 
 trade, or whilst he is follow- 
 
THE PEOPLE'S INSURANCE 
 
 '59 
 
 ing any other occupation from 
 which he derives any re- 
 muneration or profit greater 
 than that which he would 
 derive from the receipt of un- 
 employment benefit under this 
 Part of this Act. 
 
 A workman shall not for the pur- 
 poses of contributions be 
 deemed to be employed in any 
 period in respect of which 
 he receives no remuneration 
 from his employer notwith- 
 standing that he continues 
 during such period in his 
 employment. 
 
 The expression " trade dispute " 
 means any dispute between 
 employers and workmen, or 
 between workmen and work- 
 men, which is connected with 
 the employment or non- 
 employment, or the terms of 
 employment, or with the con- 
 ditions of labour, of any per- 
 sons, whether workmen in the 
 employment of the employer 
 with whom the dispute arises 
 or not. 
 
 (2) In determining any question as to 
 whether any trade in which a workman 
 is or has been employed is an insured 
 trade or not, regard shall be had to 
 the nature of the work in which the 
 workman is engaged rather than to the 
 business of the employer by whom he 
 is employed. 
 
 (3) This Part of this Act shall apply 
 to workmen employed 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 
 
 provisions of this Part of this Act to 
 the case of such workmen. 
 
 (4) If the Board of Trade are satis- 
 fied that any class of workmen are, 
 having regard to their claim to pen- 
 sion or to the other terms of their ser- 
 vice, in as permanent a position as 
 that of persons serving in an estab- 
 lished capacity in the permanent ser- 
 vice of the Crown, the Board of Trade 
 may exempt that class of persons from 
 the provisions of this Part of this Act, 
 and any persons so exempt shall not 
 be deemed to be workmen. 
 
 PART III. 
 
 GENERAL. 
 Provisions as to Stamps 
 
 1 08. Stamps required for the pur- 
 poses of this Act shall be prepared and 
 issued in such manner as the Commis- 
 sioners of Inland Revenue with the 
 consent of the Treasury may direct, 
 and the said Commissioners may by 
 regulations in accordance with the pro- 
 visions of Part I. of this Act relating 
 to regulations by the Insurance Com- 
 missioners provide for applying, 
 with the necessary adaptations, as 
 respects such stamps, all or any of the 
 provisions (including penal provisions) 
 of the Stamp Duties Management Act, 
 1891, as amended by any subsequent 
 Act, and section sixty-five of the Post 
 Office Act, 1908, and may with the 
 consent of the Postmaster-General 
 provide for the sale of such stamps 
 through the Post Office. 
 
 Outdoor Relief 
 
 109. In granting outdoor relief to a 
 person in receipt of or entitled to re- 
 ceive any benefit under this Act, a 
 
i6o 
 
 THE PEOPLE'S INSURANCE 
 
 Board of Guardians shall not take into 
 consideration any such benefit, except 
 so far as such benefit exceeds five 
 shillings a week. 
 
 Priority of Claims for Contributions due 
 by Bankrupt Employers 
 
 no. (i) There shall be included 
 among the debts which, under section 
 one of the Preferential Payments 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 bank- 
 rupt 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 or 
 workmen 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, 
 or the Winding-up Order, and those 
 Acts shall have effect accordingly, and 
 formal proof of the debts to which 
 priority is given under this section shall 
 not be required except in cases where 
 it may otherwise be provided by rules 
 made under the Bankruptcy Act, 1883, 
 or the Companies (Consolidation) Act, 
 1908. 
 
 (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 miner, have the like 
 priority as is conferred on wages of 
 miners by section nine of that Act, 
 and that section shall have effect ac- 
 cordingly. 
 
 (3) This section shall not apply 
 where a company is wound up volun- 
 
 tarily merely for the purposes of re- 
 construction 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, 
 and the respective dates therein men- 
 tioned shall be substituted for the 
 reference to section one of the Preferen- 
 tial Payments in Bankruptcy Act, 1888, 
 and the date of the receiving order ; 
 and an Act of Sederunt under the 
 Bankruptcy Amendment (Scotland) Act, 
 1856, shall be substituted for rules 
 under the Bankruptcy Act, 1883. 
 
 (5) In the application of this section 
 to Ireland a reference to section four 
 of the Preferential Payments in Bank- 
 ruptcy (Ireland) Act, 1889, shall be 
 substituted for the reference to section 
 one of the Preferential Payments in 
 Bankruptcy Act, 1888; and a reference 
 to general orders made under the first- 
 mentioned Act shall be substituted for 
 the reference to rules made under the 
 Bankruptcy Act, 1883 ; and any refer- 
 ence to a bankrupt 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 of a 
 bankrupt, or to the filing of the peti- 
 tion for arrangement in the case of 
 an arranging debtor. 
 
 Benefits to be Inalienable 
 
 in. 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 bankruptcy of any person en- 
 titled to any such benefit, the benefit 
 shall not pass to any trustee or othcQ 
 person acting on behalf of lv j 
 creditors., 
 
THE PEOPLE'S INSURANCE 
 
 161 
 
 Powers of Inspectors 
 
 112. (i) An inspector appointed 
 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 other 
 than a private dwelling-house 
 not being a workshop where he 
 has reasonable grounds for sup- 
 posing that any employed con- 
 tributors or workmen in an in- 
 sured trade are employed ; 
 
 (b) to make such examination and 
 
 inquiry as may be necessary for 
 ascertaining whether the pro- 
 visions of this Act are complied 
 with 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 
 to believe to be or to have been 
 an employed contributor or 
 workman in an insured trade, 
 and to require every such person 
 to be so examined, and to sign 
 a declaration 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 pre- 
 mises or place and any other person 
 employing any employed contributor 
 or workman in an insured trade, and 
 the servants and agents of any such 
 occupier or other person, and any em- 
 ployed contributor or workman in an 
 insured trade shall furnish to any in- 
 spector all such information and shall 
 
 produce for inspection all such regis- 
 ters, books, cards, and other docu- 
 ments as the inspector may reasonably 
 require. 
 
 (3) If any person wilfully delays or 
 obstructs an inspector in the exercise 
 of any power under this section or fails 
 to give such information or to produce 
 such documents as aforesaid, or con- 
 ceals or prevents or attempts to con- 
 ceal or prevent any person from ap- 
 pearing before or being examined by 
 an inspector, he shall be liable on sum- 
 mary conviction to a fine not exceeding 
 five pounds : 
 
 Provided that no one shall be re- 
 quired under this section to answer any 
 question or give any evidence tending 
 to incriminate himself. 
 
 (4) Where any such premises or 
 place are liable to be inspected by in- 
 spectors or other officers, or are under 
 the control, of some other Government 
 department, the Insurance Commis- 
 sioners or Board of Trade may make 
 arrangements with that other Govern- 
 ment department for any of the powers 
 and duties of inspectors under this sec- 
 tion being carried out by inspectors or 
 other officers of such other Govern- 
 ment department, and where such an 
 arrangement is made such inspectors 
 and officers shall have all the powers 
 of an inspector under this section. 
 
 (5) Every inspector shall be fur- 
 nished with the prescribed certificate of 
 his appointment, and on applying for 
 admission to any premises for the pur- 
 poses of this Act shall, if so required, 
 produce the said certificate to the 
 occupier. 
 
 Procedure for making Special Orders 
 
 113. (i) Sections eighty and eighty- 
 one of the Factory and Workshop Act, 
 1901, relating to the making of regula- 
 
 F* 
 
I 62 
 
 THE PEOPLE'S INSURANCE 
 
 tions under that Act, as set out and 
 adapted in the Ninth Schedule to this 
 Act, shall apply to special orders made 
 under this Act. 
 
 (2) Before a special order (other than 
 a special order excluding any occupa- 
 tion from the occupations which are to 
 be deemed employment in an insured 
 trade) comes into force it shall be laid 
 before each House of Parliament for a 
 period of not less than thirty days 
 during which the House is sitting, and 
 if either of those Houses before the 
 expiration of those thirty days presents 
 an address to His Majesty against the 
 order or any part thereof, no further 
 proceedings shall be taken thereon, 
 without prejudice to the making of any 
 new order. 
 
 Provisions as to Birth Certificates 
 
 114. Where for the purposes of this 
 Act the age of any person is required 
 to be proved by the production of a 
 certificate of birth any person shall, on 
 presenting a written requisition in such 
 form and containing such particulars as 
 may be from time to time prescribed by 
 the Local Government Board for 
 England, Scotland, or Ireland, as the 
 
 case may be, and on payment of a fee 
 of six pence, be entitled to obtain a 
 certified copy of the entry of the birth 
 of that person in the birth register, 
 under the hand of the registrar or 
 superintendent registrar having the 
 custody thereof, and forms for such 
 requisition shall on request be sup- 
 plied without any charge by every 
 registrar of births and deaths and by 
 every superintendent registrar. 
 
 Short Title and Commencement 
 
 115. This Act may be cited as the 
 National Insurance Act, 1911, and 
 shall, save as otherwise expressly pro- 
 vided by this Act, come into operation 
 on the fifteenth day of July nineteen 
 hundred and twelve : 
 
 Provided that His Majesty in Coun- 
 cil may, should necessity arise, sub- 
 stitute some subsequent date or dates 
 not being later than the first day of 
 January nineteen hundred and thirteen 
 as respects the provisions of this Act 
 relating to health insurance, and not 
 being later than the first day of 
 October nineteen hundred and twelve 
 as respects the provisions of this Act 
 relating to unemployment insurance. 
 
SCHEDULES 
 
 FIRST SCHEDULE. 
 PART I. 
 
 EMPLOYMENTS WITHIN THE MEANING OF 
 PART I. OF THIS ACT RELATING TO 
 HEALTH INSURANCE. 
 
 (a) Employment in the United King- 
 dom under any contract of service or 
 apprenticeship, written or oral, whether 
 expressed or implied, and whether the 
 employed person is paid by the em- 
 ployer or some; other person, and 
 whether under one or more employers, 
 and whether paid by time or by the 
 piece or partly by time and partly by 
 the piece, or otherwise, or, except in 
 the case of a contract of apprentice- 
 ship, without any money payment. 
 
 (b) Employment under such a con- 
 tract as aforesaid as master or a mem- 
 ber of the crew of any ship registered 
 in the United Kingdom or of any other 
 British ship or vessel 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. 
 
 (c) Employment as an outworker 
 (that is to say, a person to whom 
 articles or materials are given out to 
 be made up, cleaned, washed, altered, 
 ornamented, finished, or repaired, or 
 adapted for sale in his own home or 
 on other premises not under the con- 
 trol or management of the person who 
 
 163 
 
 gave out the articles or materials for 
 the purposes of the trade or business 
 of the last-mentioned person), unless 
 excluded by a special order made by 
 the Insurance Commissioners, and any 
 such order may exclude outworkers 
 engaged in work of any class, or out- 
 workers of any class or description 
 specified in the order, or may defer 
 the commencement of this Act as 
 respects all outworkers, and the person 
 who gave out the articles or materials 
 shall in relation to the person to 
 whom he gave them out be deemed to 
 be the employer. 
 
 (d) Employment in the United King- 
 dom in plying for hire with any vehicle 
 or vessel the use of which is obtained 
 from the owner thereof under any con- 
 tract of bailment (or in Scotland any 
 contract of letting to hire) in considera- 
 tion of the payment of a fixed sum or 
 a share in the earnings or otherwise, 
 in which case the owner shall for the 
 purposes of Part I. of this Act be 
 deemed to be the employer. 
 
 PART II. 
 
 EXCEPTIONS. 
 
 (a) Employment in the naval or 
 military service of the Crown, includ- 
 ing service in Officers Training Corps, 
 excepting as otherwise provided in 
 Part I. of this Act. 
 
 F* 2 
 
164 
 
 THE PEOPLE'S INSURANCE 
 
 (&) Employment under the Crown or 
 any local or other public authority 
 where the Insurance Commissioners 
 certify that the terms of the employ- 
 ment 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 clerk or other 
 salaried official in the service of a rail- 
 way or other statutory company, or of 
 a joint committee of two or more such 
 companies, where the Insurance Com- 
 missioners certify that the terms of em- 
 ployment, including- his rights in such 
 superannuation fund as is hereinafter 
 mentioned, are such as to secure pro- 
 vision in respect of sickness and dis- 
 ablement, on the whole, not less 
 favourable than the corresponding 
 benefits conferred by Part I. of this 
 Act, and the person so employed is 
 entitled to rights in a superannuation 
 fund established by Act of Parliament 
 for the benefit of persons in such em- 
 ploy ment, or in Ireland is entitled to 
 rights in any such superannuation fund 
 or in any railway superannuation fund 
 which may be approved by the In- 
 surance Commissioners. 
 
 (d) Employment as a teacher to 
 whom the Elementary School Teachers 
 Superannuation Act, 1898, or a scheme 
 under section fourteen of the Educa- 
 tion (Scotland) Act, 1908, or the 
 National School Teachers (Ireland) 
 Act, 1879, applies, or in the event of 
 any similar enactment being hereafter 
 passed as respects teachers or any class 
 of teachers (other than teachers in 
 public elementary schools) as a teacher 
 to whom such enactment applies. 
 
 (c) Employment as an agent paid by 
 commission or lees or a share in the 
 profits, or partly in one and partly in 
 another such ways, where the person 
 
 so employed is mainly dependent for his 
 livelihood on his earnings from some 
 other occupation, or where he is or- 
 dinarily employed as such agent by 
 more than one employer, and his em- 
 ployment under no one of such em- 
 ployers is that on which he is mainly 
 dependent for his livelihood. 
 
 (/) Employment in respect of which 
 no wages or other money payment is 
 made where the employer is the occu- 
 pier of an agricultural holding and the 
 employed person is employed thereon, 
 or where the person employed is the 
 child of, or is maintained by, the em- 
 ployer. 
 
 (g) Employment otherwise than by 
 way of manual labour and at a rate of 
 remuneration exceeding in value one 
 hundred and sixty pounds a year, or in 
 cases wlrere such employment involves 
 part-time service only at a rate of re- 
 muneration which, in the opinion of the 
 Insurance Commissioners, is equivalent 
 to a rate of remuneration exceeding 
 one hundred and sixty pounds a year 
 for whole-time service. 
 
 (h) Employment of a casual nature 
 otherwise than for the purposes of the 
 employer's trade or business, and 
 otherwise than for the purposes of any 
 game or recreation where the persons 
 employed are engaged or paid through 
 a club, and in such case the club shall 
 be deemed to be the employer. 
 
 (i) Employment of any class which 
 may be specified in a special order as 
 being of such a nature that it is or- 
 dinarily adopted as subsidiary employ- 
 ment only and not as the principal 
 means of livelihood. 
 
 (;') Employment as an outworker 
 where the person so employed is the 
 wife of an insured person and is not 
 wholly or mainly dependent for her 
 livelihood on her earnings in such em- 
 ployment. 
 
THE PEOPLE'S INSURANCE 
 
 165 
 
 (fe) Employment as a member of the 
 crew of a fishing- vessel where the 
 members of such crew are re- 
 munerated by shares in the profits or 
 the gross earnings of the working of 
 such vessel in accordance with any 
 custom or practice prevailing at any 
 port if a special order is made for the 
 purpose by the Insurance Commis- 
 sioners, and the particular custom or 
 practice prevailing at the port is one to 
 which the order applies. 
 
 (I) Employment in the service of the 
 husband or wife of the employed per- 
 son. 
 
 SECOND SCHEDULE. 
 
 RATES OF CONTRIBUTION UNDER PART I. 
 OF THIS ACT RELATING TO HEALTH 
 INSURANCE. 
 
 PART I. 
 Employed Rale. 
 
 In the case of men 
 
 a week. 
 
 women 
 
 Contributions by Employers and 
 Employed Contributors. 
 
 To be paid by the J Men 4^. a week. 
 
 Employer ... { Women $d. 
 To be paid by the 
 
 Contributor .-.. ... 3^. 
 
 In the case of employed contributors 
 of either sex of the age of 21 or up- 
 wards whose remuneration does not 
 include the provision of board and 
 lodging by their employer, and the 
 rate of whose remuneration does rot 
 exceed 25. 6d. a working- day, the 
 following- shall be the rates of contribu- 
 tion : 
 
 Where the rate of remuneration docs 
 not exceed is. 6d. a working day 
 
 A week. 
 To be paid by the j For men 6d. 
 
 Employer \ For women $d 
 
 To be paid out of 
 
 moneys provided 
 
 by Parliament id. 
 
 Where the rate of remuneration ex- 
 ceeds is. 6d., but does not exceed 2s. 
 a working- day 
 
 A week. 
 To be paid by the f For men 5^. 
 
 employer ( For women $d. 
 
 To be paid by the 
 
 contributor ... ... x </. 
 
 To be paid out of 
 
 moneys provided by 
 
 Parliament ^d. 
 
 Where the rate of remuneration ex- 
 ceeds 2s., but does not exceed 2s. 6d. 
 a working- day 
 
 A week 
 To be paid by the J For men 4^. 
 
 employer [ For women $tf. 
 
 To be paid by the 
 
 contributor ... ... ^. 
 
 PART II. 
 Employed Rate in Ireland. 
 
 In the case of men ... 5!^. a week 
 
 women 
 
 Contributions by Employers and 
 Employed Contributors. 
 
 A week 
 To be paid by the 
 
 employer ... 2 \d, 
 
 To be paid by the f Men ... $d. 
 
 contributor ... j Women... zd. 
 
 In the case of employed contributors 
 of either sex of the age of 21 or up- 
 wards whose remuneration does not 
 include the provision of board and 
 lodging by their employer and, the rate 
 of whose remuneration does not exceed 
 
i66 
 
 THE PEOPLE'S INSURANCE 
 
 2.9. 6d. a working day, the following: 
 shall be the rates of contribution : 
 
 Where the rate of remuneration does 
 not exceed is. 6d. a working day 
 
 A week 
 To be paid by the f For men 
 
 employer ... \ For women 
 
 To be paid out of 
 
 moneys provided 
 
 by Parliament id. 
 
 Where the rate of remuneration ex- 
 ceeds 15. 6d. but does not exceed 2s. 
 a working day 
 
 A week. 
 To be paid by the f For men 4^ 
 
 employer \ For women 3^. 
 
 To be paid by the 
 
 contributor ... ... \d. 
 
 To be paid out of 
 
 moneys provided by 
 
 Parliament... ... ... i^. 
 
 Where the rate of remuneration ex- 
 ceeds zs. but does not exceed 2s. 6d. 
 a working day 
 
 A week. 
 To be paid by the ( For men $\d. 
 
 employer . .. \ For women 2\d, 
 
 To be paid by the 
 
 contributor ... ... ... 2^. 
 
 THIRD SCHEDULE. 
 
 RULES AS TO PAYMENT AND RECOVERY 
 OF CONTRIBUTIONS PAID BY EM- 
 PLOYERS ON BEHALF OF EMPLOYED 
 
 CONTRIBUTORS UNDER PART I. OF 
 
 THIS ACT RELATING TO HEALTH 
 
 INSURANCE. 
 
 (i) A weekly contribution shall be 
 payable for each calendar week during 
 the whole or any part of which an 
 employed contributor has been em- 
 ployed by an employer : Provided that 
 where one weekly contribution has 
 
 been paid in respect of an employed 
 contributor in any such week no fur- 
 ther contribution shall be payable in 
 respect of him in the same week, and 
 that where no remuneration has been 
 received and no services rendered by 
 an employed contributor during any 
 such week, or where no services have 
 been rendered by an employed con- 
 tributor during any such week and the 
 employed contributor has been in re- 
 ceipt of sickness or disablement bene- 
 fit during the whole or any part of 
 that week, the employer shall not be 
 liable to pay any contribution either on 
 his own behalf or on behalf of the con- 
 tributor in respect of that week. 
 
 (2) The employer shall, except as 
 hereinafter provided, be entitled to re- 
 cover from the employed contributor 
 the amount of any contributions paid 
 by him on behalf of the employed con- 
 tributor. 
 
 (3) Except where the employed con- 
 tributor does not receive any wages or 
 other pecuniary remuneration from the 
 employer, the amounts so recoverable 
 shall, notwithstanding the provisions 
 of any Act or any contract to the 
 contrary, be recoverable by means of 
 deductions 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 (if such period is longer than a 
 week) in respect of which the wages or 
 other remuneration are paid. 
 
 (4) Where a contribution paid by 
 the employer on behalf of an employed 
 contributor is recoverable from the con- 
 tributor but is not recoverable by means 
 of deductions as aforesaid, it shall 
 
THE PEOPLE'S INSURANCE 
 
 167 
 
 (without prejudice to any other means 
 of recovery) be recoverable summarily 
 as a civil debt, but no such contribu- 
 tion shall be recoverable unless proceed- 
 ings for the purpose are instituted 
 within three months from the date 
 when the contribution was payable. 
 
 (5) Where the contributor is em- 
 ployed by more than one employer in 
 any calendar week, the first person em- 
 ploying him in that week or such other 
 employer or employers as may be pre- 
 scribed shall be deemed to be the em- 
 ployer for the purposes of the 
 provisions of Part I. of this Act re- 
 lating to the payment of contributions 
 and of this Schedule. 
 
 (6) 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 as the owner, agent, or 
 manager of a mine or quarry, or the 
 occupier of a factory or workshop, such 
 person shall, for the purposes of the 
 provisions of Part I. of this Act relat- 
 ing to the payment of contributions and 
 of this Schedule, be treated as the em- 
 ployer, and may provide for allowing 
 him to deduct the amount of any con- 
 tributions (other than employers' con- 
 tributions) which he may become liable 
 to pay from any sums payable by him 
 to the immediate employer, and for 
 enabling the immediate employer to 
 recover from the employed contributors 
 the like sums and in the like manner as 
 if he were liable to pay the contribu- 
 tions. 
 
 (7) Where the contributor is not paid 
 wages or other money payments by his 
 employer or any other person, the em- 
 ployer shall be liable to pay the con- 
 tributions payable both by himself and 
 the contributor, and shall not be 
 
 entitled to recover any part thereof 
 from the contributor. 
 
 (8) Notwithstanding any contract to 
 the contrary, the employer shall not be 
 entitled to deduct from the wages of or 
 otherwise to recover from the contribu- 
 tor the employer's contribution. 
 
 (9) Any sum deducted by any em- 
 ployer from wages or other remunera- 
 tion under this Schedule shall be 
 deemed to have been entrusted to him 
 for the purpose of paying the con- 
 tribution in respect of which it was 
 deducted. 
 
 (10) The Insurance Commissioners 
 may by regulations provide that in the 
 case of outworkers the contributions to 
 be paid may be determined by reference 
 to the work actually done, instead of 
 by reference to the weeks in which work 
 is done, and any such regulations may 
 apply to all trades or to any specified 
 classes or branches of trades, and may 
 determine the conditions to be complied 
 with by employers who adopt such a 
 system of payment of contributions. 
 
 (n) For the purposes of this 
 Schedule the expression "calendar 
 week " means the period from mid- 
 night on one Sunday to midnight on 
 the following Sunday. 
 
 FOURTH SCHEDULE. 
 BENEFITS UNDER PART I. OF THIS ACT 
 
 RELATING TO HEALTH INSURANCE 
 
 PART I. 
 
 Rates of Benefits. 
 TABLE A. Ordinary Rates. 
 
 Sickness benefit : for men the sum of 
 i os. a week throughout the whole 
 period of twenty-six weeks ; for women 
 the sum of 75. 6d. a week throughout 
 the whole period of twenty-six weeks. 
 
i68 
 
 THE PEOPLE'S INSURANCE 
 
 Disablement benefit : the sum of 55. 
 a week for men and women alike. 
 
 TABLE B. Reduced Rates in the case 
 of Unmarried Minors. 
 
 Sickness benefit for males, the sum 
 of 65. a week during the first 
 thirteen weeks and the sum 
 of 55. a week during- the 
 second thirteen weeks ; 
 for females, the sum of 55. a week 
 for the first thirteen weeks 
 and the sum of. 45. a week for 
 the second thirteen weeks. 
 
 Disablement Benefit for females, 
 the sum of 4.?. a week. 
 
 TABLE C. Reduced Rates for Persons 
 over Fifty in certain cases. 
 
 Where the insured person is over 50 
 and under 60 at the time of be- 
 coming an employed contri- 
 butor 
 
 For men, the sum of 75. a week 
 throughout the whole period 
 of twenty-six weeks. 
 For women, the sum of 6s. a week 
 throughout the whole period 
 of twenty-six weeks. 
 Where the insured person is over 60 
 at the time of becoming an em- 
 ployed contributor 
 For both men and women the sum 
 of 65. a week for the first 
 thirteen weeks, and 5$. a week 
 during the second thirteen 
 weeks. 
 
 TABLE D. Rates and Conditions for 
 Married Women. 
 
 Sickness benefit : during the first 
 thirteen weeks, the sum of 55. a week ; 
 during the second thirteen weeks, 35; a 
 week. 
 
 Disablement benefit : the sum of 35. 
 a week. 
 
 Sickness benefit and disablement 
 benefit shall not be payable during the 
 two weeks before and four weeks after 
 confinement, except in respect of a 
 disease or disablement neither directly 
 nor indirectly connected with child- 
 birth. 
 
 PART II. 
 Additional Benefits. 
 
 (1) Medical treatment and attend- 
 ance for any persons dependent upon 
 the labour of a member. 
 
 (2) The payment of the whole or any 
 part of the cost of dental treatment. 
 
 (3) An increase of sickness benefit or 
 disablement benefit in the 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. 
 
 (4) Payment of sickness benefit from 
 the first, second, or third day after the 
 commencement of the disease or dis- 
 ablement. 
 
 (5) The payment of a disablement 
 allowance to members though not 
 totally incapable of work. 
 
 (6) An increase of maternity benefit. 
 
 (7) Allowances to a member during 
 convalescence from some disease or 
 disablement in respect of which sick- 
 ness benefit or disablement benefit has 
 been payable. 
 
 (8) The building or leasing of 
 premises suitable for convalescent 
 homes and the maintenance of such 
 homes. 
 
 (9) The payment of pensions or 
 superannuation allowances whether by 
 way of addition to old age pensions 
 under the Old Age Pensions Act, 1908, 
 or otherwise. 
 
 (10) The payment, subject to the pre- 
 
THE PEOPLE'S INSURANCE 
 
 169 
 
 scribed conditions, of contributions to 
 superannuation funds in which the 
 members are interested. 
 
 (u) Payments to members who are 
 in want or distress, including the re- 
 mission of arrears whenever such 
 arrears may have become due. 
 
 (12) Payments for the personal use of 
 a member who, by reason of being an 
 inmate of a hospital or other institu- 
 tion, is not in receipt of sickness bene- 
 fit or disablement benefit. 
 
 (13) Payments to members not al- 
 lowed to attend work on account of in- 
 fection. 
 
 (14) Repayment of the whole or any 
 part of contributions thereafter pay- 
 
 able under Part I. of this Act by mem- 
 bers of the society or any class thereof. 
 
 PART III. 
 
 Benefits for Married Women who do 
 not become Voluntary Contributors 
 at reduced rates. 
 
 Payment of the sum of 55. a week 
 on confinement during a period not 
 exceeding four weeks on any one 
 occasion. 
 
 Payments during any period of sick- 
 ness or distress, subject to regulations 
 made by the Insurance Commissioners 
 and to the discretion of the society or 
 committee administering the benefit. 
 
 FIFTH SCHEDULE. 
 
 REDUCTION OR POSTPONEMENT OF SICKNESS BENEFIT AND WHERE 
 CONTRIBUTIONS ARE IN ARREAR. 
 
 (i) 
 
 TABLE. 
 
 
 Rates of 
 
 Sickness Benefit. 
 
 Where the arrears amount to 
 
 
 
 
 Men. 
 
 Women. 
 
 
 s. d. 
 
 s. d. 
 
 4 contributions a year on average 
 
 9 & 
 
 7 3 
 
 5 
 
 O 
 
 7 o 
 
 6 
 
 8 6 
 
 6 9 
 
 7 
 
 8 o 
 
 6 6 
 
 8 
 
 7 & 
 
 6 3 
 
 9 
 
 7 
 
 6 o 
 
 1C 
 
 6 6 
 
 f 9 
 
 ii 
 
 6 o 
 
 5 <> 
 
 12 
 
 5 t> 
 
 5 3 
 
 13 
 
 5 
 
 5 
 
 
 gs. od. , commencing 
 
 I 5th day after commencement 
 
 ' 
 
 
 of illness. 
 
 fl 
 
 
 6th 
 
 rt 
 
 
 7th 
 
 C3 . 
 
 
 8th 
 
 S e 
 
 
 9th 
 
 ^3 o " 
 
 
 loth 
 
 O ^ 
 
 
 nth 
 
 M 
 
 
 1 2th 
 
 
 
 
 1 3th 
 
 
 
 1 4th 
 
170 
 
 THE PEOPLE'S INSURANCE 
 
 Notes. 
 
 Where the insured person is by 
 virtue of any of the provisions of Part 
 I. of this Act, other than those relating 
 to arrears, entitled to sickness benefit 
 at a rate lower than the full rate, this 
 Table shall have effect as if the entries 
 in the first column were so shifted down 
 that the first entry therein was set 
 opposite the entry in the second column 
 next below the entry specifying the rate 
 of sickness benefit to which the in- 
 sured 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 55. a week, this 
 Table shall have effect as if such lower 
 rate were therein substituted for the 
 rate of 5$. a week. 
 
 SIXTH SCHEDULE. 
 
 LIST OF INSURED TRADES FOR THE PUR- 
 POSES OF PART II. OF THIS ACT RELAT- 
 ING TO UNEMPLOYMENT INSURANCE. 
 
 (1) Building; that is to say, the con- 
 struction, alteration, repair, decora- 
 tion, or demolition of buildings, in- 
 cluding the manufacture of any fittings 
 of wood of a kind commonly made in 
 builders' workshops or yards. 
 
 (2) Construction of works ; that is to 
 say, the construction, reconstruction, 
 or alteration of railroads, docks, har- 
 bours, canals, embankments, bridges, 
 piers or other works of construction. 
 
 (3) Shipbuilding; that is to say, the 
 construction, alteration, repair, or 
 decoration of ships, boats, or other 
 craft by persons not being usually mem- 
 bers of a ship's crew, including the 
 
 manufacture of any fittings of wood of 
 a kind commonly made in a shipbuild- 
 ing yard. 
 
 (4) Mechanical engineering, includ- 
 ing the manufacture of ordnance and 
 firearms. 
 
 (5) Ironfounding, whether included 
 under the foregoing headings or not. 
 
 (6) Construction of vehicles; that is 
 to say, the construction, repair, or 
 decoration of vehicles. 
 
 (7) Sawmilling, including machine 
 woodwork carried on in connection 
 with any other insured trade or of a 
 kind commonly so carried on. 
 
 SEVENTH SCHEDULE. 
 
 RATES AND PERIODS OF UNEMPLOYMENT 
 BENEFIT. 
 
 In respect of each week following 
 the first week of any period of unem- 
 ployment, seven shillings, or such other 
 rates as may be prescribed either 
 generally or for any particular trade 
 or any branch thereof : 
 
 Provided that, in the case of a work- 
 man under the age of eighteen, no un- 
 employment benefit shall be paid while 
 the workmen is below the age of seven- 
 teen, and while the workman is of the 
 age of seventeen or upwards but below 
 the age of eighteen, unemployment 
 benefit shall only be paid at half the rate 
 at which it would be payable if the 
 workman was above the age of 
 eighteen. 
 
 No workman shall receive unemploy- 
 ment 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 with- 
 in any period of twelve months, or in 
 respect of any period less than one day. 
 
THE PEOPLE'S INSURANCE 
 
 171 
 
 No workman shall receive more un- 
 employment benefit than in the propor- 
 tion of one week's benefit for every five 
 contributions paid by him under this 
 Act. 
 
 Provided that for the purpose of the 
 foregoing- paragraph 
 
 (a) In the case of a workman who 
 
 satisfies the Board of Trade that 
 he is over the age of twenty-one 
 and has habitually worked at an 
 insured trade before the com- 
 mencement 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 commence- 
 ment of this Act, up to a maxi- 
 mum of twenty-five contribu- 
 tions ; and 
 
 (b) where, owing to the fact that the 
 
 wages or other remuneration of 
 a workman are paid at intervals 
 greater than a week, or for any 
 other like reason contributions 
 are paid under Part II. of this 
 Act in respect of any workman 
 at intervals greater than a week, 
 that workman shall be entitled 
 to treat each of such contribu- 
 tions as so many contributions 
 as there are weeks in the period 
 for which the contribution has 
 been paid. 
 
 Any time during which a workman 
 is under Part II. of this Act disqualified 
 for receiving unemployment benefit 
 shall be excluded in the computation of 
 periods of unemployment under this 
 Schedule. 
 
 A period of unemployment shall not 
 be deemed to commence till the work- 
 man has made application for unem- 
 ployment benefit in such manner as may 
 be prescribed. 
 
 The power conferred by this 
 Schedule on the Board of Trade to 
 prescribe rates and periods of unem- 
 ployment benefit shall not be exercised 
 so as to increase the rate of benefit 
 above eight shillings per week or re- 
 duce it below six shillings per week, or 
 to increase the period of unemployment 
 benefit above fifteen weeks, or to alter 
 the proportion which the period of 
 benefit bears to the number of contribu- 
 tions paid, except by rules confirmed by 
 an order made in accordance with the 
 provisions of this Act relating to 
 special orders. 
 
 EIGHTH SCHEDULE. 
 
 CONTRIBUTIONS FOR THE PURPOSES OF 
 PART II. OF THIS ACT RELATING TO 
 UNEMPLOYMENT INSURANCE. 
 
 RATES OF CONTRIBUTION FROM WORK- 
 MEN AND EMPLOYERS. 
 
 From every workman employed 
 in an insured trade for every 
 week he is so employed - - 2^d, 
 
 From every employer by whom 
 one or more workmen are em- 
 ployed in an insured trade, in 
 respect of each workman, for 
 every week he is so employed - 2\d. 
 
 Provided that in the case of a work- 
 man below the age of eighteen id. shall 
 be substituted for 2^d. as the contribu- 
 tion from the workman and from the 
 employer, but for the purpose of reck- 
 oning the number of contributions in 
 respect of such a workman except as 
 regards the payment of unemployment 
 benefit before he reaches the age of 
 eighteen the id. shall be treated as 
 two-fifths of a contribution. 
 
 Every such period of employment of 
 less than a week shall for the purposes 
 
172 
 
 THE PEOPLE'S INSURANCE 
 
 of this Schedule be treated as if it were 
 employment for a whole week, except 
 that, where the period of employment 
 is two days or less, the contributions 
 both of the employer and of the work- 
 man shall be reduced to one penny if 
 the period does not exceed one day and 
 to twopence if it exceeds one day ; and 
 in such case in reckoning- the number 
 of contributions under Part II. of this 
 Act and the Schedules therein referred 
 to contributions at such reduced rates 
 shall be treated as two-fifths or four- 
 fifths of a contribution as the case may 
 require. 
 
 NINTH SCHEDULE. 
 
 PROVISIONS OF THE FACTORY AND 
 WORKSHOP ACT, 1901, APPLIED TO 
 SPECIAL ORDERS MADE UNDER THIS 
 ACT. 
 
 80. (i) Before the authority em- 
 powered to make special orders make 
 any special order under this Act, 
 they shall publish, in such manner as 
 they may think best adapted for inform- 
 ing persons affected, notice of the pro- 
 posal to make the order, and of the 
 place where copies of the draft order 
 may be obtained, and of the time 
 (which shall be not less than twenty- 
 one days) within which any objection 
 made with respect to the draft order 
 by or on behalf of persons affected 
 must be sent to the authority. 
 
 (2) Every objection must be in writ- 
 ing and state 
 
 (a) the draft order or portions of 
 
 draft order objected to ; 
 
 (b) the specific grounds of objection ; 
 
 and 
 
 (c) the omissions, additions. or 
 
 modifications asked for. 
 
 (3) The authority shall consider any 
 objection made by or on behalf of any 
 persons appearing 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 authority do not 
 amend or withdraw any draft order 
 to which any objection has been made, 
 then (unless the objection either is 
 withdrawn or appears to them to be 
 frivolous) they shall, before making the 
 order, direct an inquiry to be held in 
 the manner hereinafter provided. 
 
 81. (i) The authority may appoint 
 a competent and impartial 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 objector and any other 
 person who, in the opinion of the per- 
 son 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 proceedings 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 inquiry shall be such as 
 the authority may direct and shall be 
 deemed to be part of the expenses of 
 the authority in carrying this Act into 
 effect. 
 
 (6) For the purposes of this 
 schedule, the expression " authority " 
 means the Insurance Commissioners or 
 the Board of Trade, as the case may be. 
 
IN DEFENCE OF THE MEASURE 
 
PART IV 
 
 IN DEFENCE OF THE MEASURE 
 
 I. INSURANCE AS A WEAPON AGAINST POVERTY AND DISEASE 
 
 (From a Speech delivered by the RIGHT HON. D. LLOYD GEORGE in Birmingham, 
 
 June loM, 1911.) 
 
 An Affair of Urgent Importance 
 
 IT is very good of you on a warm 
 and pleasant June afternoon to come 
 here to discuss an affair of urgent 
 public importance. I have come here 
 this afternoon to talk to you about the 
 national health. Your chairman has 
 already reminded you that a few weeks 
 ago I had the honour of introducing 
 in the House of Commons a measure 
 dealing with proposals for securing 
 the national health, and also proposals 
 for securing the workers of this country 
 I against the distress which is incidental 
 to the illness of a breadwinner or to the 
 failure of employment. I have devoted 
 three years of labour, research, con- 
 sultation, and continuous thought to 
 that proposal. I have been assisted by 
 many able, experienced, and well-in- 
 formed men, and I am delighted to see 
 two or three of them here on this plat- 
 form some of the ablest men in the 
 friendly society world and I am very 
 pleased in your presence to be able to 
 express my gratitude to them for the 
 great help which they gave me in the 
 preparation of that scheme. 
 
 Necessity for Early Passing of the Bill 
 
 I hope to see this scheme soon 
 converted into an Act of Parlia- 
 ment. I am told that if it took the 
 
 Government three years to prepare it 
 you certainly ought to give the same 
 time for people to examine it. But if it 
 takes three years to build a house it 
 need not take three years to make up 
 your mind whether you will purchase 
 it. It takes time to lay down your 
 foundations, prepare your plans, 
 gather your materials, and put up your 
 structure, but surely you can make up 
 your mind in at least a few months 
 whether the house suits you and 
 whether you want a few alterations. If 
 it takes as much time to make altera- 
 tions as it took to build the house, it 
 means that the house does not suit you. 
 But since I am to talk about surveying 
 the structure, may I also add that if 
 you want to find out whether a building 
 is adapted to your purpose you should 
 never survey it with a microscope in 
 order to discover the quality of the 
 atoms in the bricks. Examine it as a 
 whole, see whether it fits you, make 
 such alterations as you require, and 
 then live happily ever afterwards. Not 
 that you will never need further re- 
 pairs. The happy householder is a 
 man who is constantly making altera- 
 tions in his house, adding here, 
 decorating there, and adorning some 
 other portions of the house. It is part 
 of the happiness of life to do that, and 
 175 
 
1 7 6 
 
 THE PEOPLE'S INSURANCE 
 
 when you have the National Insurance 
 Bill I have no doubt from time to time 
 you will find that amendment, altera- 
 tion, and decoration will be required 
 in that as well. 
 
 The Unanimous Acceptance of the Main 
 Principles of the Bill 
 
 I cannot in the course of this after- 
 noon cover one-tenth of the ground 
 which it is necessary to survey when 
 you are dealing with a gigantic prob- 
 lem of this kind, and if anybody on 
 Monday morning complains that I 
 have omitted something, or that I have 
 overlooked something else, you may 
 depend upon it that 1 have not done so 
 because I am under any apprehension 
 with regard to any criticism which I 
 have yet heard delivered or directed 
 against the Bill. I must have some 
 regard to the limitations of time, to the 
 limitations of your own patience and 
 of my own strength. Your chairman 
 has said, and said very truly, that the 
 main principles of the Bill have been 
 accepted with perfectly amazing 
 unanimity. In fact, for the first few 
 weeks it was smothered in honey; so 
 much so that it looked .suspicious, be- 
 cause 1 observed that a good many of 
 the eulogiums passed on the Bill said 
 that it was so good that it would be a 
 pity to pass it this year. I really can- 
 not recall anything of the kind since 
 the days when the Duke of Clarence 
 was drowned in a butt of sweet wine. 
 And my Bill runs practically the same 
 risk at the present moment. "An ex- 
 cellent Bill, just what we wanted ; hope 
 some day it will be an Act of Parlia- 
 ment, but don't be in a hurry, don't 
 pass it now ; let's think about it, let's 
 talk about it, let's do anything except 
 put it on the Statute Book." But I am 
 out for making it an Act of Parliament. 
 
 Necessity for a Firm Grip of the Purpose 
 of the Measure 
 
 There is a real danger in the unani- 
 mity with which the principles of the 
 Bill have been accepted, and I will tell 
 you why they are not discussed. If 
 you call attention to the objects of the 
 Bill they say, "We accept that." They 
 are taken for granted. If you begin 
 to dwell upon its principles they say, 
 "That is a waste of time we accept 
 that." They say the measure has been 
 rushed into Committee before it really 
 was allowed to have a second reading. 
 I am not protesting against an exam- 
 ination of the Bill. I invited it when I 
 introduced the Bill. It is important it 
 should be scrutinised to the last detail. 
 But any examination of the detail can 
 be nothing but barren unless you have 
 a firm grip of the purpose and main 
 outlines of the measure ; and for that 
 reason I propose here this afternoon 
 to deal with the Bill as a whole, why 
 it was introduced, what are the chief 
 characteristics of it, and what are the 
 remedies we propose in it for the evil 
 we have to contend against. 
 
 The Evil We have to Contend Against 
 
 What is the evil in this country and 
 in every old country in the world? 
 Side by side with great and most ex- 
 travagant wealth you have got multi- 
 tudes of people who cannot consider 
 even a bare subsistence as assured to 
 them. What do I mean by a bare sub- 
 sistence? I don't mean luxuries; I 
 exclude even comforts. By a bare 
 subsistence I mean that minimum of 
 food, raiment, shelter, and medical 
 care which is essential to keep human 
 life in its tenement of clay at all. For 
 multitudes in every land that is pre- 
 carious to-day. 
 
THE PEOPLE'S INSURANCE 
 
 To maintain Efficiency 
 
 That is not our idea. We aspire to 
 something more. Our object, our goal 
 ought to be enough to maintain effi- 
 ciency for every man, woman, and 
 child. The individual demands it, the 
 State needs it, humanity cries for it, 
 . religion insists upon it. But for mil- 
 lions of the poor a bare subsistence is 
 difficult to win and easy to lose. The 
 illness of the wage earner in hundreds 
 of thousands of households, trade de- 
 pression, a change of fashions precipi- 
 tates thousands into destitution, poverty 
 and privation. The wolves of hunger 
 prowl constantly round millions of 
 doors in this land, in this favoured 
 land, and if the illness of the head of 
 the family takes him away from his 
 watch at the doorpost they rush in, and 
 ere relief arrives plant their fangs 
 deep into their victims. There are 
 streets in every great city I am not 
 excluding Birmingham where their 
 snarl is ever heard in the ears of the 
 inhabitants. That ought not to be. 
 All their money is spent in food, shel- 
 ter, raiment, and nothing can be spared 
 for the storeroom when the needs of 
 illness and unemployment come. 
 
 The Pawnbroker 
 
 I am asked how can they afford four- 
 pence per week. They pay more now. 
 Who to? To the friendly society? 
 No. To the trade union? No. To 
 the pawnbroker. They insure now, but 
 it is the most wasteful method, the 
 most extravagant method, the most 
 heart-rending method. Sickness comes ; 
 one little bit of furniture after another 
 a labour of love goes. Furniture, 
 clothes, all converted into food and 
 physic. A day's wage to pay for the 
 doctor when there is no one earning- it. 
 
 " Family Pride is not in the Bent-Book " 
 
 You may say, "There is the Poor 
 Law." Ah! let me say this. To the 
 honour of the workers of this country, 
 the last thing they pawn is their pride. 
 There is no greater heroism in history 
 than you find in the humble annals of 
 those who fight through life against 
 odds to maintain their self-respect and 
 independence. They will suffer the last 
 privation before they pin the badge of 
 pauperism over their hearts, and cer- 
 tainly before they will put it on the 
 breasts of their children. Read the 
 records of the friendly societies. We 
 have gentlemen here who can confirm 
 what I say. A struggle is made to 
 keep up contributions so as to avoid 
 the chanty of the parish and keep up 
 the honour and pride of the family. 
 Family pride is not in the rent-book. 
 You will find it amongst names that 
 have never yet appeared in Dod, 
 Burke, or Kelly. Many are compelled 
 to surrender. They sustain the siege 
 long, but it often ends in defeat, and 
 if you look at the records of pauperism 
 in this country you will find this : Take 
 places like Leeds, Glasgow I have not 
 the figures for Birmingham you will 
 find that half of the outdoor pauperism 
 is due directly to the illness or the 
 breakdown of the breadwinner in the 
 family. Now that is purely an index 
 of the suffering it causes. 
 
 "The Yawning Chasm which comes with 
 Unemployment " 
 
 Let me give you another fact. In 
 the course of my investigations I 
 mentioned this in the House of Com- 
 mons, but I think it is worth repeating 
 I discovered that most of the wage- 
 earners in this country at one time or 
 another have been members of friendly 
 societies, of trade unions, or of provi- 
 
THE PEOPLE'S INSURANCE 
 
 dent societies of some kind. Why are 
 not they members now? They could 
 not keep it up at sixpence or seven- 
 pence a week, or even fivepence ; they 
 could not carry it on. They went for 
 some time accumulating benefit, but 
 they could not carry it across that 
 yawning chasm which comes with un- 
 employment. We have gone out to 
 bridge it for them. If you want to 
 realise for a moment how precarious 
 mere living is in hundreds of thousands 
 of households you have only to think 
 of what happens to that household 
 when the wage-earner is swept away. 
 It is hurled into poverty, destitution, 
 and privation in hundreds and thou- 
 sands of cases. 
 
 The Strengthening of the Walls. . . . 
 
 Some of you have travelled in Italy. 
 There on the slopes of the hills you will 
 see comfortable little cottages. They 
 seem secure, planted on a rock. They 
 are there under a blue sky without a 
 frown in it, surrounded by orange and 
 olive groves, swayed by the caressing 
 breezes of a fair land. They seem 
 happy, contented, secure homes. Pass 
 by that neighbourhood in about a year, 
 and look up where the cottages stood, 
 and you will find an ugly gaping rent 
 in the hillside. What has happened? 
 A cloud gathered from the unknown 
 burst over the homesteads, and swept 
 them away into the abyss. The inhabi- 
 tants are crushed and broken under the 
 ruins of their homes. That is a fair 
 picture of what happens to many a 
 worker's home when the breadwinner 
 is swept away. They are hurled into 
 destitution. I will tell you what we are 
 doing. We propose to strengthen the 
 walls of the cottage against attack. We 
 propose more than that to divert the 
 flood so that it shall not attack those 
 
 walls ; and I have not the faintest doubt 
 that when this Bill becomes an Act of 
 Parliament it will avert under the bless- 
 ing of Providence myriads of ruined 
 homes and broken hearts. 
 
 Illness of the Breadwinner 
 
 What is the special difficulty we have 
 to meet? Your great citizen Mr. 
 Chamberlain once said that preventable 
 illness was responsible for filling the 
 workhouses. I quite agree. The 
 trouble now is many a workman has 
 told me a workman cannot afford to 
 put himself on the sick list ? Why ? He 
 knows that the moment he feels unfit 
 for work, goes to the doctor, seeks a 
 few days' repose to recruit his strength 
 and to recover his power, there will be 
 none there providing for the household. 
 So the workmen go on, unless there is 
 some provision for them, working in 
 what I think Dr. Bagster Wilson of your 
 city calls, in a very able book which he 
 published, a condition of under-health. 
 
 That is thoroughly bad economy. It 
 is thoroughly bad husbandry. Why, 
 if that condition of things applied to 
 horses and cattle the farmers of this 
 country would be insolvent. Take a 
 brewer's horse. How well he is looked 
 after, how well fed, well cared for, well 
 doctored if he does not feel up to the 
 mark ! He has got a guardian there 
 specially looking after him. The guar- 
 dian says, "There is something the 
 matter with this horse to-day ; he does 
 not feel well." The shafts of the dray 
 are empty that day. He is kept and 
 doctored until he is right. That is not 
 merely humanity; it is good business. 
 Take a machine. If you neglect a 
 machine a very small defect develops 
 into a big one. It may simply mean 
 that you want to oil the bearings I 
 hope that is right to tighten a screw. 
 
THE PEOPLE'S INSURANCE 
 
 179 
 
 But if the machinist says, " I cannot 
 afford to allow this machine to rest for 
 two or three days in order to overhaul 
 it," what happens? That machine 
 has a bad breakdown sooner or later, 
 and it may have to be scrapped. It is 
 good business to overhaul a thing of 
 that kind in time before it develops. 
 How much better is man than a mach- 
 ine? He may be better, but he is not 
 better off, poor fellow. 
 
 The Greatest Asset of any Land 
 
 I will tell you the trouble there 
 is no one who has a sense of re- 
 sponsibility to look after him; it is 
 nobody's concern to, see that that won- 
 derfully delicate piece of machinery is 
 all right, is fit. A man owns the 
 machine, a man owns the horse; if 
 they break down they are costly to 
 replace. What is wanted in this coun- 
 try, and in many others, is to cultivate 
 in the State a sense of proprietorship 
 over these workers. They are the 
 greatest asset of any land. When you 
 reckon up the national wealth and 
 begin to talk about imports and ex- 
 ports, when you add up our bank 
 balances and the value of our railways, 
 our house property, and our invest- 
 ments, I have never seen a balance- 
 sheet of that kind up to the present 
 that did not omit the greatest asset of 
 all, and that is the men, the women, 
 and the children of the land. 
 
 The Soul of the Problem 
 
 You have our great Colonial leaders 
 in this country now. We are all de- 
 lighted to see, to hear, and to welcome 
 them. Go to Canada with an offer in 
 one hand of a million of our able- 
 bodied workmen, in the other hand a 
 hundred millions of our sterling gold. 
 
 Do you think they would hesitate for 
 a moment which to accept? It is the 
 men, it is the women they want in 
 order to develop and draw out and in- 
 crease and improve the wealth and 
 prosperity of their land. After all, 
 work implies skill. We talk about 
 unskilled labour. Let any man who is 
 here accustomed to wield the pen try 
 his hand for a day at the pick. t He'll 
 start saying this is unskilled labour; 
 he'll end by being completely disillu- 
 sioned in half an hour, yea, less. 
 There is the trained suppleness, the 
 discipline of the eye ; you accustom the 
 body to it. There is no unskilled 
 business, and all that training cover- 
 ing years, that is wealth, national 
 wealth. And yet we waste it with a 
 recklessness, with an unconcern, with 
 an unintelligence which simply baffles 
 anybody who sits down to consider the 
 problem for five minutes. There is too 
 little heed paid in our industrial organ- 
 isation to the physical and mental 
 efficiency of the worker. That is the 
 soul of the problem. 
 
 The Industry Contributes, not the 
 Employer 
 
 The other day I received a communi- 
 cation from the Birmingham Chamber 
 of Commerce. If I may respectfully 
 say it, I have a great respect for the 
 Birmingham Chamber of Commerce. 
 I had a good deal to do with them 
 when I had the honour of presiding 
 over the Board of Trade. They were 
 helpful, they were fair, and therefore 
 I will consider any communication 
 which comes from the Birmingham 
 Chamber of Commerce, and consider 
 it twice, and consider it three times 
 with great care and with great respect. 
 But I will tell you one proposition 
 which they lay down in this communi- 
 
i8o 
 
 THE PEOPLE'S INSURANCE 
 
 cation by way of protesting against 
 what they call the contribution of the 
 employer. The employer does not 
 contribute ; it is the industry that con- 
 tributes. Take the factory legislation 
 of the last forty or fifty years to im- 
 prove the conditions of the worker 
 shortening his hours, giving him 
 better air, more light. I have no 
 doubt there were Chambers of Com- 
 merce then who said, "This is a great 
 burden on the employer." They have 
 since discovered that it increased the 
 efficiency of the workman to such an 
 extent that it has benefited both. 
 Take the Employers' Liability Act, for 
 which Mr. Chamberlain was respon- 
 sible. I was in the House of Com- 
 mons at the time, and it is one of my 
 proudest recollections that, although I 
 was in opposition to Mr. Chamberlain, 
 as you may have known, I steadily 
 supported that Bill. I gave it the 
 most effective support, because I never 
 said a word when it was passed 
 through the House of Commons. I 
 did not retard its progress by a single 
 minute, and I voted steadily for the 
 Bill throughout the Committee stage. 
 That put an enormous cost on the em- 
 ployer in the first instance, but does 
 anyone imagine that the employer is 
 paying that now? It is all absorbed 
 in the greater efficiency of the worker 
 and in the cost of the business. The 
 Birmingham Chamber of Commerce 
 say, "Your threepence is adding so 
 much to our income tax." It is doing 
 nothing of the kind. It is a funda- 
 mental error. They do not put the 
 cost of lubricating their machinery, of 
 repairing their engines against their 
 income tax. If they have a new ven- 
 tilator under the Factory Act they do 
 not take that out of their income tax. 
 It is one of the errors which it is essen- 
 tial for the continued prosperity and 
 
 growth of this country that we should 
 stamp out. All those things contri- 
 bute to the improvement and effective- 
 ness of the race, and everything that 
 does that is better for employer and 
 employed. 
 
 The Best Investment 
 
 Yesterday I met a very intelligent 
 agricultural friend of mine, and I said 
 to him, "Would you mind telling me 
 the difference between a horse which 
 is well-cared for and a half-starved 
 horse?" He said he would think 
 about it, and last night he sent a note 
 which is so excellent that I will read 
 it to you. This is the first horse : 
 " A horse with good wages " that is, 
 living under the Factory Acts " is well 
 doctored, well stabled, and then he is 
 always fit for work. He cannot thrive 
 without being well fed. Coat always 
 sleek and fine, full of heart and dash, 
 can stand any amount of work ; if 
 young, liable to play pranks." And 
 then he adds a very necessary pre- 
 caution which is rather significant : 
 "Being well fed, the horse should be 
 worked and not kept idle." Idleness 
 brings on many troubles; amongst 
 others he mentions sore feet, which is 
 the horse's equivalent for gout. That, 
 I think, does not apply so much to the 
 workers of this country as to those 
 who are well fed without working. 
 What about the half-starved horse? 
 " No energy, cannot stand much work, 
 and weak ; liable to break down at any 
 time; liable to any disease; a melan- 
 choly creature altogether. Does not 
 pay to keep although only consuming 
 half what he should. A very foolish 
 policy to half feed ; better not keep the 
 horse at all." All that is full of wis- 
 dom, and all you have to say is, " Do 
 let us treat men as intelligently as we 
 
THE PEOPLE'S INSURANCE 
 
 181 
 
 treat horses." Money which is spent 
 on maintaining the health, the vigour, 
 the efficiency of mind and body in our 
 workers is the best investment in the 
 market. 
 
 Doctors and the Bill 
 
 What do we do to meet that ? The 
 first thing we do in our Bill is to pro- 
 vide adequate medical treatment for 
 every workman in the kingdom. I am 
 dealing here with a very thorny sub- 
 ject, and I am warned that there are 
 gentlemen of the medical profession 
 present. I know there are gentlemen 
 representing friendly societies. I hope 
 they are not on the same side of the 
 hall. There has been a good deal of 
 discussion as to what they ought to 
 be paid. At the present moment I am 
 not going to enter into that. I had 
 two hours' discussion with the medical 
 men themselves the other day. I don't 
 think there has been anything like it 
 since the days when Daniel went into 
 the lions' den. I was on the dissect- 
 ing table for two hours. But I can 
 assure you they treated me with the 
 same civility as the lions treated my 
 illustrious predecessor. You must 
 remember this discussion about what 
 they ought to be paid is an old one. 
 I did not create it. I cannot say that 
 I care very much for this wrangle in 
 the sick room. It is unpleasant and 
 may very well become .unseemly. All 
 the same it has got to be settled. For 
 the moment I am the buffer state. The 
 doctors say to me, "Six shillings is 
 not enough," and they cuff me on one 
 side of the head. The friendly socie- 
 ties say, " How dare you give as 
 much ? " and I get a cuff on the other 
 side of the head. Between them I can 
 only receive the blows with that Chris- 
 tian meekness which characterises 
 
 politicians. The only comment I would 
 make is this When one set of people 
 say you are paying too little and 
 another set of people say you are pay- 
 ing too much, it generally means that 
 you are about right. 
 
 Friendly Societies and the Bill 
 
 However, may I say this to my 
 friends of the friendly societies? A 
 badly paid service is a bad service, 
 and there is no business where an 
 adequate fair remuneration is more 
 essential than in the profession of heal- 
 ing. A man ought to enter your sick 
 room with a sense at any rate that he 
 is fairly treated, and I am confident 
 that that difficulty can be overcome. 
 There are unreasonable men in every 
 profession, except that of the law. 
 That does not command the universal 
 acceptance which I should have ex- 
 pected from my knowledge of that pro- 
 fession and of the unselfish character 
 of those who pursue it. But although 
 there are unreasonable men in every 
 profession and men who, if they could 
 take the whole of the 25 millions 
 raised, would still be unsatisfied, the 
 vast majority of people in every trade, 
 in every occupation, in every walk of 
 life, are animated, I think, by a sense 
 of what is fair, reasonable, and prac- 
 ticable, and I am sure when we come 
 to consider the contracts between the 
 medical men and the societies and the 
 health committees, as the case may 
 be, each upon its merits, each having 
 regard to the conditions of medical 
 practice in that neighbourhood (be- 
 cause that is important), and the diffi- 
 culties, the obstacles, the hardness of 
 the work, I, am certain we shall be 
 able to effect a settlement that will 
 satisfy every reasonable man. As I 
 said, most people are really very 
 
182 
 
 THE PEOPLE'S INSURANCE 
 
 reasonable except when they are ex- 
 cited. 
 
 What the Bill Means to the Worker 
 
 For the worker the Bill means no 
 medical bills in future. And mind you, 
 that is a very serious business. I was 
 told of a working- man the other day 
 who earns something under 205., and 
 who was ill for some time, and con- 
 fronted when he got well with a bill 
 for 7 not a penny too much from 
 what I know of the circumstances, 
 reasonable having regard to the ser- 
 vices rendered ; but I am just thinking 
 of the worker's point of view. There 
 he was with a good many arrears to 
 pay. He had had to live in the mean- 
 time ; he had had to run up other bills ; 
 he was a strictly honest man who 
 would pay them all to the last penny, 
 and it was a very serious outlook for 
 him. In future there is a medical ser- 
 vice at his disposal. There will be no 
 anxiety during the time of his illness 
 about how he is to pay the man who 
 is coming there. He will not have to 
 elect and it is a hard election for an 
 honourable man between starving his 
 family and not paying the man who 
 has rendered him honourable service. 
 In future provision will be made under 
 this Bill for doctoring for every worker, 
 man and woman, throughout the whole 
 of this land. 
 
 Consumption 
 
 What else? One of the most ter- 
 rible diseases in this land is consump- 
 tion. Read its records. You cannot 
 do so without a shudder. Seventy or 
 eighty thousand lives each year are 
 carried away by it. It kills as many 
 people as all the zymotic diseases put 
 together. Worst of all, it kills people 
 in the period of life when they are 
 
 attaining the height of efficiency, be- 
 tween 15 and 40. Out of the deaths 
 between those ages in this land one 
 out of three is due to this dread pesti- 
 lence one-third that hideous cavity 
 corroded into the most hopeful, vigor- 
 ous, valuable part of human life in 
 Britain. It is the greatest burden of 
 any disease. There is no disease that 
 costs nearly as much to the friendly 
 societies. It means, I believe, 58 
 weeks' sickness, long lingering agony 
 now, without a gleam of hope on the 
 horizon. It is a burden on the rates ; 
 it is a burden on the State, and wastes 
 its resources. In London alone it is 
 reckoned that four millions of wages 
 are lost every year through consump- 
 tion. 
 
 A New Prospect for the Worker 
 
 As a rule it is the worker who is 
 attacked. As one man said, " It 
 rarely attacks the man who pays in- 
 come tax." I do not suggest that as 
 a remedy. But you have industries in 
 Birmingham and in the surrounding 
 district which are peculiarly liable to 
 it. Your brass working, some of your 
 iron working. Go to Sheffield your 
 cutlery, file-making. These trades are 
 peculiarly liable. Now a man clings 
 to his work as long as he can, because 
 he knows if he gives it up there will 
 be no one to provide for his family, 
 so he sticks as long as he can stand 
 it to his work, and then he lingers on 
 through dreary months, charged with 
 pain to himself and peril for his house- 
 hold. What do we do in the Bill? 
 We open a new prospect for that 
 worker. We plant all over Britain 
 cities of refuge to which he can flee 
 from this avenger. We are setting 
 a million and a half aside for the pur- 
 pose of building sanatoria throughout 
 
THE PEOPLE'S INSURANCE 
 
 183 
 
 the country. There will be a million 
 for maintaining them. The worker 
 will be able to command medical atten- 
 dance ; he will discover the disease in 
 time ; he will be taken to these insti- 
 tutions ; in a few months the bulk of 
 the cases that are taken in time are 
 cured. He will be restored to his . 
 health, restored to his workshop, a fit, 
 capable citizen, instead of being a 
 wreck. That is one thing that we are 
 doing. 
 
 The Maternity Allowance 
 
 What next? We have a provision 
 for maternity, an allowance of 305., 
 which I think is one of the most valu- 
 able provisions in the Bill, and we are 
 going to see that the money is spent 
 for the purpose for which it is de- 
 signed, in spite of one or two protests 
 we have had from friendly societies. 
 The money is meant for the mother, 
 to help her in discharging the sacred 
 function of motherhood by proper 
 treatment, fair play, so as to put an 
 end to the disgraceful infantile mor- 
 tality of this country. 
 
 The Allowance during Sickness 
 
 What else do we provide? It is no 
 use sending men to sanatoria, it is no 
 use even giving them free doctoring, 
 unless you relieve them from anxiety 
 about their households. So we are 
 making provision for the maintenance 
 of the family during the time a man 
 is under the doctor's hands. When 
 he is fighting his struggle with the 
 angel of death, we look after his 
 children for him. Let him have both 
 hands free to fight with the help of 
 a doctor, and we will pull through 
 in thousands of cases. The allowance 
 we are making is not a sumptuous one 
 
 to begin with, but it will grow. It 
 will grow without a single addition or 
 charge upon employer or employed. 
 One of the advantages of our scheme 
 is that it will expand, it will fructify, 
 it will bear more fruit. This is the 
 beginning, and the beginning of a good 
 deal more before we have done. We 
 are not done with fighting poverty and 
 misery in this land yet. There is pro- 
 vision for los. a week for the first 
 thirteen weeks, and it is also provided 
 in the Bill that if they like to make 
 provision for twenty-six weeks they 
 can do so.* 
 
 An Allowance for the Infirm 
 
 What happens to a man if he does 
 not recover at the end of twenty-six 
 weeks? Supposing he has broken 
 down altogether, what happens to 
 him? Then we provide 55. for him 
 until he recovers, although he be ill 
 for years and years, until he reaches 
 the pension age. Ten shillings a week 
 sick pay is not a sumptuous allowance, 
 but it will enable a workman and his 
 family ever after to pass the work- 
 house door with their heads erect. 
 Five shillings a week if permanently 
 incapacitated no, I never said you 
 could keep a family on that, but every 
 man who has lived in workmen's 
 homes and I have done it knows 
 what it means to have a steady de- 
 pendable allowance, even though a 
 small one. The other members of 
 the family will gradually adapt 
 themselves to the circumstances. 
 They will be able to pick a few shil- 
 lings here and a few shillings there, 
 and there will be always the solid 
 foundation of 55. a week to build 
 upon. 
 
 * The Act as passed provides for the payment 
 of IQS. a week to men and 7$. 6d. a week to women 
 for the first twenty-six weeks. 
 
184 
 
 THE PEOPLE'S INSURANCE 
 
 Unemployment Allowance 
 
 What else do we do? One of the 
 greatest difficulties with friendly socie- 
 ties and trade unions now is that men 
 cannot keep up their payments during 
 times of unemployment. What do we 
 do ? We allow a man a large margin 
 of unemployment without charging 
 arrears at all. He can get three 
 weeks' unemployment in every year 
 and most of us get more than that 
 without his being forced to pay arrears 
 at the end of it, and if he likes to go 
 on until bad times come, and just put 
 his three weeks in the bank and not 
 spend it every year, he can, say once 
 every four years, when trade is very 
 bad, get twelve weeks without paying 
 anything if he is not earning wages, 
 and at the end of the time we do not 
 compel him to pay up arrears. Now 
 that is quite a new thing in the history 
 of provident dispensation in this coun- 
 try. We are providing a margin of 
 two millions when all these benefits are 
 exhausted for additional benefits. 
 That means you can, after your 
 thirteen weeks at ios., or twenty-six 
 weeks if you like, provide something 
 for convalescence. If you want to 
 send a workman after he has begun 
 to recover for a week to the seaside 
 just to pick up, you can do so. That 
 is done in some cases in Germany. 
 
 Similar rates of payment for all 
 
 Then we come to a provision of the 
 scheme that is not thoroughly under- 
 stood, and unless I am wearying you 
 I will refer to this very important 
 point. There are six million working 
 people in the country who are already 
 members of friendly societies and trade 
 unions and bodies of that kind. There 
 arc seven or eight mijlions who are 
 
 not. You know that if you join 
 friendly societies at 16 or 20 you pay 
 very much less than if you join at 40 
 or 50. I think if you join at 45 you 
 pay twice as much as you would if you 
 joined at 20. Why? The risks are 
 greater as you get on in life, so they 
 have to charge you more; but if you 
 start at 20 you have only to pay 
 the same rate through life, because 
 you are paying something up the whole 
 time for the evil days that come to us 
 all. Now, what am I doing here? I 
 am going to start everybody as if he 
 were 16 years of age. For this pur- 
 pose 1 am going to make everybody 
 young to renew their youth finan- 
 cially. I start everybody with this 
 scheme at the rate which he would 
 have to pay if he were a young man. 
 That costs money. It means a great 
 deficiency. The man of 45 and of 50 
 will be a loss. So I have to make 
 provision for wiping out 'that loss, and 
 that is where the money of the State 
 comes in. The State comes and puts 
 its strong shoulder under that burden 
 and carries it. It will have to carry 
 it for i6J years, and then it vanishes 
 like the mist on our hills when the sun 
 comes. It all goes; not a penny of 
 that burden is left in the sixteen years 
 and a half. 
 
 A future Benefit 
 
 What happens then? We shall then 
 release six millions and a quarter a 
 year for the purpose of increasing the 
 benefits to everybody. There are ad- 
 vantages in this scheme for the old. 
 The State sees them limping along 
 with their burden, getting more and 
 more tired and weary as they go along, 
 and the State says, " Let me help you. " 
 There are advantages for the young 
 man. He will go on paying, paying, 
 
THE PEOPLE'S INSURANCE 
 
 ,85 
 
 paying ; if he is ill he will get his 
 doctor and his los. a week and his 
 sanatorium if he is attacked by con- 
 sumption; but in sixteen and a half 
 years' time he will come in for an addi- 
 tional harvest. That is his advantage. 
 Young and old come into this scheme. 
 We have got benefits for all, and we 
 have lifted a weight of misery and of 
 wretchedness which was crushing mil- 
 lions of people in this land. 
 
 Friendly Societies' Benefits 
 
 "Oh, but," says my friend in the 
 corner there, "what about the man 
 who has already been paying since he 
 was twenty years of age? Are you 
 only to give the same thing to him? " 
 Well, I have a very good Scriptural 
 warrant for that the man who came 
 in at the eleventh hour. He got the 
 same sickness pay at the eleventh hour. 
 People have asked me, " How is it 
 you can't do it for 66 and 67? " Well, 
 even the parable did not give it to the 
 man who came in at half-past eleven. 
 What am I doing for the friendly 
 society man who is already in? Let 
 me tell my friendly society supporters 
 I think I can call them that I do 
 not think they fully realise what has 
 been done for them. There are some 
 of them under the impression that they 
 are going to pay the 4d. in addition 
 to the present contributions. That is 
 not the case. You start under this 
 scheme by paying less than you are 
 paying now. I hope you do not mind, 
 because if you do I am quite prepared 
 to let you go on paying exactly the 
 same and get larger benefits. But 
 more than that, if you have been in a 
 friendly society for 25 years and the 
 same thing applies, of course, on a 
 smaller scale if you have been for 15 
 or 20 or even 10 years you have 
 
 always got credit to your account. 
 What happens to that? I release that 
 credit, because I take over the whole 
 burden on the State scheme. What 
 happens to the money? Go to your 
 friendly society and say, "We want 
 additional benefits," and you can get 
 them. 
 
 State Benefits 
 
 Let me show you. Are there many 
 members of friendly societies here? 
 You are just the gentlemen I want to 
 talk to. Suppose you joined at 20, 
 and you are now 45. The same thing 
 applies if you joined at 16 and you are 
 now 41. You should pay 2s. 2d. a 
 month or 6jd. a week. What do you 
 get for that? You get a doctor and 
 you get 105. for six months. For the 
 moment you will find that it does not 
 very much matter. I am putting the 
 case at its highest. If you say three 
 months so much the better, but I will 
 take it at six. You get 55. for the 
 remainder; your next-of-kin will get 
 10 on your death ; you get $ 
 on the death of your wife. I have 
 taken one of the friendly socie- 
 ties ; it may be that in your particular 
 society the benefits are adjusted in a 
 different way, but it all comes to the 
 same thing. Now, you are 45. What 
 will happen to you under the State 
 scheme? You will pay in future not 
 25. 2d. a month, but is. qd. 4^. a 
 week. You will pay therefore lod. a 
 month less than you are paying now. 
 What will you get for it? You will 
 get your death benefits. I am not 
 insuring death, but in order to keep 
 your death benefits in your society you 
 need not pay in future. If you have 
 been in your society for 25 years and 
 have accumulated resources you need 
 not pay more than the 4^. which I am 
 
i86 
 
 THE PEOPLE'S INSURANCE 
 
 asking. You will get not los. a week, 
 you will get more; that is to say, if 
 your society is completely solvent. 
 Everything depends upon that. If it 
 is not, that is a different matter. But 
 you will get 135. a week for 26 weeks, 
 and afterwards you will get not 55. 
 but 65. 6d. a week. If your society is 
 not absolutely solvent and if its funds 
 are not altogether available you will 
 reduce that amount by perhaps is. a 
 week, but you will get more. You 
 will be paying less by lod. a month, 
 and you will get more than you are 
 getting now. That is the condition 
 you will be in under this scheme. 
 
 The State's and Friendly Societies' 
 schemes compared 
 
 Is there anybody here insured for 
 125. a week? Well, I have something 
 to say to you. You are paying 
 roughly about 2S. qd. or 25. 4^0!. a 
 month. Well, if you have been pay- 
 ing for about 25 years, what do you 
 pay in future? You will pay your qd. 
 a week, is. 4^. a month ; is. less a 
 month, but you will get bigger bene- 
 fits. You ought to get instead of 125. 
 a week 145. a week; instead of 6s. 
 for your second period you will get 75. 
 You will be paying less per month by 
 is., and you will be getting larger 
 benefits in future. That is your con- 
 dition. I worked it up to 155. ; is there 
 anybody insured for 155.? Well, I 
 have a word to say to you. You are 
 paying now per month 2s. gd. In 
 future mind you, on the assumption 
 that you have been in your society for 
 25 years paying regularly you will 
 pay is. 4^. a month. You will be pay- 
 ing is. 5^. a month less. What will 
 you get? You will get i6s. a week, and 
 instead of 75. 6d. you ought to get 8s. 
 a week, and you will get, of course, 
 
 your death benefits if you have accumu- 
 lated enough reserve, but you need 
 not pay for those, and all you will be 
 paying is is. $d. instead of 2s. gd. 
 
 The minimum State Benefit 
 
 Again I warn you, it is all on the 
 assumption that the societies are per- 
 fectly solvent, and the funds available, 
 and I can well understand friendly 
 societies saying, "\Ve will be a little 
 cautious at first, we will give a little 
 less." But nothing will prevent your 
 getting for is. 4^. a month the $d. 
 which I am charging equal benefits 
 and even greater benefits if you have 
 been in your society a regular contribu- 
 tor for 25 years. 
 
 " We are realising credit which you have 
 created." 
 
 What happens to the man who has 
 been 20 years, 15 years, ten years in 
 membership? He will also get some- 
 thing, less of course, because his re- 
 serve is less, but what I want to point 
 out to you is this we are realising 
 credit which you have created through 
 your thrift or industry or foresight; we 
 are giving you the full benefit of it, 
 and we are adding something on the 
 top of it. 
 
 Local Health Committees 
 
 I just want to say this one word. I 
 am glad we are able to do something 
 for those who are sick, for those who 
 are out of work. I regret that I can- 
 not to-day explain that portion, be- 
 cause time will not permit, but the one 
 thing in the scheme which I lay 
 greater stress upon is that we have got 
 provision to prevent disease. We are 
 setting up Local Health Committees, 
 and do not you allow anybody to cajole 
 
THE PEOPLE'S INSURANCE 
 
 187 
 
 or bully or misrepresent you in 
 regard to this. They are the most 
 fertile and hopeful provisions in the 
 Bill. There you have got them as a 
 great agency for prevention. They do 
 not take away the function of any 
 council, municipal, county, or district, 
 but they are there to see that those 
 councils are doing their duty. They 
 will organise instruction on the prin- 
 ciples of health a most important 
 thing. 
 
 Instruction in Health. Principles 
 
 It is amazing the amount of ignor- 
 ance that exists about the simplest 
 rules of health. Why? You cannot 
 persuade people that it is life for them 
 to have an open window, that air is 
 meant to breathe and- not to keep out, 
 that you want a constant renewal of 
 its freshness. There will be instruc- 
 tion on the principles of health and of 
 diet, the dangers of excessive drink- 
 ing all these things will come in. 
 But we shall also entrust to these com- 
 mittees the function of seeing that the 
 laws of this land with regard to health 
 are enforced. 
 
 A Lesson in Self-Government 
 
 There is nothing more marked in. 
 this country, in most countries, than 
 the contrast between the relentlessness 
 and the rigour with which the laws of 
 property are enforced and the slack- 
 ness and sluggishness with which the 
 laws affecting the health of the people 
 are administered. These health com- 
 mittees, these societies will be adminis- 
 tered by the men themselves. It will 
 be a great lesson in self-government. 
 It will be the first time the workers of 
 this country have been really federated 
 for the purpose of administering affairs 
 which are essential to their very happi- 
 ness and comfort. And the Local 
 
 Health Committees will also have 
 representatives. 
 
 The Eeek of Insanitary Property 
 
 The protection of property in this 
 country is the most perfect machine 
 ever devised by the human brain. 
 The guardians of property patrol every 
 street, and if the transgressor eludes 
 their vigilance he is pursued to the 
 ends of the earth. Continents cannot 
 hide him, the waves of the ocean can- 
 not cover his tracks. They would have 
 caught even Peter the Painter had not 
 he been protected by the certificate of 
 character given to him by Mr. Justice 
 Grantham. But compare that with 
 the way in which the Public Health 
 Acts, the Housing Acts are adminis- 
 tered in this country. We have had 
 Public Health Acts in this country for 
 years and years, long before I was 
 born, and that is getting a long time 
 ago. We have Housing Acts on the 
 Statute Book. And yet there is no 
 city or town, hardly a village, without 
 the reek of insanitary property. 
 
 The First Thing We Ought to Do 
 
 I want to see the law protecting pro- 
 perty yes, but I also want to see it 
 protecting the worker's home. I 
 would treat the man who receives rents 
 or ground rents from insanitary dwell- 
 ings which kill little children I would 
 treat him as I would the receiver of 
 stolen property. They won't have very 
 much to say in future. Look at the 
 minuteness with which the most in- 
 significant property is protected. Take 
 the game of the land. Why should 
 not life, health, be protected with the 
 same ruthlessness, with the same re- 
 morselessness, with the same care? 
 That ought to be our concern if we 
 are goiag to make this land greater 
 
 G 2 
 
i88 
 
 THE PEOPLE'S INSURANCE 
 
 than it is. If we are going to make it 
 worthy of the splendid Empire of which 
 it is the centre, if we are going to 
 make it worthy of the position in the 
 story of humanity which it ought to 
 achieve, the first thing we ought to do 
 is to cleanse Britain of the foul habita- 
 tions which spread corruption, disease, 
 and death in our great cities. 
 
 Not a Final Solution 
 
 I never said this Bill was a final 
 solution. I am not putting it forward 
 as a complete remedy. It is one of a 
 series. We are advancing on the 
 road, but it is an essential part of the 
 journey. I have been now some years 
 in politics, and I have had, I think, 
 as large a share of contention and 
 strife and warfare as any man in 
 British politics to-day. I remember 
 this beautiful building wrecked. This 
 year, this session, I have joined the 
 Red Cross. I am in the ambulance 
 corps. I am engaged to drive a 
 waggon through the twistings and 
 turnings and ruts of the Parliamentary 
 road. There are men who tell me I 
 have overloaded the waggon. I have 
 taken three years to pack it carefully. 
 I cannot spare a single parcel, for the 
 suffering is very great. There are 
 those who say my waggon is half- 
 empty. I say it is as much as I can 
 carry now. There are some who say I 
 am in a great hurry. I am rather in 
 a hurry, for I can hear the moanings 
 of the wounded, and I want to carry 
 relief to them in the alleys, the homes 
 
 where they lie stricken. And I ask 
 you, and through you I ask the mil- 
 lions of good-hearted men and women 
 who constitute the majority of the 
 people of this land, I ask you to help 
 me to set aside hindrances, to over- 
 come obstacles, to avoid the pitfalls 
 that beset my difficult path. 
 
 Answers to Questions. 
 Life Insurance Agents 
 
 Replying to a number of questions, 
 Mr. Lloyd George said that they were 
 not interfering with the business of life 
 insurance agents. There was no pro- 
 vision for death in the measure at all. 
 Some people had criticised them for 
 that, but they had given an under- 
 standing that they would not do it, 
 and they redeemed their pledge. He 
 wished to point out that there was 
 nothing to prevent any society that was 
 dealing in death benefits organising a 
 sickness section if they liked, so that 
 as a matter of fact agents for societies 
 in this country would find that they 
 would be in a much better condition 
 than before the Act. 
 
 Dividing Societies 
 
 With regard to dividing societies, 
 the Chancellor said that if they chose 
 to organise a section of their society 
 under the Bill they had the same right 
 to come in as any other society. W 7 hat 
 they could not allow was that any part 
 of the provision which was made by 
 the State under the fourpenny, three- 
 penny, and twopenny payments should 
 be divided at Christmas. 
 
THE PEOPLE'S INSURANCE 
 
 189 
 
 II. THE INSURANCE BENEFITS AND HOW THEY WILL OPERATE. 
 
 (From a Speech delivered by the RIGHT HON. D. LLOYD GEORGE in Whitefield's 
 Tabernacle, on Saturday, October itfh, 1911.) 
 
 The Three Causes of Poverty 
 
 I plead for fair treatment for a 
 measure which, in my judgment, will 
 do more to hinder or assuage human 
 misery than any Bill carried by the 
 Legislature since the abolition of the 
 Corn Laws. The three principal causes 
 of poverty and destitution in the homes 
 of the industrial population of the coun- 
 try are ill-health, unemployment, and 
 drink. What does this Bill propose to 
 do for the first two, nay, even for the 
 third? It makes provision for fifteen 
 millions of men and women engaged in 
 industrial occupations in this country 
 a provision that will save multitudes 
 from falling into ill-health, that will 
 diminish the pain and perils of sick- 
 ness for many more, and that will re- 
 move to a very large extent the desti- 
 tution, the penury, and the privation 
 which follow on the heels of sickness 
 in the homes of the people. In addi- 
 tion to that, it makes a provision 
 against the distress which follows un- 
 employment in two millions and a half 
 of the homes of this country. 
 
 The Bill as a Check upon Alcoholism 
 
 Now I will assume at the present 
 moment the entire burden of sickness 
 amongst the industrial population falls 
 upon the shoulders of labour. In 
 future more than half of that burden 
 will be shouldered by others. Inci- 
 dentally, it combats the evils of drink, 
 for there is the provision in the Bill 
 whereby the organisations which have 
 the control of the health provisions of 
 
 the measure shall have, as one of their 
 duties, to instruct the people on the 
 evil effects of alcoholism upon the 
 health and upon the constitution. 
 
 The Opposition to the Bill 
 
 I have only just summarised at the 
 beginning the character of the measure 
 which I have come to say a few 
 words about and to explain further. 
 The Bill at first was received by all 
 sections of the Press and by all parties 
 with enthusiastic acclaim. Even now 
 all parties do what they call "accept 
 the principle of the Bill." I will tell 
 you by and by what they mean. 
 Gradually the clamour of interests was 
 heard. You cannot embark on any 
 reform which is worth undertaking but 
 you come across vested interests some- 
 where, and there is only one way for 
 a reformer, and that is to fight his way 
 pertinaciously through them. That is 
 the job I have in hand to-day, and 
 will probably be engaged in, not only 
 with this Bill but in other Bills, to the 
 end of my days. And I am here to 
 ask your help. The Bill has been 
 assailed by more misrepresentation 
 than any measure of modern times, 
 and that is saying a good deal, for 
 perhaps you will recollect I put a 
 Budget through. 
 
 The "Accepted Principle" 
 
 Whenever I attempt to explain and 
 write a letter or make a speech to point 
 out the advantages of the Bill, they 
 
190 
 
 THE PEOPLE'S INSURANCE 
 
 say, "That is not the point, because 
 we accept the principle. You should 
 dwell on its shortcomings." The prin- 
 ciple of the Bill is universally accepted, 
 and I now know what is meant by that. 
 It means that whenever you accept the 
 principle of a Bill you have no right 
 to refer to its benefits, and you must 
 confine yourself in any allusion you 
 make to it strictly and rigidly to its 
 shortcomings. That is a grotesque 
 method of considering a Bill. There 
 is one rather fatuous journal which 
 went so far as to declare that to refer 
 to the advantages of the Bill was im- 
 moral advocacy ; so that, if you want 
 to maintain the reputation of being 
 virtuous citizens, if anybody asks you 
 a question about the Bill what bene- 
 fits a workman gets under it you 
 must say, "That is an improper ques- 
 tion, and no respectable father of a 
 family can answer it, but since you 
 have asked me a question about the 
 Insurance Bill I will give you a list of 
 the faults which have been discovered 
 in its drafting." 
 
 - And its Effect 
 
 The effect of that on some minds is 
 this if by some process I am going 
 to get 4^. a week from workmen, 3^. 
 a week from employers, 2d. a week 
 from the taxpayer fifteen millions 
 nobody would get anything. Fifteen 
 millions a year collected, and nobody 
 shall get anything. That is the sort 
 of impression made on my mind by 
 criticisms I have been reading in the 
 public Press. 
 
 The Unprovided Workman 
 
 Now I am going to tell you exactly 
 what the workman gets and also what 
 he contributes. I will take two 
 
 classes of workmen one the workman 
 who is not a member of a friendly 
 society, and another who is a mem- 
 ber of a friendly society, and I will 
 tell you what happens to both. I will 
 start with the man who is not a mem- 
 ber of a friendly society. How many 
 men and women are there in this coun- 
 try who have by joining friendly socie- 
 ties made provision for the dark days 
 of sickness? According to Mr. Watson 
 and he is about the greatest author- 
 ity in the country there are not more 
 than four and a half millions. There 
 are fifteen millions about of work- 
 ing men and working women, so you 
 have only got provision for sickness 
 made in so far as one-third of these are 
 concerned. I know you have building 
 societies and co-operative societies and 
 savings banks, but very often you will 
 find that the best customers of these 
 are the men who have been paying 
 regularly into friendly societies, and 
 they are trade unionists. 
 
 Reasons at the Basis of the Bill 
 
 Why are there so many unpro- 
 vided for? I will give you three 
 reasons which it is important that every 
 man and woman should go into, be- 
 cause they are at the basis of the 
 Insurance Bill. 
 
 (1.) Lack of Foresight to Insure During 
 Youth 
 
 One is that when a man is young 
 and vigorous, and is earning not 
 merely enough money for his daily 
 needs but has something to spare every 
 week, it is difficult for him to realise 
 that the time will come when not 
 merely his weekly wage will be barely 
 adequate, but when it will be insuffi- 
 cient to provide for the days when he 
 
THE PEOPLE'S INSURANCE 
 
 191 
 
 is sick and unemployed. I have got 
 a diagram showing what the average 
 of sickness is at different ages, and I 
 can tell you it is very interesting. 
 What is very remarkable about it is 
 that in the first ten or fifteen years the 
 average sickness is just about the 
 same. I dare say that there are many 
 of you in this meeting who have gone 
 on to thirty or forty years of age 
 without ever consulting a doctor and 
 that is the experience of a good many 
 people. 
 
 (2.) Higher Bates When Aged 
 
 Then suddenly you find how ill- 
 health leaps up. Well, now, it is diffi- 
 cult to persuade men in those days of 
 low averages of sickness that the days 
 of the high average are coming, and 
 that every reasonable man, every 
 thoughtful man, will make some pre- 
 paration for them. You cannot per- 
 suade human nature to look a year 
 ahead without some difficulty, but to 
 ask them to look ten, twenty, thirty, 
 and forty years why, I say, it is one 
 of the greatest triumphs of organisa- 
 tion that the friendly societies and the 
 trade unions between them have per- 
 suaded five millions of people in this 
 country to look ahead so far. Well, 
 when they begin to realise the mistake 
 they made in not joining young it is 
 too late, because the friendly society 
 rates by that time have gone up. You 
 join young, your rate is low. Join 
 late, your rate is high. You are so 
 much nearer the rainy season. It is 
 too late then, and the man who is earn- 
 ing a weekly wage and has to provide 
 for a wife and growing family cannot 
 afford to pay a higher rate for joining 
 a friendly society than the other work- 
 man who joined when he was ten or 
 seventeen. 
 
 (3.) Difficulty of Keeping up Contributions 
 
 Now what is the third reason? and 
 that is the greatest reason of all. The 
 difficulty of keeping it up. Unemploy- 
 ment comes. He has got to pay regu- 
 larly to his friendly society ; and I want 
 you to bear that in mind. He has got to 
 pay regularly to his friendly society. He 
 cannot. He tries to keep that up. He 
 breaks down. He is out of work for 
 a month, two, three, and at the end 
 of it he has other arrears to think of. 
 He has run up a bill at the grocer's ; 
 he has run up a bill for the necessaries 
 of life for himself and his children; 
 there is rent owing. He has g-ot arrears 
 to meet. He has got to liquidate those 
 first before he pays up the arrears of 
 his friendly society. There are mil- 
 lions of people in this country who 
 have been in friendly societies and have 
 broken down. 
 
 Insecurity of Certain Friendly Societies 
 
 Sometimes too often drink is re- 
 sponsible. What is the other reason? 
 Men have joined friendly societies 
 which have become bankrupt. Look at 
 the reports of the Registrar of Friendly 
 Societies in this kingdom year by year, 
 and you find societies have been wound 
 up during the year. Here is a list; 
 1909 is the last return; 155 societies 
 ^dissolved. Look at the assets. They 
 have practically nothing. They have 
 come to the end of their tether. In a 
 single valuation quinquennial valua- 
 tion 155 societies had to be wound 
 up. Hundreds and thousands of mem- 
 bers have paid all their lives. There 
 is an old friend of a friend of mine who 
 is present on this platform. He had 
 a friend who had been paying all his life 
 in a friendly society and just when old 
 age was overcoming him and he could 
 not go on working and was looking 
 
192 
 
 THE PEOPLE'S INSURANCE 
 
 forward to getting a few shillings a 
 week from his friendly society he re- 
 ceived notice that it was wound up. 
 He had to go to the workhouse. 
 
 10,000,000 Workers Unprovided For 
 
 Don't mistake what I am saying. 
 There are friendly societies in this 
 country that I have no hesitation or 
 doubt about are strong and powerful, 
 that can meet all their liabilities, and 
 are taking steps now to strengthen 
 their position. I am only wanting to 
 give you a reason why there are so 
 many people in this country who are 
 unprovided for by friendly societies. 
 For one reason and another there are 
 ten millions of working men and work- 
 ing women unprovided for. 
 
 The Case of the Man Who is Unprovided 
 For 
 
 Let us follow the career of that man 
 who is unprovided for. Take any wage 
 you like. I think the average wage in 
 this country is about 245., and that is 
 the highest average in Europe and 
 much too low at that. What happens 
 to that man? He has no friendly so- 
 ciety. He is a married man with a 
 family. Let us follow him. He feels 
 out of sorts. He is ill. He does not 
 care to consult a doctor, because if he 
 consults a doctor he will have to pay 
 the doctor, he will have to pay for the 
 medicine which he prescribes, and per- 
 haps half a day's wage goes in those 
 two operations. He generally buys 
 something at the chemist's. He goes 
 on and gets worse. Why ? He cannot 
 afford to leave off. He has got a wife 
 and family to think of, and he hangs 
 on and hangs on as long as he can 
 
 " For men must work 
 And women must weep, 
 And there's little to earn 
 And many to keep." 
 
 The Disaster of Illness 
 
 The result is that the illness which 
 might have been cured in a few days 
 becomes a serious one. What happens 
 to him then? He does not go to the 
 parish doctor. He very often in some 
 districts cannot do it without entering 
 the institution, and a workman, to his 
 honour be it said, does not like to wear 
 the pauper's garb. And so another 
 doctor is called in. A bill is run up. 
 What about food? The last few 
 shillings of the household are spent 
 upon food for the necessaries of life. 
 Then the credit of the household is ex- 
 hausted. If a man has been paying 
 regularly to his tradesman no decent 
 tradesman ever cuts him off because he 
 is ill. But still there is a limit. And, 
 after all, tradesmen have lost a good 
 deal of money by that operation. 
 
 The "Poor Man's Banker" Steps In 
 
 What is the next step ? It is the step 
 too familiar in many of our great 
 cities. Articles are pledged with what 
 is called the "poor man's banker"; 
 the wife has to dispose of articles, 
 either of adornment or of furniture ; 
 one after the other they are disposed 
 of just in order to rescue the little 
 household from the grip of hunger and 
 to help her mate to fight the grim 
 enemy. There are two things that may 
 happen two alternatives. If the 
 battle is lost the wife faces the world 
 with nothing but heavy debts and a 
 sore heart. If the man pulls through he 
 has arrears of rent, he has arrears of 
 tradesmen's bills, he has a heavy doc- 
 tor's bill, and I shall give you some 
 illustrations of that before I am done. 
 And he generally returns to work too 
 soon. There are hundreds of thou- 
 sands of people in this country who 
 never through life overtake the debt 
 
THE PEOPLE'S INSURANCE 
 
 '93 
 
 incurred during- illness. They just drag 
 along- through the swamp, with heavy 
 feet, unable to get back to the firm 
 high road right to the end. 
 
 Consumption 
 
 As a matter of fact, ill-health is ac- 
 countable for a gigantic mass of 
 penury, misery, and pauperism in this 
 country. Look at the pauper returns. 
 Ill-health has been first among the 
 causes of pauperism in the land. Let 
 us take another contingency of a man 
 with no provision. He has a bad 
 cough ; it troubles him night and day. 
 He is wasting ; his strength is waning ; 
 he clings on to his work because he 
 cannot afford to fight for his life. At 
 last he has to go to a doctor. The 
 doctor examines him and finds that he 
 has been attacked by one of the .most 
 terrible diseases in the world a 
 disease which carries away 70,000 
 people every year in this country, and 
 a disease which always attacks people 
 in the vigour and strength of their 
 energies. Consumption kills the 
 young, the vigorous, the people who 
 ought to have the hope of life in front 
 of them. Most of these casualties are 
 between 15 and 40. 
 
 A Disease of which the Poor Man Can 
 not be Cured 
 
 What has the doctor to say to him ? 
 This is the first thing I want to get in 
 your minds. The moment of his ex- 
 amination the doctor knows what is 
 the matter with him, but he cannot 
 recommend the one treatment that will 
 save his life. Why? Because he 
 knows the poor fellow cannot afford it, 
 It is no use telling a workman that he 
 must go for three or four months to a 
 sanatorium. How is he to get there? 
 There are very few of them in this 
 
 country ; for all classes there are only a 
 few thousand beds. Therefore the 
 doctor knows that whatever he does 
 within the limit of the man's power, his 
 patient is doomed, and all he can do 
 is to prescribe some medicine to him, 
 which will just for a short time, per- 
 haps, arrest the evil, but the end is 
 inevitable. 
 
 The Case of the Man in Chronic Ill- 
 Health 
 
 Let us take another case a man 
 who breaks down prematurely alto- 
 gether. There are many in this coun- 
 try and in every country the man who 
 gets into a state of chronic ill-health 
 and cannot get on with his work. Un- 
 less he has some provision made for 
 him there is nothing for him but the 
 workhouse or the charity of the 
 parish. 
 
 The Case of the Woman in Childbirth 
 
 Those are three cases. And there is 
 the case of childbirth, where in so 
 many hundreds of thousands of cases 
 women in this country cannot receive 
 proper nursing, nourishment, and care 
 in the discharge of this sacred function 
 of motherhood. What ought to be 
 done not merely for her sake, for the 
 sake of the child, for the sake of the 
 father, for the sake of this land which 
 depends upon these poor little children? 
 Give the little one a fair start in the 
 obstacle race which he has got to run 
 through life, hard enough, difficult 
 enough, full of pitfalls give the little 
 chap a good start at any rate. 
 
 The Bill provides Free Medical Attend- 
 ance 
 
 I have just presented to you in rough 
 outline the sort of contingencies a man 
 may have to face who is utterly un- 
 provided for. And there are ten 
 
 G* 
 
194 
 
 THE PEOPLE'S INSURANCE 
 
 millions of them in this country. What 
 happens to him under the Bill? The 
 first thing- that happens to him under 
 the Bill is that he can command free 
 medical attendance. If he is ill or feels 
 there is something- the matter with him, 
 he need not wait until he becomes seri- 
 ously ill because he cannot afford to 
 pay the two shillings or half-a-crown, 
 or whatever may happen to be the 
 charge in that particular district. He 
 has his society doctor to go to. 
 
 Freedom in Choice of Doctor 
 
 Another thing established under this 
 Bill is this he can have a doctor of his 
 own choice. He is not obliged to go 
 to Dr. A because there happens to be 
 a majority in the club who prefer A 
 to B. He puts his confidence in B, who 
 has pulled him through before, or he 
 has pulled through somebody he liked 
 better than himself, or he says, "This 
 is a man I trust in." And faith is nine 
 points of all healings spiritual, men- 
 tal, physical. So we say to him, "Go 
 to the doctor you believe in." The very 
 sight of some doctors makes you ill, 
 and if you have been harried as much 
 by them as I have been you would find 
 it very difficult for any doctor to pull 
 you through. On the other hand, at the 
 mere sight of some men well, you feel 
 better the moment they come into the 
 room. That is the doctor for you, and 
 under the Insurance Bill you can get 
 him. Yes, but what a fine thing it is 
 to get the doctor you want and get 
 somebody else to pay for him. That is 
 the Government Insurance Bill. 
 
 Prevention better than Cure 
 
 That is the first thing that happens. 
 He can go to the doctor he pleases, and 
 every doctor who chooses can go on to 
 the panel. So there is not merely free 
 choice for patient, but for the doctor 
 
 as well. So we are going to make 
 this really a free country. Very 
 well; he goes to the doctor, and 
 the doctor examines him. He prob- 
 ably may find that the man has come 
 to him just in time, because there will 
 not now be the same reluctance to go 
 to the doctor in time, seeing you can 
 send the bill elsewhere. The doctor 
 may give something that just staves off 
 a serious illness. That is why the Bill 
 will avert illness in hundreds and thou- 
 sands of cases that might have de- 
 veloped into something- grave, and, 
 after all, it is far better to avert it than 
 to cure it. 
 
 Sickness Benefits 
 
 Supposing he fails to cure it the first 
 time. He says : " You had better go 
 home, and go to bed." "But," says 
 the workman, "there will be the big 
 bill you will run up against me." " Not 
 a penny," the doctor will say. "But 
 what happens to my wife and family? " 
 "You will get," the doctor replies, 
 "during the whole time you are ill 
 you will get IDS. a week for thirteen 
 weeks from the first day onwards." 
 " But supposing it lasts longer? " " If 
 it lasts the rest of your natural life you 
 will get what the old-age pensioners 
 get for the rest of your days." 
 
 The Rent Paid, at any Rate 
 
 Supposing you break down at 35 or 
 40, and become a helpless invalid, you 
 will get your old-age pension to the 
 end of your days and free medical at- 
 tendance. Not much, you may say. 
 It is better than nothing, and that is 
 all he had before. Five shillings a week 
 for a man for the rest of his days. 
 What is that? W T ell, I will tell you 
 what that does. When the woman 
 turns to be the bread-winner and the 
 children are beginning to help, the five 
 
THE PEOPLE'S INSURANCE 
 
 95 
 
 shillings a week pays the rent at any 
 rate. And what she earns and the 
 children earn may go for sustenance. 
 It is something- to get the rent out of 
 the way. 
 
 10/- a Week only a Beginning 
 
 More than that, the ten shillings a 
 week is to be a beginning. We have 
 got a balance of two millions in hand, 
 and a well-managed society can bring 
 that up to 12 s. 6d. a week. What does 
 that mean ? I do not say it does every- 
 thing, but it helps during a time of 
 stress and strain, and at any rate when 
 a man gets well, instead of having to 
 face arrears of rent because that could 
 be paid at any rate out of the ten shil- 
 lings a week he has then got less to 
 pay than he had before, and he has had 
 the best doctor for him on the panel to 
 cure him. 
 
 A Case from Blackburn 
 
 A man wrote me the other day from 
 Blackburn ; the statement was verified 
 by a lawyer, who g^ave his name. And 
 this is what he said about a Blackburn 
 man in a cotton mill there. He was a 
 man earning 215. to 225. a week. He 
 had a most protracted family illness 
 himself, his wife and he had two boys 
 of 26 and 24 years of age who seem 
 to have broken down in health alto- 
 gether, and to have been unemployed for 
 some years. They had had five doctors, 
 one after the other, in the house. The 
 total bills came to ^87 165. for a man 
 who was earning 215. to 225. a week. 
 He was paying by weekly or fortnightly 
 instalments, and here is the statement 
 which the old man himself sent me : 
 "I owe nothing," he said, "only 
 ^3 125., and my doctor's bills, 
 1 6s., and have paid regularly. I 
 
 have had to stay off work two weeks 
 being ill and not having help." One 
 doctor had put him in the county court. 
 The debt and costs were 6 ijs. The 
 doctor did not press very hard when 
 he got into court that ought to be 
 said for him. There was an order for 
 the old man to pay 2s. a month 6d. 
 a week for one doctor's bill. Why, for 
 4^. a week he could have had a doctor 
 free, 105. a week during his illness, 55. 
 a week if the illness lasted three 
 months, and he would have had more 
 than that. The two boys would also 
 have had free doctors, and each of them 
 IQS. a week, so that during the time 
 they were ill the house would have re- 
 ceived i i os. a week and a free 
 doctor. That is what would have hap- 
 pened under the Bill. 
 
 The Example of Germany 
 
 I will show you another effect of this 
 Bill. I hope I am not wearying you, 
 because I want you to follow the Bill 
 and judge it by what it is, and not by 
 what is said about it. I ought to say 
 this. I am prepared to stand by any 
 statement which I make, and I ask you 
 afterwards to view the Bill itself as 
 amended in the House of Commons, 
 and find out whether any statement 
 which I make is not strictly accurate 
 find it out for yourselves. Here is 
 another effect of the Insurance Bill. 
 There are men in this country and 
 there are a good many of them who 
 have saved a little money, and put it in 
 savings banks, building societies, and 
 other institutions. They are saving up 
 for the time when they cannot work 
 and earn money. But they don't want 
 that money to be dissipated by the 
 small hindrances that happen to a man 
 before he begins finally to break up. 
 Well, now, let me show you what has 
 
196 
 
 THE PEOPLE'S INSURANCE 
 
 happened in Germany from the effect 
 of insurance. There was a document 
 published the other day, a very able 
 report from one of the ablest Consuls 
 of the British Empire, Sir Francis 
 Oppenheimer, British Consul at Frank- 
 fort. That document has been par- 
 tially quoted in the papers. They 
 quoted one passage that they thought 
 would damage the Insurance Bill, a 
 passage which states that the em- 
 ployers in Germany were growling. 
 That is the only quotation they 
 gave. They do not say what they 
 might have found if they had only gone 
 on a few lines that the employers and 
 the workmen in Germany pay more 
 than twice as much as we call upon 
 them to pay under the Insurance Bill 
 here. What more does this document 
 say? And this is most important. 
 It points out that the effect of 
 the insurance scheme in Germany is 
 that it has put an end to the withdrawal 
 of money from the savings bank, be- 
 cause people are able to tide over their 
 illnesses with the allowance of five, six, 
 seven, eight, and ten shillings which 
 they get from the insurance fund, and 
 the free doctoring. 
 
 The Effects of the Sickness Benefits 
 
 Consider what the effect of that is. 
 Men put money by for a rainy day, but 
 many a sum of money put by for a 
 rainy day has been dissipated by 
 summer showers before the winter 
 season draws nigh. And the one 
 effect of insurance in those cases is that 
 a man is able to keep his little money 
 in the bank and not withdraw it until 
 the real time of heavy trouble comes. 
 He goes to his insurance fund, gets his 
 ten shillings a week, goes to the doctor 
 and gets that paid out of the insurance, 
 and it is quite unnecessary for him to 
 
 send his wife to the bank to withdraw 
 his little savings from that quarter. 
 
 The Case of the Consumptive under the 
 Bill 
 
 Let me tell you what happens to the 
 consumptive worker and there are in 
 this country at the present moment be- 
 tween two and three hundred thousand 
 people suffering from this fell disease. 
 A man goes to the doctor; he is 
 examined. The doctor discovers at 
 once that he is attacked by tuberculosis, 
 and he says to him : " You must knock 
 off work at once. You must go to a 
 sanatorium." The workman says to 
 him : " You are mocking 1 me. How 
 can I go to a sanatorium? I cannot 
 pay." He cannot pay to go to a 
 great building in the country where he 
 gets the best nursing, the best doctor- 
 ing, the best food for his case, open 
 air, lives practically in a sort of con- 
 sumptive hotel, a first-class hotel, for 
 three or four months. So the poor man 
 who is earning 205. or 245. a week is 
 told : " You have to go for four 
 months to a first-class hotel." He will 
 say : " You are mocking me. How can 
 I go ? " And the doctor will say : 
 " Haven't you heard? The Government 
 are finding a million and a half by the 
 Insurance Bill to build sanatoria 
 throughout the country. They are 
 raising a million of money more out of 
 the Insurance Fund to keep it up. 
 They have also a provision in that Bill, 
 by which, if that is not enough, they 
 will find half of the balance. " And then 
 the workman will say : " What happens 
 to my wife and children ? " There 
 again the doctor will say very reluct- 
 antly I have no doubt " In that In- 
 surance Bill of that inhuman monster 
 the Chancellor of the Exchequer, you 
 will find a provision of ten shillings a 
 week to keep the wife and family from 
 
THE PEOPLE'S INSURANCE 
 
 197 
 
 starvation during the time you are 
 getting" cured." 
 
 Sanatoria for Children as well as Adult 
 
 At the end of three or four months 
 he conies back cured. In the early 
 cases the vast majority of people who 
 are sent to these institutions come back 
 cured. More than that. He is trained 
 to fight the evil for the future. He 
 comes back a trained soldier to repel 
 the deadly tubercle that invades his 
 home. He knows now how to keep 
 his little children free from it, the wife 
 and the family ; he knows how to fight 
 it and drive it out. That is what this 
 Insurance Bill does. But it does more 
 than that. We have got an amend- 
 ment in now and I am glad the House 
 of Commons is prepared to support 
 the Government, for they have the 
 command of the finance by which not 
 merely can a man himself go to these 
 sanatoria, but his wife and his children. 
 And there you are. A little chap who 
 under the old system would have 
 languished away amid the torturing 
 anxiety of his parents, a source of peril 
 and infection to all those who love him 
 best what happens to him now? In 
 three months he comes back a plump, 
 chubby, rosy-cheeked little fellow, leap- 
 ing with life and energy and joy among 
 his comrades ; and he has to thank the 
 Insurance Bill for that. I ask you 
 here, frankly, have you read in any 
 of the newspapers which criticise the 
 Bill anything that would give you any 
 notion that this is what it would do? 
 
 I 
 
 The Maternity Benefit 
 
 Let us go further. I have already 
 pointed out to you that if a man breaks 
 down permanently he gets 55., which 
 is an old-age pension, for the rest of 
 his days. But not only that. I re- 
 
 ferred to the case of maternity and 
 child-birth. A million children are 
 born every year in this country under 
 conditions which do not conduce to the 
 welfare of these little children, which 
 are disastrous for the future of the 
 race, and which are cruelty inflicted on 
 the mother. What happens? Every 
 wife of an insured person at child-birth 
 gets 305. from the Insurance Fund to 
 provide nursing, nourishment, care, 
 somebody to look after her household. 
 It will make a gigantic difference, not 
 merely to the poor woman, but to the 
 child as well. Working women who 
 are insured persons themselves and 
 there are many of them and who are 
 the wives of insured persons, will not 
 merely get the 305. of the husband, 
 but the 305. that comes from their own 
 insurance. So that they will get ^3. 
 Why? Because you want to offer 
 every inducement to them not to go 
 too soon back to their work. 
 
 A Contributory Scheme 
 
 How is all this to be paid for? You 
 cannot do it for nothing. We have 
 said from the start that we proposed 
 that the scheme should be a contribu- 
 tory scheme, that all classes should 
 contribute to it, as all classes will bene- 
 fit by it, because it is not merely the 
 workmen who will benefit by it. The 
 community will benefit by it. In3us- 
 tries will benefit by it. The workman 
 is a more efficient man when his vitality 
 is not depressed by anxiety and worry, 
 and when he is not in a condition of 
 chronic under-health, a very good 
 phrase for hundreds of thousands of 
 persons at the present moment. It 
 will cost gd. per week per person. The 
 benefits for a woman are less. She 
 gets 75. 6d. per week instead of 105., 
 but gets 55. during the whole of the 
 time after that, and other benefits in 
 
198 
 
 THE PEOPLE'S INSURANCE 
 
 the same way. The workman pays 
 4<i. l^ourpence the workman pays, the 
 employer pays 3^., the State pays 2d. 
 Thus for 4^. a week the workman gets 
 gd. 
 
 Finance of the Scheme 
 
 I see that a pamphlet has been circu- 
 lated which seeks to prove that they 
 are not getting gd. for 4^. that they 
 are only getting 8|d. Well, really, I 
 would rather trust an actuary than a 
 writer who seems to be ashamed of his 
 own name, since he writes anony- 
 mously. But at any rate if anybody 
 comes to me and offers me 8d. a week 
 for 4^. I will take it, and give him the 
 halfpenny as discount. I should con- 
 sider that I had made a very good 
 bargain. But it is gd. as a matter 
 of fact it is more, because the 
 whole expense of the State provision 
 will be paid by the State itself. I want 
 you to get this into your minds no 
 State officials under this Act will re- 
 ceive a penny out of that gd. All that 
 will be "added unto you." It is a little 
 better than that. We have made pro- 
 vision for those who are earning small 
 wages. We see they cannot pay 4^., 
 and we say that those who are earning 
 between 155. and 125. and there are 
 a good many agricultural labourers in 
 this country to-day who are will have 
 to pay not 4^. but $d. ; from 125. down 
 to 95. not 4^. but 2d. ; those earning 
 95. and under will only pay id. I 
 think, on the whole, after great con- 
 sideration, although there is a good 
 deal to be said for the principle of 
 everybody contributing, still those who 
 are only earning 95. a week can ill 
 spare even a penny, and I think you 
 will find, the State will undertake the 
 whole of it. What does that mean? 
 Those under 95. are mostly women. 
 
 Those under 125. are mainly women, 
 though there are a good many men, 
 and there are a good many men 
 amongst those between 125. and 155. 
 I have already told you that there is 
 not a penny for State officials in this 
 work. It provides all those benefits, 
 and there will be two millions to spare. 
 Why have we provided these two 
 millions to spare? W T hy not distribute 
 them? I will tell you why we want 
 to give a margin to those societies to 
 induce them to manage economically 
 and successfully, and those who do it 
 can declare bigger benefits. We offer 
 them a very wide choice as to the bene- 
 fits they give. They may say, We will 
 give better sick benefits each week, or 
 they can say, We will roll it up for a 
 man to receive it altogether when he 
 is seventy. At the end of sixteen years 
 there will be another six millions to 
 spare. Why? Because we are insur- 
 ing people at all ages as if they were 
 young a man of 50 is a boy of six- 
 teen in the Insurance Bill. We pro- 
 pose that that should be wiped out in 
 sixteen years or sixteen and a half 
 years. At the end of that time there 
 will be six millions more to distribute 
 in increased benefits amongst those- 
 who are insured. 
 
 Case of Friendly Society Members 
 
 That is the scheme so far as it affects 
 those who are not members of friendly 
 societies. What about the friendly 
 society members? Really, the mis- 
 representations about friendly societies 
 are so many, so diverse, so dark, that 
 they are perfectly bewildering. I am 
 not at all surprised that any friendly 
 society member is frightened out of his 
 wits by this carnival of distortion, this 
 disgraceful attempt to mislead friendly 
 society members, and to make them 
 
THE PEOPLE'S INSURANCE 
 
 199 
 
 unhappy about the poor savings that good many years when it is practically 
 with great sacrifice they have made insolvent, 
 every week for years. 
 
 Societies will be Better Off under the Bill 
 
 Let me say this here, and I ask them 
 to produce any actuary who knows 
 I make the statement now to every 
 member of the friendly societies not 
 merely is there no need for anxiety, 
 but he will be better off under the Bill 
 than he was before. 
 
 The Present Position of the Societies 
 
 What is the position of friendly 
 societies now ? Have you read the very 
 able speech delivered by Mr. Moffrey? 
 I think it was at the conference in 
 Edinburgh as President of the National 
 Conference of Friendly Societies. He 
 gave in that address a very clear ac- 
 count of the position of friendly socie- 
 ties during the last few years and at 
 the present moment, and he points this 
 out that during the last few years the 
 friendly societies were making no pro- 
 gress; that they were at a standstill so 
 far as members were concerned. Why ? 
 He gives that reason, too. He points 
 this out that societies had been pro- 
 mising benefits which the contributions 
 would not justify. During the last few 
 years they have been pulling them- 
 selves together. They have reduced 
 the benefits in some cases and in- 
 creased subscriptions in others. What 
 has been the result? They are gradu- 
 ally becoming more and more solvent. 
 But recruiting has stopped. As long 
 as great benefits were promised at small 
 subscriptions people came pouring in. 
 But when they found that this was pro- 
 ducing disaster and reduced benefits or 
 increased subscriptions it stopped re- 
 cruiting. A society can go on for a 
 
 The Young, not the 01$ ^embers Pay the 
 Societies 
 
 That sounds a very i narkable state- 
 ment, but it is true, ai. i I will tell you 
 why it is true. The men who join 
 friendly societies are generally young 
 people, because when they become old 
 the subscription is so high the people 
 don't join. Therefore, when you start 
 a friendly society it is young. That 
 society can go on for twenty, thirty, 
 forty years before its real indebtedness 
 is discovered in practice. When people 
 came to me and said, For threepence a 
 week we are doing more than you are 
 doing, I began to discover the members 
 were young people. They have not 
 been at it very long. Long before they 
 have gone on for twenty or thirty years 
 most of the members have either left 
 the neighbourhood, or something of 
 that kind. They have never actually 
 taken upon their shoulders the heavy 
 burden of ill-health. That is when the 
 real burden ill-health comes, at the 
 end. The insurance scheme takes it 
 up, and takes it up to seventy. Then 
 the old-age pensions carry it right to 
 the end. 
 
 Two-thirds of the Societies have a 
 
 Deficiency 
 
 In the valuation of the independent 
 societies* for 1905 there were 455 
 societies which had a surplus. There 
 were 1,139 societies which had a 
 deficiency. Can you follow that? 
 Two-thirds of all the societies in 
 the kingdom had a deficiency; only 
 a third had a surplus, and I am 
 quoting now the official valuation. 
 By the time the next valuation came 
 * Excluding societies \vith branches. 
 
2OO 
 
 THE PEOPLE'S INSURANCE 
 
 round hundreds had disappeared alto- 
 gether. Efforts have been made to re- 
 store solvency, and a very vivid ac- 
 count is given of it by Mr. Moffrey in 
 his address delivered in Edinburgh. 
 
 State Supervision 
 
 What happens when these societies 
 break up? Hundreds of thousands of 
 people are left without any provision at 
 all for the time of sickness. This is 
 what I want to say. In future we 
 have so arranged the finance of the 
 Bill that you have a practical guaran- 
 tee and security for the old people who 
 pay their money into the funds. We 
 have real State supervision, because 
 we have real contribution. We have a 
 contribution which amounts to five 
 millions a year up to six, and therefore 
 we have the right to supervise. Of 
 course, there are people who do not 
 like supervision. They would rather 
 not ; they would rather go on in their 
 own way. It is better for the millions 
 of people who are in friendly societies 
 that the Government should be able to 
 say at the end of three, six, or nine 
 years, " Let us see how you are getting 
 on ; what is being done with ,the 
 money," because the State cannot allow 
 an old man to pay for nothing. Nay, 
 nor the young man with a family 
 either, after it has compelled him to 
 contribute fourpence a week. We 
 must see that he gets his money, for 
 that is the equivalent of a substantial 
 State guarantee in future. 
 
 No Future Fears as to Stability of 
 Societies 
 
 That is the first thing you gain. No 
 man need have fear in future for the 
 condition of his friendly society. 
 Friendly societies which are insolvent 
 now will the moment this Bill is passed 
 have a surplus. 
 
 An Illustration 
 
 I will give you an illustration. I do 
 not say the Oddfellows are insolvent. 
 That is not my point. No, certainly 
 not. They are a very powerful body. 
 But take what Mr. Watson says as to 
 what the Oddfellows will get. As an 
 addition to their reserves, the moment 
 this Bill is passed they will get three 
 millions and a half. It is equivalent to 
 an addition to the Oddfellows' reserve 
 account of three millions and a half. 
 And you inquire of the Foresters, the 
 Hearts of Oak, the Shepherds, the 
 Druids, the Rechabites, and the Sons 
 of Temperance, ask any of them, and 
 they will tell you the same thing. If 
 they have consulted their actuaries, 
 you will find their reserves will be 
 strengthened, some by thousands, 
 some by hundreds of thousands, and 
 some by millions. The societies which 
 now have a deficit will begin life 
 afresh, with an account which is to 
 their credit. That is a good start. 
 How many of them have told you that ? . 
 Not one. Growling, nagging, grum- 
 bling I am waiting for the "Thank 
 you." 
 
 Attitude of the Conservative and If ar 
 Parties to the Bill 
 
 Mr. Balfour the other day said we 
 would be weakening trade unions as 
 well as friendly societies. I wonder 
 whether he will take the trouble of 
 reading the report of the actuary ap- 
 pointed by the trade unions. He ends 
 up a very able and careful report by 
 saying that it will "strengthen the 
 trade unions financially and enable 
 them to strengthen their superannua- 
 tion funds, their unemployed funds, as 
 well as their health funds." It took 
 them months to discover that. In the 
 meantime they gave me a very bad 
 
THE PEOPLE'S INSURANCE 
 
 201 
 
 time. There is one very interesting 
 passage there. I fought one night 
 until six o'clock in the morning against 
 a combination of my Labour friends 
 and the Conservatives who, whenever 
 they are in a difficulty, are more ex- 
 treme than the Socialists an amend- 
 ment that would have been ruinous to 
 trade unions and friendly societies 
 for, above all, I must see that the Bill 
 has a financially sound basis. The 
 friendly societies and trade unions con- 
 sulted an actuary, and he congratulated 
 them on the fact that their amendment 
 was defeated. " Perhaps you may per- 
 mit me," he says, "to refer to Clause 
 1 1 of the Bill. It is, I think, fortunate 
 that that clause was not amended in 
 the manner desired by the Labour 
 party." And this is their actuary 
 not mine. 
 
 Concessions not always Amendments 
 
 There is one special warning which 
 I ought to give you I don't mean 
 merely you here, but those outside. 
 Concessions do not always mean 
 amendments. I have to concede here 
 and concede there, because I am 
 ass*, .cd by innumerable vested in- 
 terests, whom I have to conciliate and 
 coax and persuade somehow or other 
 to allow me to get on with the ambu- 
 lance waggon. And I have many a 
 time to fling things out of that waggon, 
 things which would be far better there, 
 so that I might give them to the sick 
 who need them, but I have to give a 
 delicacy here, and a bit of luxury there, 
 and an opiate here to get along. You 
 must not imagine that every conces- 
 sion is an amendment under the Bill. 
 That is the important thing. But still 
 there are amendments, and real amend- 
 ments. These I am prepared to 
 
 but as few concessions which are not 
 improvements as I can possibly afford 
 to give. 
 
 The gain to the individua [ember, from 
 youth . . . 
 
 I have told you what vould happen 
 in the way of strengthening the finan- 
 cial basis of these unions and societies. 
 They will be stronger in the future. 
 But what about the individual member 
 of a friendly society ? Let me tell you. 
 Supposing you have got a man who 
 has been a member of a friendly society 
 from early youth until he is 50. What 
 will happen under the Insurance Bill? 
 He begins by having 10 placed to his 
 credit by the Bill. What can he do for 
 that? Paying the same subscriptions 
 he can get an extra 35. per week more 
 than he has got now for sick pay. Is 
 that clear? Then I had better repeat 
 it. I want you to understand it. 
 Supposing a man is insured under 
 a friendly society from early youth until 
 he is 50 to get 105. per week during 
 sickness; 55. per week during per- 
 manent breakdown. Let us see. He 
 is insured now at this present moment. 
 What will happen to him under the 
 Bill? If he goes on paying the same 
 subscription as he is paying now, not 
 in addition to the $d., but including the 
 4^., he will get instead of IQS. per 
 week 135. per week; and instead of 
 getting 55. per week for permanent 
 breakdown he will get 65. 6d. per week 
 for the rest of his days. 
 
 * . . . and at various ages 
 
 What about the man of 40? Now I 
 am getting home. Or the man of 35 ? 
 He is not so ready to own his age. 
 What happens to him ? He will get for 
 the same subscription, including, mind 
 you, the 4^. of the State, he will get 
 
2O2 
 
 THE PEOPLE'S INSURANCE 
 
 i2s. 6d. where he formerly got los. 
 He will get that extra half-crown for 
 26 weeks. He will get an extra 
 is. 3^., which would make it 6s. 3^., 
 even if he is ill right up to 70 years of 
 age, when he gets his pension. 
 
 Gain if applied to Old Age Pensions 
 
 Now, I am giving these figures, on 
 whose authority do you think? On the 
 authority of the actuary of the Odd- 
 fellows, the most distinguished friendly 
 society actuary in the world. What 
 does he recommend? He recommends 
 that the money should not be used to 
 increase the weekly pay. He recom- 
 mends that it should be saved up in 
 order to increase the old-age pensions. 
 That is entirely a matter for the socie- 
 ties. But supposing you did that, I 
 will give you figures in order to show 
 you what would happen. Paying the 
 same subscription as you are now pay- 
 ing, say 6d. qd. will be deducted out 
 of your wages, you will pay the extra 
 2d. yourself and make the same sub- 
 scription as you are paying now. A 
 man of 35 would get at 70 an annuity 
 of ^5 i8s. out of this money without 
 paying a penny-piece more. Do you 
 follow that? A man of 40 would get 
 an annuity of 5 Ss. ; a man of 50 an 
 annuity of 5 55. ; and a man of 60 
 an annuity of ^3 25., added on to the 
 pension he will get from the State. 
 
 No deduction during Sickness 
 
 What happens to a man who is sick 
 and unemployed? In a friendly so- 
 ciety, when a man is sick his weekly 
 payment is always deducted. If you 
 should be receiving los. and paying 
 6d. you will get only 95. 6dL The pay- 
 ment is a week's payment. Supposing 
 you are out of work. You have either 
 
 to pay up regularly during that time, 
 or you will have to pay up arrears at 
 the end. There is no misrepresentation 
 greater than the misrepresentation of 
 the Bill on this point. The Bill does a 
 thing no friendly society in the world 
 has ever attempted for the unemployed 
 and sick. We are making no deduc- 
 tion at all during sickness. We don't 
 ask a man to pay anything at all dur- 
 ing sickness. Afterwards it is wiped 
 out completely. The bill is never sent 
 to him. 
 
 Distress fund during Unemployment 
 
 What about the unemployed? For 
 three weeks in every year we make no 
 deduction for unemployment. He is 
 never asked to pay up when he comes 
 back. He gets exactly the same bene- 
 fits as if he had paid for the full time. 
 What friendly society in the world does 
 that to begin with? After three weeks 
 if you are in arrear in your friendly 
 society and don't pay up arrears you 
 have to go. We have a distress fund 
 as well. You never heard of that. We 
 don't strike a man off the books even 
 at the end of three weeks. After that 
 we allow him to remain on for another 
 thirteen weeks with a scale of reduced 
 benefits. More than that, he can go 
 on for twenty-six weeks, and we still 
 give him sanatorium benefit, medical at- 
 tendance, and maternity benefit. Can 
 you name a friendly society that does 
 that anywhere in England, Scotland, 
 Wales, or Ireland, or throughout the 
 world that gives those terms? But that 
 is not all. We have given the power 
 to a society to forgo arrears even 
 beyond that, if they like. If a poor 
 fellow comes and says, "Well, I have 
 done my level best to get a job, but 
 things have been very bad," the society 
 can say, "You are an honest fellow. 
 
THE PEOPLE'S INSURANCE 
 
 203 
 
 You are not a loafer. You have led an 
 industrious life all through. We can 
 forgive you your arrears." Have they 
 ever told you that? That is not the 
 sort of thing they dwell upon. 
 
 The Facts as to Women under the Bill 
 
 I should have liked to say something 
 to you about the position of women 
 under the Bill. You have heard a 
 great deal about the cruel way in 
 which we are treating women under 
 the scheme. I will tell you the facts. 
 Women pay less. They are to get 
 less. This is a business concern. They 
 pay one penny less, and they get what 
 corresponds to the value of that penny 
 less. That is all. But let me show 
 you what we do. That penny the 
 women pay goes into a women's fund. 
 They are under the impression that the 
 women have to pay in order that we 
 should give benefits to the men. Not 
 a penny piece of the women's money 
 is ever transferred under any condition 
 to the ledgers of the men, so that what- 
 ever money they pay in they get the 
 full advantage of it. And not only 
 that, but they get 2d. from the State. 
 The men pay 4^. and get 2d. from the 
 State. Women pay 3^. and they will 
 get 2d. As a matter of fact, there has 
 been no scheme ever launched in this 
 country by the Legislature which has 
 conferred so many direct benefits upon 
 women. The sliding scale I gave you 
 is largely in the interests of women. 
 The sliding scale of 95. and 125. is 
 very largely to their benefit. 
 
 The Various Benefits Women will Enjoy 
 
 Then the maternity benefit. One 
 million and a half every year given to 
 the women of this country. The sana- 
 torium benefit. There was very great 
 pressure brought to bear upon us to 
 
 try and keep the women who, when 
 single women were insured to keep 
 them now in the insurance after they 
 are married. The difficulty ' that is 
 that there is no employer- .ere is no 
 3^. from the employer, /ou cannot 
 collect it by force from tne individual, 
 and going to the employer is so much 
 cheaper and more effective. There "is 
 such a difference between going to an 
 employer who has 3,000 workmen and 
 saying, "You have got to collect," in- 
 stead of sending a man from door to 
 door to 3,000 homes and in picking the 
 pennies up in twopences and four- 
 pences, and being asked to call again 
 in a week. That is the real difficulty. 
 But I will tell you what we are devis- 
 ing. We are trying to devise a scheme 
 whereby for a small contribution we 
 can keep in insurance women who were 
 insured before marriage, so that they 
 can keep insured afterwards, with 
 medical attendance, and a small allow- 
 ance to enable them to pay somebody 
 to look after the home during the time 
 they are ill, and also to provide for 
 them when they are widows, and when 
 the breadwinner has gone. As a 
 matter of fact, women have suffered 
 and sacrificed more than even men in 
 order to pay the subscription to the 
 friendly society. It is often paid by 
 them even without the knowledge of 
 the husband paid out of their house- 
 keeping amount and the relief under 
 the Bill will be enormous to the poor 
 woman who is struggling to keep her 
 family going. 
 
 The Employer's Case 
 
 As to employers who pay their em- 
 ployees when they are sick. If they 
 will guarantee if they don't guar- 
 antee, and if we keep them out of the 
 Bill and find there is no guarantee 
 afterwards, then these poor fellows will 
 
 H 2 
 
204 
 
 THE PEOPLE'S INSURANCE 
 
 be in a very poor plight but if they 
 guarantee that they will pay wages 
 during the time they are ill, we will 
 let them off the sick list. But you 
 must have somebody to look after these 
 poor people if they break down per- 
 manently. An employer would not 
 keep a man in wages for two or three 
 years. There are very few rich com- 
 bines who do it at all, and after all we 
 have to deal with the bulk. We have 
 got to look after the people who are 
 broken down permanently. 
 
 The past History of the Bill 
 
 I have asked myself one question. 
 I wonder you have not asked it and 
 that is why with all this misrepresenta* 
 tion of the Bill, these wild statements 
 which are made about it that it is de- 
 stroying friendly societies and trade 
 unions, impoverishing doctors, crush- 
 ing industry, robbing the working 
 classes, and spreading ruin, destruc- 
 tion, and dismay all round why there 
 is no party in the State that will take 
 the responsibility of opposing it out 
 and out. This ruthless, reckless, 
 ruinous measure passed the first read- 
 ing without a division. Three weeks 
 after the first reading, when the Bill 
 was printed, when people could see 
 every clause of it, it passed the second 
 reading. After days of debate not a 
 man went to the lobby to vote against 
 it. If all these things said about it are 
 true, can you tell me why they did not 
 do it? I will tell you. It is because 
 they know they are not true. At any 
 rate, if they don't know they are rather 
 afraid they might be demonstrated to 
 be untrue. 
 
 The example of a by-election 
 
 I have received letters from members 
 of Parliament Liberal members of 
 Parliament. This is the sort of way they 
 always begin : " I have been address- 
 
 ing my constituents explaining your 
 Bill. At first I could see misrepresen- 
 tations had told on the audience. As I 
 proceed to explain it they are amazed ; 
 they get interested ; they gradually be- 
 come "cordial ; and they end with en- 
 thusiastic approval." I have received 
 letters from members of Parliament 
 from every part of the kingdom. And 
 have you followed the Kilmarnock by- 
 election? What happened? There 
 were three candidates one of them an 
 out-and-out supporter of the Bill, one 
 of them an out-and-out opponent of the 
 Bill, and the third a critic who was pre- 
 pared to support it with variations. 
 Lots of people thought they could make 
 so much better Bills if they only had 
 the chance. What happened? Those 
 three candidates pretty well took up the 
 whole of their time discussing the In- 
 surance Bill. It was the one great topic. 
 At first you had the same atmosphere of 
 doubt. As the Bill got explained and 
 argued there was a complete change. 
 At the end of it the straightforward 
 supporter of the Bill got a majority 
 which surprised his most ardent sup- 
 porters in the constituency. The man 
 who opposed it received the smallest 
 proportion of the total vote since Kil- 
 marnock was founded in the deep, and , 
 his personality does not altogether ac- 
 count for that. What does that mean ? 
 That where the Bill is explained to an 
 intelligent, industrial community, where 
 it is argued on both sides, or on three 
 sides, for weeks, and discussed, de- 
 bated, and looked into, the verdict is 
 emphatic in its favour. And the longer 
 they looked into it the better they liked 
 it. So will you. 
 
 What happened to Old Age Pensions ? 
 
 Why don't they oppose it in a 
 straightforward fashion? I will tell 
 
THE PEOPLE'S INSURANCE 
 
 205 
 
 you why. They have the memory of 
 old-age pensions. You remember what 
 they said about it. I was reading up 
 the other day what was said in the 
 House of Lords about it. One noble 
 lord who is always seeing nightmares 
 said : " It was a mortal blow to the 
 Empire." That was Lord Rosebery. 
 Lord Lansdowne, the leader of the 
 Unionist party, said : " It will weaken 
 the moral fibre of the nation, and dim- 
 inish the self-respect of our people." 
 Receiving five shillings a week for a 
 life of toil and industry "weakens the 
 moral fibre ! " I wonder whether every 
 pension has that effect, or is it only 
 when the pension is small? He also 
 said : " It is a measure we regard with 
 grave apprehension, which we fear may 
 have far-reaching and disastrous effects 
 upon the future of this country." That 
 is not the Insurance Bill, but the Old- 
 age Pension Bill. What has happened ? 
 Nothing, except that the veto of the 
 Lords has gone. What else has hap- 
 pened ? A million old people have been 
 made very happy, and the rest of us 
 have been made very happy by looking 
 on. That is the mortal blow to the Em- 
 pire that the old people can sit by the 
 fireside, honoured guests, without 
 anxiety, without the dread of the work- 
 house, without the horror of a pauper's 
 doom. That is the weakening of the 
 moral fibre ! 
 
 Trade Unions : Then and Now 
 
 That is the way they talk of pensions. 
 What are they saying about this Bill? 
 They are afraid of it. Mr. Balfour 
 made a speech at Haddington the other 
 day. 
 
 He will not lift a finger to help it 
 along, but he will not accept the re- 
 sponsibility of killing it. He wants 
 the trade unions and friendly societies 
 
 to do it. Lord Salisbury said trade 
 unions were "cruel and tyrannical 
 organisations " ; his distip ^uished 
 nephew has only one concerr est he 
 should hurt these cruel ore 1 ' .isations. 
 And he looks from afar on this Bill of 
 mine and says : " I wonder whether the 
 animal is dangerous. He looks inno- 
 cent. But so did that other beast. On 
 the whole, I think I will leave it alone. 
 But still, if I say nothing, then all these 
 people in the Unionist party will say, 
 4 What is the good of keeping a dog 
 that won't bark? ' " So he just gives 
 a sort of a " Yap," and then says to the 
 friendly societies and the trade unions, 
 "You go at 'em." If the Bill is killed 
 he won't mind that. He won't suffer. 
 He need not go to a friendly society to 
 get a doctor's assistance. He will 
 never stand in need of the IDS. or 55. 
 a week. But there will be others who 
 will suffer. 
 
 " A Non-Party measure " 
 
 I have endeavoured in all sincerity 
 to make this a non-party measure. I 
 am told I have tried to bribe the work- 
 ing classes. If I set out to bribe the 
 working classes I should know how to 
 do it, but in future when I try to table 
 the next measure that calls upon the 
 working classes for a fair share of con- 
 tribution I shall know that the people 
 who are always flaunting the honesty 
 of their opinions are the first to join 
 with the extremest Socialist in the land 
 to embarrass and hinder me on the 
 way. I promise that I am not going 
 to forget the lesson. I made an offer 
 to the Opposition because I thought 
 I was out for my fellow-countrymen, 
 especially the poor and helpless. I 
 said to them : " Come and help me ; ap- 
 point two, three, or four of your own 
 men to meet me at the Treasury to 
 
206 
 
 THE PEOPLE'S INSURANCE 
 
 consider the Bill, to see how you would 
 like to alter it. I will put every docu- 
 ment in the Treasury at your disposal. 
 You can see the officials and ask ques- 
 tions. You can bring your men, and 
 we will have a free and frank inter- 
 change of opinion." 
 
 have been two general elections in 
 twelve months three in five years. 
 The country doesn't want any more, 
 and in all human probability you won't 
 have another. I did not mean to say 
 for ever, but for four years. The Bill 
 is going through this year. 
 
 The offer to the Conservatives .... 
 
 I said more to them. I said : " If 
 you can advise something better, I am 
 willing that you should propose it in 
 the House of Commons, and I will 
 agree to it, so that you shall get the 
 credit." What more could mortal man 
 do? If my offer had been accepted I 
 made it once, twice, three times we 
 should have had a Bill commanding 
 the votes of all parties, reflecting 
 credit not on one party or on one 
 Minister, but on the common sense, 
 constructive capacity, and governing 
 power of our race and of our men. 
 They rejected it. They preferred going 
 to the fields, to the forests, and to the 
 Press to misrepresent and malign it, to 
 whisper calumnies about it, to stop us 
 getting it through without standing up 
 against it. 
 
 Their refusal .... 
 
 I am earnestly sorry. It would have 
 formed such a valuable precedent. No 
 offer of the kind had ever been made 
 before by a Minister. We asked them 
 to assist us to see how we could save 
 the wretched in the land. They would 
 have nothing to do with it. 
 
 And their reason for refusing 
 
 And now what do they want? They 
 won't fight it. Why? I will tell you 
 why. I will let you into a secret. Do 
 you know why they were anxious to 
 put it off two or three years. There 
 
 The effects of the Bill on the Country at 
 Large 
 
 Next year it will be in operation. 
 In the following year the benefits will 
 be flowing, and the stream of benefits 
 will get wider, greater in value 
 swollen year by year, and by the time 
 the general election comes, what will 
 be the use of misrepresentations of this 
 Bill? Why, there will be living re- 
 futations of every falsehood springing 
 up in every street, town, city, and 
 hamlet of the land. Oh, yes ! There 
 won't be a village where you cannot 
 point to lives having been saved by the 
 Insurance Bill. There won't be a town 
 or a hamlet where you cannot point to 
 households saved from privation and 
 hunger by the Insurance Bill. There 
 will be the man who has come back 
 from the sanatorium fit for work, 
 strong, vigorous, who, but for that 
 Bill, would have been a poor, wretched 
 consumptive, staggering to the grave. 
 There will be children who will be 
 saved. What is the good of telling 
 lies about the Insurance Bill when you 
 can point to people of that kind? This 
 is what will happen. There will be the 
 slums which have defiled our great 
 cities for generations cleansed and 
 swept out of the way by the health pro- 
 visions of this Bill. They are anxious 
 to put it off. They say, "Why not 
 wait ? " Wait for whom ? Wait ! 
 For what are we to wait? Wait until 
 the stream, that dark stream of human 
 misery has all flowed past ? Or are we 
 to wait until it surges up and swells and 
 
THE PEOPLE'S INSURANCE 
 
 207 
 
 breaks over the banks of law and con- 
 vention which hem it in and devastates 
 the land with its horrors? Are we to 
 delay until another million people have 
 endured without hope and without help 
 the racking torments of consumption? 
 Why are we to wait? 
 
 " This is not the end of Social Reform " 
 
 This Bill was promised three years 
 ago. It has been on the table six 
 months, discussed and advertised in 
 every paper. No; we will have it 
 through. We want to get on with 
 other work. This is not the end of 
 social reform. It is a good beginning. 
 Some of these provisions are only pal- 
 liatives until we can get deeper. But 
 it does more than that. It amasses in- 
 formation, and gathers it from all 
 sources as to social evils analyses and 
 
 collects it ; and all this will be of enor- 
 mous benefit when we come to deal 
 with the great problems. I never said 
 it would do everything. It will help, 
 and then we will go on. I am taunted 
 that I promised "a new heaven and a 
 new earth." They seem to think that 
 phrase was uttered by me. But I am 
 a humble believer in it. I should like 
 to be able in a humble way to help its 
 advent a new earth, where the health 
 of the multitude would be more pre- 
 cious in the eyes of the law than the 
 wealth of the few ; a new earth, where 
 the superabundance with which Provi- 
 dence blesses labour can be directed 
 and controlled so that the home of the 
 labourer shall be saved from wretched- 
 ness, penury, and privation ; a new 
 earth, and the best of all to be con- 
 centrated and organised to avert the 
 worst from each. 
 
 III. THE EFFECT UPON LOCAL AUTHORITIES. 
 
 (From a Speech by the CHANCELLOR OF THE EXCHEQUER in the House oj 
 Commons on November gth, 1911, in support of the provisions for penalising Local 
 Authorities where excessive sickness is caused by their neglect to enforce Public 
 Health Acts Section 63 of the Act as passed.) 
 
 There is no proposal here to inter- 
 fere with local authorities in any way, 
 except that which is already enshrined, 
 or, I think, embalmed is a better word, 
 in Acts of Parliament, because most of 
 them are mummies. They are not 
 exercised, there is no life in them; 
 they are pure dust, and they only have 
 the form and the features of life. There 
 is none of the spirit and the soul in 
 any of these powers. That is the 
 reason why we propose that we should 
 have some powers of this kind in order 
 not to interfere with local authorities, 
 but to wind them up. There are no 
 new powers here. The only change is 
 
 that organisations which are created by 
 this Act are to have powers conferred 
 upon them of setting the law in motion 
 and that you are going to alter the 
 remedy by resorting to the old common 
 law method of obtaining redress in a 
 court by pecuniary damages. 
 
 Inadequacy of Existing Powers 
 
 The hon. and learned Gentleman (Sir 
 A. Cripps) says, "Why do not you 
 resort to the existing powers of the 
 law? They are quite adequate." They 
 may or may not be adequate for the 
 
208 
 
 THE PEOPLE'S INSURANCE 
 
 purpose of enforcing the law, but the 
 money which is lost to a society owing 
 to the neglect of a local authority or of 
 a householder or an employer to carry 
 out Acts of Parliament cannot be 
 covered by any existing method. 
 That is all we do. We set up here 
 machinery, not for interfering with the 
 local authorities, but to enable the 
 societies which are damnified by the 
 inaction, the illegal action, or the neg- 
 lect of authorities, owners or em- 
 ployers, to carry out the provisions of 
 the law to recover compensation for 
 the loss they have sustained. I again 
 say there is no new principle, and there 
 is no rival authority. If an individual 
 suffered wrong from either a local 
 authority or a neighbour either due to 
 defective drains, to leaky roofs, or to 
 anything which impairs or imperils 
 the health, or even to anything which 
 offends his nostrils, he can obtain 
 pecuniary damages in a court of law, 
 but if a society suffers damages to the 
 extent of thousands a year owing to 
 the same cause there is no remedy at 
 all in law. All we propose is that the 
 old common law right which is en- 
 shrined in the law of England shall 
 also be extended to these societies. It 
 is as old as the law of this land. It 
 is given to individuals. Why should 
 you not give it to a corporation of 
 workmen to protect their rights, so 
 that where their rights are trampled 
 upon, where they suffer in health and 
 in pocket they should be able to re- 
 cover by some single process of law 
 from those who are responsible for the 
 loss ? That is not a new principle. It 
 is a very old one. It is as old as this 
 House and the other. I should like 
 to show later on how societies suffer 
 financially owing to neglect of the 
 sanitary laws of this country and how 
 now they are completely stripped of 
 
 any remedy. I will give one or two 
 cases later on. 
 
 Causes of Excessive Sickness 
 
 What are the main complaints of 
 these societies with regard to these 
 extra causes of ill-health which add to 
 their pecuniary benefit? Bad drain- 
 age, bad water supply, bad housing, 
 factories and workshops not in accord- 
 ance with the conditions of the law, 
 and the offenders are local authorities 
 and private individuals. We have had 
 years of Public Health Acts in this 
 country; we have had Local Govern- 
 ment inquiries without number; we 
 have had recommendations of medical 
 officers of health and of inspectors of 
 the Local Government Board. I shall 
 be able to prove that they are abso- 
 lutely helpless in hundreds of cases 
 and have been for years, not because 
 the Local Government Board has neg- 
 lected its duty. On the contrary, 
 anyone who peruses their reports will 
 see how very concerned they have been 
 about this for years. It is purely 
 because they are armed with the clum- 
 siest, rustiest weapon in the whole 
 armoury of British law the manda- 
 mus, a perfectly worthless weapon. 
 
 Evidence of the Local Government Board 
 
 I will read an extract from the chief 
 medical officer of the Local Govern- 
 ment Board in his review of the year 
 1909. He says : 
 
 "A story of neglect of elementary 
 sanitary work outstands in a large 
 proportion of the current reports by 
 medical inspectors of the Board on 
 local sanitary circumstances. A not 
 inconsiderable number of the smaller 
 
THE PEOPLE'S INSURANCE 
 
 209 
 
 towns and urban districts, and many 
 of the rural districts which have 
 within their area portions presenting 
 urban characteristics, are characterised 
 by continuance, more or less, of the 
 filth nuisances which were fairly 
 general fifty years ago, but which have 
 since then been abolished in the larger 
 and better governed towns." 
 
 If anyone will go through these 
 reports he will find that there are local 
 authorities by the score which never 
 prosecute offenders against the Public 
 Health Acts, which keep no records of 
 and never even investigate insanitary 
 conditions, which have no sanitary 
 committee, which systematically refuse 
 to carry out the recommendations of 
 their sanitary officials, which have in 
 force neither by-laws nor adoptive 
 Acts, and which neglect to apply such 
 by-laws and Acts when adopted. 
 
 The conditions described in the re- 
 ports existed in the last ten years. 
 The year 1905 is the very oldest I have 
 quoted. That is not very far back. 
 You have thousands of people living in 
 . these dilapidated leaky cottages, run- 
 ning risks of phthisis, enteric, and 
 rheumatism. 
 
 A Mandamus No Eemedy 
 
 What is the remedy they have got? 
 I do not know whether there is a 
 remedy at common law which would 
 apply against the landlord, but even if 
 there is, how can you expect a poor 
 cottager to bring an action against his 
 landlord? Supposing he had a remedy, 
 you have no divisional court in the 
 district, and the landlord might appeal 
 to the House of Lords. What remedy 
 is there in that case for the occupier 
 of a cottage? The individual has no 
 remedy at all, and I will also point 
 out that the remedy of the Local 
 
 Government Board is of no account. 
 Why? Because there is only one 
 thing they can do, and that is to 
 imprison the whole of the members of 
 the councils. They can do it by 
 mandamus. Whether they ought to 
 do it or not is another matter. At 
 any rate, there ought to be a remedy 
 short of that, because Government 
 Departments are very reluctant to take 
 the step against members, who are act- 
 ing on councils without fee or reward, 
 of bringing them before the Court and 
 sending them to prison. It is a most 
 difficult thing, and I have no doubt 
 hon. Members who have considered 
 the question of mandamus realise that 
 this is by no means an easy matter. 
 That the Local Government Board 
 should bring the process of mandamus 
 into operation is practically to say that 
 there is no remedy at all. 
 
 How Sickness Affects Friendly Societies 
 
 I take another case in order to show 
 you how it affects the societies. This 
 is the case of Lincoln. The authorities 
 of the city of Lincoln were warned as 
 early as the nth June, 1885, by the 
 Local Government Board that their 
 local water supply was liable to pollu- 
 tion, and were told that the Town 
 Council would incur grave responsi- 
 bility if disease should further spread 
 in the city from pollution of the water 
 supply. That was in 1885. Very little 
 was done by way of remedying that 
 state of things. Again, in 1894, Dr. 
 Wheaton, of the Local Government 
 Board, made another inspection of the 
 waterworks of Lincoln, and in remark- 
 ing on the obvious defects of the water 
 supply, said that the comparative 
 exemption of the city of Lincoln from 
 cholera and enteric fever in recent 
 years should not be allowed to create 
 
210 
 
 THE PEOPLE'S INSURANCE 
 
 a false sense of security, and that it 
 was no use to wait until an epidemic 
 occurred before obtaining a supply of 
 pure water. Many other people and 
 medical officers of health directed 
 attention to the same defects. Little 
 was done by way of remedy, and in 
 1905 there was a serious outbreak of 
 enteric fever, directly traced to the 
 pollution of the water supply. Over 
 1,000 persons were attacked by the 
 disease, and over 100 died. After that, 
 Lincoln took steps to place its water 
 supply in order, but not before there 
 had been that serious outbreak of 
 fever which fulfilled the predictions of 
 evil of 1885 and 1894, and the repeated 
 warnings. I want to show the effect 
 of the epidemic upon one society in 
 Lincoln. We have had these figures 
 from the lodges of the Manchester 
 Unity of Oddfellows in Lincoln. In 
 1903 the amount of full sick pay was 
 2,178. In 1904 it was ^"2,133. It 
 went down for exactly the same number 
 of members. Now came the year of the 
 epidemic. The total amount of sick 
 pay went up by 40 per cent, in that 
 year, and the society lost 800. That 
 was a society of 3,842 members. 
 Supposing you had this Bill in opera- 
 tion, and instead of having to deal 
 with 3,842 members you were to deal 
 with all persons in Lincoln who were 
 insured, men and women, numbering 
 something like 10,000 or 12,000, the 
 loss of the society, instead of being 
 800, would have been ^4,000. What 
 remedy would you have had ? The local 
 landowner has got his remedy in the 
 Courts, but these societies, losing 
 between ^"3,000 and ^4,000, with no 
 means of making it up except by levy 
 on the working man, have practically 
 no remedy. They might have gone to 
 the Local Government Board and said, 
 "Why do you not put in jail the Lin- 
 
 coln Town Council? " and tried by 
 mandamus to have justice done to 
 them. 
 
 The Method of Common Law 
 
 The proposal here is simply the pro- 
 posal of old English Common Law, 
 that where anybody is damnified he 
 should have the means of compensa- 
 tion by process of law, and that pro- 
 cess is the process we have here. 
 There are other cases. There is the 
 Swanage case, and I quote the 
 Worthing case by way of showing that 
 it is possible to distinguish between 
 cases where councils are responsible 
 and cases where they are not respon- 
 sible. How can you trace responsi- 
 bility? There can be no doubt about 
 the Lincoln case. They had been 
 warned repeatedly by their own medi- 
 cal officer, they had been warned by 
 the Local Government Board twice, 
 and in spite of that they did not im- 
 prove the water supply. There was 
 a serious epidemic which was practi- 
 cally traced to the pollution of the 
 water supply, but in the Worthing 
 case of pollution of water supply there 
 was an inquiry, and it was found that 
 the Town Council were not to blame, 
 and that it was almost impossible for 
 them to have discovered the pollution. 
 In that case there would have been no 
 charge upon the council. I am only 
 quoting the Worthing case to show 
 that it is possible to distinguish be- 
 tween a case where the town council 
 is responsible and a case where a 
 council is not responsible. I will 
 supplement these cases later on by the 
 process which has been suggested. So 
 far from our interfering with any 
 existing authorities, we simply propose 
 to assist them. The Clause will be of 
 enormous value to the Local Govern- 
 ment Board. Instead of threatening 
 
THE PEOPLE'S INSURANCE 
 
 211 
 
 to issue a mandamus, they will be able 
 to say to a local authority, "Well, if 
 there is an epidemic, you will be 
 mulcted in damages." The Clause 
 will be a help to county councils, who 
 have general supervision over health 
 all over the country. 
 
 A Help to Medical Officers 
 
 It will be of enormous benefit to the 
 medical officers of health, who are 
 practically powerless. All they can do 
 is to expose the evils. . It will help 
 the medical officers of counties enor- 
 mously. Their position is a very 
 difficult one. They have often to report 
 upon insanitary conditions when the 
 proprietors of the properties are 
 strongly represented on these councils. 
 I had a letter last week from a medical 
 officer of health who gave his name 
 and address. He says to me, " It is 
 as much as my place is worth to 
 , report faithfully on the conditions pre- 
 vailing. " So far from overlapping and 
 weakening it is a source of strength. 
 
 The Experience of Berlin 
 
 Let me state what happened in 
 Berlin. In Berlin there was a case of 
 the kind which bears very directly on 
 this matter. A most powerful sickness 
 society there discovered that the excess 
 in sickness was very largely attri- 
 butable to the slummy condition of 
 some of the dwellings of the working 
 class. The name of the society is the 
 Berlin General Sickness Society for 
 Commercial Employees. The secretary 
 is a very well known labour leader. 
 They instituted a systematic inquiry 
 into the character of the homes in- 
 habited by their sick members. Their 
 powers were confined to an inquiry. 
 What happened? They found a very 
 
 serious condition of things prevailing, 
 and the reports which they published 
 aroused a good deal of interest and 
 also aroused a good deal of indignation 
 amongst the owners of the slum pro- 
 perty. The consequence was that the 
 House Owners* Association petitioned 
 the supervising authority for sickness 
 and insurance law to declare the ex- 
 penditure incurred in these inquiries 
 illegal. This authority declined to 
 comply with the petition. They carried 
 the matter from Court to Court, and 
 eventually there was a Court that fined 
 the society 105. because it undertook 
 those inquiries. The Court held that 
 the society had exceeded its powers, 
 and let them off with a fine of 105., 
 but issued a prohibition directed 
 against this society of workmen insti- 
 tuting these inquiries. The society 
 appealed, and the appeal was upheld. 
 The Town Council of Berlin, so far 
 from complaining that there was an 
 interference with their powers, wel- 
 comed it. They realised that such 
 inquiries instituted by these societies 
 in Berlin would be a source of great 
 strength and support to them, and now 
 these inquiries are recognised as part 
 of the mechanism of sickness societies 
 in these great towns. Suppose in 
 addition to that they had power to say 
 that where there was excessive sick- 
 ness which was attributable to insani- 
 tary conditions of dwellings those 
 responsible for the insanitary condi- 
 tions should pay for the excess sickness 
 then you would make very short 
 work of these slums. 
 
 Workmen to be Armed to Defend their 
 Homes 
 
 That is really the case for the Bill. 
 We do not propose in this particular 
 provision to introduce any novel prin- 
 
212 
 
 THE PEOPLE'S INSURANCE 
 
 ciple. We simply resort to the old 
 principles which are enshrined in the 
 common law of this land, and we want 
 to make effective the powers already 
 possessed. We want to give them a 
 more efficient sanction. We want to 
 make insanitary property and neglect 
 of public duties unremunerative. 
 Slackness, inefficiency, and the callous 
 greed of certain individuals are respon- 
 sible for the loss of more lives in 
 Britain than has almost ever been 
 inflicted upon us by the fiercest wars 
 in our history. Phthisis and enteric 
 rheumatism fill thousands of wretched 
 homes in this country with death and 
 despair. What do we propose to do? 
 We propose to arm the workmen with 
 an effective weapon to defend his home, 
 and to defend his children from the 
 diseases inflicted through the insani- 
 tary conditions of their dwelling. I 
 
 am told that we must not arm them 
 because it will interfere with the 
 authorities who are responsible. If 
 an individual breaks the law, and if, 
 through his breach of the law, he 
 inflicts damage upon his neighbours, 
 why is it an interference with his 
 liberty and prerogative to have a local 
 inquiry into his conduct, and that he 
 should be mulcted in damages by way 
 of compensation ? Why should we not 
 do so in the case of the local authori- 
 ties and with the owner of slum pro- 
 perty? It is one of the oldest maxims 
 of English law, and one of the most 
 honoured, that there is no wrong with- 
 out a remedy. It is because, when I 
 was investigating this problem, I dis- 
 covered a great wrong for which there 
 was no remedy, that I had this Clause 
 inserted in the Bill, and I now con- 
 fidently recommend it to this House. 
 
 IV. THE CASE FOR DOMESTIC SERVANTS. 
 
 (From a speech by the Chancellor of the Exchequer to a deputation of women, 
 acting on behalf of domestic servants^ who were received at Downing Street on 
 2%th November , 1911.) 
 
 Misapprehensions about the Bill 
 
 There has been a great deal of mis- 
 apprehension on the part of domestic 
 servants about the Insurance Bill. 
 I will not dwell upon the methods by 
 which those misapprehensions have 
 been created, but I will quote from a 
 letter which I received from a gentle- 
 man of position in Gloucestershire. 
 He told me that a couple of ladies 
 came and asked his servants to sign 
 a petition against the Bill, and told 
 them that they would have to pay $d. 
 a week in future, and if they refused to 
 
 pay it they would be fined 10 or 
 sent to prison. Of course, the ser- 
 vants signed at once. 
 
 I have seen a good deal of that kind 
 of thing, especially that statement 
 about fining or imprisonment. Of 
 course, they were inventions, but if 
 signatures have been obtained by 
 methods of that kind I am afraid I can 
 attach no value to the petitions sent in. 
 After all, the Bill deals with very com- 
 plicated problems, and you cannot ex- 
 pect the domestic servants to grasp at 
 once the full purport of a Bill of its 
 
THE PEOPLE'S INSURANCE 
 
 213 
 
 magnitude. I have not the faintest 
 doubt that when they come to do that 
 they will be very glad that they did not 
 listen to those who protested against 
 the measure. 
 
 No Payments during Sickness 
 
 I might give you other illustrations 
 of the way in which the Bill has been 
 misrepresented. One way came to my 
 notice on the day when I saw the 
 placard of a protest league. It was a 
 statement that payment of contribu- 
 tions is to be made during sickness. 
 Not a penny would be paid during sick- 
 ness. 
 
 The Out-of-work Servant 
 
 Now I come to the question of the 
 out-of-work. The statement is put in 
 the bold form that when a girl is out 
 of work she has got to go on paying. 
 Now, that is not the whole truth. In 
 the friendly societies now she has to 
 pay whether she is sick or out of work ; 
 but under the Bill she pays nothing 
 during sickness, and can be out of work 
 for thirteen weeks without paying a 
 penny, and without any suspension of 
 benefits. More than that, she can be 
 fifty-two weeks out of work in four 
 years and still receive benefits in a 
 reduced form. Nobody has ever ex- 
 plained that to the general servant. 
 
 A Typical Misrepresentation 
 
 Again, one day a cartoon was shown 
 to me. First of all there was a pic- 
 ture of those who had to pay a row 
 of very nice domestic servants in clean 
 pinafores. Underneath was a row of 
 those who were supposed to receive the 
 benefits a lot of loafing, lounging 
 men, down at heels, with pipes in their 
 mouths. The girls were supposed to 
 
 keep those people. Of course, there is 
 not a word of truth in that. If the girls 
 choose to pay for those people, nothing 
 I could do will prevent them. But it is 
 entirely a matter for the servants them- 
 selves. They will pay into their own 
 society for their own benefit, and 
 nobody else gets a penny piece out of 
 that benefit. 
 
 What does the Servant Pay her 3d. for ? 
 
 In another case brought before me 
 it was stated that the servant girl had 
 to pay 3d. a week in order to pay mem- 
 bers of Parliament 400 a year. 
 Then there is an idea that the servant 
 girls are being taxed 3^. and the mis- 
 tresses 3^., and that the money is 
 coming to the Government, which 
 means my friends here and myself. 
 Now the Government does not receive 
 a penny of it. 
 
 One letter I saw said that the money 
 went to pay Government officials. Not 
 a penny will come out of the contribu- 
 tions for that purpose. The payment of 
 officials will be borne by the Treasury 
 out of the general taxpayers' fund. 
 Not a penny piece of the contributions 
 will be spent in that way. 
 
 Power to Form their Own Societies 
 
 Now, what happens under the Bill? 
 The servants can form their own socie- 
 ties that is the first thing to be 
 noticed. The Metropolitan Associa- 
 tion for Befriending Young Ser- 
 vants, if it likes, can form itself into an 
 approved society. A society can be 
 formed of nobody but domestic ser- 
 vants; they can put their money into 
 that, the mistress will pay her %d. 
 and the State will contribute its 2d. 
 Nobody can touch that money except 
 
2I 4 
 
 THE PEOPLE'S INSURANCE 
 
 the servants themselves. The State 
 cannot touch it, the mistress cannot 
 touch it; no loafing man can touch it. 
 It will be entirely their own money. 
 It will be administered by the servants 
 or by anybody they choose, for they can 
 call in people of greater experience in 
 management if they desire; but that 
 will be entirely their own business. 
 
 Powers of such Societies 
 
 Societies will be allowed to invest 
 their own threepences, not the rest of 
 the funds. The State is responsible 
 for its 2d.y and as the 3^. from the 
 mistress is compulsorily collected, it is 
 responsible for the management of 
 that. At first it was proposed that the 
 State should invest the whole of the 
 money. Then the friendly societies 
 asked to be allowed to invest the 
 workers' contributions, and that was 
 agreed to. 
 
 Again, as regards the 75. 6d. sick 
 pay. How is it to be paid ? It will be 
 paid by an approved society whenever 
 the domestic is ill, either at her home 
 or at her mistress's, or wherever she 
 may be, direct to the servant. I ob- 
 served a statement that a servant does 
 not get the money if she is with her 
 mistress. She obtains the 75. 6d. 
 wherever she may be when she is ill. 
 Mistresses have no power to take this 
 money; it is the servant's. 
 
 How the Mistress will Benefit 
 
 For the first time the mistresses 
 have the benefit of medical attendance 
 for their servant provided at the ex- 
 pense of the fund. At the present 
 moment there is a legal liability on her 
 to provide a medical attendant, and 
 that may run to a considerable bill in 
 the course of the year. In future the 
 
 fund will provide medical attendance, 
 and to that extent the mistress is ab- 
 solved from liability. 
 
 Some Typical "Hard Cases" 
 
 How will this insurance affect bonus 
 insurances? One case has been given 
 to me of a servant who paid 
 ^4 i2s. 6d. a year that is, is. gd. 
 a week and yet I am told that 3^. 
 a week is a very cruel impost upon a 
 servant in order to get a benefit at 
 fifty. In another case I heard of a 
 girl who paid is. gd. for 100 at forty- 
 five. 
 
 The Alternative Benefits 
 
 These are not the kind of benefits 
 that are given by the Bill, but they 
 can work in with the benefits given 
 by the Bill. That brings me to 
 another point whether alternative 
 benefits are to be given under the Bill, 
 and, further, the very important point 
 as to whether they will be the first 
 charge upon the fund. I think it very 
 important that this should be made 
 clear. 
 
 Benefits the Bill provides 
 
 The benefits mentioned in the Bill 
 are these : The servant gets 75. 6d. a 
 week for twenty-six weeks in cases of 
 illness. If she is ill after that she will 
 get 55. a week as long as the illness 
 lasts, even if it is until she is seventy. 
 She gets, in addition, medical attend- 
 ance free. The doctor she can choose 
 herself. The doctor will be paid from 
 the fund. If she is consumptive she 
 can be taken to a sanatorium, and if 
 there is nobody dependent upon her 
 
THE PEOPLE'S INSURANCE 
 
 215 
 
 during that time she can under certain 
 circumstances get her money paid to 
 her there. 
 
 Power to Commute Benefits 
 
 Now undoubtedly there are servants 
 who prefer (instead of getting 75. 6d. 
 a week during illness, and instead of 
 wanting 55. a week throughout a per- 
 manent breakdown) to take their 
 chance. The question then is, Can 
 they so arrange their benefits in their 
 society in such a manner that they can 
 get a kind of pension or superannua- 
 tion when they are sixty or sixty-five? 
 Contributors can, under the scheme, 
 commute their benefits. 
 
 State Benefits not a First Charge on 
 the Societies 
 
 Will the State benefits of 75. 6d. or 
 55. be a first charge on the societies? 
 It depends entirely upon the society 
 the servants join. They can form any 
 society they like ; if they like to form 
 a society which will commute their 
 benefits into a pension they can do it. 
 Whatever that 8d. will buy in the form 
 of a pension or superannuation they 
 can get. The only thing I am bound 
 to point out is that permanent disable- 
 ment benefits would seem to me better. 
 If servants break down in health they 
 get their 55. a week as long as they 
 live. 
 
 But they can also make some ar- 
 rangement in their society for partial 
 disablement if they choose. They can 
 form their own societies ; they can take 
 counsel amongst themselves and with 
 those who advise them as to what they 
 would like best to do with the 
 money. If something of this sort suits 
 them better that is, an allowance for 
 partial disablement or a pension they 
 
 can then submit to the Insurance Com- 
 missioners their scheme for that pur- 
 pose, and the Commissioners will 
 bee ihat the scheme is financially 
 sound. For, of course, a big scheme 
 may look very well on paper, but may 
 be perfectly useless in that it may be 
 financially unsound. 
 
 Transfers-Scheme 
 
 It makes absolutely no difference 
 when a servant moves if her society 
 is a local one confined to one part. 
 The Insurance Bill provides that they 
 can either stick to their old society or, 
 if they prefer it, they can be trans- 
 ferred to a new society which they 
 may choose; they take their money 
 with them and are in exactly the same 
 position in the new society as they 
 were in the old. 
 
 Season Servants 
 
 Now as to the question of season 
 servants. I agree that there are ser- 
 vants who like sometimes to serve four 
 or five months in a year only. They 
 have a lot of that sort of thing on the 
 North- West Coast where there is a 
 season at the seaside resorts. Ser- 
 vants come down from the mountain 
 villages, and are engaged for three or 
 four months in the year. They do not 
 wish to serve for the rest of the year, 
 and they go back to their homes. 
 
 In a case of that kind the best thing 
 a girl can do, unless she wishes to go 
 on paying her own $d. and her mis- 
 tresses' 3d., is to pay into the Post 
 Office deposit fund during her months 
 of service, because she will then get 
 her own 3^. and her mistress's %d. and 
 
2l6 
 
 THE PEOPLE'S INSURANCE 
 
 the State 2d. all put to her credit, which 
 she can draw upon if she requires. 
 
 Benefits to Relatives on Death of In- 
 sured Person 
 
 If such a Post Office depositor 
 dies so far as her own three- 
 pences are concerned, they will be 
 paid to her relatives. The rest will go 
 to a, fund for the benefit of the other 
 girls who may be contributing to it. 
 
 ill for fifteen years they will get their 
 55. a week for the whole of the time, 
 even if they have paid in only 2 or 
 
 3. 
 
 On marriage they can go on paying 
 in order to get benefits. All a woman 
 has to do then is to pay 3^. a week, 
 and the State pays another id. For 
 that 4^. she will get medical attend- 
 ance, 55. a week during the first part 
 of any illness, and 35. for the rest of 
 the time she is sick. 
 
 How Servants may take Part in the 
 Scheme after Marriage 
 
 When servants marry, the money 
 will go to their credit in a reserve and 
 sustenance fund. Two-thirds of it they 
 can draw upon either for sickness, dis- 
 tress, or maternity benefits. With 
 regard to the other third, that will bring 
 them back into the insurance fund if 
 they become widows, which means that 
 if at that time they are ill they will go 
 straight into benefit, with full medical 
 attendance and 55. a week as long as 
 they are ill and broken, even if they 
 have no employer at all. If they are 
 
 The Girls can Secure 
 that Suit them" 
 
 the Benefits 
 
 We have drafted the Bill in such a 
 way as to enable the girls to secure 
 the benefits that suit them. There 
 ought to be no doubt about that. And 
 to make it absolutely clear, words have 
 been put down which will be moved on 
 the Report stage to make it clear that 
 societies which the girls choose to join 
 may frame their own schemes for the 
 expenditure of the cash paid by them, 
 by their mistresses, and by the State, 
 subject to the adjudication of the In- 
 surance Commissioners as to sound- 
 ness. 
 
 V. THE URGENCY OF THE PROBLEM. 
 
 (From a Speech by the CHANCELLOR OF THE EXCHEQUER in the London Opera 
 
 House, February \2th, 1912.) 
 
 The Truth about the Act 
 
 I think anyone who has watched the 
 proceedings during the last few days 
 will not deny that we are suffering 
 from a plague of misrepresentation. I 
 am sure you have all discovered one 
 thing in your walk through life, that 
 most people believe anything if it has 
 been repeated often in their hearing 
 
 uncontradicted. They all say to you 3 
 " But I have heard it more than once, 
 and I have never heard it denied.' 1 
 What we have got to do is to say, " II 
 is denied," so that those people at 
 any rate will not have that excuse foi 
 believing the various misrepresenta- 
 tions about the Act. You know, ] 
 believe, that some of those who in- 
 vented these falsehoods have said then: 
 
THE PEOPLE'S INSURANCE 
 
 217 
 
 so often and have heard them so often 
 that they are beginning to believe them 
 themselves. I have already given in 
 the House of Commons one or two 
 samples of the kind of reckless dis- 
 tortions there might be a shorter 
 word which would be more descriptive 
 and more applicable. Take the state- 
 ment that the money which is raised 
 from the workmen is to be devoted to 
 pay officials. No doubt you have 
 heard a good deal of that. Of course 
 there is not a penny of the money 
 raised from the workmen which goes 
 to the officials. The whole cost of the 
 Insurance Commission falls upon a 
 separate Vote which is down in the 
 Estimates. Every penny contributed 
 by the workman, by the employer, and 
 by the State is handed over to the 
 societies for distribution by those 
 societies. Still they go on repeating 
 it. Our business is to see that the 
 people get the facts. 
 
 Increasing Friendly Society Benefits 
 
 Then there is the man who comes to 
 you in every constituency. He knows 
 a friendly society that can give more 
 for fourpence than the Act can give for 
 fourpence plus fivepence. You may 
 say to him : " If they are giving more 
 to you for fourpence, surely they will 
 give more still when another fivepence 
 is added on ? " They do not see that 
 a bit. They are just like the man who 
 says : " Well, in such and such a shop 
 I can get for a pound what costs 2 
 in another." Then you say : "We will 
 give you the 2, and if you can get 
 f r l 2 worth, for 2 you can get 
 4 worth." They don't see it. We 
 hand the cash to the societies, and if 
 they can make so much for fourpence, 
 surely they will make it more than 
 tfouble for ninep'ence. 
 
 Why the Act cannot be Postponed 
 
 What is the object of all this criti- 
 cism what " is the object of all this 
 falsification after the Bill has been 
 carried? I will tell you. They have 
 two objects. One is to make the Act 
 a dead letter. That is the first object. 
 Failing that, to postpone its operations. 
 Both are very cruel purposes very. 
 What does it mean ? All this enormous 
 sum of money raised under the In- 
 surance Act will undoubtedly save a 
 vast amount of human suffering. Why 
 should that alleviation be retarded and 
 delayed? Take, if you like, the pro- 
 visions with regard to consumption, 
 one of the most terrible scourges that 
 can affect any community. Hundreds 
 and thousands suffer from it through- 
 out the land. The deaths from it are 
 something like 70,000 a year. It 
 urgently cries for national treatment. 
 We propose expending a capital sum 
 of ;i, 600,000 to set up sanatoria and 
 other institutions for treating it. There 
 is a sum of a million a year set aside 
 for the purpose of running these insti- 
 tutions and for the purpose of treating 
 jthe complaint in the men's homes. 
 And not merely the men, but the men, 
 women, and children. And they say, 
 "Why don't you postpone it for twelve 
 months? " Do you realise what that 
 means to the consumptive patient? 
 And to postpone the operation of pro- 
 visions of that kind for party purposes 
 to damage the Government all I 
 can say is that for inhumanity it sur- 
 passes anything that any party has 
 been guilty of. Whenever any diffi- 
 culty comes in the way you can hear 
 chortling. When anybody suggests, 
 "Ah, the Act is a dead letter," do you 
 think they consider what that means 
 to millions of people who are awaiting 
 relief? Not at all. They say, "This 
 
 H 
 
218 
 
 THE PEOPLE'S INSURANCE 
 
 suits our party." They want to put it 
 off as long- as possible before the bene- 
 fits arrive. 
 
 The Act its own Advocate 
 
 Meanwhile they distort and circulate 
 false statements. They instil false 
 notions, confusing the public mind. 
 They say, "Anything- may happen in 
 twelve months. You may get the 
 Government out. Let us get it out 
 before the Insurance Act comes into 
 operation. " It will be too late when the 
 Act comes into operation. Lecturers 
 will not be needed then. There will be 
 plenty of them. The benefits of che 
 Act are the best lectures. You will 
 have emissaries in hundreds and thou- 
 sands of homes, all explaining the Act 
 on the hearth. In a single year there 
 will be a million women, who before 
 the Act would have discharged the 
 perilous functions of maternity under 
 conditions which are a menace to the 
 life of the mother and endangering and 
 imperilling the future of the child, re- 
 ceiving succour under the Act, doctor's 
 treatment, nurses, nourishment, help. 
 It will be no use going to those million 
 householders afterwards and telling lies 
 about the measure. A million lectures 
 delivered in a single year. You will 
 have many a consumptive child and 
 parent restored to their household as 
 the result of the treatment of the Act. 
 There will be many a household where 
 the breadwinner has been stricken by 
 sickness saved in the dark hour from 
 privation and penury. It will be no 
 use circulating newspapers crammed 
 with falsehoods about the Insurance 
 Act there. That is why they want to 
 postpone the operation of the Act 
 anything to postpone the evil hour 
 when falsehood will be exposed by 
 facts, facts which cannot be denied nor 
 
 concealed nor coloured by all the 
 printer's ink that ever blackened an 
 Act which they detest. That is what 
 it means. 
 
 What the Friendly Societies are Doing 
 
 Well, you know, the ground even 
 now is slipping from under their feet. 
 Have you watched what is happening 
 in the friendly societies? I remember 
 what they said about the friendly socie- 
 ties. It was to be ruin to the friendly 
 societies, their destruction. We said, 
 "The friendly societies will be 
 strengthened. Where they are now 
 insolvent they will in the future be 
 made solvent. Their contributions will 
 be reduced, but their benefits will be 
 increased." And they scoffed. What 
 has happened ? The greatest society of 
 all the Manchester Unity passed 
 resolutions by ten to one to work the 
 Act which is going to destroy them. 
 The Foresters, the Hearts of Oak, and 
 other societies are coming in. And 
 what about the trade unions? Three 
 hundred and eighty-four trade unions 
 have already said that it is their inten- 
 tion either to form or become approved 
 societies. Now that is the vast 
 majority of the trade unions of this 
 country. What does this mean? 
 Who are the trade unions? Who are 
 the friendly societies? They represent 
 the pick of the working classes of this 
 country. They are led by men of great 
 experience. They are led by men who 
 have devoted their lives to the con- 
 sideration of the questions of provi- 
 dence for the working classes. And 
 here are the leaders of these great 
 associations come to the conclusion, 
 after deliberate reflection, that it is in 
 the interests of the people they repre- 
 sent that this Act should be worked 
 by them, and that it will confer bene- 
 
THE PEOPLE'S INSURANCE 
 
 219 
 
 fits upon their societies and upon the 
 members that constitute them. 
 
 The Most Liberal Scheme yet For- 
 mulated 
 
 Now that is the best answer to all 
 that has been said about the harm the 
 Act will do either to the friendly socie- 
 ties or to the working classes. These 
 represent between them something like 
 half the insured persons of the country, 
 so that you may take it that at the 
 present moment something like a half 
 of the working classes have declared 
 through their leaders their intention to 
 come in and work the Act, and that is 
 five months before the Act comes into 
 operation. I shall be surprised if they 
 come to any other conclusion. Just 
 think what it means. When that Act 
 comes into full maturity the amount 
 expended upon these benefits from year 
 to year in five or six years it will be 
 in full working order the funds raised 
 will be 27 millions a year. That in- 
 cludes ill-health and unemployment. 
 Out of that the workmen find 12 \ 
 millions, the rest is found by 
 the State and the employer. That is 
 \2\ millions found by the workmen, 
 14^ found from other sources. When 
 the Act finally comes into operation, 
 when you have disposed of the pre- 
 liminary liability which is cast upon 
 the scheme through the fact that it is 
 taking men of all ages and I have got 
 a word to say upon that later on it 
 will be enormously increased. The 
 contribution of the workman will not 
 be increased; the contribution of the 
 employer will not be increased ; the 
 contribution of the State will. Con- 
 trast that with what happens in Ger- 
 many. The German scheme up to the 
 present has been the most perfect 
 scheme of all. You have got a scheme 
 
 in Germany, a scheme in Austria, a 
 scheme in Belgium, a scheme in France 
 three out of four being compulsory, 
 and Germany being the oldest and the 
 best up to the present. Old-age pen- 
 sions are part of the contributory 
 scheme in Germany. I think it costs 
 something between thirty and forty 
 millions for sickness, invalidity, and 
 pensions. The State contributes of 
 that for all these purposes something 
 like three millions. In five years' time 
 we in this country will be spending for 
 old-age pensions, for sickness, for 
 invalidity and unemployment, 42 mil- 
 lions. Out of that sum the State will 
 contribute 2oJ millions, the employers 
 nine millions, and the workmen 12 \ 
 millions. It is infinitely the most liberal 
 scheme for improving the condition of 
 the working-classes of this country that 
 has ever been formulated in any coun- 
 try up to the present. 
 
 The Case of the Rural Labourers 
 
 I am therefore not at all surprised 
 that the enlightened and experienced 
 leaders of opinion amongst the work- 
 ing classes of the country have de- 
 clined to listen to the extremists on 
 either side, but have decided to come 
 in and work this great boon for their 
 clients. There is another feature of 
 the movement which is becoming more 
 and more manifest, and which I rejoice 
 in, and that is the fact that the rural 
 labourers are forming separate organ- 
 isations. But do not mistake me. I 
 do not mean separate from the great 
 friendly societies, but separate, whether 
 inside them or outside them. They 
 are federating together. They can do 
 that within the great friendly societies, 
 or they can do it outside. But I am 
 frankly delighted that they are organ- 
 ising their own societies, and I have 
 
 H 2 
 
22O 
 
 THE PEOPLE'S INSURANCE 
 
 formed very great hopes of those. No 
 class stands more in need of organised 
 consideration of its position than the 
 rural workmen of this country. And 
 my own opinion is that once you begin 
 it there is no limit to its possibilities. 
 I believe it will lead direct to the 
 emancipation of this class. The rural 
 workman will be a different being with 
 a powerful organisation at his back. 
 He will no longer tolerate some of the 
 wretched conditions under which he 
 now lives, too often dark and dank 
 cottages held on a precarious tenure, 
 too often in many counties miserable 
 wages for long hours, trapped out of 
 his commons by the ancestors of the 
 persons who send him to gaol because 
 he traps a hare that may scamper 
 across the common that belonged to 
 his fathers land which is now let out 
 to him by the pennyweight, as if every 
 grain of it was tipped with radium. 
 The first message of real hope he re- 
 ceived was old-age pensions. That 
 makes him a free man after seventy. 
 The organisation which is formed under 
 this Act will help to free him for the 
 rest of his life. The labourers of 
 ancient Rome were only allowed to 
 organise themselves for burial pur- 
 poses. Their only societies were 
 societies for dispensing funeral bene- 
 fits. They used those societies to dis- 
 cover and discuss other matters, in- 
 cluding the greatest matter of all. In 
 my opinion these societies which are 
 formed in rural areas for provident 
 purposes will help eventually to win 
 for the agricultural labourer a posses- 
 sion which is more valuable than 
 anything you can put in an Act of 
 Parliament his independence. Higher 
 wages and better provision for sick- 
 ness are not mutually exclusive. On 
 the contrary, I believe that better pro- 
 vision for sickness would make a man 
 
 a better workman, better worth higher 
 wages. 
 
 The Beduction of Unemployment 
 
 These are the things which indicate 
 that, although the Insurance Act has 
 nor been in operation yet although it 
 has only been carried as an Act of 
 Parliament for a couple of months it 
 is getting off, and getting off well. 
 But until the benefits begin to flow 
 we have got our work cut out to tell 
 the people all about it. That is what 
 our lecturers will do. What have they 
 got to do? All 'they have got to do 
 is this tell the people what the Act 
 really is, what the contribution of the 
 workmen is, what the employer pays, 
 what the State contributes. Show 
 them how much more workmen and 
 employer contribute in Germany, how 
 much more the State shoulders the 
 burden here. Show them this, and 
 especially call attention to what the 
 provisions of the Act are with regard 
 to reducing unemployment. When a 
 man is ill in a friendly society and I 
 do not blame them for it ; they have to 
 make both ends meet his contribution 
 goes on. It is deducted from his bene- 
 fit. In this there is no reduction. A 
 man gets his pay in full, and when he 
 recovers he has no arrears to pay out. 
 Ih a friendly society when a man is 
 out of work he has still got to pay, 
 and the result is that when a man is 
 long out of work he cannot face the 
 arrears of the friendly societies. More 
 than 250,000 members drop out of 
 friendly societies in the course of a 
 year not all because of unemployment 
 let us be quite frank sometimes 
 because of drink, no doubt, but also 
 very largely because of their inability 
 to keep up their contributions 250,000 
 every year ! In twenty years five 
 
THE PEOPLE'S INSURANCE 
 
 221 
 
 millions of workmen have passed 
 out of friendly societies, realising 1 the 
 need but unable to keep up the strain 
 owing to sickness, owing to unem- 
 ployment, and owing to the other cause 
 which I have referred to. I will just 
 point out how the Act deals with the 
 matter. Unemployment comes, as a 
 rule, once in every five years in this 
 country. Those are the cycles of 
 unemployment. In four years' time 
 twelve weeks' contributions are 
 allowed to every workman without any 
 reduction of his benefits. The whole 
 year is allowed without his going out 
 of insurance altogether. There are 
 certain things he can get, even after he 
 has been two years out of work. He 
 will be paid for sanatoria. If there is 
 a consumptive in his family he can 
 claim treatment, and the wife can also 
 claim the maternity benefit and the 
 doctor. 
 
 Provision for Alternative Benefits 
 
 Now there is no provision ever made 
 by the best friendly societies in this 
 or in any other land that compares for 
 a moment with the provisions made by 
 the Act. Just point out to them what 
 I have already emphasised. Every 
 penny goes to the societies themselves. 
 Point out to them that a man can join 
 at 25, 40, and up to 50 as though he 
 were a lad of 16. So can a woman 
 worker as though she was a lassie of 
 1 6. No friendly society in the world 
 can afford to do that. Point out what 
 the benefits are 105. a week to a 
 man for 26 weeks if he is ill, 55. a 
 week if he breaks down up to the time 
 when he is placed on the old-age pen- 
 sion list. If he prefers he can com- 
 mute that into a superannuation or 
 pension allowance. I am told that 
 
 there are many domestic servants who 
 are perfectly satisfied with the present 
 arrangement as to sickness. Very 
 well; all they have to do is to join a 
 society which allows them to commute 
 that 75. 6d. or 55. a week to take it 
 in the form of a pension. I am told 
 that there are agricultural labourers 
 in Scotland who say that they are so 
 hardy that they are never ill. Well, 
 all they have to do is to say: "We 
 don't want our los. a week. We are 
 not likely to stand in need of 55. a 
 week. We will trust to luck. But we 
 shall probably need a pension before 
 70." Very well; they can get it under 
 the scheme. Then there are all the 
 other benefits maternity, provisio 
 for consumption, provision with re- 
 gard to looking after the housing of 
 the people. 
 
 The Doctors and Contract Practice 
 
 What about the doctors ? Now what 
 is the position? There is a deal said 
 about contract practice. What is con- 
 tract practice? Contract practice is 
 an undertaking whereby the doctor 
 engages to provide medical treatment 
 for a man at a flat rate. It may be 
 4.9. per annum, 55. per annum, or 6s. 
 per annum, or any other figure. 
 Sometimes it is a flat rate by which the 
 doctor undertakes the cure of the whole 
 of the man's family. In some districts 
 it is 3d. a week; in other districts it 
 is 4|d. a week. It varies. Very well. 
 All I want to say at the present moment 
 is that contract practice may be good 
 or it may be bad. It has not been 
 created by the Insurance Act. More 
 than half the workmen of the country 
 are cured now by contract. It has 
 advantages as well as disadvantages. 
 What are the advantages? It avoids 
 
222 
 
 THE PEOPLE'S INSURANCE 
 
 the necessity of a doctor, when he is 
 dealing with a man who earns a small 
 weekly wage, sending him in a big 
 bill after a long illness, and getting 
 paid in driblets or not getting paid at 
 all, which unfortunately is very often 
 the case. After all, no doctor wants 
 to be on what I call "judgment sum- 
 mons terms " with his patients. No 
 professional man I ever met cared to 
 keep books. He is not a bookkeeper 
 to keep account books. I mean he 
 hates it, and therefore there is a great 
 advantage, and I am sure the doctor 
 is pretty much in this position he does 
 not want to take up his time with the 
 worry of getting the account, or being 
 paid 55. on account of a bill of i, 
 then receiving another 6s. in the street 
 and putting that down, working up the 
 balance, and sending it in at Christ- 
 mas to every one of his patients. He 
 would rather not. So in the working- 
 class districts of this country they have 
 devised this method of contract prac- 
 tice. He says, "Give me 45. or 55. a 
 year, and I will cure you of all the 
 ills that flesh is heir to." 
 
 The Underpayment of Doctors 
 
 Now, that is one advantage. There 
 is another advantage for a doctor. It 
 is a kind of retaining fee for the family 
 practice. If the doctor cures the head 
 of the family for four shillings, he will 
 cure the rest of the family at a good 
 deal more. He can send in bills for 
 the rest of the family. I do not say 
 he will charge more, but even if he 
 did and I think possibly he does 
 there is this advantage in the bargain, 
 that where the head of the family is 
 ill there is no one to earn, whereas 
 if somebody else in the family is ill the 
 earner of the family is there to pay 
 tne bill. So, therefore, it is a double 
 
 advantage. It is an advantage to the 
 man himself ; it is an advantage to the 
 doctor who is building up a practice. 
 What are the disadvantages? That 
 he is underpaid the doctors have 
 themselves to blame for that. Under- 
 paid work is shoddy work. It is not 
 to the advantage of the doctor. It is 
 not to the advantage of the patient. 
 It is far better for the doctor to feel 
 he is getting fairly treated, getting a 
 fair wage for the very difficult, deli- 
 cate, responsible work which he has 
 to accomplish. All I have to say is, 
 that the Insurance Act is not respon- 
 sible for it. The Insurance Act does 
 not perpetuate it. It does not extend 
 it, and it certainly does not create it. 
 What are we doing? In so far as our 
 Act is concerned, all we have done is 
 this. We have provided substantial 
 funds, which will increase by a very 
 large percentage the pay the doctors 
 now get for contract practice. 
 
 The Doctors' Three Main Gr evances 
 
 The doctors have three great 
 grievances. They object to what they 
 call society control. There are many 
 members of friendly societies here no 
 doubt. The doctors complain that they 
 are completely under the heel of the 
 local society, that the society imposes 
 harsh terms upon them. I am not 
 going to express any opinion upon 
 that. If it is true, it is a real 
 grievance. The second grievance is 
 this. They don't mind, they say, 
 attending men who are earning low 
 wages, but they do object to be com- 
 pelled to doctor well-to-do people be- 
 longing to friendly societies on the 
 same terms as a labourer earning 155. 
 a week. I find that the membership 
 of these societies is not confined to 
 workmen. They have traders, farmers, 
 
THE PEOPLE'S INSURANCE 
 
 223 
 
 schoolmasters, and professional men as 
 members, and the doctors say it is 
 funfair to compel them to treat them 
 jat 45. a head. I am sure that the 
 [doctors will not quarrel with me when 
 'I make this statement. The doctor's 
 statement is that he charges with 
 reference to the means of the patient, 
 and that he charges the well-to-do more, 
 for by that means he is able to charge 
 t the workman less. His third grievance 
 is that there are districts in England 
 'and Scotland and Wales where there 
 < is no contract practice at all at present, 
 and he objects to introducing contract 
 practice into districts where it does 
 not exist. Now I give you my answer 
 to that. The first is the complaint that 
 they are under friendly society control. 
 Under the Act they are no longer 
 under the control of any society. 
 There is an exception under what is 
 known as the Harmsworth Amend- 
 ment, which simply deals with existing 
 rights, and protects existing institu- 
 tions. Otherwise we have set up an 
 independent authority. It is true the 
 insured persons constitute a majority, 
 but that is in the very essence of 
 things. You cannot hand over to a 
 Committee the power to spend money 
 which they are not responsible to find, 
 and you must give a majority on the 
 Committee to the persons who are 
 responsible for the deficit if they 
 mismanage. Very well ; but on that 
 Committee you have impartial persons 
 representative of the Government, 
 representatives of the county council, 
 and you have doctors, so that they will 
 be on the Committee framing the 
 terms for the first time. That is not 
 all. The Committee cannot arrange 
 the terms for paying the doctors with- 
 out consulting the local medical com- 
 mittee representing the whole of the 
 doctors in that district. We have 
 
 allowed an appeal to the Insurance 
 Commissioners afterwards. 
 
 The Income Limit 
 
 Now what is the second point? The 
 income limit. What have we done 
 there ? We have empowered the Local 
 Insurance Committee to fix an income 
 limit in the district, and as the In- 
 surance Commissioners have got full 
 power with regard to approving con- 
 tracts they will have a word to say 
 with regard to that. But I want here 
 to give a word of warning. The fixing 
 of a national income limit is impossible. 
 I will tell you why. Take the mining 
 districts. Suppose you fix an income 
 limit of 2, and say that no miner 
 earning over 2 a week can get a 
 doctor on contract terms. That is a 
 departure from a practice which has 
 existed in those districts for genera- 
 tions. And you cannot work it. A 
 miner may this year be earning not 
 2, next year over 2. Is he to be 
 within the contract when earning 305., 
 and outside when earning 2 55. ? 
 The miners of Durham, of Northum- 
 berland, of South Wales, and other 
 districts where you have got the 
 contract practice, will not tolerate a 
 departure of that kind from a system 
 which has worked satisfactorily for 
 them. There are districts where 2 
 a week would be very high; districts 
 where there are few workmen earning 
 anything like 2 a week. Now what 
 happens if a man is outside the income 
 limit? Is he to be left without any 
 doctoring at all? There is a special 
 provision made for him, and I am 
 going now to point out what that pro- 
 vision is when I come to the third 
 objection of the doctors. 
 
224 
 
 THE PEOPLE'S INSURANCE 
 
 No Doctor Forced to take Contract 
 Practice 
 
 The third objection of the doctors is, 
 as I pointed out, that in some districts 
 there is no contract practice at all, and 
 the doctors there vow that they will 
 never submit to it. What happens? 
 The money which is set aside for doc- 
 toring will be paid into a general pool 
 in that area. The doctors will attend 
 to their patients upon exactly the same 
 terms as of old, and they will send in 
 their bill as against that general pool 
 as far as it goes. If there is a balance, 
 then the workman himself will have 
 to pay it. Now is that clear? Of 
 course, the local medical men must 
 form some kind of committee to pre- 
 vent one doctor taking advantage of 
 the rest. No doctor is forced to take 
 contract practice under this Act. No 
 patient is forced to take a doctor on 
 contract unless he wishes it. Every 
 doctor who now has a contract prac- 
 tice and wishes to carry it out will get 
 50 per cent, more than he is paid at 
 the present moment. That is the 
 general provision. 
 
 Now they say " It is perfectly true 
 that you have got all these conditions 
 to protect us all these safeguards 
 but the finance of the Act is too limited. 
 It is too insufficient, and there is no 
 scope for negotiation." I have two 
 answers to that. Doctors who are 
 engaged in contract practice can get 
 50 per cent, more than they are getting 
 now. Doctors who are not engaged in 
 contract practice need not take it for 
 the future. The only thing that will 
 happen to them will be they can charge 
 exactly what they are charging now. 
 They can send their bills exactly as 
 they are sending them now. The only 
 difference is there will be a fund to 
 
 help patients to pay that bill. Of 
 course, if all the doctors in the king- 
 dom contemplate dropping their pre- 
 sent methods of private practice and 
 entering into contract arrangements 
 with their patients, then they might 
 say, "Then the finance is inadequate 
 for that purpose." It is open to them 
 to argue that, and we would listen to 
 them. If they say so, then all they 
 have to do would be to demonstrate 
 to the satisfaction of the Commis- 
 sioners that the finance provided for 
 that purpose is unsatisfactory. The 
 Commissioners, I will guarantee, will 
 give every consideration that is sub- 
 mitted to them the most impartial and 
 careful attention, and if they convince 
 the Commissioners of their case, and 
 if the Commissioners represent to the 
 Government that their case is made 
 out, it would unquestionably be the 
 duty of the Government to recommend 
 Parliament to find all the money that 
 is necessary to provide the satisfactory 
 medical service for the insured people 
 in this country. 
 
 Employers and the Act 
 
 I had intended saying a word about 
 the employers. What I will say at 
 the present moment is this the em- 
 ployer says, " What is there in the Act 
 for me?" That is exactly what the 
 German employer said at first. He 
 says so no longer. At first the Ger- 
 man employers were opposed to 
 insurance. It cast a burden upon 
 them. They said it was a great ex- 
 pense. They would have to adapt 
 their industries to it, and their charges. 
 There is not a German employer whom 
 you could find anywhere who would 
 go back upon it now, although they 
 
THE PEOPLE'S INSURANCE 
 
 are paying- twice as much as we are 
 calling- upon the English employers to 
 pay. There are two classes of em- 
 ployers. There are the employers the 
 whole of whose business is now in the 
 United Kingdom and not subject to 
 foreign competition. The retail trade, 
 the transport industries of this coun- 
 try I mean the inland transport the 
 building trade these are not subject 
 to foreign competition. You cannot 
 build a house in Germany and carry it 
 here. Your railways are bound to be 
 run on English soil. Your retail trade 
 is conducted here. Therefore it is not 
 subject to foreign competition, and the 
 payment in these trades will be merged 
 in the establishment charges; and as 
 long as every man is paying the same 
 in the same trade there is no advan- 
 tage given to his competitor. It is 
 exactly as if you had a uniform charge, 
 t may be a rate upon every trader in 
 the district. Undoubtedly it is a 
 burden, but it is a burden they all 
 suffer, and it is a burden they put in 
 their establishment charges. Therefore 
 it merges into the general business. 
 And now I come to the man who is 
 subject to foreign competition, and has 
 to compete with nations who are pay- 
 ing heavier insurance charges than we 
 are. The German pays twice as much. 
 1 It is said that the German has Protec- 
 tion, but Protection is not a relief; it 
 is a burden. You say that they are 
 more capable of bearing these burdens 
 because they have another burden as 
 well. That is not very logical, but 
 nothing even his Protection avails 
 him in this market, nor in any neutral 
 market, not in the slightest degree. 
 The whole of our statistics prove that 
 Free Trade enables us to fight on better 
 terms in all the markets of the world. 
 
 225 
 
 That, therefore, is a help, and not a 
 hindrance. 
 
 Insurance Makes the Workman a Better 
 Workman. 
 
 But the real answer is this. Insur- 
 ance makes the workman a better work- 
 man. What is the difference between 
 the workman badly cared for, the work- 
 man whose health is neglected, the 
 workman whose conditions are not 
 overlooked, and the workman who is 
 well looked after, with a great national 
 system to look after his health? It is 
 an infinitely greater difference in pure 
 value, in power of productiveness, in 
 yield, in profit than any charge under 
 the Insurance Act. The total charge 
 under the Insurance Act upon the 
 manufacturers of this country is barely 
 three-quarters per cent. The difference 
 between fitness and unfitness in the 
 workman is infinitely greater than 
 that. That is the lesson which has 
 got to be taught that the greatness, 
 the prosperity, the national prosperity 
 of this country depends largely upon 
 the fitness and efficiency of the workmen 
 throughout the land. An astute Parlia- 
 mentary friend of mine said it was no 
 use discussing the Insurance Act in a 
 first-class carriage that if you wish to 
 be heard you must go to the third- 
 class carriage. May I say quite 
 respectfully that that is a characteristic 
 of the mistake the first-class carriage 
 makes. The passengers in the first- 
 class carriage think that because their 
 apartment is well constructed, well 
 built, firm, solid, with resilient springs, 
 well padded and cushioned, that all is 
 
 H* 
 
226 THE^ PEOPLE'S INSURANCE 
 
 well. They do not mind the third- ing, improving, strengthening, making 
 
 class, whether it rocks, is ill built, or it more comfortable. Why? Because 
 
 what its condition may be. What they we know that this adds to the security 
 
 forget is this an ill-built third-class of the train which is carrying the 
 
 carriage may wreck the train. The destinies of this great commonwealth 
 
 Government are paying special atten- of nations into the dark and obscure 
 
 tion to the third-class carriage repair- expanse of the future. 
 
DOUBTS AND DIFFICULTIES REMOVED 
 
 H* 2 
 
PART V 
 DOUBTS AND DIFFICULTIES REMOVED. 
 
 EXTRACTS FROM REPLIES TO INQUIRIES ADDRESSED TO THE 
 CHANCELLOR OF THE EXCHEQUER WHILE THE BILL WAS 
 BEFORE PARLIAMENT. 
 
 Value of the Benefits Provided. 
 
 It is impossible to see how a young 
 man joining a Friendly Society inde- 
 pendently of the State scheme could 
 get as great benefits as he will get 
 through his society if his society 
 undertakes to administer the State 
 scheme. Under the Government Bill 
 the young man's payment will be qd., 
 and to this the employer's contribution 
 of 3<i. and the State grant will be 
 added. It is true that under the terms 
 of the Bill for the first 18} years of the 
 operation of the scheme a considerable 
 part (viz., one penny and five-ninths 
 in the case of men, and one penny and 
 a half in the case of women) of the 
 contributions is used to pay off the 
 loss due to the inclusion of older lives 
 in the insurance without regard to the 
 fact whether these older persons have 
 made previous insurance or not. If 
 they have made previous insurance 
 they, of course, get the full benefit of 
 their own past thrift, and are not 
 asked to sacrifice any part to the State 
 scheme, but, whether they have made 
 
 previous insurance or not, they equally 
 are taken into insurance under the 
 State scheme, and it is calculated that 
 it will take i8J years to pay off the 
 loss which thus arises. At the end of 
 that period the whole of the contribu- 
 tions under the Government scheme 
 will be available to extend the benefits 
 of the scheme, so that a young man 
 of 17 at the age of 35 will be in a 
 position to receive greatly extended 
 benefits, and it is, of course, probable 
 that the benefits then payable to him 
 will be of more service at that age 
 than if they were payable immediately 
 on his joining the scheme. The 
 Government scheme is to be adminis- 
 tered through the societies, so that it 
 will rest with the societies themselves 
 to make the utmost use of the moneys 
 put at their disposal. 
 
 Details of Cost of Benefits. 
 
 To provide the minimum benefits 
 under the State scheme in the case of 
 a man joining at the age of 16, con- 
 
 229 
 
2 3 
 
 THE PEOPLE'S INSURANCE 
 
 tributions at the following- weekly rates 
 are required : 
 d. 
 
 1*51 for doctor. 
 32 for sanatorium. 
 92 for administration. 
 "64 for maternity. 
 2*16 for sickness. 
 78 for disablement. 
 
 6*33 
 '67 margin. 
 
 7'ood. Total. 
 
 This is the calculation for male 
 persons joining at the age of 16, 
 but persons of older ages are to 
 obtain the same benefits for the 
 7d. a week contribution, and so pro- 
 vision has to be made at the outset for 
 wiping out the liability of these older 
 lives. The State contribution is, in 
 the case of men, two-ninths of the 
 actual expenditure as it from time to 
 time arises, and it is the equivalent of 
 a contribution of 2d. a week. This 
 contribution makes it possible in the 
 first 1 6 years * for the charge in respect 
 of the older lives to be liquidated, and 
 after this period the scale of benefits 
 will be increased for the same con- 
 tribution. 
 
 The Value of the qd. Contribution. 
 
 It is perfectly correct to say that 
 the National Insurance Bill is 
 giving the working man gd. for qd. 
 The only qualifications which require 
 to be made in this statement are : (i) 
 that though the persons insured on an 
 average all get just gd. for 4^., the 
 older get somewhat more and the 
 younger somewhat less; and (2) that 
 some time must elapse before the 
 
 * 18^ years according to the proposals of the 
 Bill as amended. 
 
 whole gd. is received. But it should 
 be clearly understood that gd. , with in- 
 terest in addition, will ultimately, be 
 received by the insured classes for every 
 4^. paid in. 
 
 Disposal of Friendly Society Reserves. 
 
 A society's existing reserves, so far 
 as they have been accumulated for sick- 
 ness insurance on behalf of members 
 who are transferred to the State 
 scheme, will be released and a very 
 large sum of money will in this way 
 be set free. 
 
 Under the proposals of the Bill, a 
 society will be able to transfer to the 
 State side of its business all its existing 
 members who become employed con- 
 tributors or voluntary contributors 
 under the Bill ; in other words, prac- 
 tically all its members between 16 and 
 65 years of age. It should be added 
 that within this group of members there 
 may be a few permanent invalids the 
 state of whose health prevents them 
 satisfying the " employment " test. 
 The number of such cases must be very 
 small, and a society would no doubt 
 have to make special arrangements for 
 them. The majority of the invalids be- 
 tween 1 6 and 65 would probably be able 
 to satisfy that test and would accord- 
 ingly be transferred to the State 
 scheme, but they would not draw bene- 
 fits under that scheme until the waiting 
 periods laid down in the Bill had ex- 
 pired. 
 
 The Position of Existing Members of 
 Friendly Societies. 
 
 A persoi who is already contribu- 
 ting to a F indly Society, and who be.- 
 comes insured under the National In- 
 surance Bill, will not be required to 
 
THE PEOPLE'S INSURANCE 
 
 2 3 
 
 make double contributions and receive 
 double benefits. It will be possible for 
 his Society to arrange that his contribu- 
 tions under the Bill shall be substituted 
 for the whole or part of his existing 
 contributions, and his benefits under the 
 Bill for the whole or a part of his 
 existing- benefits. 
 
 Of course, any Society must itself be 
 the judge of the action which it should 
 take on the Bill becoming law. But 
 Mr. Lloyd George has always hoped to 
 make the fullest possible use of exist- 
 ing organisations, and the Bill has been 
 so framed that they will suffer no loss 
 or disadvantage through becoming ap- 
 proved societies. He therefore trusts 
 that every effort will be made to pre- 
 serve societies, large or small, which 
 are already engaged in the work of 
 insuring against sickness. . . . An in- 
 sured person cannot obtain the full 
 benefit of the National Insurance unless 
 he becomes a member of an approved 
 society, and it will clearly be a conveni- 
 ence to the members of any existing 
 society to arrange for their insurance 
 through that society rather than to seek 
 another. 
 
 Workmen's Compensation Cases. 
 
 The Bill proceeds on the prin- 
 ciple of insuring against impairment of 
 health in those cases only which are not 
 already provided for; consequently, 
 where a workman is in receipt of a 
 weekly payment under that Act, he will 
 not be entitled to sick pay under the 
 State scheme except such sum (if any) 
 as, with the weekly compensation al- 
 ready provided, is required to make up 
 the amount prescribed by the Bill for 
 sickness or disablement benefit. This 
 does not prevent a workman from in- 
 suring himself against accident outside 
 
 of the National Health Insurance in 
 particular he will in a large number of 
 instances be able to provide such an 
 insurance with his present society at no 
 additional cost to himself, owing to the 
 saving in his present contributions 
 which the assistance of the employer 
 and the State under the National 
 Health Insurance will enable him to 
 effect. 
 
 The contributions under the Bill are 
 calculated on the assumption that sick- 
 ness benefit is not payable in addition 
 to compensation, and it must be obvi- 
 ous that if the double payment is to be 
 made it can only be done by increasing 
 the contributions generally or restrict- 
 ing other benefits. 
 
 The Question of Arrears. 
 
 Arrears are reckoned on average 
 from the date of the member's joining. 
 They will not be counted 
 
 (1) for the first year of the operation 
 
 of the Act; 
 
 (2) if arising before the age of 16; 
 
 (3) during periods of sickness. 
 Further, a member is not required to 
 pay his contributions, so far as arrears 
 are counted against him, during 
 periods of unemployment, and if he is 
 in arrear to such an extent as to make 
 it advisable for him to make some con- 
 tribution he can make this contribution 
 year by year at the time most con- 
 venient to himself. 
 
 The effect of the Bill may be sum- 
 marised as follows : 
 
 Suppose a man has been a member 
 for four years, he may be ill the whole 
 time without incurring any arrears ; he 
 may be unemployed for 15 weeks in the 
 four years without suffering any reduc- 
 tion of benefits at all; he may be un- 
 employed for 52 weeks in the four 
 
2 3 2 
 
 THE PEOPLE'S INSURANCE 
 
 years without being suspended from 
 benefits. In the last case, he will re- 
 ceive reduced sick pay, in no case less 
 than 55., and the other benefits he will 
 receive in full. 
 
 Suppose, therefore, a member is un- 
 employed for 17 weeks for every year 
 of his life, i.e., practically one-third of 
 his time, or one year in three, how 
 much, beyond the amounts which he 
 would be paying when employed, would 
 he have to pay to keep himself in bene- 
 fit on the reduced scale? The answer 
 to this question is 25. qd. (25. if the 
 member is a woman). In the same 
 way, if a member's unemployment does 
 not amount to 13 weeks a year on 
 average, or 52 weeks in four years, he 
 has only to pay ?d. a year to prevent 
 his sick pay from being reduced. 
 
 Mr. Lloyd George accepted an 
 amendment allowing a society to 
 excuse a member the payment of 
 the employer's contribution when 
 he is unemployed 3^. in 7^. for 
 men and 3^. in 6d. for women in most 
 cases. 
 
 Mr. Lloyd George also accepted an 
 amendment allowing medical, mater- 
 nity, and sanatorium benefits to be con- 
 tinued until a member was 26 weeks in 
 arrear on average. 
 
 A member can at any time in any year 
 extinguish any arrears that have accu- 
 mulated during the same and the pre- 
 ceding calendar year by making the 
 necessary payments. 
 
 Prohibition of Double Insurance. 
 
 Double insurance of the benefits pro- 
 vided by the State scheme is prohibited, 
 as it would, of course, be unfair for 
 one person to receive a double grant 
 from the State. It is, however, open 
 
 to anyone to make further insurance 
 on his own account, if he so chooses ; 
 but, if he is insured for a total sick 
 benefit in excess of his wages, the 
 benefit under the Act will be restricted 
 by the amount of the excess. There 
 is no restriction against insurance for 
 maternity benefit in addition to that 
 provided under the State scheme. An ex- 
 isting member of more than one society 
 will have to decide to which society 
 he will belong" for the purpose of the 
 State scheme. 
 
 Membership of Two or More Friendly 
 Societies. 
 
 The reduction of the sickness benefit 
 under the Bill to two-thirds of the wages 
 applies only to the insurance under the 
 State scheme, and in such a case the 
 Bill provides for the grant of one or 
 more additional benefits of a value 
 equivalent to such reduction. It is 
 open to anyone to make further in- 
 surance on his own account if he so 
 desires, but if he is insured for a total 
 weekly payment during sickness in 
 excess of his wages or other remunera- 
 tion the payment under the State 
 scheme will be reduced accordingly. 
 
 Exemption from Insurance of Persons 
 having other Income. 
 
 Where any person employed within 
 the meaning of the National Insurance 
 Bill proves that he is in receipt of any 
 pension or income of the annual value 
 of 26 or upwards not dependent upon 
 his personal exertions, he will be en- 
 titled to a certificate exempting him 
 from liability to become insured under 
 the National Health Insurance Scheme. 
 
THE PEOPLE'S INSURANCE 
 
 233 
 
 Position of Superannuation Funds. 
 
 It will be open to a superannuation 
 fund, or any similar fund, established 
 by an employer for the benefit of work- 
 men employed by him, to become an 
 approved society for the purposes of 
 administering the benefits conferred by 
 the Bill. 
 
 Provision is also made for the modifi- 
 cation of the rules and constitution of 
 an existing- superannuation fund, so 
 far as any modification may be ren- 
 dered necessary by the Bill, and it is 
 also proposed to allow the employer a 
 limited representation for the purpose 
 of the management of the fund if he 
 has made himself responsible for its 
 welfare, or has bound himself to pay 
 a larger contribution than the contribu- 
 tion required from him under the Bill. 
 An insured member of an approved 
 superannuation fund will be entitled, if 
 he so chooses, to transfer his member- 
 ship to another approved society, 
 taking with him his own and his em- 
 ployer's contributions. 
 
 Members of Trade Unions. 
 
 No workman will be required to pay 
 two contributions in addition to the 
 contributions which he is already pay- 
 ing, if he is insured against sickness 
 and unemployment. As regards sick- 
 ness, it will be open to him to receive 
 the full benefit of the Government 
 scheme through his Trade Union if it 
 becomes an approved society, and he 
 will be able, as he chooses, to continue 
 his previous subscription either in 
 whole or in part so as to insure him- 
 self for further benefits. He will also 
 be able, if he chooses to discontinue 
 his subscription, to receive through his 
 Trade Union a return in benefits of 
 any past contributions which he has 
 made, and which have been accumu- 
 
 lated. In this way he will by no means 
 forfeit the advantage of his previous 
 thrift. 
 
 As regards unemployment, he will 
 be able to receive the full benefit of 
 the Government scheme through his 
 Trade Union, with such further bene- 
 fits as he may choose to insure himself 
 for in his society. 
 
 Position of Clerks. 
 
 The Chancellor of the Exchequer 
 does not see how it is possible for the 
 position of clerks to be in any way 
 prejudiced by the proposals of the In- 
 surance Bill. The benefits provided by 
 the Bill are secured by contributions as 
 follows : (i) The employer pays 3^. a 
 week for every clerk receiving a salary 
 not exceeding 160 a year; (2) The 
 clerk himself pays 4^. ; (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 threepence from the 
 wages he has been used to pay to 
 his clerks during sickness, he would 
 not be justified in making any deduc- 
 tion in respect of the benefits under 
 the Insurance Bill so far as those bene- 
 fits are secured by the contributions 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. Clerks in many 
 cases do not now receive as much from 
 their employers in sickness as is re- 
 presented by the threepences which the 
 employer is required under the Bill to 
 pay. In such cases the clerks' posi- 
 tion will be improved, both by the 
 State grant and by the additional con- 
 tributions from their employers, under 
 the Bill. 
 
234 
 
 THE PEOPLE'S INSURANCE 
 
 Position of Teachers. 
 
 Teachers are within the scope of the 
 National Insurance Scheme except in 
 the following cases : (i) Teachers to 
 whom the Elementary School Teachers' 
 Superannuation Act, 1898, or a Scheme 
 under section 14 of the Education 
 (Scotland) Act, 1908, or the National 
 School Teachers (Ireland) Act, 1879, 
 or any similar enactment hereafter 
 passed applies ; and (2) teachers em- 
 ployed under any local or other public 
 authority, where the terms of the em- 
 ployment are such as to secure pro- 
 vision in respect of sickness and dis- 
 ablement on the whole not less favour- 
 able than the corresponding benefits 
 conferred by the Insurance Bill. 
 
 Employees of Public Authorities. 
 
 Exception from compulsory health 
 insurance in the case of persons em- 
 ployed by a local or other public 
 authority applies only where the In- 
 surance Commissioners certify that the 
 terms of the employment are such as 
 to secure provision in respect of sick- 
 ness and disablement on the whole 
 not less favourable than the corre- 
 sponding benefits conferred by Part I. 
 of the Bill. 
 
 Persons Employed on Commission. 
 
 A person employed on commission 
 by one employer will be liable to be 
 compulsorily insured if he is not 
 ordinarily engaged in any other regu- 
 lar employment, provided his rate of 
 remuneration does not exceed 160 a 
 year. 
 
 Persons employed on commission by 
 more than one employer, or persons 
 who do small commission work for one 
 employer but have some other regular 
 
 occupation will be entitled to make 
 voluntary insurance. 
 
 Liability of Tenant Farmers. 
 
 Under the First Part of the National 
 Insurance Bill tenant-farmers employ- 
 ing labour are in the same position as 
 other employers of labour except in 
 the following case, viz., employment 
 in respect of which no wages or other 
 money payment is made where the 
 employer is the occupier of an agri- 
 cultural holding, and the employed 
 person is employed thereon. 
 
 The Position of Married Women. 
 
 A woman who has been an employed 
 contributor under the Bill, and who 
 marries, may continue in insurance, and 
 will be entitled, if she does not continue 
 to be employed, to become a voluntary 
 contributor, paying the reduced contri- 
 bution and receiving reduced benefits. 
 
 District Nurses. 
 
 The National Insurance Bill will not 
 do away with the necessity of district 
 nurses in villages, and approved 
 societies and Insurance Committees 
 are empowered under Clause 17 * of the 
 Bill to make subscriptions and dona- 
 tions for the support of district nurses. 
 
 The Position of Domestic Servants. 
 
 Contributions payable by a mistress 
 in respect of a domestic servant will be 
 at the rate of 6d. weekly, and she will be 
 entitled to deduct 3^. out of the ser- 
 vant's wages. The deductions, however, 
 will be made only at the time of payment 
 of wages, so that if, for example, the 
 wages are paid monthly, the deduction 
 will be made once a month. The Insur- 
 
 * Clause 21 of the Bill as amended. 
 
THE PEOPLE'S INSURANCE 
 
 235 
 
 ance Commissioners will make regula- 
 tions for periodical payments by means 
 of stamps or in any other manner which 
 may prove more convenient, and in 
 drawing up the regulations every effort 
 will be made to suit the convenience of 
 employers and the persons whom they 
 employ. 
 
 The benefits to which a servant is 
 entitled who is a member of an ap- 
 proved society may take any of the 
 following forms : 
 
 (1) 7-s. 6d. a week sickness benefit 
 from her society paid to herself during 
 the first 26 weeks' illness; medical at- 
 tendance from the doctor of her choice ; 
 55. a week disablement benefit for ill- 
 ness after the first 26 weeks until she 
 reaches the age of 70 ; maternity bene- 
 fit; and sanatorium benefit. 
 
 A servant's right to these benefits is 
 not affected by the fact that her mis- 
 tress cannot dismiss her except at a 
 month's notice (or whatever the period 
 in any particular case may be), and 
 that she provides her with medical at- 
 tendance and maintenance during sick- 
 ness; but the National Insurance Bill 
 does not interfere with any private ar- 
 rangements which a servant may care 
 to make with her mistress in regard to 
 her benefits. 
 
 (2) Where it is the custom or prac- 
 tice for a servant to receive full 
 remuneration during periods or part 
 periods of illness in any year, 
 the contribution per week may, 
 
 on an Order made by the Insurance 
 Commissioners as to a class of employ- 
 ment, be reduced to ^\d. ; the mistress 
 in that case deducting 2d. a week 
 (instead of -$d.) from the servant's 
 wages, and the servant will not be en- 
 titled to sickness benefit during the first 
 six weeks of sickness (for which period 
 her employer will then have undertaken 
 liability). 
 
 (3) The servant may arrange with 
 her society to forgo sickness benefit or 
 part of it, and to utilise the amount so 
 saved towards the provision of a pen- 
 sion or superannuation allowance. 
 
 A servant does not fall out of sick- 
 ness benefit unless she is unemployed 
 for more than 13 weeks in every year 
 and fails to make any payment when 
 she is living at home. 
 
 If a servant leaves service and 
 marries and ceases to be employed 
 within the meaning of the Bill, she can 
 either become a voluntary contributor 
 at a reduced rate, receiving reduced 
 benefits, or she may pay no further 
 contributions and receive out of two- 
 thirds of her surrender value 55. for 
 four weeks on confinement, or pay- 
 ments during any periods of sickness or 
 distress at the discretion of her society. 
 The balance of her surrender value 
 is reserved to enable her to re-enter 
 insurance on the death of her husband. 
 
 Her marriage will not interfere with 
 any claim to a pension which she may 
 have established before marriage. 
 
THE MACHINERY OF THE ACT 
 
PART VI 
 
 THE MACHINERY OF THE ACT 
 (AS EXPLAINED BY THE INSURANCE COMMISSIONERS) 
 
 WHO WILL BE INSURED. 
 
 GENERAL RULE. 
 
 With the exceptions mentioned be- 
 low, all employed persons between the 
 ages of 1 6 and 70 must be insured under 
 the Act, if they earn at the rate of less 
 than 160 a year ; and those who work 
 with their hands must be insured even 
 if they earn more than this. 
 
 I. THOSE WHO ARE NOT OBLIGED TO BE 
 INSURED. 
 
 1. Those who can show that they 
 
 have a pension of 26 a year or 
 more, or an income of 26 a 
 year or more which they do not 
 earn. 
 
 2. Those who can show that they 
 
 are ordinarily and mainly depend- 
 ent for their livelihood upon some 
 other person. 
 
 3. Persons employed as apprentices 
 
 or learners receiving no wages. 
 
 4. Persons employed by the occupier 
 
 of an agricultural holding with- 
 out wages. 
 
 5. Children of an employer receiving 
 
 no wages and persons who are 
 maintained by their employer 
 without wages. 
 
 6. Wives employed by their husbands 
 
 and husbands employed by their 
 wives. 
 
 7. Outworkers who are the wives of 
 
 insured persons and are not 
 wholly or mainly dependent for 
 their livelihood on their earnings 
 as outworkers. 
 
 8. Persons casually employed ; ex- 
 
 cept that persons have to be 
 insured who are casually em- 
 ployed for purposes of trade, 
 and also persons who are 
 engaged or paid through a 
 club for the purposes of 
 a game or recreation. For 
 example, a person employed to 
 carry a bag to the station need 
 not be insured, but a cotton 
 porter carrying a bale of cotton 
 into a warehouse must be in- 
 sured. Again, a Club golf 
 caddie must be insured but a 
 skate fastener will not be. 
 
 9. An agent paid otherwise than by 
 
 salary unless he is mainly em- 
 plbyed by one employer and is 
 mainly dependent for his liveli- 
 hood on one employer. 
 
 II. PERSONS WHO MAY BE EXCLUDED 
 
 FROM THE ACT BY SPECIAL ORDER. 
 
 i. The Insurance Commissioners 
 have power in certain cases to 
 exclude from the Act by special 
 order the following forms of em- 
 ployment: 
 
 239 
 
240 
 
 THE PEOPLE'S INSURANCE 
 
 (a) as an outworker; 
 
 (b) as a share fisherman ; 
 
 (c) employment of a kind 
 
 which is ordinarily 
 adopted as subsidiary em- 
 ployment only and not as 
 the principal means of 
 livelihood. 
 
 2. The following persons will be ex- 
 cluded from the Act : 
 
 (a) Persons in the employ- 
 
 ment of the Crown, 
 
 (b) Persons in the employ- 
 
 ment of local or other 
 public authorities, 
 
 (c) Clerks or salaried officials 
 
 in the service of a railway 
 or other statutory com- 
 pany who are entitled to 
 rights in a superannua- 
 tion fund established by 
 Act of Parliament, 
 in cases in which the Insurance 
 Commissioners certify that they 
 are secured by the terms of their 
 employment benefits in sickness 
 and disablement of at least equal 
 value to those given by the Act. 
 Certificated Elementary School 
 Teachers will be excluded from the 
 Act unless they have not accepted 
 the Teachers* Superannuation Act 
 of 
 
 III. PERSONS WHO WILL BE INSURED 
 
 UNDER THE ACT BUT FOR WHOM 
 SPECIAL PROVISIONS ARE MADE IN 
 THE ACT. 
 
 1. Soldiers. 
 
 2. Seamen in the Royal Navy. 
 
 3. Sailors and Fishermen. 
 
 4. Persons over 65 at the 
 
 commencement of the Act 
 (July isth, 1912). 
 c;. Aliens. 
 
 HOW TO BECOME INSURED. 
 
 (QUESTIONS AND ANSWERS.) 
 
 Question : I hear that I am bound to 
 become insured under the National In- 
 surance Act? 
 
 Answer : Yes, that is true. 
 
 0. : But how am I to do it? 
 
 A.: By joining an Approved 
 Society. 
 
 Q. : What is an "Approved 
 Society " ? I suppose it means a 
 Friendly Society? 
 
 -4.': An Approved Society means a 
 Society approved by the Insurance 
 Commissioners. But it is a mistake to 
 suppose that only Friendly Societies 
 can become approved. Any Society 
 whether it now gives sick pay or not 
 can become approved, provided it is 
 under the control of the members 
 themselves and is not carried on for 
 profit. 
 
 Q. : Can a Trade Union become an 
 Approved Society? 
 
 A. : Certainly. Friendly Societies, 
 Trade Unions, Provident Societies, 
 Dividing Societies, Collecting Friendly 
 Societies and Industrial Assurance 
 Companies can become Approved 
 Societies or form Sections for the ad- 
 ministration of the Act, and new 
 Societies may be formed for the pur- 
 pose of the Act. 
 
 Q. : But I am too old to join a 
 Society now. I am 45 ; no Society 
 would take me. 
 
 A.i Oh ! no; if you join at once (or 
 at latest before July, 1913) your age 
 makes no difference ; the Insurance Act 
 puts you back to 16. You have not 
 got to pay extra because you have now 
 reached middle age. You will pay the 
 same as if you were joining at 16, and 
 you will receive full benefits. Your 
 Society will be credited with the 
 
THE PEOPLE'S INSURANCE 
 
 241 
 
 amount which would have now accu- 
 mulated, had you joined when you 
 were 16, so it will be glad to have you. 
 
 Q. : But no Society is obliged to 
 accept me. 
 
 A.: True, and different Societies 
 will have different rules as to whom 
 they will admit. You may choose any 
 Society that will take you, and you will 
 have no difficulty in finding 1 one to suit 
 you. 
 
 Q. : What happens if I do not join 
 a Society ? 
 
 A . : Then you will become a Deposit 
 Contributor. 
 
 Q. : Is that the same as a Post 
 Office Contributor? 
 
 A . : I expect you mean the same 
 thing, but " Deposit Contributor " is the 
 proper expression. A deposit con- 
 tributor deposits his contributions in 
 the Post Office. 
 
 Q. : And a member of an Approved 
 Society deposits his money in his 
 Society I cannot see any difference. 
 
 A. : A Deposit Contributor will only 
 have a right to the benefits which can 
 actually be provided out of the money 
 deposited (namely, the contributions 
 paid by himself and his employer) to- 
 gether with the State grant. When 
 this amount is used up he will receive 
 no further benefits. The member of a 
 Society, on the other hand, is entitled 
 to the full benefits of the Act. 
 
 Q. : Why is that? 
 
 A. : Because in a Society all the 
 members pay into a common fund for 
 the benefit of those who fall ill ; sick 
 pay is given to the members out of 
 that fund. A Deposit Contributor is all 
 by himself, and when he has spent his 
 own money, there is nothing left. 
 
 Q. : Then a deposit contributor does 
 not get the full benefits of the Act, 
 because he is not really insured? 
 
 A.': Quite so, and that is why no 
 one who can join a Society should be- 
 come a Deposit Contributor. The ar- 
 rangements for Deposit Contributors 
 are only meant for those who cannot 
 join Societies. 
 
 Q. : I see ; the real question is not 
 whether to join a Society or to 
 become a Deposit Contributor, but 
 what Society to join. 
 
 A. : Yes, that is right. Deposit 
 Contributors do not concern you. Your 
 business is to choose a good Society. 
 A Society which is not well managed 
 is not likely to be able to continue the 
 ordinary benefits. A Society which is 
 well managed should, in a few years, 
 be able to give additional benefits be- 
 sides the ordinary benefits. 
 
 Q. : What are the ordinary bene- 
 fits? 
 
 A. : (i) Medical benefit, that is, doc- 
 tor and medicine, or, in 
 special circumstances, 
 money payments instead. 
 
 (2) Sanatorium benefit, that is, 
 
 treatment in a sanatorium 
 or in some other way in 
 case of consumption. 
 
 (3) Sickness benefit, IDS. (75. 6d. 
 
 for women) a week for 26 
 weeks commencing on the 
 4th day of sickness. 
 
 (4) Disablement benefit, 55. a 
 
 week afterwards if still in- 
 capable of work. 
 
 The rates of sickness 
 benefit and disablement 
 benefit are lower for persons 
 under 21, and in certain 
 cases the rate of sickness 
 benefit is lower for persons 
 over 50. 
 
 (5) Maternity benefit, 305. for 
 
 the wife on confinement, 
 
2 4 2 
 
 THE PEOPLE'S INSURANCE 
 
 paid in cash or otherwise, 
 unless the husband is also 
 insured, in which case 
 maternity benefit is provided 
 by his insurance. A married 
 woman, whether her hus- 
 band is insured or not, has 
 j. right also to sickness 
 benefit after confinement. 
 
 (These benefits are sub- 
 ject to certain waiting 
 periods and other con- 
 ditions.) 
 
 Q. : How are the Contributions 
 paid? 
 
 A. : Payments will probably be made 
 in this way : When you join your 
 Society you will receive a card; when 
 your employer pays your wages he will 
 ask for your card, and will then put on 
 it special insurance stamps to the value 
 of 7<i. (6d. for women) for every week 
 you have worked; he will deduct 4^. 
 (3<i. for women) a week from your 
 wages, paying the remaining 3^. a 
 week himself. When the card has 
 been filled up, say at the end of a 
 quarter, you will take it to your Society 
 and get a new one in exchange. 
 
 Q. : But you have said nothing about 
 my contributions to my Society you 
 have only mentioned the State scheme. 
 
 A. : Your Contributions under the 
 State scheme are your contributions 
 to your Society. 
 
 Q. : But I shall have to pay some- 
 thing to my Society as well? 
 
 A. : Not unless you consider the 
 benefits given by the Act are not enough 
 and you want to join the ordinary or 
 voluntary side of your Society for other 
 benefits, such as death benefits, which 
 the Act does not give, or for increased 
 sick pay, or for anything else. 
 
 ADVANTAGES OF JOINING AN 
 APPROVED SOCIETY. 
 
 (The following statement applies to men 
 and women alike.) 
 
 There are two ways of obtaining the 
 benefits under the National Insurance 
 Act, 1911, Part I. : 
 
 (1) Through a Society approved 
 
 for the purpose by the In- 
 surance Commissioners ; and 
 
 (2) As a Deposit Contributor. 
 Approved Societies are Friendly and 
 
 Benefit Societies, Trade Unions, sec- 
 tions of Insurance Companies, and 
 other organisations, all of which are 
 required to be under the absolute 
 control of the members. 
 
 The Deposit arrangement, which is 
 only temporary, is intended simply for 
 persons who do not become, or who 
 cease to be, members of Approved 
 Societies. These persons will be known 
 as Deposit Contributors. 
 
 Membership of an Approved 
 Society gives the advantage of a com- 
 mon fund, to which all members con- 
 tribute and from which benefits are 
 payable, whereas a Deposit Contributor 
 can only draw upon his individual 
 account. 
 
 The principle underlying the work- 
 ing of an Approved Society is shown 
 in the following illustration : 
 
 "If 1,000 people each paid 6d. a 
 week into a common fund for the 
 benefit of those among them who fell 
 ill, they would have a joint income 
 of 1,300 a year. Those who were 
 lucky enough to be well would not 
 require any of the .1,300, so that 
 there would be available for those 
 who fell ill more than the amount of 
 their own contributions in times of 
 sickness. As, however, none of them 
 would know beforehand whether he 
 
THE PEOPLE'S INSURANCE 
 
 243 
 
 was going to be ill or not, it would 
 be well worth while for each of them 
 to pay 6d. a week into a common 
 fund by way of insurance against 
 possible sickness. On the other 
 hand, if one man by himself saved 
 up 6d. a week he would only have 
 these sixpences to be used in case 
 of sickness, and when they were 
 spent he would have no more." 
 Under the State Scheme a person 
 may either join with other people in an 
 Approved Society, and get the benefit 
 of a real insurance, or merely save 
 up for himself as a Deposit Contributor. 
 The difference, therefore, between 
 Deposit Contributors and members 
 of Approved Societies is that Deposit 
 Contributors cease to have benefits 
 when the money standing to their 
 credit is exhausted, whereas mem- 
 bers of Societies can go on drawing 
 benefits as long as they need them. 
 
 Every person ought to decide what 
 Society he would like to join. The 
 choice of an Approved Society is 
 very important. Those who are 
 already members of Friendly Societies, 
 Trade Unions, Sick Clubs, Slate Clubs, 
 or Insurance Societies or Companies 
 will probably desire to be members of 
 the same Societies (if these become ap- 
 proved under the Act), but everyone is 
 perfectly free to join any Society which 
 will accept him. An Approved Society 
 has the power to reject an applicant 
 on any ground except that of age. 
 
 HOW RATES OF REMUNERA- 
 TION AFFECT CONTRIBU- 
 TIONS UNDER THE ACT. 
 
 A contribution of 7^. in the case 
 of men, 6d. in the case of women, 
 is payable every week from July isth, 
 1912, in respect of every employed 
 person liable to be compulsorily insured 
 under the Act. 
 
 Part of this contribution is paid by 
 the employed person, part by the em- 
 ployer, and in certain cases, part by the 
 State. 
 
 The way the contribution is divided 
 depends upon the Bate of Remunera- 
 tion of the employed person. 
 
 (i) How THE CONTRIBUTION is DIVIDED. 
 (i) Ordinary Provisions. 
 
 In the case of men, the employer 
 pays 7^. and has the right to deduct 
 4d. from the employed person's wages. 
 
 In the case of women, the employer 
 pays 6d. and has the right to deduct 
 3d. from the employed person's wages. 
 
 These ordinary provisions apply in 
 the case of all wage earners under 21 
 years of age and of all persons, what- 
 ever their age, who receive both board 
 and lodging from their employer. In 
 other cases they are subject to the fol- 
 lowing exceptions. 
 
 (ii) Special Provisions in the case 
 
 of Low Wages. 
 
 In the case of low wages, when the 
 employed person is 21 or over and does 
 not receive both board and lodging, the 
 contribution is divided according to 
 the following table : 
 
 (a) In the case of men, when the 
 rate of remuneration is more than as. 
 but is not more than 2s. 6d. a working 
 
 day 
 
 A week 
 
 To be paid by the employer ^d, 
 man ... 3^. 
 
 (b) When the rate of remuneration 
 is more than is. 6d. but is not more 
 than 2S. a working day 
 
 A week. 
 Men. Women. 
 To be paid by the 
 
 employer ... $d. <\d. 
 
 To be paid by the em- 
 ployed person ... id. id. 
 
 State 
 
 id. 
 
244 
 
 THE PEOPLE'S INSURANCE 
 
 (c) When the rate of remuneration 
 is not more than is. 6d. a working 
 day 
 
 A week. 
 Men. Women. 
 To be paid by the 
 employer... ... 6d. 
 
 State ... 
 
 In this case the employed person does 
 not pay any part of the contribution. 
 
 Note. Whatever the rate of re- 
 muneration the State, in the case of 
 men, contributes 2d. towards every gd. 
 expended on benefits and on the ad- 
 ministration of benefits ; in the case of 
 women 2d. towards every 8d. so ex- 
 pended. 
 
 (2) REMUNERATION MAY IN SOME CASES 
 
 BE MORE AND IN SOME CASES LESS 
 
 THAN THE MONEY WAGES. 
 
 Tips or gratuities which are recog- 
 nised incidents of the employment 
 must be reckoned as part of the em- 
 ployed person's remuneration. 
 
 Any additions to wages in the nature 
 of a bonus, which really amounts to 
 payment for services in a lump sum as 
 distinguished from a free gift, must be 
 treated as part of the employed per- 
 son's remuneration, and should be ap- 
 portioned over the weeks in which it 
 is earned. 
 
 In calculating the employed person's 
 remuneration, the value of any privi- 
 leges or perquisites allowed to him 
 by the employer in return for his ser- 
 vices, must be taken into account, as 
 well as the cash wages. Instances of 
 these are : free meals, milk, fuel, 
 cartage of fuel, corn, straw, cottage, 
 potato ground, etc. 
 
 In cases where such things are not 
 allowed free, but are charged for at 
 less than their real value, the differ- 
 ence between the charge made and the 
 
 real value must be taken into account 
 in reckoning the rate of remuneration. 
 
 Thus, if an employer lets a man have 
 a cottage for 2$. a week, which is 
 really worth $s., and if the lower 
 charge is made in consideration of the 
 man's services, the is. a week, which 
 is the difference between the charge 
 made for the cottage and its real value, 
 must be taken as part of the man's re- 
 muneration. 
 
 On the other hand, where the em- 
 ployed person incurs the cost of 
 material or other expenses recognised 
 by the practice of the trade, these must 
 be deducted from the money wages in 
 reckoning the rate of remuneration. 
 
 (3) How TO CALCULATE THE RATE OF 
 REMUNERATION. 
 
 In order to help the employer and the 
 employed person to come to an agree- 
 ment between themselves as to the 
 rate per working day at which the 
 latter is being remunerated for his ser- 
 vices, the following directions are 
 given : 
 
 (i.) When the employed person is 
 paid by the day no difficulty arises, 
 as the rate of remuneration is the 
 amount paid for a full working day. 
 
 For example, if a mistress pays a 
 woman 2S. for a day's charing, the 
 rate of remuneration is 2s. (It must 
 be remembered that if the mistress 
 gives the charwoman anything besides 
 the money payment, for instance, 
 meals or beer, these must be reckoned 
 as part of her remuneration, the rate 
 of which will thus be more than 2s. 
 a day.) 
 
 (ii.) When the employed person is 
 paid by the week divide the total earn- 
 ings received in the week by the num- 
 ber of days in the week on which work 
 is ordinarily done. Thus, if a man's 
 
THE PEOPLE'S INSURANCE 
 
 total earnings in the week are 145., and 
 he ordinarily works seven days in the 
 week, the rate of remuneration per 
 
 working day will be - - = 2s. 
 
 Again, if a man on a weekly wage 
 of 185. ordinarily works five whole days 
 and one half-day every week, the rate 
 
 of remuneration will be 1-f: = $s. 
 
 6 
 
 (iii.) In the cases of wages paid at 
 monthly or quarterly rates, find the 
 annual rate (in the case of monthly 
 wages by multiplying them by 12, in 
 the case of quarterly wages by multi- 
 plying them by 4), then divide by 52 
 to obtain the weekly rate and then pro- 
 ceed as in (ii.) above. 
 
 (iv.) In the case of wages paid at an 
 annual rate divide by 52 to obtain the 
 weekly rate and then proceed as in (ii.) 
 above. 
 
 (v.) When the employed person is 
 paid by the hour and the ordinary 
 working day consists of a definitely 
 recognised number of hours, the rate 
 of remuneration per working day is 
 readily ascertained by multiplying the 
 rate of remuneration per hour by the 
 number of hours which make up the 
 ordinary working day. 
 
 Where the ordinary working day 
 does not consist of a definitely recog- 
 nised number of hours the number of 
 hours to be treated as making up an 
 ordinary working day may be ascer- 
 tained by dividing the number of hours 
 in the week in which work is ordinarily 
 done by the number of days in the 
 week on which work is ordinarily done. 
 In counting the number of days every 
 day on which any work is ordinarily 
 done, even though not a whole day's 
 work, should be counted as a day. 
 
 Thus, if the number of hours in the 
 week in which work is ordinarily done 
 js 54, and the number of days in the 
 
 week on which work is ordinarily done 
 is 6, even though one of the days is 
 a half day, the number of hours to be 
 treated as making up the ordinary 
 
 working day will be 5 ^ hours. 
 6 
 
 Consequently, where the rate of re- 
 muneration per hour is, say, $d. the rate 
 of remuneration a working day will be 
 9 x 3d. =2s. 3dL 
 
 (vi.) When the employed person is 
 paid by the piece, first find the actual 
 amount of money per hour which the 
 employed person is receiving in respect 
 of the work for which payment is being 
 made. This is obtained by dividing 
 the sum paid by the number of hours 
 occupied in the work. To take an ex- 
 ample : if the sum paid is 155. and the 
 number of hours worked is 60 the rate 
 of remuneration per hour will be 
 
 60 
 
 Having thus found out the rate of 
 remuneration per hour proceed as in 
 (v.) above. 
 
 Note. Where an employed person 
 works for more than one employer in 
 a week, the rate of remuneration must 
 in all cases be calculated on the basis 
 of the remuneration received from the 
 employer who is responsible for the 
 week's contribution. 
 
 (4) RATE OF REMUNERATION NOT 
 
 ALWAYS THE SAME AS ACTUAL 
 
 EARNINGS. 
 
 From the above it will be seen that 
 although the actual earnings in a week 
 may be small it does not necessarily 
 follow that the rate of remuneration 
 is so low as to require an increased 
 payment by the employer in that week. 
 For instance, in a particular week a 
 man may have earned only 95., this on 
 the average would be only 15. 6d. a 
 day for a week of 6 working days; 
 
246 
 
 THE PEOPLE'S INSURANCE 
 
 but if this gs. was earned by working 
 only half time (for example, if he only 
 worked 6 half days or 3 whole days) 
 his rate of remuneration, calculated in 
 the manner explained above, would be 
 35. a working day, and this being above 
 the half-crown limit the contribution 
 would be divided between the employer 
 and the employed person in accordance 
 with ordinary provisions. 
 
 (5) DISPUTES AS TO THE RATE OF 
 REMUNERATION. 
 
 In cases where the employer and the 
 employed person are unable to agree 
 as to the amount to be deducted from 
 the employed person's wages in any 
 week, the employer, since the payment 
 of the contributions cannot be post- 
 poned, must stamp the card and may 
 take either of two courses : 
 
 (a) he may make the deduction at 
 
 the lower rate which the em- 
 ployed person regards as cor- 
 rect and himself take steps to 
 get the Commissioners' de- 
 cision on the point. In these 
 circumstances he will continue 
 to make the deductions at the 
 lower rate until the Commis- 
 sioners' decision is obtained, 
 but he will then, if the decision 
 is in his favour, be able to make 
 future weekly deductions at 
 the higher rate accordingly ; or 
 
 (b) he may make the deduction at 
 
 the rate which, after consider- 
 ing the facts of the particular 
 case, he himself regards as cor- 
 rect ; if the employed person 
 wishes to dispute the correct- 
 ness of this deduction the em- 
 ployer should, in order to in- 
 form the employed person of 
 his right to have the question 
 considered and settled by the 
 Commissioners, fill up a notice 
 in the form shown below and 
 
 hand it to the employed person, 
 who will, if he thinks fit, take 
 steps to have the matter de- 
 cided. In these circumstances, 
 after the Commissioners' de- 
 cision is obtained, if it is in 
 favour of the employed person, 
 the employer will, of course, 
 be required to reduce the rate 
 of deduction accordingly, but in 
 this case he will also be liable 
 to repay to the employed per- 
 son the amount over-deducted. 
 Copies of this notice can be obtained 
 from the nearest Customs and Excise 
 Officer or the form given below may 
 be used. 
 
 NATIONAL INSURANCE ACT, 1911. 
 NATIONAL HEALTH INSURANCE. 
 
 NOTICE BY EMPLOYER TO EMPLOYED 
 CONTRIBUTOR OF RATE AT WHICH 
 HE CLAIMS TO BE ENTITLED TO 
 MAKE DEDUCTIONS FROM WAGES. 
 
 Take notice that I claim to be en- 
 titled to deduct the sum of 
 from the amount of your wages in 
 respect of the contribution payable by 
 me on your behalf under the above Act, 
 and that I am making the deduction at 
 that rate accordingly. 
 
 If you claim that the amount which 
 I am entitled to deduct is any less 
 amount you are entitled to apply to 
 the Insurance Commissioners to have 
 the question determined by them. 
 
 To 
 
 Signed 
 
 Address 
 
 Dated 
 
 Note. If the Insurance Commis- 
 sioners decide that too much has been 
 deducted you will be entitled to receive 
 from me an amount equal to the 
 amount over-deducted in respect of 
 
THE PEOPLE'S INSURANCE 
 
 every week in which I make deductions 
 from your wages at the higher rate. 
 
 If you desire to have this question 
 determined by the Insurance Commis- 
 sioners you should apply to the near- 
 est Customs and Excise Officer for the 
 requisite form of application. 
 
 BENEFITS PROVIDED BY THE 
 ACT. 
 
 The benefits provided by the Act 
 are :- 
 
 (a.) Medical Benefit. 
 (b.) Sanatorium Benefit, 
 (c.) Sickness Benefit. 
 (d.) Disablement Benefit. 
 (e.) Maternity Benefit. 
 
 MEDICAL BENEFIT. 
 
 This includes medical treatment and 
 medicine for the insured person (not for 
 his family) and certain kinds of surgical 
 appliances. Medical benefit does not 
 include any right to treatment in case 
 of confinement. 
 
 When the Insurance Committee (to 
 be set up for the purposes of the Act in 
 each County and County Borough) has 
 made arrangements for medical attend- 
 ance and has prepared a list of the 
 doctors willing to serve under the Act, 
 the insured person will be at liberty to 
 choose from the list any doctor who is 
 willing to attend him. A similar list 
 will be available of chemists and others 
 from whom such drugs and medicines 
 as may be prescribed can be obtained. 
 Under certain circumstances, instead of 
 this system, an insured person will be 
 allowed, or may be required, to make 
 his own arrangements for receiving 
 medical attendance and treatment, and 
 in that case medical benefit will take 
 the form of a money allowance upon 
 which he can draw, to help him in the 
 payment of the cost of his treatment. 
 
 247 
 
 No person will be entitled to medical 
 benefit until six months after the com- 
 mencement of the Act. 
 
 Where a scheme is not established 
 by the Insurance Committee, other 
 methods will be adopted. 
 
 SANATORIUM BENEFIT. 
 On the recommendation of the In- 
 surance Committee an insured person 
 suffering from consumption is given 
 free treatment in a sanatorium or 
 other institution, or in such other 
 way as may be suitable for the case. 
 This benefit may, if the Local Govern- 
 ment Board so decide, be extended to 
 include other diseases besides consump- 
 tion. The Insurance Committee has 
 power to pay or to advance the travel- 
 ling expenses of a person who is sent 
 to a sanatorium for treatment, and to 
 extend the benefit to the dependants of 
 the insured person. 
 
 SICKNESS BENEFIT. 
 
 This is a payment of los. per week 
 for men, and 75. 6d. per week for 
 women, up to 26 weeks, during a period 
 in which the insured person is incapa- 
 ble of work through sickness or other 
 disablement. The following should be 
 noted : 
 
 (a.) It commences on the fourth 
 
 day of illness. 
 
 (&.) Illnesses occurring at separate 
 periods are all counted together 
 as one illness for the purpose 
 of reckoning the 26 weeks, un- 
 less a period of 12 months 
 elapses and 50 weekly contribu- 
 tions are paid between the end 
 of the one illness and the begin- 
 ning of the next. 
 
 To become entitled to this benefit a 
 person must have been insured for at 
 least 26 weeks and have paid at least 
 26 contributions. It is not payable 
 after the age of 70. Its payment 
 
2 4 8 
 
 THE PEOPLE'S INSURANCE 
 
 through an Approved Society is subject 
 to the rules of that Society. Except as 
 explained below, a woman is not en- 
 titled to sickness benefit during the 
 first four weeks after confinement. 
 
 DISABLEMENT BENEFIT. 
 
 When a person's right to sick pay is 
 exhausted, because he has drawn it for 
 26 weeks, he is able, if still incapable 
 of work, to draw 55. a week, which is 
 called Disablement Benefit. This is 
 the same for women as for men. This 
 benefit, like sickness benefit, is not pay- 
 able after the age of 70. To become 
 entitled to this benefit, a person must 
 hav^ been insured at least two years 
 and must have paid at least 104 weekly 
 contributions. 
 
 MATERNITY BENEFIT. 
 
 Payment of a sum of 305. in respect 
 of a confinement. 
 
 A woman who is the wife of an insured 
 person, will, whether she works after 
 marriage or not, have 305. paid in cash 
 or otherwise through her husband's 
 Society to meet the expenses of her 
 confinement. 
 
 If she is not the wife of an insured 
 person, but is herself insured, she will 
 draw the 305. from her own Society. 
 
 If she is married, and goes on work- 
 ing after her marriage, she will, at 
 each confinement, get sickness or dis- 
 ablement benefit as well as maternity 
 benefit, whether her husband is insured 
 or not. 
 
 In any case the woman decides 
 whether she wishes to be attended by 
 a doctor or by a midwife, and selects 
 any doctor or midwife she likes. A 
 period of 26 weeks must have elapsed 
 since entry into insurance and at least 
 26 weekly contributions must have been 
 paid before the insured person becomes 
 entitled to this benefit ; in the case of a 
 
 Voluntary Contributor the requirement 
 is a period of 52 weeks and the payment 
 of 52 weekly contributions. 
 
 ADDITIONAL BENEFITS. 
 
 In addition to the benefits already 
 mentioned there is the possibility of 
 extra benefits if the funds of an 
 Approved Society show a surplus 
 on the first or any subsequent valuation. 
 The additional benefits laid down in the 
 Act include medical treatment for de- 
 pendants, dental treatment, increased 
 sickness or disablement benefit, pay- 
 ment of sickness benefit from the first 
 day, increase of maternity benefit, pay- 
 ment of pensions, &c., but not death 
 benefits. 
 
 VARIATION IN BENEFITS. 
 
 Power is given to Approved Societies 
 to draw up schemes for substituting 
 some of the " additional benefits " for 
 the whole or part of sickness or disable- 
 ment benefit. The scheme may apply 
 to all the members, or to special classes 
 or it may be optional for any of the 
 members. The scheme must be sub- 
 mitted to the Insurance Commis- 
 sioners, who must be satisfied that 
 there are good reasons for it owing 
 to special circumstances. 
 
 REDUCTION IN BENEFITS. 
 
 If any valuation of the Society dis- 
 closes a deficiency arising from bad 
 management or otherwise, the benefits 
 may be reduced or a levy be made upon 
 the members. 
 
 SICKNESS AND DISABLEMENT 
 BENEFITS EXPLAINED. 
 
 Part I. of the following statement sets 
 out the rates of sickness and disable- 
 ment benefit in the case of persons com- 
 p'ulsorily insured under the Act (called 
 
THE PEOPLE'S INSURANCE 
 
 249 
 
 employed contributors) who become 
 members of Approved Societies within 
 a year after the commencement of the 
 Act (July 1 5th, 1912). Part I. also ap- 
 plies to employed contributors who join 
 Approved Societies more than a year 
 after the commencement of the Act, pro- 
 vided they do so before they are 17. 
 
 Part II. deals with persons who be- 
 come employed contributors and join 
 Approved Societies at any time after 
 July, 1913, and are 17 or over at the 
 time. 
 
 PART I. 
 
 Persons who become employed con- 
 tributors within a year after the 
 commencement of the Act (July 
 15th, 1912). 
 
 SICKNESS BENEFIT. 
 
 This is a payment of IQS. per week 
 for men, and 75. 6d. per week for 
 women, up to 26 weeks, during a period 
 in which the insured person is incapable 
 of work through sickness or other dis- 
 ablement. The following should be 
 noted : 
 
 (a) It commences on the fourth day 
 
 of illness. 
 
 (b) Illnesses occurring at separate 
 
 periods are all counted together 
 as one illness for the purpose 
 of recknoing the 26 weeks, un- 
 less a period of 12 months 
 elapses and 50 weekly contribu- 
 tions are paid between the end 
 of the one illness and the begin- 
 ning of the next. 
 
 To become entitled to this benefit a 
 person must have been insured for at 
 least 26 weeks, and have paid at least 
 26 contributions. It is not payable 
 after the age of 70. Its payment 
 through an Approved Society is subject 
 to the rules of that Society. 
 
 DISABLEMENT BENEFIT. 
 When a person's right to sick pay 
 is exhausted, because he has drawn it 
 for 26 weeks, he is able, if still incap- 
 able of work, to draw 55. a week, which 
 is called Disablement Benefit. This is 
 the same for women as for men. This 
 benefit, like sickness benefit, is not pay- 
 able after the age of 7ov To become 
 entitled to this benefit, a person must 
 have been insured for at least two years 
 and must have paid at least 104 weekly 
 contributions. 
 
 REDUCED RATES. 
 (1) Persons under 21. 
 Males : Sickness benefit 6s. a week 
 for 13 weeks, 55. a week 
 afterwards. 
 Disablement benefit The 
 
 full rate of 55. a week. 
 Females : Sickness benefit.^, a 
 week for 13 weeks, 45. 
 a week afterwards. 
 Disablement benefit 
 
 4s. a week. 
 
 The full rate will be payable when 
 the insured persons reach the age of 21. 
 If they are married or have mem- 
 bers of their family wholly or mainly 
 dependent upon them, they have a 
 right to sickness and disablement 
 benefits at the full rate. 
 
 (2) Persons of 60 and upwards. 
 This refers only to persons who, 
 when they first become employed 
 contributors, are over the age of 50; 
 they will be in two classes, (i) those 
 between 50 and 60, and (ii) those be- 
 tween 60 and 65. 
 
 (i.) If over 50 and not over 60 at 
 the time of becoming employed 
 contributors 
 Sickness benefit Men, 75. a week 
 
 for 26 weeks. 
 
 Women, 6s. a week for 26 
 weeks. 
 
250 
 
 THE PEOPLE'S INSURANCE 
 
 Disablement benefit The full rate 
 
 of 55. a week for both sexes, 
 (ii.) If over 60 and under 65 at the 
 time of becoming' employed con- 
 tributors 
 
 Sickness benefit Both men and 
 women, for 26 weeks, at the 
 rate of 6s. a week for the first 
 13 weeks and 55. a week for the 
 second 13 weeks. 
 
 Disablement benefit The full rate 
 
 of 55. a week for both sexes. 
 Persons over 50 when they first 
 become employed contributors will 
 have a right to full sickness benefit 
 (lOs. for men and 7s. 6d. for women) 
 as soon as 500 weekly contributions 
 have been paid, that is to say in 
 rather less than 10 years if they pay 
 regularly. 
 
 (iii.) Special arrangements are made 
 for persons who are 65 and up- 
 wards at the commencement of 
 the Act. 
 
 There is no reduction in the case of 
 persons who first become employed 
 contributors before they reach 50, and 
 go on after that age ; and persons who 
 become employed contributors after 50 
 but before 60 will be treated after they 
 reach 60 in the same way as they are 
 treated between 50 and 60; and simi- 
 larly as regards the treatment of per- 
 sons over 65 who became insured 
 before 65. 
 
 PART II. 
 
 Persons who become employed con- 
 tributors at any time after July, 
 1913, and are 17 or over at the 
 time. 
 
 They will receive reduced sickness 
 benefit to be fixed in accordance with 
 tables to be prepared by the Insurance 
 Commissioners, but they will in no 
 case receive less than 55. a week. 
 They can, however, obtain full sickness 
 
 benefit either by paying a larger con- 
 tribution or by paying a lump sum 
 sufficient to secure them sickness 
 benefit at the full rate. 
 
 But if they can prove that their time 
 since they attained 17 has been spent in 
 a school or college or in indentured 
 apprenticeship, or under instruction 
 without wages, or in some other way 
 in the completion of their education, 
 they will be entitled to full sickness 
 benefit without increase of contribu- 
 tions. 
 
 Note. (i) The rate of sickness benefit 
 will be reduced in the case 
 of persons who are 
 behindhand with their 
 contributions. 
 
 (2) Where the rate of sickness 
 benefit exceeds two-thirds 
 of the usual rate of wages 
 the society may, at its 
 discretion, subject to the 
 consent of the Insurance 
 Commissioners, reduce 
 the rate of sickness bene- 
 fit and give some other 
 benefit instead. 
 
 WORKING - MEN UNDER THE 
 ACT. 
 
 CONTRIBUTIONS. 
 (1) Ordinary Rate. 
 
 Employer pays 3 d. a week \ 
 Workman pays 4^. a week] 
 
 The State contributes 2d. towards 
 every ninepence expended on benefits 
 and on the administration of benefits. j 
 
 (2) When the workman is over 21 
 and the wages are low the 
 employer pays more and the 
 workman less, as follows : 
 
THE PEOPLE'S INSURANCE 
 
 251 
 
 
 
 * 
 
 ,, , M 
 
 
 Rate of Remuner;iti< m 
 per working day. 
 
 Worker 
 pays 
 
 8. 
 
 Iflf 
 
 1 
 
 
 
 E 
 (3 
 
 J*i^ 
 
 
 
 is. 6d. or under ... 
 Above is. 6d., but 
 
 Nothing 
 
 6d. 
 
 i^. ^ 
 
 not over 2s. 
 Above 2s., but not 
 over 2s. 6d. 
 Over 2s. 6d. (ordi- 
 nary rate) 
 
 id. 
 
 t^.d. 
 3^ 
 
 id. 
 
 7rf " 
 
 If a man receives board and lodging 
 he pays the ordinary rate of 4^. what- 
 ever his wages. If he receives board 
 or lodging, but not both, the value of 
 the board or lodging counts as part 
 of his "remuneration." Remuneration 
 means wages and the value of other 
 things a workman may receive, for 
 instance, meals. 
 
 (3) Special Bate. 
 
 In certain trades, if the employer 
 undertakes to pay full remuneration 
 during the first six weeks of sickness 
 a special rate of contributions may be 
 allowed. 
 
 The employer pays 2d. a week. [Total, 
 The workman pays $d. a week. J $d. 
 
 The workman gets no sickness bene- 
 fit during those six weeks, but has a 
 right to all the other benefits as usual. 
 
 BENEFITS. 
 
 (1) Medical benefit, that is, doctor 
 
 and medicine, or, in special 
 circumstances, money payments 
 instead. 
 
 (2) Sanatorium benefit, that is, treat- 
 
 ment in a sanatorium or in some 
 other way in case of consump- 
 tion. 
 
 (3) Sickness benefit, IQS. a week for 
 
 26 weeks commencing on the 
 fourth day of sickness. 
 
 (4) Disablement benefit, 55. a week 
 
 afterwards if still incapable of 
 work. 
 (5) Maternity benefit, 30^. for the 
 
 wife on confinement. 
 (These benefits are subject to certain 
 waiting periods and other conditions.) 
 
 The rate of sickness benefit is less 
 for persons under 21, and in certain 
 cases for persons over 50. 
 
 How THE BENEFITS ARE OBTAINED. 
 By joining an Approved Society. 
 WHAT SOCIETIES WILL BE APPROVED. 
 
 Friendly Societies, Trade Unions, 
 Provident Societies, Dividing Societies, 
 Collecting Friendly Societies, and In- 
 dustrial Assurance Companies are pre- 
 paring rules either to become Approved 
 Societies or to form Sections for the 
 administration of the Insurance Act, 
 and new Societies may be formed for 
 the purpose of the Insurance Act. 
 
 If a man does not join a Society he 
 will have to become a Deposit Con- 
 tributor, and will only have a right 
 to the benefits which can be provided 
 out of the actual contributions paid by 
 himself and his employer, together with 
 the State grant. 
 
 Members of Societies can go on 
 drawing benefits as long as they need 
 them ; Deposit Contributors cease to 
 have benefits when the money standing 
 to their credit is exhausted. 
 
 WOMEN UNDER THE ACT. 
 A. Women working- for Wages. 
 
 Women working for wages, whether 
 single or married, will in ordinary cases 
 be insured under the Act, which is to 
 commence on July isth, 1912. 
 Generally speaking, the payments and 
 the benefits are the same for single 
 women and for married women, but 
 
 i 2 
 
252 
 
 THE PEOPLE'S INSURANCE 
 
 in certain cases special arrangements 
 are made for married women. 
 
 This statement sets out the ordinary 
 contributions and benefits for women 
 working- for wages, whether married 
 or single, and then describes shortly 
 the special arrangements for married 
 women. 
 
 ORDINARY CONTRIBUTIONS AND 
 
 BENEFITS 
 
 (1) Usual Rate of Contributions. 
 The employer pays 3^. a week. \ Total 
 The woman pays 3^. a week. / 6d. 
 
 The State contributes 2d. towards 
 every eightpence expended on benefits 
 and on the administration of benefits. 
 
 The woman's ^d. is taken from her 
 wages by her employer. 
 
 (2) Rates of Contribution in case of 
 Low Wages. 
 
 When the woman is over 21 and the 
 wages are low, the employer pays more 
 and the woman less. 
 
 
 
 
 
 i & 
 
 BjS'S. 
 
 
 Rates of Remuneration 
 
 Woman 
 
 a 
 
 1 
 
 l?i| 
 
 1 
 
 per working day. 
 
 pays 
 
 
 .s'&l % 
 
 H 
 
 
 
 1 
 
 |s1^ 
 
 
 
 
 
 C/3 
 
 
 Over zs. (ordinary 
 
 
 I 
 
 
 rate) 
 
 3^- 
 
 3"- 
 
 - 
 
 
 Above is. 6d. } but 
 
 
 
 f 
 
 brf. 
 
 not over 2s. 
 
 id. 
 
 4^. 
 
 Irf. 
 
 
 is. 6d. and under . 
 
 Nothing 
 
 5^ 
 
 I4T. J 
 
 
 If a woman receives board and 
 lodging she pays the ordinary rate of 
 3<2. whatever her wages. If she re- 
 ceives board or lodging but not both, 
 the value of the board or lodging 
 counts as part of her remuneration. 
 Remuneration means wages and the 
 value of other things a woman may 
 receive from her employer, for instance 
 meals. 
 
 (3) Special Rate of Contribution. 
 
 In certain trades if the employer 
 undertakes to pay full remuneration 
 during the first six weeks of sickness 
 a special rate of contributions may be 
 allowed. 
 
 The woman pays 2d. } ^ . . , , 
 TU i j f Total Aid. 
 
 The employer pays 2\d.) 
 
 The woman gets no sickness benefit 
 during those six weeks, but has a right 
 to all the other benefits as usual. 
 
 BENEFITS. 
 
 (1) Medical benefit, that is, doctor 
 and medicine, or in special circum- 
 stances, money payments instead. 
 
 (2) Sanatorium benefit, that is, treat- 
 ment in a sanatorium or in some other 
 way in case of consumption. 
 
 (3) Sickness benefit, 75. 6d. a week 
 for 26 weeks commencing on the 4th 
 day of sickness. 
 
 (4) Disablement benefit, 55. a week 
 afterwards if still incapable of work. 
 
 (5) 305. maternity benefit on confine- 
 ment, paid in cash or otherwise, unless 
 hei husband is also insured, in which 
 case maternity benefit is provided by 
 his insurance. A married woman, 
 whether her husband is insured or not, 
 has a right also to sickness benefit after 
 confinement. 
 
 (These benefits are subject to certain 
 waiting periods and other conditions.) 
 
 The rates of sickness benefit and 
 disablement benefit are lower for girls 
 under 21, and in certain cases the rate 
 of sickness benefit is lower for women 
 over 50. 
 
 How THE BENEFITS ARE OBTAINED. 
 By joining an Approved Society. 
 
 WHAT SOCIETIES WILL BE APPROVED. 
 
 Friendly Societies, Trade Unions, 
 Provident Societies, Dividing Societies, 
 
THE PEOPLE'S INSURANCE 
 
 253 
 
 Collecting Friendly Societies, and In- 
 dustrial Assurance Companies are pre- 
 paring rules either to become Approved 
 Societies or to form Sections for the 
 administration of the Insurance Act, 
 and new Societies may be formed for 
 the purpose of the Insurance Act. 
 Approved Societies may be Societies 
 fo 1 * both men and women or Societies 
 for women only. 
 
 If a woman does not join a Society 
 she will have to become a Deposit 
 Contributor and will only have a right 
 to the benefits which can be provided 
 out of the actual contributions paid by 
 herself and her employer together with 
 the State grant. 
 
 Members of Societies can go on 
 drawing benefits as long as they need 
 them ; Deposit Contributors cease to 
 have benefits when the money standing 
 to their credit is exhausted. 
 
 B. Married Women. 
 
 What happens in the case of a 
 Woman now married or who 
 marries before July 15th, 1912. 
 
 If she is employed on July i5th, or 
 becomes employed at any later date 
 whilst her husband is living, she will 
 be insured under the Act, and will have 
 a right to full benefits for the ordinary 
 contributions. 
 
 If she is not employed she cannot be 
 insured during her husband's lifetime. 
 If at his death, or within a year after 
 it, she goes to work, she will be in- 
 sured under the Act at the ordinary 
 rates with the ordinary benefits. If 
 she goes to work later than a year 
 after her husband's death she will have 
 to be insured and pay the ordinary 
 contributions, but she will get reduced 
 benefits; she can, however, obtain the 
 
 usual benefits by paying higher con- 
 tributions. 
 
 What happens in the case of a 
 Woman Insured before Marriage 
 who marries after July 15th, 
 1912. 
 
 A. Whilst her husband lives. 
 
 When an insured woman marries, if 
 she continues to be employed, she will 
 pay the same contributions and have a 
 right to the same benefits as before. 
 
 If she ceases to be employed there 
 are two courses open to her : 
 
 either (a) she may go on paying 3^. 
 a week herself and she will have 
 a right to the following bene- 
 fits, which are less than when 
 she was employed, because there 
 is no employer to pay the other 
 3d.: 
 
 medical treatment and medicines 
 (or in special circumstances 
 money payments instead); and 
 sick pay of 55. a week for 13 
 weeks and disablement pay of 
 35. a week afterwards. Sick 
 pay is not given for the two 
 weeks before and the four \reeks 
 after confinement; 
 
 or (b) she need pay no further con- 
 tributions, but her own and her 
 employer's previous contribu- 
 tions will have enabled her 
 Society to set aside a certain 
 sum for her benefit during mar- 
 riage, and thus to pay her, on 
 confinement, 55. a week for not 
 more than four weeks, and, if it 
 thinks fit, to grant certain pay- 
 ments during any period of 
 sickness or distress ; but these 
 benefits are limited by the 
 amount available (as above 
 described) supplemented by the 
 State grant. 
 
2 54 
 
 THE PEOPLE'S INSURANCE 
 
 In all cases the State contributes 2d. 
 towards every 8d. expended on bene- 
 fits and the administration of benefits. 
 
 B. // her husband dies. 
 
 If she goes to work she will pay the 
 same contributions and have a right 
 to the same benefits as before mar- 
 riage. 
 
 If she does not go to work she may 
 pay 3^. a week herself and get the 
 benefits described in (a) above, or she 
 may on certain conditions pay a higher 
 contribution and receive the ordinary 
 benefits in full. The conditions are 
 that she must either have been insured 
 for at least five years, or must be 
 engaged in some /egular occupation 
 upon which she is wholly or mainly 
 dependent, with a total income of less 
 than .160 a year. 
 
 What happens in the case of a 
 Woman NOT insured before mar- 
 riage, who marries after July 
 15th, 1912. 
 
 If she goes to work during marriage 
 or after her husband dies, she has to be 
 insured and pay the ordinary contribu- 
 tions but (unless she goes to work 
 before July i5th, 1913) she will receive 
 reduced benefits ; she can, however, 
 obtain the usual benefits by paying 
 higher contributions. 
 
 DOMESTIC SERVANTS UNDER 
 THE ACT. 
 
 Domestic servants, whether single 
 or married, will in ordinary cases be 
 insured under the Act, which is to com- 
 mence on July isth, 1912. Generally 
 speaking the payments and the bene- 
 fits are the same for women who are 
 in employment whether they are single 
 or married, but in certain cases special 
 
 arrangements are made for married 
 women. 
 
 This memorandum first sets out the 
 ordinary contributions and benefits for 
 servants whether married or single, and 
 then describes shortly the special ar- 
 rangements for married women. 
 
 CONTRIBUTIONS. 
 
 A contribution of 6d. a week must 
 be paid for each servant by the master 
 or mistress, who will have a right to 
 take off 3^. from the servant's wages. 
 Such deductions will be made only at 
 the time when wages are paid. If, for 
 example, the wages are paid monthly 
 the deduction at the rate of 3^. a week 
 will be made once a month. 
 
 The State contributes 2d. towards 
 every Sd. expended on benefits and on 
 the administration of benefits. 
 
 How WILL THE PAYMENTS BE MADE? 
 The servant will get a Contribution 
 Card for the mistress to put stamps 
 on at the proper times. 
 
 How TO OBTAIN THE BENEFITS OF THE 
 ACT. 
 
 In order to obtain the full benefits of 
 the Act it will be necessary for a ser- 
 vant to join a Society approved by 
 the Insurance Commissioners. Friendly 
 Societies, Trade Unions, Provident 
 Societies, Dividing Societies, Collect- 
 ing Friendly Societies, and Industrial 
 Assurance Companies are preparing 
 rules either to become Approved 
 Societies or to form Sections for the 
 administration of the Insurance Act and 
 new Societies may be formed for the 
 purpose of the Insurance Act. Ap- 
 proved Societies may be Societies for 
 both men and women or Societies for 
 women only. 
 
 If a servant does not join a Society 
 she will have to become a deposit con- 
 tributor and will only have a right to 
 
THE PEOPLE'S INSURANCE 
 
 2 55 
 
 the benefits which can be provided out 
 of the actual contributions paid by her- 
 self and her employer together with the 
 State grant. 
 
 Deposit Contributors cease to have 
 benefits when the money standing to 
 their credit is exhausted, whereas mem- 
 bers of Societies can go on drawing 
 benefits as long as they need them. 
 
 The servant will get her Contribution 
 Card from her Society (if she has not 
 joined a Society she will get it from the 
 Post Office). 
 
 Servants who are members of 
 Friendly Societies at present. 
 
 If a servant is at present a member 
 of a Society giving sick pay, she may 
 continue or discontinue the whole or 
 part of her present contribution as her 
 Society may arrange. For instance, if 
 she now pays 6d. a week her Society, 
 if it becomes approved, might allow her 
 to go on paying 6d. a week without 
 paying another $d. in consequence of 
 the Act. Out of this 6d., $d. would be 
 her contribution to the ordinary or 
 voluntary side of her Society for extra 
 benefits outside the State scheme, the 
 other 3<2. would be the money deducted 
 weekly from her wages and would be 
 her contribution to her Society under 
 the State scheme ; but as her mistress's 
 3^. goes to her Society in addition to 
 the 3^. deducted from her wages and 
 there is the State grant besides, she 
 will have a right to greater benefits in 
 the future than she has at present for 
 the same payment. 
 
 BENEFITS. 
 
 (i.) Medical benefit, that is, doctor 
 and medicine, or, in special circum- 
 stances, money payments instead. 
 
 (2.) Sanatorium benefit, that is, treat- 
 ment in a sanatorium or in some other 
 way in case of consumption, 
 
 (3.) Sickness benefit, 75. 6d. a week 
 for 26 weeks commencing on the 4th 
 day of sickness. (Note. When a ser- 
 vant is under 21 and unmarried, the 
 sickness benefit is 55. a week for the 
 first 13 weeks commencing on the 4th 
 day of sickness and 45. a week for the 
 second 13 weeks.) 
 
 In certain cases the rate of sickness 
 benefit is lower for women over 50. 
 
 (4.) Disablement benefit, 55. a week 
 afterwards if still incapable of work. 
 (Note. If the servant is under 21 and 
 unmarried, she will not receive this 
 benefit until she reaches that age ; until 
 that time she will receive 45. a week. 
 
 A servant who is married or who has 
 some member of her family wholly or 
 mainly dependent upon her has a right 
 before she is 21 to sickness and dis- 
 ablement benefits at the full rates. 
 
 (5.) 305. maternity benefit on confine- 
 ment, paid in cash or otherwise, unless 
 her husband is also insured, in which 
 case maternity benefit is provided by his 
 insurance. A married woman, whether 
 her husband is insured or not, has a 
 right also to sickness benefit after con- 
 finement. 
 
 (These benefits are subject to cer- 
 tain waiting periods and other con- 
 ditions.) 
 
 What happens if the Servant stays 
 in her Mistress's house when 
 she is ill. 
 
 If contributions have been paid at 
 the ordinary rate (that is to say not at 
 the reduced rate mentioned in (i) be- 
 low), the fact that the servant is being 
 kept in her mistress's house when she 
 is ill, and is paid wages during sick- 
 ness, will not take away her right to 
 sick pay ; but two other arrangements 
 are possible, namely : 
 
 (i) It may be possible to make an 
 arrangement by which the mistress \v\\\ 
 
THE PEOPLE'S INSURANCE 
 
 pay 2\d. a week instead of 3^., and the 
 servant will pay 2d. a week instead of 
 3d. 
 
 Under this arrangement the mistress 
 would have to undertake to pay full 
 wages and to give the servant board 
 and lodging (or the value of board and 
 lodging in money if she does not keep 
 her in the house) during the first six 
 weeks of illness ; and the servant could 
 not claim sick pay from her Society for 
 the first six weeks of illness. 
 
 If the Insurance Commissioners allow 
 this arrangement to be made for domes- 
 tic servants it will be for the mistress 
 to decide whether she wishes to have 
 it for her servants. 
 
 (2) Some Societies may arrange to 
 give servants a pension when they grow 
 old or some other "additional benefit," 
 such as dental treatment, instead of 
 the whole or a part of the sick pay. 
 
 Note. The remainder of this memo- 
 randum does not apply to servants who 
 are under 21 and unmarried. 
 
 WHAT HAPPENS WHEN SHE is OUT OF A 
 SITUATION. 
 
 A servant insured under the Act has 
 a right to sickness benefit when she 
 falls ill because she and her mistress 
 pay 3^. each, every week that she is 
 employed, for that purpose. If a ser- 
 vant leaves her situation and pays no 
 contribution for some weeks and then 
 falls ill she will in certain cases lose her 
 right to sickness benefit at the full rate 
 of 75. 6d. a week, and will only receive 
 less than that amount. 
 
 In many cases, however, a servant 
 will be able to receive the full 75. 6d. 
 a week even though when she falls ill 
 she is out of a situation and has paid 
 no contributions since leaving her last 
 place ; for instance, she will still re- 
 ceive the full rate of 75. 6d. a week on 
 falling- ill if at the time when she falls 
 
 
 ill the total number of weeks during 
 which she has paid no contributions has 
 amounted to less than four a year (on 
 the average) since July i5th, 1912 ; but 
 in making this calculation no weeks of 
 unemployment during the first year of 
 the Act (July, 1912, to July, 1913) will 
 be counted nor any weeks during which 
 she has been receiving sickness or dis- 
 ablement benefit. 
 
 For example, let us imagine a ser- 
 vant who becomes insured under the Act 
 in July, 1912, and remains in a situa- 
 tion for two years without a break; 
 suppose she then (July, 1914) leaves. 
 Whilst she is out of a place she will 
 be paying no weekly contributions, nor 
 will there be any weekly contributions 
 from a mistress. Suppose the unem- 
 ployment continues for eight weeks and 
 that then she unfortunately falls ill. 
 During that illness she will not be able 
 to have sickness benefit at the full rate 
 of 75. 6d. because she will have missed 
 eight weekly payments during the two 
 years since July, 1912 (which is called 
 missing ** on the average " four weeks a 
 year) ; and this means that the rate of 
 sickness benefit must be reduced by %d. 
 (making it 75. $d. instead of 75. 6d. a 
 week). If she had missed only seven 
 (instead of eight) weeks during the two 
 years her " average " would have been 
 less than four a year and her sickness 
 benefit would then not have been re- 
 duced ; if the " average " is five then the 
 reduction in weekly sick benefit is 6d., 
 if the average is six the reduction is 
 gd. and so on according to a regular 
 scale, the reduction increasing with the 
 number of missed payments. 
 
 It is open to her to prevent this re- 
 duction by paying up the arrears. 
 
 The arrears of contributions need 
 not be paid weekly but only from time 
 to time; this will make it easier for 
 her, because in many cases there will 
 
THE PEOPLE'S INSURANCE 
 
 257 
 
 be no need for her to make up the 
 arrears until she has got a new situa- 
 tion. 
 
 Moreover, her Society may, if it 
 thinks fit, excuse the payment of that 
 part of the payments which, if she had 
 been in a situation, would have been 
 made by her mistress. 
 
 Sickness or disablement benefit is 
 not suspended altogether unless 
 the yearly average of arrears (as ex- 
 plained above) is more than 13; and 
 medical benefit is not lost until the 
 average is over 26. Thus if a servant 
 has been in employment without any 
 arrears for three years and then leaves 
 her situation without taking another, 
 she will be entitled to sickness benefit 
 during any part of the next year, and 
 to medical benefit during any part of 
 the next three years, even though she 
 does not pay any further contributions 
 at all. 
 
 MARRIED WOMEN. 
 
 What happens in the case of a 
 Domestic Servant now Married 
 or who Marries before July 15th, 
 1912. 
 
 If she is employed on July isth, or 
 becomes employed at any later date 
 whilst her husband is living, she will 
 be insured under the Act and will have 
 a right to full benefits for the ordinary 
 contributions. 
 
 If she is not employed she cannot be 
 insured during her husband's lifetime. 
 If at his death, or within a year after 
 it, she goes to work, she will be in- 
 sured under the Act at the ordinary 
 rates with the ordinary benefits. If 
 she goes to work later than a year after 
 her husband's death she will have to be 
 insured and pay the ordinary contribu- 
 tions, but she will get reduced benefits ; 
 she can, however, obtain the usual 
 benefits by paying higher contributions. 
 
 What happens in the case of a 
 Domestic Servant Insured before 
 Marriage who Marries after July 
 15th, 1912. 
 
 A. Whilst her husband lives. 
 
 When an insured woman marries, if 
 she continues to be employed, she will 
 pay the same contributions and have a 
 right to the same benefits as before. 
 
 If she ceases to be employed there 
 are two courses open to her : 
 either (a) she may go on paying 3^. 
 a week herself and she will 
 have a right to the follow- 
 ing benefits, which are less 
 than when she was em- 
 ployed, because there is no 
 ployer to pay the other 
 3d. : medical treatment 
 and medicines (or in special 
 circumstances money pay- 
 ments instead) ; and sick pay 
 of 55. a week for 13 weeks 
 and disablement pay of 35. 
 a week afterwards. Sick 
 pay is not given for the two 
 weeks before and the four 
 weeks after confinement; 
 or (b) she need pay no further con- 
 tributions, but her own and 
 her employer's previous 
 contributions will have en- 
 abled her Society to set 
 aside a certain sum for her 
 benefit during marriage, 
 and thus to pay her, on con- 
 finement, 55. a week for not 
 more than four weeks and. 
 if it thinks fit, to grant cer- 
 tain payments during any 
 period of sickness or dis- 
 tress ; both these benefits 
 are limited by the amount 
 available (as above de- 
 scribed) supplemented by 
 the State grant. 
 
 I* 
 
THE PEOPLE'S INSURANCE 
 
 In all cases the State contributes 2d. 
 towards every 8d. expended on benefits 
 and on the administration of benefits. 
 
 B. // her husband dies. 
 
 If she goes to work she will pay the 
 same contributions and have a right to 
 the same benefits as before marriage. 
 
 If she does not go to work she may 
 pay 3d. a week herself and get the 
 benefits described in (a) above, or she 
 may on certain conditions pay a higher 
 contribution and receive the ordinary 
 benefits in full. The conditions are 
 that she must either have been insured 
 for at least five years, or must be en- 
 gaged in some regular occupation upon 
 which she is wholly or mainly depen- 
 dent, with a total income of less than 
 160 a year. 
 
 CHARWOMEN UNDER THE ACT. 
 
 // a charwoman is employed regu- 
 larly she must be insured whether she 
 is employed for the purposes of her 
 employer's trade or business or not. 
 If a charwoman is employed casually 
 she need only be insured if she is em- 
 ployed for the purposes of her em- 
 ployer's trade or business. 
 
 Any question whether a charwoman 
 is employed regularly , or if not regu- 
 larly, whether for the purposes of her 
 employer's trade or business, must be 
 decided on the facts of the particular 
 case. This statement is only intended 
 to indicate general principles for the 
 guidance of employer and employed. 
 
 CHARWOMEN WHO MUST BE INSURED. 
 
 (i.) All charwomen engaged to come 
 and work regularly at private houses, 
 must be insured : for example, if they 
 are engaged to come once a week or 
 once a fortnight. 
 
 (2.) Charwomen who are engaged 
 by business firms to clean offices, 
 shops, or other business premises must 
 be insured even if they only work one 
 odd day, or part of a day. 
 
 For information as to contributions 
 to be paid and benefits to be received, 
 see "Women under the Act," pp. 
 251-254- 
 
 CASES WHERE No CONTRIBUTIONS ARE 
 PAYABLE. 
 
 Contributions are not payable in 
 respect of odd jobs of domestic work 
 done in private houses by charwomen 
 who are not engaged to come regu- 
 larly. 
 
 CASES WHERE THE EMPLOYER'S CON- 
 TRIBUTION ONLY is PAYABLE. 
 
 A charwoman who is mainly depen- 
 dent on someone else for her livelihood 
 can make a claim not to be insured. 
 For this purpose she must obtain from 
 the Customs and Excise Officer for the 
 district in which she resides, or from 
 the Post Office, a form on which to 
 apply for a certificate of exemption. 
 When this is obtained no deduction will 
 be made from her wages, but the em- 
 ployer must still pay his share of the 
 contribution. 
 
 How TO BECOME INSURED. 
 
 The charwoman should join an 
 Approved Society without delay, be- 
 cause that is the only way by which 
 she can get the full benefits of the 
 Insurance Act. 
 
 The charwoman should get a card 
 from her Society or from the Post 
 Office, and must take that card to her 
 first job (if it is work for which she 
 must be insured) on or after July i5th, 
 and hand it to her employer. 
 
 The employer must put a sixpenny 
 Insurance stamp on the card, and write 
 
THE PEOPLE'S INSURANCE 
 
 259 
 
 the date across the stamp, and hand 
 the card back to her. The employer 
 must do this directly the charwoman's 
 job is ended, and before she is em- 
 ployed by anyone else. The card must 
 be stamped every week by the first 
 person in the week who employs her, 
 that is, of course, if it is work for 
 which she must be insured. 
 
 After the card is stamped the Em- 
 
 ployer may take 3^., the amount of 
 
 the charwoman's share of the con- 
 
 tribution, out of her wages. 
 
 Note. It must be remembered that if 
 
 the rate of the charwoman's re- 
 
 muneration is not more than 25. a 
 
 working day special rules apply. 
 
 (See statement on "How Rates 
 
 of remuneration affect contribu- 
 
 tions under the Act," pp. 243- 
 
 EMPLOYERS CAN PAY CONTRIBUTIONS IN 
 TURN. 
 
 If a charwoman has several regular 
 employers, the first employer in the 
 week is ordinarily liable to pay the 
 contribution every week, but the em- 
 ployers may make an agreement 
 between themselves for paying the 
 weekly contribution in turn. The 
 week's contribution will then become 
 payable on the day on which she is 
 employed by the employer whose turn 
 it is to pay. 
 
 If employers desire to enter into an 
 agreement, a special book must be 
 obtained from the Insurance Commis- 
 sioners and the employers must sign 
 their names in it. The charwoman 
 should keep this book with her con- 
 tribution card. If there are three 
 employers, and each of them employs 
 her regularly, then each will pay every 
 third week or if there are four 
 every fourth week, and so on. 
 
 When she works for an employer in 
 
 the agreement, she must present the 
 card and the book to him, and he will 
 stamp the card and sign the book if 
 it is his turn to do so. 
 
 If she works regularly for an em- 
 ployer who is not in the agreement, 
 or if she is given a casual job by a 
 business man in his shop or office, she 
 must present only the card to him, 
 and if there is not already a stamp on 
 the card for that week he will have to 
 pay the contribution. 
 
 If an employer whose turn it is to 
 pay the contribution finds that it has 
 already been paid because some person 
 outside the agreement employed the 
 charwoman that week before he did, 
 then he must not stamp the card or 
 sign the book, and his turn will be put 
 off for a week. This may happen 
 several weeks in succession, and his 
 turn will again be put off until the 
 week comes when no outside person 
 has employed the charwoman before 
 him. 
 
 Under the Act, if an employer does 
 not employ a person at all in a par- 
 ticular week, he does not have to pay 
 any contributions for her. So if for 
 any reason the charwoman is not em- 
 ployed in any week by the employer 
 whose turn it is to pay, the employer 
 next in turn who employs her in that 
 week must pay the contribution for 
 that week. 
 
 It should be clearly understood that 
 the agreement, which has been ex- 
 plained, will only be suitable where the 
 charwoman is likely to be employed 
 regularly by more than one employer 
 over a good many weeks, and when 
 this is not the case it is not advisable 
 that the arrangement should be 
 adopted. 
 
 It must be remembered that only one 
 contribution is payable for the week 
 however many employers there may be. 
 
260 
 
 THE PEOPLE'S INSURANCE 
 
 VOLUNTARY CONTRIBUTORS 
 UNDER THE ACT. 
 
 WHO MAY BE VOLUNTARY 
 CONTRIBUTORS. 
 
 Upon the conditions mentioned 
 below any man or woman can become 
 a voluntary contributor, with the ex- 
 ception of married women who during 
 the lifetime of their husbands can only 
 become voluntary contributors under 
 special arrangements. 
 
 CONDITIONS. 
 
 In order to become voluntary con- 
 tributors persons must be under 65 
 years of age and 
 
 (1) must be earning their own 
 
 living ; 
 
 (2) their income from all sources 
 
 must be not more than 
 ;i6o a year, 
 
 unless they have previously been in- 
 sured under the Act for at least five 
 years whether as employed or as volun- 
 tary contributors. 
 
 Once having become voluntary con- 
 tributors and having completed five 
 years of insurance, they may continue 
 to be voluntary contributors whatever 
 their income and whether they are 
 earning their own living or not. 
 
 Contributions by voluntary contribu- 
 tors cease to be payable when they 
 reach the age of 70. 
 
 The following persons may become 
 voluntary contributors subject to the 
 conditions mentioned above 
 
 (a) Persons working on their own 
 
 account. 
 
 (b) Persons who are in employ- 
 
 ment but who are not 
 obliged to be insured. 
 This includes 
 
 (i) An agent paid otherwise than 
 
 by salary, who is not 
 
 mainly employed by one 
 
 employer nor mainly depen- 
 dent for his livelihood on 
 one employer. 
 
 (2) Persons casually employed 
 
 (who are not casually em- 
 ployed for purposes of trade 
 or who are not engaged or 
 paid through a club for the 
 purposes of a game or 
 recreation). 
 
 (3) Certificated elementary school 
 
 teachers who have accepted 
 the Teachers' Superannua- 
 tion Act of 1898. 
 
 (4) Persons who are not obliged 
 
 to be insured because they 
 are excluded from the Act 
 by special order. 
 
 Among the persons who 
 may be excluded in this way 
 and may become voluntary 
 contributors will be the fol- 
 lowing : 
 
 (a) Outworkers. 
 
 (b) Share fishermen. 
 
 (c) Persons in the em- 
 
 ployment of the 
 Crown. 
 
 (d) Persons in the em- 
 
 ployment of local 
 or other public 
 authorities. 
 
 (e) Clerks or salaried 
 
 officials in the 
 service of a rail- 
 way or other statu- 
 tory company who 
 are entitled to 
 rights in a super- 
 annuation fund 
 established by Act 
 of Parliament. 
 
 WHAT VOLUNTARY CONTRIBUTORS WILL 
 PAY. 
 
 The rate of contributions payable by 
 a voluntary contributor who becomes 
 
THE PEOPLE'S INSURANCE 
 
 261 
 
 a member of an Approved Society will 
 depend partly on his age and partly 
 on the date on which he becomes in- 
 sured. 
 
 (i) If he becomes insured be- 
 
 fore January 15th, 1913. 
 
 and is under 45, 'he will pay 
 
 7dL a week (women will pay 
 
 6d.). 
 
 If he is over 45 he will pay 
 more than this according to 
 his age, but not so much as if 
 he joined after January i5th, 
 
 (2) If he becomes insured after 
 January i5th, 1913, he will 
 pay rates varying with his age 
 but in any case higher than 
 they would be if he joined 
 before that date. 
 
 The State contributes 2d. 
 towards every gd. expended 
 on benefits and on the ad- 
 ministration of benefits. The 
 State contributes 2d. towards 
 every Sd. in the case of 
 women. 
 
 WHAT VOLUNTARY CONTRIBUTORS WILL 
 RECEIVE. 
 
 Benefits. 
 
 A voluntary contributor will have a 
 right to the same benefits as an 
 ordinary employed contributor : 
 
 (1) Medical benefit, that is, doctor 
 
 and medicine, or, in special 
 circumstances, money pay- 
 ments instead. 
 
 (2) Sanatorium benefit, that is, 
 
 treatment in a sanatorium 
 or in some other way in 
 case of consumption. 
 
 (3) Sickness benefit, 105. a week 
 
 in the case of men, 75. 6d. 
 in the case of women, for 
 26 weeks commencing on 
 the fourth day of sickness. 
 
 (4) Disablement benefit, 55. a 
 
 week afterwards if still in- 
 capable of work. 
 
 (5) Maternity benefit, 305. 
 
 (These benefits are subject to cer- 
 tain waiting periods and other condi- 
 tions.) 
 
 The rate of sickness benefit is less 
 for persons under 21. 
 
 POSITION OF MEMBERS OF 
 FRIENDLY SOCIETIES. 
 
 QUESTIONS AND ANSWERS. 
 
 Question : As a me'mber of a 
 Friendly Society, I am anxious to 
 know if I shall benefit by my thrift in 
 the past? 
 
 Answer : Yes, certainly. Every 
 Society that becomes " approved " will 
 receive a new reserve for all its present 
 members who come under the State 
 scheme. This will set free reserves 
 which Friendly Societies have accumu- 
 lated in the past, and which are esti- 
 mated to amount to at least 
 ^10,000,000 for the country as a 
 whole. 
 
 Q. : In what way will these sums be 
 used? Will present members get the 
 advantage ? 
 
 A. : Undoubtedly. Each Society will 
 make its own arrangements for dis- 
 posing of the amount set free. It may 
 do so either by securing for them extra 
 benefits outside the State scheme, or 
 by reducing their contributions to the 
 Society, or it may apply the money 
 towards paying part of their contri- 
 butions to the State scheme. 
 
 Q. : Then I shall still continue to be 
 insured in my Society apart from the 
 State scheme? 
 
 A. : Certainly, if you wish it. That 
 is for you to decide. 
 
262 
 
 THE PEOPLE'S INSURANCE 
 
 Q. : But shaU I be compelled to pay 
 the contribution of 4d. to the State 
 scheme in addition to my ordinary 
 contribution ? 
 
 A. : You will be obliged to pay 4^. 
 per week (if you are an employed per- 
 son) to the State scheme, but how 
 much more you pay will depend upon 
 what extra benefits you desire and 
 upon what you and your fellow 
 members decide. If you have been 
 paying 6d. a week for insurance, you 
 will probably wish to go on doing so, 
 and in that case 4^. will go to the State 
 scheme (together with contributions 
 from your employer and from Parlia- 
 ment) and the remaining 2d. will go 
 to the ordinary or voluntary side of 
 your Society. 
 
 Q. : But my Society won't give me 
 much for 2d. ? 
 
 A. : Don't forget the reserves your 
 Society has, which will be set free by 
 the Act. These will enable your 
 Society to reduce your contributions to 
 its own voluntary insurance account, 
 so that if your Society is a sound one 
 financially, you will get for this re- 
 duced contribution of 2d. much greater 
 benefits than the 2d. by itself could 
 provide. 
 
 Q. : I see ; and then in addition I 
 have all the benefits under the Act? 
 
 A. : Yes, that is so; you will receive 
 the ordinary benefits under the Act 
 (together with such further "addi- 
 tional benefits " as your Society may 
 later be able to give, if it finds on an 
 actuarial valuation that the working of 
 the State scheme results in a surplus). 
 
 Q. : So I shall really be insured 
 twice over. Is that allowed? 
 
 A. : Certainly ; you may insure as 
 much as you like, but you may only 
 have one insurance under the State 
 scheme. 
 
 Q. : What will be the position of the 
 small societies a village Friendly 
 
 Society, for instance under the Act? 
 Do they lose their independence, or 
 must they be wound up and their 
 members drafted into other Societies? 
 
 A . : Most certainly not ; they can be- 
 come Approved Societies, and can then 
 administer the Act for their members. 
 
 Q. : But I thought that any Society 
 with less than 5,000 members could not 
 be recognised, but had to be merged 
 in a larger Society? 
 
 A. : No, that is quite wrong. What 
 you are thinking of is probably the 
 fact that for the purpose of the 
 periodical valuation, and for this pur- 
 pose only, all Societies with less than 
 5,000 members must either form volun- 
 tary associations with each other in any 
 part of the country (England, Scot- 
 land, Ireland or Wales, as the case 
 may be), or will be grouped with other 
 similar Societies in the district. But 
 this is only for the purpose of dealing 
 with surpluses or deficiencies arising 
 on actuarial valuation, and the central 
 committee of such an association is 
 given no other power of control over 
 the Society. 
 
 Q. : I am not quite clear as to how 
 contributions are paid* by the insured 
 person ; will you explain ? 
 
 A. : The method will probably be 
 that each insured person will be given 
 a card by his Society, who will obtain 
 these from the Insurance Com- 
 missioners. The man will hand his 
 card to his employer, and when he is 
 paid his wages the employer will have 
 to put on special stamps equal to the 
 total contribution (jd. a week) of 
 employer and employed. The employer 
 will deduct the workman's contribution 
 from his wages. There will be noth- 
 ing on the card to show the employer 
 to what Society the man belongs. 
 
 Q. : But how will the Society get 
 the money? 
 
THE PEOPLE'S INSURANCE 
 
 263 
 
 A. : At certain fixed intervals the 
 man will take his card, bearing a 
 number of stamps on it, to his Society, 
 and will receive a new card in ex- 
 change for the old. The stamped 
 cards will from time to time be for- 
 warded to the Insurance Com- 
 missioners, who will credit to the 
 Society the amount due. 
 
 Q. : And where does the State con- 
 tribution come in ? 
 
 A. : As the Society pays out bene- 
 fits, it will claim periodically the two- 
 ninths payable by the State together 
 with the State's two-ninths of the cost 
 of administration, and will be credited 
 with this amount by the Insurance 
 Commissioners. 
 
 Q. : You referred previously to the 
 reserveswhich the Societies are receiv- 
 ing in respect of their members. 
 Would you mind explaining what this 
 means? 
 
 A. : Everyone is, within the first 
 year, admitted to insurance at a uni- 
 form rate regardless of age, but it is 
 obviously more costly to insure a man 
 of 40 than one of 20. To make good 
 this extra cost, a figure is calculated 
 for each age, showing the value of the 
 " reserve " which each contributor 
 would have built up by his past pay- 
 ments if he had been insured from the 
 age of 1 6. This reserve value is pro- 
 vided for each insured person joining 
 a Society under the Act. 
 
 Q. : How "provided"? Is it paid 
 over in cash? 
 
 A. : No, it is credited to each 
 Society; it is, in fact, a debt by the 
 National Insurance Fund to the 
 Society, and earns interest at 3 per 
 cent. 
 
 Q. : Another point I want to know 
 is, how far may the Societies make 
 their own rules ? 
 
 A. : They may make their own rules 
 
 entirely, so long as the provisions of 
 the Act are observed, and subject to 
 the general approval of the Insurance 
 Commissioners. It is specially laid 
 down in the Act that no Society can 
 become an Approved Society which 
 is not under the complete control of its 
 members, so any special conditions 
 governing insured persons in Approved 
 Societies will be of their own making. 
 
 Q. : Then there will be a certain 
 amount of " local option " in the work- 
 ing of the Act? 
 
 A. : Exactly. A Society may, for 
 instance, if it so decides, excuse a 
 member in arrear such part as would 
 have been paid by his employer had he 
 been at work. They can lay down 
 rules on various matters, and in many 
 ways they have considerable discre- 
 tionary power. 
 
 Q. : Women may, of course, join 
 Approved Societies ? 
 
 A. : Certainly, and, if they wish it, 
 they can form Societies of their 
 own. 
 
 Q. : Will they have separate funds 
 when in a mixed Society? 
 
 4. : Separate accounts will have to 
 be kept, but not separate funds, unless 
 the Society itself so decides. A 
 Society with branches separately regis- 
 tered can easily arrange, if it likes, 
 that one of these branches can be for 
 women only ; a Society that has no 
 branches separately registered may 
 still treat its women members, as re- 
 gards all funds and accounts, as if they 
 formed a separate branch. 
 
 Q. : Is the amount of the State sub- 
 sidy the same for a woman as for a 
 man? 
 
 A. : Yes. It is equivalent to 2d. a 
 week in both cases, but as the total 
 benefits payable to women are on a 
 rather lower scale it represents a 
 higher proportion of the whole cost in 
 
264 
 
 THE PEOPLE'S INSURANCE 
 
 the case of women a quarter instead 
 of two-ninths. 
 
 Q. : May I take it that, generally 
 speaking-, all the preceding answers 
 apply to women who are members of 
 Friendly Societies? 
 
 A.: Yes; of course, you will re- 
 member that in an ordinary case the 
 woman pays 3^. a week under the 
 State- scheme, and not 4^., though the 
 employer pays the same in both cases. 
 Where wages are below a certain 
 figure specially reduced contributions 
 are payable. 
 
 Q. : Yes, but taking the Friendly 
 Society side of the matter, is there any 
 substantial difference in the position of 
 women as compared with men with 
 regard to rights in existing funds? 
 
 A. : There is no distinction made in 
 the Act at all on this point between 
 men and women who are members of 
 Friendly Societies. 
 
 FRIENDLY SOCIETY CONTRIBU- 
 TIONS BEFORE AND AFTER 
 THE ACT. 
 
 WILL PRESENT FRIENDLY SOCIETY MEM- 
 BERS HAVE TO PAY 40. A WEEK 
 UNDER THE STATE SCHEME IN 
 ADDITION TO WHAT THEY ARE PAYING 
 AT PRESENT.? 
 
 Members of Friendly Societies who 
 will be insured under the Act are as a 
 rule already receiving some of the 
 benefits that will be obtained under the 
 Act, for instance, sick pay and medical 
 benefit. 
 
 In future, members of Friendly 
 Soieties will be able to receive these 
 benefits out of the funds contributed 
 under the State scheme, and there 
 will therefore be no need for them to 
 
 contribute to the ordinary or voluntary 
 side of their Societies for these bene- 
 fits, in addition to the contributions 
 they will make under the State scheme 
 through the 4^. deducted weekly by 
 their employers from their wages. This 
 4^. finds its way (together with the 
 employer's 3^. and the State grant) to 
 the Society by means of the stamped 
 cards, and thus enables the Society to 
 provide all the benefits under the Act. 
 
 Thus, if a member is content with 
 the benefits provided up to the age of 
 70 under the Act (supplemented by any 
 benefits which the Society may be pre- 
 pared to give him out of the reserves 
 set free by the Act without continu- 
 ing his contribution on the voluntary 
 side) the Society may be in a position 
 to arrange that he need not pay any- 
 thing beyond the qd. deducted from 
 his wages. But if he would like to 
 continue to provide for funeral bene- 
 fits, or some extra sick benefits or other 
 forms of benefit outside the Act (be- 
 yond what the Society may be able 
 to give him out of its reserves without 
 any further contribution), the Society 
 may then arrange for him to pay (in 
 addition to the 4^. deducted from his 
 wages) to the ordinary or voluntary 
 side of his Society whatever weekly 
 contribution is needed to provide such 
 benefits. The amount of that weekly 
 payment will depend, of course, upon 
 his age, upon the nature and amount of 
 the benefits he desires to get (apart 
 from the benefits of the Act) and upon 
 the financial state of the Society. 
 
 These alterations of contributions 
 and benefits will have to be made by a 
 scheme formulated for submission to 
 the Registrar of Friendly Societies 
 under Section 72 of the Act and will 
 vary according to the circumstances 
 of the particular Society. It will be 
 necessary that such a scheme should 
 
THE PEOPLE'S INSURANCE 
 
 265 
 
 apply to all members of the Society who 
 become insured under the Act, but it 
 may, if the Society so wishes, give 
 various options to individual members, 
 but such options if given must be open 
 to all the members who become insured 
 under the Act without discrimination. 
 A circular has been issued by the Chief 
 Registrar explaining how the Society 
 should proceed. 
 
 The arrangements so made will be 
 quite apart from the payments deducted 
 under the Act from the member's 
 wages, and apart from the benefits he 
 obtains under the Act, and will be 
 carried out in such a way as to secure 
 to the members of the Society the full 
 value of the existing funds which the 
 Society has accumulated through the 
 past payments of him and his fellow 
 members. 
 
 A typical example taken from a sol- 
 vent Society may make this clear : 
 
 Suppose a man who joined at 18 is 
 now paying 2s. a month (6d. a week), 
 is. a month goes to the sick fund and 
 gives him a right to los. a week sick- 
 ness benefit for the first 26 weeks of 
 sickness and 55. a week afterwards; 
 j\d. a month goes for the club doctor ; 
 qd. a month gives him a right to funeral 
 benefits (namely, 12 at his death, and 
 6 at the death of his wife) ; and qd. 
 a month is needed for management. 
 
 This man, we will suppose, wishes 
 to go on paying 25. a month, and he 
 wants sick pay, doctor, and funeral 
 benefits as before. But he does not 
 want to have to pay another 4^. a 
 week (is. 4^. a month) under the State 
 scheme in addition to the 2s. which he 
 has been paying in the past. 
 
 After the Act comes into force, this 
 man will cease to pay 2s. a month 
 direct to his Society, but he will con- 
 tribute the same amount in another 
 way, as follows : 
 
 He will be given a card by his 
 Society with spaces marked for stamps. 
 The employer will deduct $d. a week 
 from the man's wages (is. qd. a 
 month) and will pay $d. a week him- 
 self, putting on to the card every week 
 a special stamp worth jd. The man 
 will take this card to his Society from 
 time to time, and thus the contributions 
 under the State scheme will find their 
 way to his Society. 
 
 Under the State scheme he will get 
 medical benefit (or, in special circum- 
 stances, money payments instead) and 
 the same sick pay up to the age of 70 
 as before. In addition he will have a 
 right to maternity benefit when his 
 wife is confined, and to sanatorium 
 benefit. 
 
 These benefits (and also the cost of 
 management) he will get for his con- 
 tribution of 4^. a week or is. qd. a 
 month under the Act, and therefore, 
 whilst still keeping his expenditure 
 within 25. a month as before, he will 
 be able to pay direct to his Society 8d. 
 a month, or 2d. a week. Of this 8dL , 
 4^. a month would go to the funeral 
 fund, leaving qd. a month to spare. 
 In the case of a sound Society, this 
 4^., and existing reserves in respect 
 of benefits not provided by the Act, 
 will enable his Society to continue his 
 sick pay after 70, and the reserves set 
 free in respect of sickness benefits up 
 to age 70 will enable his Society to 
 give him substantial benefits in the 
 way of extra sick pay or other allow- 
 ances. 
 
 If, however, he prefers to pay 2s. 
 a month or 6d. a week as before, but 
 in addition to the 4^. deducted weekly 
 from his wages, in this case the 
 Society can arrange to give him all that 
 it gave him before, but he will also 
 have, in addition, all the various bene- 
 fits which he will receive under the Act 
 
266 
 
 THE PEOPLE'S INSURANCE 
 
 in virtue of his 4^., the employer's 
 3*J., and the State grant. 
 
 Although the requirements of Sec- 
 tion 72 apply only to registered 
 Friendly Societies, registered Societies 
 of other types and unregistered Socie- 
 ties of all kinds giving sick benefits 
 may feel it desirable to adopt a similar 
 scheme in order to prevent hardship 
 to any individual member who may be 
 unable to continue his present con- 
 tributions plus the contribution re- 
 quired under the Insurance Act. 
 
 QUESTIONS AND AN5WER5 FOR 
 SOCIETY OFFICIALS. 
 
 Question : Will you explain to me 
 some points in the Act of importance to 
 Societies likely to become Approved? 
 
 Answer : You want information from 
 the point of view of the officials of 
 such Societies? 
 
 Q. : Yes ; it seems to me that those 
 of us who are officers or secretaries of 
 Societies will have to be perfectly clear 
 as to the working of the Act. For 
 example, what are the conditions of 
 approval? A Society has to be 5,000 
 strong, does it not? 
 
 A. : No, there is no such condition. 
 Small Societies may become approved 
 as well as large. 
 
 Q. : Then what are the conditions of 
 approval ? 
 
 A. : The Society must not be carried 
 on for profit, and it must be under the 
 complete control of its members. 
 
 Q. : But if a Society carried on for 
 profit cannot be approved, how can an 
 Industrial Assurance Company or a 
 Society carried on for profit take a part 
 in working the Act? 
 
 A. : Such a body may form a 
 separate Section for administering the 
 
 Act. If the funds of this Section an 
 kept entirely separate, and its rules an 
 satisfactory, this separate Section 
 apply for approval and may become ai 
 Approved Society. 
 
 Q. : When is application to be made 
 for approval? 
 
 A. : At any time now. Although 
 the rules of the Society may forbid any 
 alteration being made in its constitu- 
 tion (such as would be involved in be- 
 coming an Approved Society), yet by 
 a special provision of the Act no such 
 rules need prevent a Society from 
 taking action at once in order to 
 become approved. 
 
 Q. : There is no doubt on that 
 point ? 
 
 A. : None whatever. It is distinctly 
 laid down in Section 24 of the Act. 
 Were it not for such a provision most 
 Societies or other bodies would, under 
 their existing constitutions, have to 
 wait a long time before taking steps to 
 become approved. 
 
 Q. : How are existing funds 
 affected by the Act? 
 
 A. : There are two cases: (a) that 
 of Societies which are either registered 
 Friendly Societies or Employers' 
 Funds, and (b) that of Societies which 
 are neither. In the case of a regis- 
 tered Friendly Society (dealt with in 
 Section 72), or an Employers' Fund 
 (dealt with in Section 73), the Society 
 must submit to the Registrar of 
 Friendly Societies a scheme for alter- 
 ing the contributions and benefits of 
 persons who will be insured under the 
 Act, but not in such a way as to render 
 the Society insolvent. If it is shown 
 on valuation that any part of the 
 Society's funds is set free (by reason of 
 the Act), then this may be used to 
 enable those of its members, whether 
 insured under the Act or not, who were 
 members on December 16, 1911, to 
 
THE PEOPLE'S INSURANCE 
 
 267 
 
 get larger benefits from, or to pay 
 smaller contributions to, the ordinary 
 or voluntary side of the Society, or, in 
 the case of insured persons, to pay 
 some part of their contributions pay- 
 able under the State scheme. 
 
 Q. : That only applies to a regis- 
 tered Friendly Society? 
 
 A. : To every registered Friendly 
 Society and Employers' Fund which 
 has among its members persons 
 insured under the Act, whether it be- 
 comes an Approved Society or not. 
 
 Q. : What happens to the existing 
 funds of a Trade Union or an un- 
 registered Society? 
 
 A. : Nothing is said about them in 
 the Act. A Trade Union, for example, 
 is not limited by the Insurance Act in 
 deciding how it will deal with any dis- 
 posable surplus. 
 
 Q. : Will any funds in hand be 
 merged with the funds under the State 
 scheme ? 
 
 A. : On no account. All money paid 
 on account of, National Insurance is to 
 be kept separate and will have no con- 
 nection with any funds a Society may 
 hold independently of the Act. 
 
 Q. : Upon what will the success of 
 an Approved Society depend? 
 
 A. : The success or comparative 
 failure of an Approved Society will 
 depend upon its own good or bad 
 management. 
 
 Q. : You mean on the Society's 
 rules? 
 
 A. : It will depend upon how the 
 Society administers sickness and dis- 
 ablement benefit and upon the effi- 
 ciency of its management generally ; 
 most Societies already have their own 
 rules on the subject. 
 
 Q. : Can a Society make what rules 
 it likes? 
 
 A. : Yes, subject to the limitations 
 imposed by the Act and the require- 
 
 ments of the Insurance Commissioners. 
 Q. : What kind of limitations do you 
 mean? 
 
 A. : For example, that no one, for 
 breach of rules, shall be fined more 
 than 105., or be suspended from any 
 benefit for more than a year ; that there 
 shall be no penalty for refusal to submit 
 to vaccination. 
 
 <2- : What power is there to vary 
 the benefits under the Act ? 
 
 A. : Section 13 allows an Approved 
 Society to prepare a scheme to be 
 approved by the Commissioners for 
 substituting some of the "Additional 
 Benefits " given in the Fourth Schedule 
 of the Act for a part or the whole of 
 sickness or disablement benefits. So, 
 for example, to quote a purely imagin- 
 ary case, a Society might decide not 
 to pay i os. a week sickness benefit 
 but only 55. a week, and to give 
 Additional Benefits to the value of the 
 other 55. a week. 
 
 Q. : What are those Additional 
 Benefits? 
 
 A. : The list in Schedule 4 includes 
 the following, among others : 
 
 Medical treatment for dependants 
 of insured persons, dental treatment 
 for insured persons, payment during 
 partial disablement or convalescence, 
 increased maternity benefit, pro- 
 vision of convalescent homes, pay- 
 ment of pensions to members. 
 Q. : Must a Society include all its 
 members in the scheme? 
 
 A. : The scheme may refer to all the 
 members, or to any specified class of 
 members, or to any of the members 
 who choose to come under it. The 
 Commissioners must be satisfied that 
 in view of the special circumstances of 
 the persons coming under it there is 
 good reason for having- the scheme. 
 
 Q. : Another question I want to ask 
 is how we are to deal with a surplus 
 
268 
 
 THE PEOPLE'S INSURANCE 
 
 or deficit which may be disclosed on 
 valuation by the valuer or actuary 
 appointed by the Treasury. How often 
 is the valuation to be conducted? 
 
 A. : Every three years, or at any 
 other interval that the Commissioners 
 may determine. 
 
 Q. : And if such a valuation of the 
 assets and liabilities shows that a 
 Society has a surplus? 
 
 A. : You will find this dealt with in 
 Section 37. The procedure will de- 
 pend upon whether the Society is one 
 with branches or not. If it is a Society 
 without branches, having 5,000 mem- 
 bers or upwards, it may dispose of its 
 surplus by giving one or more of the 
 Additional Benefits already referred to. 
 
 Q. : In the case of a Society with 
 branches ? 
 
 A. : The funds of every branch are 
 valued separately, and each branch 
 having a surplus will (in the case of 
 Societies having 5,000 members and 
 upwards) transfer one-third of it to 
 the central fund of the Society. The 
 remaining two-thirds may be dis- 
 tributed by the branch in Additional 
 Benefits to its members. 
 
 Q. : What becomes of the surplus 
 thus placed in the hands of the cen- 
 tral financial authority of the Society? 
 
 A. : It is used, first of all, to make 
 good, up to three-fourths (or the whole, 
 if the Society so decides), the deficit 
 which any of its branches may show. 
 Any surplus still remaining is returned 
 to the branches in the proportion of 
 the amounts they contributed. 
 
 Q. : And how are deficits ,dealt with? 
 
 A. : A Society without branches, 
 having 5,000 members or upwards, 
 must make good .its own deficiency, 
 either by a special levy on its mem- 
 bers, or by reducing the benefits or in 
 some other approved way. If it is a 
 Society with branches, then a separate 
 
 valuation is made of each branch's 
 assets and liabilities. Section 38 lays 
 down that a branch may have three- 
 quarters of any deficit made good 
 from the central surplus. If the cen- 
 tral committee think fit, the whole 
 deficit may be made good in this way, 
 but if not, the branch must wipe off 
 the remainder of its deficit either by a 
 special levy or by reducing benefits, or 
 in some other approved way. 
 
 Q. : May a Society refuse to make 
 good the deficit of any of its branches ? 
 
 A. : Yes, where the deficit is due to 
 maladministration on the part of the 
 branch. The Society must, however, 
 obtain the consent of the Insurance 
 Commissioners to such refusal. 
 
 Q. : Do I understand that the pro- 
 visions relating to valuations, sur- 
 pluses, and deficiencies, contemplate 
 action through the central body only? 
 
 A. : No, the branch will prepare a 
 scheme under Sections 37 & 38 of the 
 Act, subject to the approval of the 
 Society. Moreover, under Section 40 
 of the Act, where branches are grouped 
 say through a " District " (to use a 
 familiar Society word) these things 
 can be done entirely through the 
 groups, or partly through the groups 
 and partly through the centre. These 
 matters, however, are subject to the 
 rules governing the whole of the 
 Society, which must decide for itself 
 which method is the best. 
 
 Q. : Will you explain the position 
 of Approved Societies with less than 
 5,OOO members ? 
 
 A. : You will find this in Section 39, 
 which deals with pooling arrange- 
 ments for small Societies. Such 
 Societies will, before the triennial or 
 other valuation, be grouped with other 
 Societies in the same position as them- 
 selves for the purpose of that valua- 
 tion. Each Insurance Committee will 
 
THE PEOPLE'S INSURANCE 
 
 269 
 
 in this way group all Societies in its 
 area whose membership is, at the time 
 of the grouping, below 5,000. But, 
 instead of waiting to be compulsorily 
 grouped with Societies in the locality, 
 it is open to any English, Scottish, 
 Irish, or Welsh Society to form or to 
 join a voluntary Association of small 
 Societies in England, Scotland, Ire- 
 land, or Wales, as the case may be. 
 
 Q. : How are these groups or asso- 
 ciations treated? 
 
 A. : For the purpose of valuation 
 and of disposal of surpluses or deficits 
 the group or the association is looked 
 upon as a Society with branches; in 
 the case of a group, the local Insurance 
 Committee will act as its central finan- 
 cial authority ; in the case of a volun- 
 tary association the association will 
 appoint a central financial committee 
 of its own. 
 
 Q. : And the same arrangements for 
 surpluses and deficits apply as for a 
 Society with branches? 
 
 A. : Precisely the same. 
 
 Q. : So, for example, the central 
 financial authority of an association (or 
 the Insurance Committee as the cen- 
 tral authority of a group) may refuse 
 to make good the deficit of one of the 
 component Societies on the ground 
 that the deficit is due to maladminis- 
 tration? 
 
 A. : Yes, that is the case, but 
 no other power of control under the 
 Act can be claimed by the central 
 authority over the component 
 Societies ; this is laid down in Section 
 39 (8). 
 
 Q. : What if one of the associated or 
 grouped Societies is a Society with 
 branches ? 
 
 A. : Then for this particular purpose 
 each branch is considered as a separate 
 Society and as a separate member of 
 the association or group. 
 
 Q. : What provision is made for 
 Societies "which have both men and 
 women on their books as insured 
 persons ? 
 
 A. : There is no necessity to keep 
 separate funds for men and women, 
 but it will be necessary to keep separate 
 accounts, if only from the fact that the 
 State subsidy to the women's benefits 
 is different from that to the men's. 
 But under Section 41 an Approved 
 Society without branches may if it 
 wishes treat the male members and the 
 female members as belonging to 
 separate branches, thus setting up a 
 separate fund for each sex. In the 
 case of a Society with branches, no 
 provision of that kind is necessary, as 
 without needing special powers they 
 can, if they wish, form separate 
 branches for men and for women, 
 though a branch may admit both sexes 
 provided that separate accounts are 
 kept. 
 
 Q. :May Approved Societies admit 
 aliens ? 
 
 A. : Some Societies which become 
 approved may have aliens upon their 
 books already, and such aliens who 
 were Society members at the date of 
 the introduction of the Act (May 4th, 
 1911), and who had resided in the 
 United Kingdom for at least five years, 
 will be treated as if they were British 
 subjects. All aliens becoming insured 
 before 17 years of age will likewise be 
 treated as if they were British subjects. 
 Apart from these exceptions (given in 
 Section 45, which deals with aliens) 
 aliens on becoming insured will receive 
 no State contribution to benefits, and 
 there will be no reserve credited to 
 Societies in respect of them. They 
 may join Approved Societies but 
 they will not be entitled to full 
 benefits at the flat or uniform rate 
 of contribution. 
 
270 
 
 THE PEOPLE'S INSURANCE 
 
 Q. : It will be left for the Societies 
 to determine what benefits they can 
 afford in these cases? 
 
 A. : Yes, that is so. 
 
 Q. : Turning now to the contribu- 
 tions, may I ask how they are to be 
 paid, and how will a Society obtain 
 the necessary cash for the payment 
 of benefits? 
 
 A. : Stamps will be on sale at the 
 various Post Offices in the United 
 King-dom; the insured person will be 
 given a card on which these stamps 
 to the appropriate amount will be fixed 
 and he will hand this card to his 
 Society. The Society will use the card 
 as a voucher to claim credit from the 
 Insurance Commissioners. 
 
 Q. : The Society will, so to speak, 
 " bank " with the Insurance Commis- 
 sioners? 
 
 A. : Yes. The Society's account 
 will be credited with the reserve values 
 of members over 17 bearing interest 
 at 3 per cent., and with the contribu- 
 tions of its members and of their em- 
 ployers, less the penny and five-ninths 
 on every 7^. in respect of sinking fund 
 for the initial reserves. It will be 
 debited with the issues made from time 
 to time of the amounts required for the 
 payments of benefits and for expenses 
 of administration. Two-ninths of the 
 amount of such issues will then be 
 credited to the Society, representing 
 the State grant. In this way you 
 arrive at the Society's balance. 
 
 Q. : Will Societies be allowed to 
 control the investment of their 
 balance ? 
 
 A. : So far as the balance available 
 for investment represents the mem- 
 bers' own contributions of 4^., the 
 Society will have the management of 
 it. So much of it as represents the 
 employers' contributions will be paid 
 to the National Debt Commissioners 
 
 for investment in Government securi- 
 ties. 
 
 Q. : In what securities may Societies 
 invest funds under the Act? 
 
 A. : In Trustee securities, the securi- 
 ties of local authorities, and any other 
 securities as may for the time being 
 be approved by the Insurance Com- 
 missioners. 
 
 g. : Do approved Societies have to 
 give security to the Commissioners ? 
 
 A. : They must give security for In- 
 surance Fund moneys in 'the hands of 
 the officials. If the Society adopts the 
 system of drawing upon its private 
 account for the payment of benefits and 
 afterwards claiming the amount from 
 the Commissioners and leaves its credit 
 balances in their hands for investment, 
 no security need be given. 
 
 THE POSITION OF SMALL SOCIE- 
 TIES UNDER THE ACT. 
 
 (i) APPROVAL OF SMALL SOCIETIES. 
 
 The National Insurance Act does not 
 specify any minimum membership, for 
 the purposes of approval; and any 
 Society, whether it is registered or 
 unregistered, may apply for approval. 
 The principal conditions for approval 
 are 
 
 (1) that it is not carried on for profit ; 
 
 (2) that it is under the absolute con- 
 
 trol of its members. 
 If a Society does not itself satisfy 
 these conditions, it can set up a 
 separate Section which will do so, and 
 approval will be granted to the separate 
 Section. 
 
 (2) EXISTING FUNDS OF SMALL 
 
 SOCIETIES. 
 
 The existing funds of the Societies 
 are left entirely to the Societies. The 
 State does not take away a single 
 
THE PEOPLE'S INSURANCE 
 
 271 
 
 penny of these funds. Though it may 
 be necessary for Societies to alter their 
 table of benefits and contributions (as 
 is explained later on), this does not 
 alter the fact that the existing funds 
 remain the property of the existing 
 members. 
 
 Societies which become approved 
 may continue to give benefits on their 
 voluntary side ; where this is done no 
 part of the contributions paid into the 
 voluntary side can be touched by the 
 Insurance Commissioners, and if the 
 Society becomes insolvent on the State 
 side the State cannot require the funds 
 belonging to the voluntary side to be 
 used to make it solvent. 
 
 The Insurance Commissioners have 
 in fact no powers with regard to the 
 voluntary side of the Societies. Their 
 powers only extend to the State 
 Scheme. 
 
 (3) THE STATE SCHEME. 
 
 The funds under the State Scheme 
 are provided from three sources : con- 
 tributions from the employer, contribu- 
 tions from the employed, and a State 
 grant. 
 
 The contributions are 7^. a week for 
 men, 6d. for women ; the employer pays 
 at least 3^. of this in each case. The 
 State contributes 2d. towards every 
 gd. expended on benefits and on the 
 administration of benefits. In the case 
 of women the State contributes 2d. 
 towards every 8d. 
 
 The benefits given under the Act are 
 as follows : 
 
 (i.) Medical benefit, that is, doctor 
 and medicine, or in special 
 circumstances, money payments 
 instead. 
 
 (2.) Sanatorium benefit, that is, 
 treatment in a sanatorium, or in 
 some other way in case of con- 
 sumption. 
 
 (3.) Sickness benefit, los. a week 
 for men and 75. 6d. a week for 
 women, for 26 weeks com- 
 mencing on the fourth day of 
 sickness. 
 
 (4.) Disablement benefit, 55. a week 
 afterwards if still incapable of 
 work. 
 
 (5.) Maternity benefit, 30.9. 
 (These benefits are subject to certain 
 waiting periods and other conditions.) 
 The rate of sickness benefit is less 
 for persons under 21, and in certain 
 cases for persons over 50. 
 
 (4) How THE STATE SCHEME HELPS 
 EXISTING FUNDS. 
 
 If a Society is at present giving any 
 of the above benefits for instance, 
 sick pay or medical benefit it will be 
 able to give these benefits in the future 
 to persons insured under the Act out 
 of the funds contributed under the 
 State scheme and there will be no 
 need to use its own private funds for 
 the purpose. 
 
 Two results follow from this : 
 (i.) The reserves which have been 
 accumulated by the Society out 
 of the members' contributions 
 for these benefits in the past will 
 no longer be needed for these 
 benefits; these reserves will be 
 set free for securing the pay- 
 ment of benefits outside those 
 given under the Act. 
 (2.) Members will pay smaller con- 
 tributions to the ordinary or 
 voluntary side of their Society, 
 now that they are paying under 
 the State scheme for the benefits 
 given by the Act; and they will 
 desire to get as much as they 
 can for these reduced contribu- 
 tions. 
 These two results have both to be 
 
272 
 
 THE PEOPLE'S INSURANCE 
 
 considered together, because the ques- 
 tion as to what benefits can be given 
 for the reduced contributions, outside 
 the State scheme, will depend upon the 
 amount of the reserves which can be 
 used for the purpose. 
 
 The amount of the reserves which 
 can be used does not merely depend 
 upon the amount of money in the bank, 
 but upon the number and the ages of 
 all the members of the Society (whether 
 they become insured under the Act or 
 not), the benefits to which they are 
 entitled by the contributions they have 
 hitherto been paying, and the contribu- 
 tions which they are going to pay from 
 now onwards apart from the qd. de- 
 ducted from their wages for the benefits 
 under the Act. 
 
 Now a Society is under contract to 
 give to all its members the benefits for 
 which they pay. Reserves are neces- 
 sary to enable the Society to keep its 
 contracts with its members, both old 
 and young; so that any alteration of 
 the reserves concerns all the members. 
 Every Society therefore has three 
 things to do : 
 
 (i.) The Society must find out the 
 value of that portion of its re- 
 serves which is no longer needed 
 for sick pay, &c., in the case 
 of the members who will be 
 insured under the Act. To find 
 this out it will be necessary to 
 obtain expert advice. 
 (2.) With the help of such advice 
 the Society must draw up fresh 
 tables showing the various bene- 
 fits which, with the help of the 
 reserves set free, it can afford 
 to give for the reduced contribu- 
 tions. 
 
 (3.) The Society can arrange for 
 members who will be insured 
 under the Act to substitute the 
 whole or part of their contribu- 
 
 tions under the State scheme for 
 a corresponding part of their 
 present contributions. 
 A typical example of how this works 
 in the case of a member insured under 
 the Act may make this clear. Let us 
 imagine a person who is now paying 
 sixpence a week to his Society, and is 
 able to claim various benefits, for 
 example, funeral benefits and sick pay 
 on certain conditions. Now under the 
 new state 1 of things he may, if he likes, 
 decide that he can continue to afford 
 sixpence a week, but no more. In that 
 case, since all the benefits of the Act 
 (sick pay, medical attendance, &c.) are 
 obtainable simply from the amount of 
 the fourpence deducted weekly from 
 his wages, plus his employer's weekly 
 threepence plus the State grant (and 
 these sums find their way to his 
 Society's funds), it follows that, with- 
 out exceeding the total of sixpence in 
 accordance with his decision, he will 
 still be able to pay twopence to his 
 Society. This twopence will suffice to 
 enable his Society, with the help of the 
 reserves set free (if it is a sound one) 
 to give him substantial benefits outside 
 the Act, in the way of funeral benefits, 
 extra sick pay or other benefits whilst 
 he will also get the full benefits under 
 the Act. 
 
 Every registered Society which has 
 amongst its members persons who will 
 be insured under the Act is obliged to 
 prepare a scheme for dealing with its 
 reserves, whether it seeks approval 
 under the Act or not. This scheme 
 must be submitted to the Registrar of 
 Friendly Societies, not to the Insur- 
 ance Commissioners. 
 
 Unregistered Societies are not 
 obliged to prepare a scheme, but from 
 what has been said it is clear that they 
 should take steps to see where they 
 stand in view of the Act. 
 
THE PEOPLE'S INSURANCE 
 
 273 
 
 (5) ASSOCIATIONS OF SMALL SOCIETIES. 
 A small Society which wishes to 
 retain its independence can itself be- 
 come an Approved Society as shown 
 above. 
 
 But in the case of Societies with less 
 than 5,000 insured members, some pro- 
 vision is necessary to secure a proper 
 average of risks. Tliey are offered a 
 choice of two alternatives : 
 
 (i.) they may themselves associate 
 with other Societies in the same 
 part of the United Kingdom 
 (England, Scotland, Ireland, or 
 Wales), or 
 
 (2.) If they do not associate in this 
 way, they will find themselves 
 grouped with other small un- 
 associated Societies in the same 
 county or county borough.' 
 In either case the small Societies 
 retain their independence, and are only 
 associated or grouped for the purpose 
 of dealing with surpluses and deficien- 
 cies shown at the first and every sub- 
 sequent valuation. 
 
 The Associated Societies elect for 
 themselves a Central Financial Com- 
 mittee. 
 
 The Grouped Societies are dealt with 
 by the Insurance Committee for the 
 county or county borough. 
 
 Every small Society which at the 
 periodical valuation shows a disposable 
 surplus must pay one-third of it to a 
 central pool. 
 
 From the pool so accumulated, the 
 Central Financial Committee or the 
 Insurance Committee (as the case may 
 be) must, so far as the funds in the 
 pool allow, make good three-fourths 
 (or if they think fit, the whole) of any 
 deficiency shown by a Society in the 
 same Association or Group. 
 
 The balance, if any, left over in the 
 pool will be returned proportionately 
 to the Societies with surpluses, 
 
 The Central Financial Committee 
 or the Insurance Committee have 
 the power, with the consent of the 
 Insurance Commissioners, of refusing 
 to make good any part of a deficiency 
 caused by maladministration. But 
 apart from this, neither Committee has 
 any powers of management or control 
 over the affairs of a small Society. 
 
 The Society can, for instance, pre- 
 sent a scheme to the Insurance Com- 
 missioners for dealing with the two- 
 thirds remaining surplus retained by it 
 and with any balance of the remaining 
 third which may come back from the 
 pool, and the consent of the Central 
 Financial Committee or of the Insur- 
 ance Committee is not required for 
 this purpose. 
 
 The funds for pooling purposes are 
 only the funds under the State 
 scheme. The funds on the volun- 
 tary side will not be brought into 
 the pool. 
 
 (6) AFFILIATION OR FEDERATION OF 
 SMALL SOCIETIES. 
 
 Any small Society which desires to 
 maintain its independence can become 
 approved itself, and, subject to the 
 pooling arrangements mentioned above, 
 has complete control of its own affairs. 
 
 But if small Societies desire any 
 closer form of association, they may 
 instead : 
 
 (a) Become branches or lodges of 
 
 some existing large Society in 
 accordance with its rules. 
 
 (b) Constitute themselves a new 
 
 "Society with branches," that 
 is to say, the small Societies in 
 one county, for instance, might 
 become a County Society. The 
 Society as a whole would be the 
 Approved Society, and the separ- 
 ate Societies would be branches 
 of it. If so desired, the con- 
 stitution of such a County 
 
274 
 
 THE PEOPLE'S INSURANCE 
 
 Society might leave a consider- 
 able amount of self-management 
 to the affiliated Societies. 
 
 The new Society would, of 
 course, be registered under the 
 Friendly Societies Acts, and the 
 affiliated Societies would be re- 
 gistered as branches of it, keep- 
 their own names if they wish. 
 Under this arrangement the new 
 Society will be a "Society with 
 branches " for the purpose of the Act, 
 that is to say, the branches will be 
 separately valued and will only pool 
 one-third of their surpluses as in the 
 case of an Association of Societies. 
 
 POSITION OF MEMBERS OF 
 TRADE UNIONS.* 
 
 QUESTIONS AND ANSWERS. 
 
 Question : I am a member of a Trade 
 Union, and I wish to know what my 
 position will be under the Health part 
 of the National Insurance Act? 
 
 Answer-. If your Trade Union be- 
 comes an Approved Society, you can 
 have your contributions under the 
 State scheme paid into your Trade 
 Union and you can obtain from it the 
 benefits conferred by the Act. 
 
 Q. : But has not my Trade Union to 
 set up a separate section ? 
 
 A. : There is no need for a separate 
 Section. The Union may please itself 
 about that. The Act only requires the 
 establishment of a separate Section 
 where the Society seeking to become an 
 Approved Society is at present carried 
 on for profit or is not controlled by its 
 members. In all other cases a Society 
 
 * This applies to Women's Trade Unions as 
 well as to Men's. Women contribute 3^. instead 
 of $d, , their full rate of sickness benefit is Js. 6d. 
 instead of IDS., the State pays one-quarter instead 
 of two-ninths of the cost of benefits and adminis- 
 tration. 
 
 can become approved even though it 
 carries on other business than the ad- 
 ministration of the benefits conferred 
 by the National Insurance Act, and 
 even though some of its members are 
 not insured under the Act. 
 
 Q. : Can a Trade Union use for all 
 Trade Union purposes the funds coming 
 under the Health part of the State 
 scheme ? 
 
 A. : No. The Trade Union must 
 keep the books and accounts of the 
 funds under the State scheme quite 
 separate from the books and accounts 
 of its other business; and not one 
 penny of the money coming in under 
 the State scheme can be used for any 
 other purpose except for the benefits 
 set out in the Act and the cost of 
 administration of those benefits. 
 
 Q. : Can my Trade Union compel me 
 to contribute to the ordinary side of 
 its business as well as to the State 
 scheme ? 
 
 A. : The Trade Union can make this 
 a condition of your becoming a member 
 of their Society. It is a matter for the 
 rules of your Union. 
 
 Q. : Will the $d. which I have to 
 contribute under the State scheme be in 
 addition to what I am already contribu- 
 ting to the Trade Union? 
 
 A. : It will clearly be in addition to 
 any contributions made for purely 
 Trade Union purposes, such as contri- 
 butions to an unemployment fund or a 
 strike fund. Some Unions, however, 
 are at present giving sick pay, and in 
 those cases part of the present contri- 
 bution goes to provide that sick pay. 
 This part need only be continued to 
 the extent to which sickness benefit is 
 desired beyond the amount provided 
 by the State scheme. 
 
 Q. : But how can the members avoid 
 paying twice over? 
 
 A. : Suppose a member now pays. 
 
THE PEOPLE'S INSURANCE 
 
 2 75 
 
 iod. a week, 6d. of which is wanted 
 for unemployment or strike purposes 
 and 4<J. for sickness purposes. Under 
 the altered conditions he will continue 
 to pay 6d. direct to his Union for the 
 unemployment or strike purposes as 
 before, but he would cease to pay qd. 
 for sickness purposes directly to his 
 Union, as 4^. will be deducted from his 
 wages and paid into the State scheme. 
 The 4^. so deducted will carry with it 
 the employer's 3^. and the State grant 
 of two-ninths of the cost of the benefits 
 and administration, and will thus be 
 sufficient to enable his Union to provide 
 the benefits conferred by the Act. 
 
 Q. : You mean he will substitute 
 his contribution under the Act for 
 his present contributions to the sick 
 fund? 
 
 A.^: Yes, and the benefits conferred 
 by the Act are worth much more than 
 4^. ; they include 
 
 (1) Medical benefit, that is, doctor 
 
 and medicine, or, in special 
 circumstances, money pay- 
 ments instead ; 
 
 (2) Sanatorium benefit, that is, 
 
 treatment in a sanatorium 
 or in some other way in 
 case of consumption ; 
 
 (3) Sickness benefit, 105. a week 
 
 for 26 weeks, commencing 
 on the fourth day of sick- 
 ness; 
 
 (4) Disablement benefit, 55. a week 
 
 afterwards if still incapable 
 of work ; 
 
 (5) Maternity benefit, 305. for the 
 
 wife on confinement. 
 
 (These benefits are subject to certain 
 waiting periods and other conditions.) 
 
 The rate of sickness benefit is less 
 for persons under 21 and in certain 
 cases for persons over 50. 
 
 He will therefore be in a better posi- 
 
 tion than he was before for the same 
 contribution. 
 
 Q. : But supposing he is paying 6d. 
 to the sick fund at present, what then? 
 
 A. : He will still get more than 6d. 
 worth of benefit from his 4<i. ; but as 
 he has been accustomed to paying 6d. 
 he may wish to continue paying 6d. for 
 sickness purposes ; in that case he will 
 then pay 2d. to his Union besides having 
 4^. deducted from his wages under 
 the State scheme, and the 2d. will en- 
 title him to further benefits from his 
 Union. 
 
 Q. : What becomes of all that he has 
 paid to the Union in the past for sick- 
 ness purposes? 
 
 A. : Whatever money is there can 
 be used for any purpose the Union may 
 lawfully determine upon. It is not 
 brought into the State scheme. 
 
 Q. : But surely it will continue to be 
 required as a reserve? 
 
 A. : No, the Union will be credited 
 under the State scheme with the full 
 reserves necessary to enable it to 
 pay the benefits under the Act to 
 all its members, old or young, who 
 become insured ; and therefore there 
 will be no need for the Union to 
 keep a reserve of its own for these 
 benefits. But you must remember that, 
 except, possibly, in the case of sana- 
 torium benefit, no one will be entitled to 
 any benefits under the Act until Janu- 
 ary, 1913, and that disablement benefit 
 is not payable till July, 1914, so the 
 Union's present reserves will be very 
 useful during that period. 
 
 Q. : Can a man be a member of a 
 Friendly Society as well as a member 
 of his Union, or will he have to give 
 up his Friendly Society? 
 
 A. : As far as the Act is concerned 
 a man can be a member of as many 
 Friendly Societies or Unions as he 
 pleases, but he can only make one of 
 them his Approved Society for the pur- 
 
2 7 6 
 
 THE PEOPLE'S INSURANCE 
 
 poses of the Health Scheme of State 
 Insurance. 
 
 Q. : I am not quite clear as to how 
 contributions are paid by the insured 
 person; will you explain? 
 
 A. : The method will probably be 
 that each insured person will be given 
 a card which his Union will obtain 
 from the Commissioners. The man will 
 hand his card to his employer and 
 when he is paid his wages the employer 
 will have to put on special stamps 
 equal to the total contribution (yd. a 
 week) of employer and employed. The 
 employer will deduct the workman's 
 contribution from his wages. There 
 will be nothing on the card to show to 
 what Society the man belongs. 
 
 Q. : But how will the Union get the 
 money ? 
 
 A. : At certain fixed intervals the 
 man will take his card, bearing a 
 number of stamps on it, to his 
 Union, and will receive a new card 
 in exchange for the old. The stamped 
 cards will from time to time be for- 
 warded to the Insurance Commission- 
 ers, who will credit to the Union the 
 amount due. 
 
 Q. : And where does the State con^ 
 tribution come in? 
 
 A. : As the Union pays out benefits 
 it will claim periodically the two-ninths 
 payable by the State together with the 
 State's two-ninths of the cost of ad- 
 ministration, and will be credited with 
 this amount by the Insurance Commis- 
 sioners. 
 
 Q. : You referred previously to the 
 reserves which Unions are receiving 
 in respect of their members. Would 
 you mind explaining what this means? 
 
 A. : Everyone .is, within the first 
 year, admitted to insurance at a uni- 
 form rate regardless of age, but it is 
 obviously more costly to insure a man 
 of 40 than one of 20. To make good 
 
 this extra cost, a figure is calculate 
 for each age showing the value of tl 
 " reserve " which each contributoi 
 would have built up by his past pay- 
 ments if he had become insured at the 
 age of 1 6. This reserve value is pro- 
 vided for each insured person joining 
 a Society under the Act. 
 
 Q. : How "provided"? Is it paid 
 over in cash? 
 
 A. : No, it is credited to each 
 Society; it is, in fact, a debt by the 
 National Insurance Fund to the 
 Society, and earns interest at 3 per 
 cent. 
 
 Q. : How much security will a 
 Trade Union have to give in order to 
 become approved 
 
 A. : The amount will be fixed by the 
 Insurance Commissioners. Security is 
 only required to provide against de- 
 falcation of officials. 
 
 Q. : But if Union funds are de- 
 posited as security, what would happen 
 if they were wanted for a strike? 
 
 A. : The security need not be in the 
 i< rm of a cash deposit ; a proper 
 fidelity bond will serve the same pur- 
 pose. Even if the Union chooses to 
 deposit cash or securities, these could 
 be withdrawn, and a bond substituted 
 should necessity arise. No security 
 need be given where the funds are 
 only required to reimburse to the 
 Union moneys previously expended 
 under the Act. 
 
 POSITION OF DIVIDING SOCIE- 
 TIES AND SLATE CLUBS. 
 
 QUESTIONS AND ANSWERS. 
 
 Question : Can you tell me how the 
 Insurance Act is going to affect my 
 Society ? 
 
 Answer : What kind of Society is it? 
 
THE PEOPLE'S INSURANCE 
 
 277 
 
 Q. : It is a very old-established 
 village Society, a slate club really, 
 and it has been run so successfully for 
 so many years that we shall be very 
 sorry if it has to be broken up. 
 
 A. : There is no need for that. 
 
 Q. : But we can't become an Ap- 
 proved Society, as we have only a few 
 hundred members. 
 
 A. : But you can become an Ap- 
 proved Society. There is no minimum 
 of membership laid down. The con- 
 ditions for approval are that the Society 
 should not be carried on for profit, and 
 that it should be under the absolute 
 control of its members. 
 
 Q. : Oh, we can easily satisfy those 
 conditions; it was the 5,000 minimum 
 that seemed to stand in our way. You 
 are quite sure there is no such require- 
 ment? 
 
 A. : Quite. 
 
 Q. : I am very relieved to hear it, as 
 that will allow us to go on. I wonder 
 how we got the idea into our heads ? 
 
 .A. : Probably because there are in 
 the Act certain sections particularly 
 affecting Societies with a membership 
 of less than 5,000. 
 
 Q. : What are they? . 
 
 A. : Every three years or so an 
 actuarial valuation of the assets and 
 liabilities of each Society will be carried 
 out, and for the purpose of this valua- 
 tion Societies below the 5,000 limit will 
 be grouped together. 
 
 Q. : What does this mean? 
 
 A. : Each Society such as your own 
 can make arrangements with other 
 Societies, similarly situated, to form 
 a voluntary association, with a cen- 
 tral financial committee, which will be 
 treated like a Society with branches for 
 the purpose of the valuation and of 
 dealing with the surpluses or deficit so 
 disclosed. 
 
 O. : Does this mean amalgamation? 
 
 A. : No, it is an arrangement for one 
 purpose only. One Society might 
 have particularly bad luck with its sick- 
 ness experience an epidemic of 
 influenza or some other disease, which 
 would seriously reduce its funds; 
 another Society might have a succes- 
 sion of very good years. Now, if you 
 take a number of Societies together, 
 the amount of sickness they experience 
 year in and year out is much the same, 
 so that by forming an association you 
 spread the risk. 
 
 Q. : Does that mean that the 
 Societies with a surplus have to hand 
 it over to the Societies with a deficit ? 
 
 A. : Not the whole of it. Societies 
 with a surplus pool one-third of their 
 surplus and keep the other two-thirds 
 for themselves. 
 
 Q. : What happens to Societies with 
 a deficit? 
 
 A. : A Society with a deficit not due 
 to bad management can have three- 
 fourths of its deficit made up out of 
 the pool, so far as there is money 
 enough in the pool. The other quarter 
 they must make up themselves, either 
 by reducing the benefits or increasing 
 the contributions. The committee may 
 allow Societies the whole of their de- 
 ficit, if it chooses. 
 
 Q. : But I don't see why well- 
 managed Societies should have to pay 
 for badly-managed Societies. 
 
 A . : They will not do so. If the de- 
 ficit is caused by bad management and 
 not by bad luck, the committee (with 
 the consent of the Insurance Commis- 
 sioners) can refuse to make it up. 
 
 Q. : But it will be very difficult for 
 my Society to make arrangements with 
 other Societies; what happens if it 
 doesn't join an association? 
 
 A. : Then you will be grouped, for 
 this purpose only, by the local Insur- 
 ance Committee with other Societies 
 
2 7 8 
 
 THE PEOPLE'S INSURANCE 
 
 in the locality who have not formed 
 an association, and the Insurance 
 Committee will act as the central com- 
 mittee. 
 
 Q. : But will not this plan of forming 
 groups or associations mean that we 
 lose our independence? 
 
 A. : No. It is expressly laid down 
 in the Act that this plan shall give no 
 power of control to the central com- 
 mittee of the association, or the 
 Insurance Committee in the case of 
 a group, over the Societies in the 
 group. 
 
 Q. : And if we find ourselves with a 
 surplus at the time of this valuation? 
 
 A. : Then you may distribute such 
 part as is available by paying addi- 
 tional benefits to your members. 
 
 Q. : What do you mean by additional 
 benefits? A cash bonus? 
 
 A. : No. There is a list of 14 "addi- 
 tional benefits " given in Part II. of 
 the 4th Schedule of the Act you must 
 make your choice from that. For 
 example, you may give dental treat- 
 ment, or you may extend medical bene- 
 fits to the dependants of your members, 
 or you may pay increased maternity 
 benefit, or you may help your members 
 to pay their subscriptions, or you may 
 give pensions, but not a cash distribu- 
 tion. 
 
 Q. : That puts an end to Dividing 
 Societies? 
 
 A. : Not at all. The Society may 
 do as it pleases with any funds of its 
 own, and may continue or alter its 
 usual practice as it thinks fit. It is 
 only the funds contributed under the 
 State scheme which must not be dis- 
 tributed in any other fashion except in 
 benefits. 
 
 Q. : Still, it will mean having one 
 section for dividing out purposes, and 
 another for the Act, so that our old- 
 established Society will be broken in 
 two. 
 
 A. : There is no need for that, you 
 have merely to keep the accounts 
 separate. What have your members 
 been paying in the past? 
 
 Q . : 6d. a week ; very few will be 
 able to pay 4^. as well, as required bv 
 the Act. 
 
 A. : They will not have to do so. 
 They need not pay more than the 4^. ; 
 but if they still like to pay 6d., $d. of 
 it will be paid out of their wages by 
 their employer, who has to add his 
 3d. , and the State will pay its share. 
 The benefits under the Act will thus be 
 provided, and the 2d. can be used for 
 anything else. 
 
 Q. : Are these contributions invari- 
 able? 
 
 A. : Under ordinary circumstances a 
 man pays 4^. and a woman 3^., but 
 where wages are below a certain figure 
 specially reduced contributions are 
 payable. 
 
 THE FINANCE OF THE ACT. 
 
 QUESTIONS AND ANSWERS. 
 
 i. How SOCIETIES OBTAIN THEIR FUNDS. 
 
 Question : In what way does the 
 money paid by the insured person and 
 his employer find its way into the 
 possession of the Approved Societies ? 
 
 Answer : The money is paid in the 
 first place into the local Post Offices in 
 exchange for insurance stamps to be 
 placed on the cards of the insured per- 
 sons. The stamped cards are lodged 
 with the Societies at the end of the 
 period of their currency, and the Society 
 then forwards them to the Insurance 
 Commissioners and is credited with the 
 amount of the stamps, less a deduction 
 which will be explained later. The 
 money received by the Post Offices from 
 the sale of stamps has in the mean- 
 
THE PEOPLE'S INSURANCE 
 
 279 
 
 time been accumulating in the 
 " National Health Insurance Fund " in 
 the same way that money is accumu- 
 lated in a bank. As the Societies are 
 called upon to pay out benefits they 
 draw upon this central fund, as from 
 a bank, for the amounts paid out and 
 for the expenses of administration. 
 
 The deduction referred to above is 
 a deduction of one penny and five- 
 ninths from every sevenpenny contri- 
 bution collected and credited to the 
 Societies, and it is made for the pur- 
 pose of providing the money for the 
 Reserve Values. It is not retained per- 
 manently by the Commissioners, but 
 has to be used by them in payment 
 of interest upon the Reserve Values 
 and in paying off the Reserve Values 
 themselves. In other words, it is re- 
 distributed among the Societies in ac- 
 cordance with the ages of the members, 
 and it is itself part of the money upon 
 which Societies can draw, as explained 
 in the previous paragraph. 
 
 Q. : How is the State contribution 
 paid? 
 
 A. : The State pays two-ninths of 
 whatever total benefits the Societies 
 pay out. If a Society pays sickness 
 or other benefits to the value of 90 
 it draws this amount from the National 
 Insurance Fund ; 70 of this is pro- 
 vided from the money standing to the 
 Society's credit in that Fund and the 
 other 20 is paid from the money pro- 
 vided by Parliament. 
 
 2. MEANING OF " RESERVE VALUE " AND 
 "TRANSFER VALUE/' 
 
 Q. : What do you mean by Reserve 
 Values? 
 
 A. : Reserve Value is the capital sum 
 which has to be provided in the case 
 of any individual on his first entry into 
 insurance, who is, under the provisions 
 of the Act, entitled to benefits in excess 
 
 of what his statutory contributions will 
 enable the Society to pay. This capital 
 sum has to be provided in order to safe- 
 guard the Society from the loss which 
 would otherwise arise from accepting 
 him as a member. 
 
 Q. : But what happens if a man 
 leaves one Society and joins another? 
 
 A. : The new Society is entitled to a 
 Transfer Value. 
 
 Transfer Value is the capital sum 
 which in the case of an individual al- 
 ready in insurance must be paid by one 
 Society to another when the individual 
 changes his Society. It represents the 
 amount by which the actuarial value of 
 his past contributions (together with 
 any Reserve Value originally credited 
 in respect of him) exceeds the actuarial 
 value of the benefits to which he has 
 been entitled up to date ; or conversely 
 (since taken over his career as a whole 
 the actuarial value of benefits is equal 
 to the actuarial value of contributions) 
 the amount by which the actuarial 
 value of his future contributions falls 
 short of the actuarial value of his 
 future benefits in other words, the net 
 liability transferred from the old to the 
 new Society by reason of the former 
 ceasing to be, and the latter becoming, 
 responsible for him. 
 
 Q. : Does the State pay two-ninths 
 of the Reserve Values, I mean two- 
 ninths of the cost of admitting persons 
 of all ages at the same rate as if they 
 were sixteen? 
 
 A. : Yes, the State bears two-ninths 
 of that cost, but not in the form of two- 
 ninths of the Reserve Values. The 
 full liability for two-ninths of the 
 benefits, at all ages, is borne directly 
 by the State; no Reserve Values are 
 therefore required in respect of this 
 two-ninths and none are created. 
 Reserve Values are only needed in 
 respect of seven-ninths of the expendi- 
 
280 
 
 THE PEOPLE'S INSURANCE 
 
 ture on benefits, that is to say, the part 
 which is provided by the contributions. 
 The total amount of Reserve Values 
 created under the Act will amount to 
 about ^66,000,000. 
 
 3. THE VALUE TO VARIOUS INDIVIDUALS 
 OF THE STATE GRANT. 
 
 Q. : The weekly contribution from 
 an employed person is 7^., but i 5 / 9 d. 
 is used towards wiping off the reserves 
 on account of the older members, leav- 
 ing" 5 4 /9^. for benefits. The State con- 
 tribution of two-ninths of the cost of 
 benefits is two-sevenths of the value of 
 the contributions (because the contribu- 
 tions represent seven-ninths of the 
 value of the benefit), consequently if 
 the State only pays two-sevenths of 
 $*/gd. it will not be paying 2d. ? 
 
 A. : The State pays two-sevenths of 
 the 5 4 / 9 d., but the i 5 / 9 d. which goes to 
 the reserves is also utilised for the 
 payment of benefits to the persons in 
 respect of whom the Reserve Values 
 are created, so that the State pays two- 
 sevenths of that as well, making 2d. 
 in all. To put it in the form of a 
 sum 
 
 2 /7 of 5 4 / 9 + 2 /7 of i/,=a. 
 
 In the case of the boy of 16, the 
 deduction of i 5 / g d. will be of precisely 
 the same value as the two-ninths bene- 
 fits he gets from the State. Therefore 
 until the reserve values have been 
 written off, that boy of 16 pays 7^. 
 for 7^. worth of benefits and gets 
 nothing from the State. He only 
 begins to benefit from the State grant 
 at the end of this period, which, when 
 the Bill was before Parliament, was 
 estimated to be about 18^ years. 
 
 In this way the State grant of two- 
 ninths of the benefits is in fact used 
 for the first i8 years to provide for 
 the older lives. It is during that 
 period of no advantage ft> the boy of 
 
 1 6, but its value to persons above that 
 age increases gradually with age. It 
 is, of course, greater at the higher 
 ages, and for this reason a somewhat 
 reduced insurance is given to persons 
 over 50 years of age and persons over 
 65 are specially treated. 
 
 The effect of the provisions of the 
 Act may be summed up as follows. 
 The insurance given will be worth on 
 the average qd. a week. In the case 
 of some individuals it is worth more. 
 In other cases it is worth less. In no 
 case is it worth less than 7^., the con- 
 tribution payable jointly by the em- 
 ployer and the workman. 
 
 Q. : You say "workman." Does 
 what you have said apply also to 
 women ? 
 
 A. : Yes, with the necessary modi- 
 fications of the figures. The ordinary 
 rate of contribution is 6d. ; the State 
 proportion of the benefits is a quarter 
 of the whole (that is to say, one-third 
 of the amount provided out of contribu- 
 tions); and the deduction for Reserve 
 Values is i%d. Putting it in the form 
 of a sum, as we did above, it will be 
 seen that the State grant is here, also, 
 on an average, equal to 2d. y thus 
 
 4 of 4J + J of i = 2. 
 
 4. INVESTMENT BY SOCIETIES. 
 (Section 56.) 
 
 Q. : How much of the funds con- 
 tributed under the Act may the Socie- 
 ties themselves invest? 
 
 A. : How the funds contributed 
 under the Act are placed to the credit 
 of Societies was explained in the 
 answer to a previous question. Such 
 part of these funds as is not required 
 for current expenses will be available 
 for investment. Four-sevenths of the 
 amount available for investment in 
 
THE PEOPLE'S INSURANCE 
 
 281 
 
 respect of the contributions of men 
 and one-half of the amount available 
 in respect of the contributions of 
 women will, if the Societies so desire, 
 be paid over to them for them to in- 
 vest themselves. The remaining three- 
 sevenths, or one-half as 'the case may 
 be, is retained for investment by the 
 Commissioners. (Section 56 (i) (a) 
 and (b).) 
 
 Q. : In what manner are the Socie- 
 ties allowed to invest these amounts? 
 
 A. : They can choose either of two 
 courses : 
 
 (1) They may themselves invest the 
 
 money through their trustees in 
 any of the investments allowed 
 by the Act for the purpose, 
 choosing the investment after 
 considering the rate of interest 
 and the safety of the money so 
 placed. 
 
 (2) They may, on the other hand, 
 leave the money in the hands of 
 the Commissioners, who will act 
 as their trustees for the purpose 
 of investing in such securities 
 as they may direct. 
 
 The only difference between 
 these two methods is that the 
 Commissioners instead of the 
 trustees are responsible to the 
 Society for the safe custody of 
 the funds. In either case 
 Societies will gain or lose by 
 the fluctuation in value of the 
 securities. 
 
 Societies may, however, if they 
 prefer it, leave the whole of the money 
 (the four-sevenths as well as the three- 
 sevenths) in the investment account. 
 Societies have then no further concern 
 with the value of the security in which 
 it is invested; they can draw upon 
 the money when required, and will re- 
 ceive the interest prescribed by the 
 
 Commissioners. Money so left is 
 simply in a deposit account for the 
 Society. 
 
 THE DUTIES OF EMPLOYERS 
 UNDER THE ACT. 
 
 PART I. GENERAL. 
 
 1. This memorandum deals with the 
 duties of employers under the Health 
 Insurance provisions of the National 
 Insurance Act, 1911, in respect of per- 
 sons employed by them. It does not 
 refer, therefore, to the payment of con- 
 tributions by such persons during un- 
 employment, nor to the payment by 
 them of arrears, nor to "voluntary con- 
 tributors," nor to the duties of em- 
 ployers under the Unemployment In- 
 surance provisions of the Act. 
 
 2. Under the Act the duty of paying 
 contributions is placed upon the em- 
 ployer in the first instance. He has, 
 save in certain exceptional cases, a 
 right to recover part of the contribu- 
 tion from the worker, but it cannot be 
 too clearly understood that the em- 
 ployer pays the full contribution in the 
 first instance, and that he cannot re- 
 cover the worker's share, by deduction 
 from wages or otherwise, unless he has 
 first paid it. 
 
 PART II. PERSONS IN RESPECT OF 
 WHOM CONTRIBUTIONS MUST BE PAID. 
 
 3. Every employer is required to pay 
 contributions under the Health Insur- 
 ance provisions of the Act, in respect 
 of all persons employed by him who are 
 between the ages of 16 and 70, unless 
 the employment falls within one of the 
 classes which are expressly excluded 
 
 K 
 
THE PEOPLE'S INSURANCE 
 
 from the compulsory provisions of the 
 Act. (See Part III.) 
 
 4. It does not matter for how short 
 a time the worker is employed, nor for 
 how many employers he works, nor 
 whether he is paid by time or by the 
 piece. Nationality makes no differ- 
 ence; contributions must be paid 
 whether the worker is an alien or a 
 British subject. 
 
 5. In cases where the worker receives 
 wages or other money payments, not 
 from his employer but from other 
 persons, the employer is still made re- 
 sponsible for the payment of the con- 
 tributions, e.g., the owner of a cab who 
 lets it out to a cabman is responsible 
 as employer for the payment of the 
 contributions in respect of the cabman, 
 and the employer of a waiter whose 
 earnings depend entirely on the " tips " 
 he receives is under the same liability. 
 
 6. There are two classes of employed 
 persons in respect of whom the em- 
 ployer must pay the proper employer's 
 contribution, but who, not being in- 
 sured persons, are not liable to pay any 
 contributions themselves. They are : 
 
 (i.) Persons who from the nature of 
 their employment would be compul- 
 sorily insured but who produce to their 
 employers a current " exemption certifi- 
 cate." 
 
 (2.) Persons becoming employed 
 after the age of 65 who have not pre- 
 viously been insured under the Act and 
 who were under 65 on July 15, 1912.* 
 
 The employer of a person who falls 
 within either of these classes is required 
 to pay the same contributions as would 
 have been payable as employer's con- 
 tributions if the worker had been an 
 insured person. (See Part VIII.) 
 
 * Contributions have to be paid both by em- 
 ployer and employed, in the case of persons 
 who are 65 or over on July 15, 1912, and are 
 then or subsequently become employed. 
 
 PART III. EMPLOYED PERSONS WHO 
 ARE EXCLUDED FROM COMPULSORY 
 
 INSURANCE. 
 
 7. No contributions are required to 
 be paid in the following cases, unless 
 the Insurance Commissioners issue a 
 Special Order bringing any of such per- 
 sons into compulsory insurance. 
 
 (i.) Persons employed as apprentices 
 without wages, or learners receiving no 
 wages. 
 
 (2.) Persons employed by the occu- 
 pier of an agricultural holding without 
 wages. 
 
 (3.) Children employed by their 
 parents without wages, and persons 
 who are maintained by their employer 
 without wages. 
 
 (4.) Wives employed by their hus- 
 bands, and husbands employed by their 
 wives. 
 
 (5.) Outworkers who are the wives 
 of insured persons and are not wholly 
 or mainly dependent for their livelihood 
 on their earnings as outworkers. 
 
 (6.) Persons casually employed; ex- 
 cept that persons have to be insured 
 who are casually employed for purposes 
 of the employer's trade or business, and 
 that persons who are engaged or paid 
 through a club for the purposes of a 
 game or recreation must also be in- 
 sured. 
 
 (7.) An agent paid by commission, by 
 fees, or by share in profits ; but he must 
 be insured if, being under contract of 
 service, he is mainly employed by one 
 employer and is mainly dependent for 
 his livelihood on one employer. 
 
 (8.) Persons employed at a rate of 
 more than 160 a year; but all per- 
 sons engaged in manual labour must be 
 insured, whatever their earnings are. 
 
 (9.) Elementary school teachers who 
 have accepted the Elementary School 
 Teachers' Superannuation Act, 1898. 
 (10.) Employment of a kind which is 
 
THE PEOPLE'S INSURANCE 
 
 283 
 
 ordinarily adopted as subsidiary em- 
 ployment only and not as the principal 
 means of livelihood, if so specified in 
 a Special Order issued by the Insurance 
 Commissioners. 
 
 (u.) The following persons also will 
 be excepted where the Insurance Com- 
 missioners certify that the terms of 
 their employment secure to them bene- 
 fits in sickness and disablement of at 
 least equal value to those given by the 
 Act: 
 
 (a) Persons in the employment of 
 
 the Crown. 
 
 (b) Persons in the employment of 
 
 local or other public authori- 
 ties. 
 
 (c) Clerks or salaried officials in 
 
 the service of a railway or 
 other statutory company who 
 are entitled to rights in a 
 superannuation fund estab- 
 lished by Act of Parliament. 
 
 PART IV. ARRANGEMENTS FOR PAY- 
 MENT AND COLLECTION OF CON- 
 TRIBUTIONS. 
 
 (i.) General. 
 
 8. The employer is required to pay 
 in the first instance the worker's contri- 
 bution as well as his own. 
 
 9. A weekly contribution is payable 
 by the employer for every calendar 
 week during the whole or any part of 
 which the worker has been employed, 
 but not more than one contribution is 
 payable for any one week in respect of 
 the same person, and no contribution is 
 payable by the employer for any calen- 
 dar week of employment during which 
 no services have been rendered and 
 the worker (a) has received no re- 
 muneration, or (b) has been in receipt 
 of sickness or disablement benefit for 
 the whole or any part of the week. 
 
 The expression "calendar week" 
 means the period from midnight on one 
 Sunday to midnight on the following 
 Sunday. 
 
 10. An employer must therefore pay 
 a weekly contribution in respect of 
 each person employed by him in any 
 week (i.e., commencing Monday) how- 
 ever short the period of service in the 
 week may be, unless a contribution has 
 already been paid for that week. It 
 may happen that though the whole 
 period of service is less than a complete 
 week (e.g., from Saturday in one week 
 to Tuesday in the following week) two 
 contributions may be payable in respect 
 of the worker, because he has been 
 employed for a part of each of two 
 calendar weeks. 
 
 (ii.) Method of Payment. 
 
 11. The contributions are paid by 
 affixing National Health Insurance 
 Stamps to Contribution Cards. 
 
 12. National Health Insurance 
 Stamps are on sale at all Post Offices, 
 and are issued in every denomination 
 which an employer can require for the 
 purpose of paying by means of a single 
 stamp the joint weekly contribution 
 due from himself and the worker. 
 Stamps other than National Health In- 
 surance Stamps will not be accepted in 
 payment of contributions. 
 
 (iii.) Supply and Production of Cards. 
 
 13. Every insured person is required 
 to provide himself with a Contribution 
 Card, and his employer can demand its 
 production at any time. It must be 
 delivered to the employer whenever he 
 may reasonably require it for the pur- 
 pose of paying contributions, or for pro- 
 duction to an Inspector or other author- 
 ised person. 
 
 14. If the worker fails to produce his 
 card when the employer requires it for 
 
 K 2 
 
28 4 
 
 THE PEOPLE'S INSURANCE 
 
 the purpose of paying contributions the 
 employer must make use of a special 
 "Emergency Card," a supply of which 
 can be obtained in advance at any Post 
 Office. A worker who without reason- 
 able cause fails to deliver a contribution 
 card when the employer requires it for 
 the purpose of paying contributions, 
 or for production to an inspector, is 
 liable on summary conviction to a fine 
 not exceeding 10. 
 
 The Emergency Card contains a 
 single stamp space for one weekly con- 
 tribution, and the employer is required 
 to cancel the stamp by writing across 
 it the name of the employed person 
 and the date. The card should then be 
 handed to the worker in order that he 
 may forward it to his Society or In- 
 surance Committee at the due date. 
 
 15. An employer must, whenever re- 
 quired by an Inspector or other person 
 authorised to act in the execution of the 
 Act either in person or by notice under 
 his hand, obtain from his employees 
 their contribution cards if the cards are 
 not in his possession, and produce them 
 to the Inspector. 
 
 16. Any employer may before July 
 i5th, 1912, apply to the National Health 
 Insurance Commissioners for a supply 
 of ordinary contribution cards for issue 
 to such of his workmen as neglect to 
 obtain cards from their societies or the 
 Post Office. On receipt of an under- 
 taking from the employer that he will 
 write the workman's name and address 
 on the card before issue, a supply of 
 cards will be sent to him by the Com- 
 missioners. An application for a supply 
 of cards should be forwarded in an 
 envelope marked " Cards " in the left 
 hand bottom corner. 
 
 (iv.) Time for Payment. 
 
 17. The ordinary time for affixing 
 the stamps is when wages are paid, and 
 
 the contribution or contributions for 
 any week or other period must be paid 
 (by stamping the card) at the time when 
 the wages for that period are paid. 
 
 Thus, if wages are paid weekly the 
 card must be stamped weekly, and if 
 wages are paid fortnightly or monthly 
 the card must be stamped fortnightly 
 or monthly. 
 
 1 8. But on certain occasions it is 
 necessary to stamp the card some time 
 in advance of the payment of wages. 
 For instance, when the period of cur- 
 rency of "the card expires, the card 
 must be fully stamped to the date of 
 expiry, although the wages may be 
 paid at a later date. Again, when an 
 employment terminates, the card must 
 at once be stamped to date and handed 
 back to the worker, although he may 
 have to come up later for his wages. 
 And again, the worker has the tight 
 at any time, subject to 24 hours' notice, 
 to demand that his card shall be 
 stamped in payment of all contribu- 
 tions due to date. 
 
 19. When the wages are paid for 
 periods of less than a week (e.g., for 
 a day or for so many hours or for a 
 job), the card must be stamped (unless 
 it has already been stamped for the 
 week in which the employment begins) 
 before the wages are paid or at the 
 end of the employment, whichever first 
 happens. The worker must be given 
 his card, duly stamped, before he 
 leaves the employment. 
 
 20. Where no wages are payable the 
 employer must affix a stamp on the 
 first day of employment in each week. 
 
 21. An employer may, if he chooses, 
 pay contributions in advance by affix- 
 ing to the card a number of stamps 
 corresponding to the number of con- 
 tributions which will become payable 
 during the remainder of the period for 
 which the card is current, or any less 
 number; but he cannot recover their 
 
THE PEOPLE'S INSURANCE 
 
 285 
 
 value if the worker leaves his employ- 
 ment before the contributions fall due. 
 
 (v.) Special arrangements for Quar- 
 terly Stamping. 
 
 22. Where the employer employs not 
 less than 100 regular workmen, and by 
 agreement with the workmen retains 
 the cards during the period of their 
 currency, the Commissioners may, sub- 
 ject to such conditions as they think fit, 
 allow the employer to deposit with 
 them either in one amount or in weekly 
 instalments, such sum as in the opinion 
 of the Commissioners is sufficient to 
 meet the contributions payable by him 
 in respect of the workmen during the 
 period of currency of the cards. At 
 the end of the period in respect of 
 which the deposit is made, the em- 
 ployer will be supplied with stamps to 
 the value of the deposit and will be 
 required to stamp the cards in payment 
 of all contributions payable for the 
 period. High value stamps, repre- 
 senting contributions at yd. and 6d. 
 for 10 and 13 weeks, will be issued for 
 this purpose. Where a deposit is 
 made under arrangement with the 
 Commissioners, the employer will be 
 deemed to have paid the contributions 
 at the due time, but notwithstanding 
 any such arrangement the employer 
 will still be liable to stamp the card of 
 any workman on the termination of the 
 employment and at any time on request 
 by the workman subject to 24 hours' 
 notice. Further information on this 
 subject can be obtained on application 
 to the Insurance Commissioners. (The 
 envelope should be marked "Bulk- 
 stamping " in the left-hand bottom 
 corner. 
 
 (vi.) Cancelling Stamps. 
 
 23. The employer is required, imme- 
 diately after affixing a stamp to a card, 
 to cancel the stamp by writing in ink 
 or stamping with a metallic die with 
 black indelible ink or composition 
 
 across the face of the stamp the date 
 upon which it is affixed, and in the 
 case of an Emergency Card he must 
 in addition write the name of the 
 worker across the face of the stamp. 
 Aniline inks must not be used when 
 cancellation is effected by means of a 
 metallic die. Rubber stamps are not 
 allowed. Beyond cancelling the stamps 
 in this way the employer must not 
 make any writing or other mark on 
 the card or stamps. 
 
 PART V. CUSTODY AND RETURN OF 
 THE CARDS. 
 
 24. There are two ways of arranging 
 for the custody of the card during its 
 currency. The first is for the employer 
 and worker to agree that the employer 
 shall keep the card, in which case he 
 is responsible for its safety; he must 
 stamp it regularly at the proper times 
 and must return it to the worker 
 
 (a) Upon the termination of the 
 
 employment ; 
 
 (b) Upon the expiration of the period 
 
 of currency of the card; and 
 
 (c) Where the worker so requests, 
 
 within 48 hours after the receipt 
 
 of the request. 
 
 The other way is for the wprker to 
 keep the card, and this must be done 
 unless the employer and worker agree 
 that the employer shall keep it. When 
 the worker keeps his card the employer 
 must return it to him as soon as he 
 has stamped it on each occasion of 
 stamping. 
 
 25. If the card of a worker who has 
 left his employment is in the posses- 
 sion of his employer the employer 
 should, if he is unable to return the 
 card to the worker, forward it to the 
 Insurance Commissioners. On the 
 death of a worker whose card is then 
 in the hands of his employer the card 
 should be forwarded to the Commis- 
 sioners as soon as possible. 
 
286 
 
 THE PEOPLE'S INSURANCE 
 
 PART VI. RATES OF CONTRIBUTION 
 AND DIVISION BETWEEN EMPLOYER 
 AND WORKER. 
 
 26. The amount of the joint weekly 
 contribution due from the employer and 
 the worker is in ordinary cases jd. for 
 a man and 6d. for a woman, 3^. in 
 each case being the employer's part of 
 the contribution. 
 
 27. In the case of a worker of the 
 age of 21 or upwards who is not pro- 
 vided with board and lodging, and the 
 rate of whose remuneration exceeds 2s. 
 but does not exceed 25. 6d. a working 
 day, the joint weekly contribution re- 
 mains 7d. for a man and 6d. for a 
 woman, but in the case of men it is 
 divided between employer and worker 
 in different proportions. 
 
 28. In the case of a worker of the 
 age of 21 or upwards who is not pro- 
 vided with board and lodging, and the 
 
 rate of whose remuneration does not 
 exceed 25. a working day, the joint 
 weekly contribution is 6d. for a man 
 and 5<i. for a woman. 
 
 29. Remuneration includes all allow- 
 ances, whether in money or kind, to 
 which the worker is entitled in return 
 for his services, and where the worker 
 receives payments in kind (unless these 
 take the form of board and lodging) 
 it may be necessary, before the rates 
 of contribution due from the worker 
 and his employer respectively can be 
 ascertained, to find the money value 
 of such payments. 
 
 30. Where an employer undertakes 
 to pay full remuneration to his em- 
 ployees during sickness, the employer's 
 contribution is reduced by id. a week 
 (or %d. a week in the case of women 
 workers), and the worker's contribu- 
 tion is reduced by id. per week. (See 
 Part IX. below.) 
 
 Table showing the amount of the Ordinary Joint Weekly Contribution and its 
 Division between Employer and Worker. 
 
 Wages, &c. 
 
 Value of stamp to be 
 affixed by employer. 
 
 Amount recoverable 
 from Worker 
 
 Men. 
 
 Women. 
 
 Men. 
 
 Women 
 
 Where the worker receives wages or other money payments 
 either from his employer or from some other person ; and 
 (a) is under 21 whatever the rate of remuneration ... 
 (b) is 21 or upwards. 
 (i) Where the rate of remuneration exceeds 2s. 6d. 
 a working day, OR where board and lodging 
 are provided, whatever the rate of remu- 
 neration 
 
 d. 
 
 7 
 
 7 
 
 7 
 6 
 6 
 
 d. 
 6 
 
 6 
 
 6 
 
 5 
 5 
 
 d. 
 
 4 
 
 3 
 i 
 
 o 
 
 d. 
 3 
 
 3 
 
 3 
 i 
 o 
 
 (2) Where board and lodging are not provided, and 
 (i) Rate of remuneration exceeds 2s. but 
 does not exceed 2s. 6d. a working day 
 (ii) Rate of remuneration exceeds is. 6d. 
 but does not exceed 2s. a working day 
 (iii) Rate of remuneration does not exceed 
 is. 6d. a working day 
 
 N.B. Where the worker receives no wages or other money payments the employer is required to 
 affix a stamp of the value of the joint contribution due from himself and the worker and can recover 
 no part of it from the worker. 
 
 It should be noted that a uniform Contribution Card is used for all classes of workers, and the 
 employer is therefore advised to consult the above table in order that he may ascertain the correct stamp 
 to affix for each of his employees. 
 
THE PEOPLE'S INSURANCE 
 
 287 
 
 PART VII. RECOVERY OF PART OF THE 
 CONTRIBUTION FROM THE WORKER. 
 
 31. For the purposes of the Act em- 
 ployees may be regarded as falling into 
 three classes': 
 
 (1) Those who receive wages or 
 
 other money payments from 
 
 their employers. 
 
 The employer of a person belonging 
 to this class can only recover the 
 worker's contributions (see Table 
 above) by deducting an equivalent 
 amount from his wages, and he can 
 only recover the amount of the worker's 
 contributions for the period for which 
 the wages are paid. Deduction cannot 
 be made from wages before the contri- 
 bution has been paid by the employer. 
 
 (2) The second class of employed 
 
 persons consists of those who 
 receive wages or other money 
 payments from persons other 
 than their employers (e-g-> 
 waiters, cabmen). 
 
 If a worker belonging to this class 
 fails to repay to his employer (i.e., the 
 hotel keeper or cabowner) a contribu- 
 tion paid by him on behalf of the 
 worker, the employer can recover the 
 amount d' the contribution summarily 
 as a civil debt, but proceedings for its 
 recovery must be taken within three 
 months from the date when the contri- 
 bution was payable. 
 
 (3) The third class consists of per- 
 
 sons who receive no wages 
 or other money payments 
 either from their employers 
 or from any other persons 
 (e.g., a housekeeper who re- 
 ceives board and lodging 
 only in return for her 
 services). 
 
 The employer of a person in this class 
 is required to pay the whole contribu- 
 tion and can recover no part of it from 
 the worker. 
 
 32. The following example will show 
 the extent of the employer's power of 
 recovery where wages are paid at inter- 
 vals less frequent than weekly, and will 
 also explain further his obligations in 
 the matter of stamping the card. 
 
 A domestic servant who has been out 
 of employment since the ist October 
 enters on a situation on Saturday, 26th 
 October. She is engaged by the month 
 and paid monthly, so that her first 
 wages are paid on Tuesday, the 26th 
 November. Her contribution card is 
 current for the period from Monday, 
 1 4th October, to Sunday, i2th January. 
 Owing to her unemployment no stamps 
 have yet been affixed to the card. The 
 employer must, before the payment of 
 wages, affix a stamp for every calendar 
 week during the whole or any part of 
 which the servant has been employed 
 by him, viz. : 
 
 ist week commencing Monday, 2ist 
 October. 
 
 2nd week commencing Monday, 28th 
 October. 
 
 3rd week commencing Monday, 4th 
 November. 
 
 4th week commencing Monday, nth 
 November. 
 
 5th week commencing Monday, i8th 
 November. 
 
 6th week commencing Monday, 25th 
 November. 
 
 The employer must affix ir the proper 
 space on the card a single stamp for 
 each of these six weeks, and he is en- 
 titled to deduct from the wages of the 
 servant the contributions 1ue from her 
 for these six weeks. 
 
 In the next month, to 26th December, 
 only four contributions are due (viz., 
 for weeks commencing Mondays, 2nd 
 December, gth December, i6th Decem- 
 ber, and 23rd December), and only four 
 contributions can be deducted from the 
 wages paid on the 26th December. 
 
288 
 
 THE PEOPLE'S INSURANCE 
 
 There remain two weeks in the period 
 for which the card is current, viz., the 
 weeks commencing 3oth December and 
 6th January, and stamps for these weeks 
 must be affixed before the i2th January, 
 although the employer cannot recover 
 from the servant her contributions for 
 these two weeks until the 26th January 
 when wages are next paid. Before 
 payment of wages on the 26th January 
 the employer must affix a stamp in each 
 of the first two spaces of the card then 
 current, but may deduct four contribu- 
 tions from wages (viz., for weeks com- 
 mencing 3Oth December, 6th January, 
 1 3th January and 2oth January). 
 
 PART VIII. COLLECTION OF CON- 
 TRIBUTIONS IN CASES WHERE ONLY 
 THE EMPLOYER'S CONTRIBUTION is 
 PAYABLE. 
 
 33. Every person to whom a certifi- 
 cate of exemption has been granted is 
 furnished with an exemption book, and 
 every other person in respect of whom 
 only the employer's contribution is pay- 
 able (see paragraph 6) is entitled to ob- 
 tain such a book. The exemption book 
 contains a certificate to the effect that 
 the employed person whose name is 
 entered therein is exempted or excluded 
 from contribution under the Act. This 
 certificate is not valid until the person 
 to whom it is issued has signed his 
 name in the place provided in the book. 
 It expires at the end of the year for 
 which the book is issued. 
 
 34. Every person who has applied 
 for and obtained an exemption book 
 must produce it to his employer imme- 
 diately after receiving it, and whenever 
 he enters the service of a new em- 
 ployer. 
 
 35. An exemption card is issued for 
 the collection of the employer's con- 
 tributions in these cases, and when a 
 workman produces his exemption book 
 
 to his employer in accordance with the 
 above requirements the employer must 
 immediately make application at a Post 
 Office for an exemption card for the 
 period then current. On the expiration 
 of the period of the card's currency 
 the employer must obtain a card for the 
 succeeding period if the holder of the 
 exemption book remains in his service. 
 
 36. The exemption book must also 
 be produced to the employer at any 
 time on demand, and must be delivered 
 to him whenever he reasonably re- 
 quires it for the purpose of recording 
 payment of contributions. 
 
 37. The employer is required to 
 enter his name and address in the place 
 provided in the book against every 
 week for which contributions were pay- 
 able by him in respect of the person 
 named in the certificate, thereby cer- 
 tifying that the employer's contribu- 
 tions for the period of employment have 
 been paid. 
 
 After the entries have been made, 
 the book should be returned, but where 
 the employed person is in continuous 
 employment it ma} 7 , with his consent, 
 be retained by the employer, who will 
 be responsible for its safe custody. 
 
 It must be returned to thf employed 
 person : 
 
 (i) at any time within 4? hours on 
 
 demand by him, 
 
 (ii) on the termination of the em- 
 ployment, and 
 
 (iii) on the expiry of its period of 
 currency. 
 
 38. Before any stamps are affixed 
 to an exemption card in payment of 
 contributions the employer is required 
 to enter in the proper place on the card 
 the number of the exemption certificate 
 and the name of the employed person, 
 these particulars being obtained from 
 the Exemption Book. 
 
 39. A person who is not required to 
 
THE PEOPLE'S INSURANCE 
 
 289 
 
 be insured by reason of the fact that, 
 not having been previously insured, he 
 becomes employed after attaining the 
 age of 65 (see para. 6 (2) ) is not 
 obliged to apply for and obtain an 
 exemption book, and an employer may 
 therefore have among his workmen a 
 person of this class who cannot produce 
 an exemption book. The exemption 
 card should nevertheless be used for 
 the payment of contributions in respect 
 of him. 
 
 40. Every exemption card must be 
 retained by the employer in safe cus- 
 tody during its period of currency, and 
 must not be given to the employed 
 person at any time. On the expiration 
 of the period of the card's currency, 
 the employer must, after writing his 
 name and address in the space pro- 
 
 vided, forward the card to the Insur- 
 ance Commissioners. 
 
 41. The circumstances in which con- 
 tributions are payable and the times at 
 which stamps are to be affixed are 
 determined in exactly the same way as 
 in the case of insured persons (see 
 Part IV.). 
 
 The employer is not entitled to de- 
 duct from the wages of or otherwise 
 to recover from the employed person 
 any part of the contribution paid. 
 
 42. In accordance with Section 4 (4) 
 of the Act and the regulations made 
 thereunder, these contributions may 
 be applied for the benefit of any per- 
 sons in respect of whom contributions 
 have been so paid in the event of such 
 persons subsequently becoming em- 
 ployed contributors. 
 
 Table showing the different rates of Contributions, payable by Employers only, the Rate 
 varying according to the Amount of the Remuneration earned by the Employed Person. 
 
 
 Weekly 
 
 / Contributions. 
 
 Wages, &c. 
 
 Ordinary 
 provisions. 
 
 Special provisions where 
 employer is liable to 
 pay wages during sickness. 
 
 
 Men. ! Women. 
 
 Men. Women. 
 
 Where the worker 
 (a) is tinder 21 whatever the rate of re- 
 muneration 
 (i>) z's 21 or tip wards 
 (l) Where the rate of remuneration ex- 
 ceeds 2.9. 6d. a working day, OR 
 where board and lodging are pro- 
 vided whatever the rate of remu- 
 neration 
 
 d. d. 
 3 3 
 
 3 3 
 
 d. d. 
 
 2f 2jf 
 
 2 t 2 t 
 
 (2) Where board and lodging are not 
 provided and 
 (i) rate of remuneration exceeds 2s. 
 . but does not exceed 2s. 6d. a 
 working day 
 (ii) rate of renumeration exceeds 
 is. 6d. but does not exceed 2s. 
 a working day ... 
 (iii) rate of remuneration does not ex- 
 ceed is. 6d. a working day 
 
 4 3 
 
 5 4 
 6 5 
 
 3 2i 
 
 4t 3it 
 
 not applicable 
 
 t Not applicable if the rate of remuneration is less than ioj. a week. 
 
290 
 
 THE PEOPLE'S INSURANCE 
 
 PART IX. SPECIAL RATES OF CON- 
 TRIBUTIONS WHERE WAGES ARE 
 PAID DURING SICKNESS. 
 
 43. The conditions under which this 
 arrangement may be made are as 
 follows : 
 
 (1) Primarily the arrangement is 
 
 only applicable to an occupation 
 or a district where it is custom- 
 ary for the employer to pay full 
 wages during sickness, though 
 not necessarily for any fixed 
 period. 
 
 (2) The Commissioners will make 
 
 an Order specifying occupations 
 or districts where the custom 
 holds good, and an employer in 
 any such occupation or district 
 may give notice to the Commis- 
 sioners that he wishes to come 
 under this arrangement. 
 
 (3) The arrangement may by special 
 
 Order of the Commissioners be 
 extended to other districts or 
 classes of employment if the 
 employers apply for an exten- 
 sion of the arrangement to 
 them, but this can only be done 
 if the workers consent. 
 
 (4) An employer availing himself of 
 
 this arrangement and paying the 
 reduced rate of contributions 
 will be liable to pay full re- 
 muneration (which may include 
 board, lodging, or payments in 
 kind in addition to money wages) 
 during periods of illness, as 
 follows : 
 
 (a) If the worker is engaged for a 
 fixed period of at least six 
 months (such a case would be 
 that of the agricultural 
 labourer who in certain 
 parts of the country is 
 "hired" for a year or for a 
 stated time, e.g., Lammas to 
 Martinmas), then the em- 
 
 ployer is liable to pay full re- 
 muneration during every 
 period of sickness lasting six 
 weeks or under, and for the 
 first six weeks of any illness 
 lasting over six weeks. In 
 this particular case the em- 
 ployer may be called upon to 
 give full remuneration during 
 sickness for considerably 
 more than six weeks al- 
 together, but as soon as the 
 period of employment ends 
 his liability ceases. 
 (b) In other cases the employer 
 is only liable to pay full re- 
 muneration for six weeks in 
 all in any one year. If a 
 worker is discharged from his 
 employment while suffering 
 from an illness which com- 
 menced during his employ- 
 ment the employer is still 
 liable to pay full remuneration 
 up to the limit of six weeks 
 in the year even though the 
 worker is no longer in his em- 
 ployment. 
 
 (5) The payment of contributions at 
 
 the reduced rate under this 
 arrangement as respects any 
 persons employed by an em- 
 ployer in any class of employ- 
 ment is conclusive evidence that 
 he is, with regard to all persons 
 employed by him in that class 
 of employment within the local- 
 ity (if the custom is confined to 
 a locality) in which the custom 
 prevails, under the liability to 
 pay full remuneration during the 
 periods specified in (4) (a) or 
 (4) (b) above, as the case may 
 be. 
 
 (6) This arrangement cannot be 
 
 made in respect of workers em- 
 ployed at a rate of remuneration 
 which is less than IQS. a week. 
 
THE PEOPLE'S INSURANCE 
 
 291 
 
 Table showing the Amount of the Joint weekly Contribution and its Division between 
 Employer and Worker in Cases in which these Special Rates are Applicable. 
 
 
 Value of Stamp 
 
 Amount 
 
 
 to be affixed by 
 
 recoverable 
 
 Wages, &c. 
 
 Employer. 
 
 from worker. 
 
 
 Men. 
 
 Women. 
 
 Men. 
 
 Women. 
 
 Where the worker receives wages or other money payments either 
 
 d. 
 
 d. 
 
 d. 
 
 d. 
 
 from his employer or from some other person ; and 
 
 
 
 
 
 (a) is under ^/-whatever the rate of remuneration f ... 
 
 5 
 
 4* 
 
 3 
 
 2. 
 
 (b) is 21 or upwards 
 
 
 
 
 
 (i) Where the rate of remuneration exceeds 2s. 6d. a 
 
 
 
 
 working day, OR where board and lodging are 
 
 
 
 
 provided,! whatever the rate of remuneration ... 
 
 5 4i 
 
 3 
 
 2 
 
 (2) Where board and lodging are not provided ; and 
 
 
 
 
 
 (i) Rate of remuneration exceeds 2s. but does 
 
 
 
 
 
 not exceed 2s. 6d. a working day ... 
 
 5 
 
 4 
 
 2 
 
 2 
 
 (ii) Rate of remuneration exceeds is. 6<f but 
 
 
 
 
 
 does not exceed 2s. a working day 
 
 4 
 
 3i 
 
 
 
 
 
 (iii) Rate of remuneration does not exceed i.y. 6d. 
 
 
 
 
 
 a workin* 7 ' day ... ... 
 
 Not applicable. 
 
 
 
 
 f Provided, however, that the rate of remuneration is not less than los. a week (see (6) above). 
 
 PART X. POWERS OF INSPECTORS. 
 
 44. An inspector or other person ap- 
 pointed under the Act or authorised to 
 act in the execution of the Act has 
 power to enter at any reasonable times 
 any premises, except private dwelling- 
 houses not used as workshops, where 
 insured persons are employed, and to 
 make such examination and inquiry as 
 may be necessary for ascertaining 
 whether the provisions of the Act are 
 being complied with. He may examine 
 any person found on the premises and 
 may require that person to sign a de- 
 claration of the truth of his statements, 
 and may call for tfie production of any 
 books, cards, or documents which he 
 may require in the performance of his 
 duties under the Act. 
 
 45. If any person wilfully delays or 
 obstructs an Inspector in the exercise 
 of any of the above powers, or fails to 
 give any information or to produce any 
 documents which the Inspector may 
 reasonably require, or attempts to pre- 
 
 vent any person from appearing before 
 or being examined by an Inspector, he 
 is for each offence liable on summary 
 conviction to a fine not exceeding $. 
 
 46. An Inspector on applying for ad- 
 mission to any premises must, if re- 
 quired, produce the certificate of his 
 appointment. 
 
 PART XI. OFFENCES. 
 
 47. Where an employer has failed 
 to pay any contributions which he is 
 liable to pay in respect of an employed 
 contributor or is guilty of any other 
 contravention of or non-compliance~with 
 any of the requirements of Part I. of 
 the National Insurance Act, 1911, or 
 the regulations made thereunder ui re- 
 spect of which no special penalty is 
 provided, he is for each offence liable 
 on summary conviction to a fine not 
 exceeding 10 and, where the offence 
 is failure to pay any such contributions, 
 to pay a sum equal to the amount of 
 the contributions which he has failed to 
 
292 
 
 THE PEOPLE'S INSURANCE 
 
 pay. Further, if the contributor is a 
 member of an approved society he may 
 take proceeding's against the employer, 
 in which case the\ employer will be re- 
 quired to make good any loss of benefits 
 which the contributor has suffered. 
 
 48. In accordance with Section 13 of 
 the Stamp Duties Management Act, 
 1891, any person who fraudulently re- 
 moves a stamp from a card or makes 
 use of a stamp removed from a card is 
 guilty of felony. 
 
 N.B. If further information is de- 
 sired on any of the points dealt with in 
 this statement, or if any question arises 
 (a) as to whether any employment is 
 employment within the meaning of the 
 Act, or (b) as to the rate of contribu- 
 
 tions payable in respect of a workman 
 by the employer and the workman re- 
 spectively, the employer should com- 
 municate with or call upon the nearest 
 Customs and Excise Officer, whose 
 address can be obtained at the Post 
 Office. 
 
 Exceptional arrangements regarding 
 the payment of contributions have been 
 made for the following special classes 
 of employed persons : 
 
 (a) Casual Labour. 
 
 (&) Domestic Day Labour. 
 
 (c) Outworkers. 
 
 The Customs and Excise Officer will 
 be in a position to supply information 
 with regard to these exceptional ar- 
 rangements. 
 
THE PEOPLE'S INSURANCE 293 
 
 SPECIMEN. 
 
 EMPLOYED CONTRIBUTOR ENGLAND. 
 
 (MAN) 
 
 - *,* ,,. To 13th October, 1912. 
 
 CLASS 
 
 NATIONAL HEALTH INSURANCE, f J st 
 Contribution Card. 
 
 s 
 
 OWNERSHIP AND CUSTODY OF CARD. 
 
 This Card is the property of the Insurance Commissioners (England) ; during 
 its currency it is entrusted to the Contributor, who must return it together 
 with his Insurance Book to his Society, or, if he is not a member of a Society, 
 hand the Card in at any Post Office immediately upon* its expiry but in no case 
 later than 
 
 26th OCTOBER, 1912. 
 
 As the stamped Card is the only evidence of payment of 
 Contributions, no allowance will be made for any Stamps on this 
 Card unless and until the Card has been returned as provided above. 
 
 The Card must be produced to the Employer at any time on demand, 
 and must be delivered to him whenever he requires it for the purpose of paying 
 contributions. It will be returned after stamping, but where the Contributor 
 is in continuous employment the Card may be left in the hands of the 
 Employer, who will be responsible for its safe custody. It must be returned 
 to the Contributor upon its expiry or at any time within 48 hours of its demand 
 by the Contributor. 
 
 If the Card is not retained by the Employer, it must be delivered to him 
 when he requires it for the purpose of production to an Inspector or other 
 authorised person. 
 
 On the Contributor leaving his Employment the Card must be returned 
 to him by the Employer, and may, if the Contributor so desires, be exchanged 
 for a new one at the office of the 'Society or, if he is not a member of a Society, 
 at any Post Office. 
 
 If a Card is accidentally damaged or defaced it should be exchanged for 
 a new one. 
 
 Any person having this card in his possession must produce it at any 
 reasonable time when required by an 'Inspector or other authorised person. 
 
 In the event of the death of the Contributor, this Card must be returned 
 to his Society or to the Insurance Commissioners, London, S.W. 
 
 LOST CARD. 
 
 Any person finding- this Card, unless he can at onee return it to 
 the Contributor, should drop it into a Post Office Letter Box. 
 
294 
 
 THE PEOPLE'S INSURANCE 
 
 Thirteen weeks Ending 13th OCTOBER, 1912. 
 
 A National Health Insurance Stamp to be affixed for each Week in the 
 proper space. No Other Stamps may be used. Every Stamp must 
 be cancelled at the time of affixing by writing the date across it in ink. 
 
 Name and 
 Address of 
 Contributor 
 to be 
 inserted 
 
 before 
 
 issue. 
 
 
 
 Christian Names 
 
 ( 
 
 Address < 
 
 In accordance with Section 
 13 of the Stamp Duties 
 
 1st 
 
 2nd 
 
 3rd 
 
 Management Act, 1891, any 
 
 
 
 
 person who fraudulently 
 
 
 
 
 removes any stamp from 
 
 Week 
 
 Week 
 
 Week 
 
 this Card or makes use of 
 
 commencing 
 
 commencing 
 
 commencing 
 
 any stamp removed from 
 another Card, is guilty of 
 
 Monday, 
 15 July, 1912. 
 
 Monday, 
 22 July, 1912. 
 
 Monday, 
 29 July, 1012. 
 
 felony. 
 
 
 
 
 4th 
 
 5th 
 
 6th 
 
 7th 
 
 8th 
 
 Week 
 
 Week 
 
 Week 
 
 Week 
 
 Week 
 
 commencing 
 Monday, 
 
 commencing 
 Monday, 
 
 commencing 
 Monday, 
 
 commencing 
 Monday, 
 
 commencing 
 Monday, 
 
 5 Aug., 1912. 
 
 12 Aug., 11)12. 
 
 19 Aug., 1912. 
 
 26 Aug., 1912. 
 
 .Sept., 1912. 
 
 9th 
 
 10th 
 
 11th 
 
 12th 
 
 13th 
 
 Week 
 
 Week 
 
 Week 
 
 Week 
 
 Week 
 
 commencing 
 Monday, 
 
 commencing 
 Monday, 
 
 commencing 
 Monday, 
 
 commencing 
 Monday, 
 
 commencing 
 Monday, 
 
 9 Sept., 1912. 
 
 16 Sept., 1912. 
 
 23 Sept., 1912. 
 
 30 Sept., 1912. 
 
 7 Oct., 1912. 
 
 The Contributor must sign in the space below before returning the card 
 to his Society or, if he is not a Member of a Society, to the Post Office. 
 
 Signature or Mark of Contributor 
 
 Witness to the Mark_ 
 
 (Only required if the Signature is by Mark.) 
 
 Reserved for use of Society or Insurance Committee. 
 
 No entry must be made in this space until after the return of the Card to 
 the Society or Post Office. Name of Society or Committee 
 
 Contributor's 
 
 No. 
 
 Date of Births 
 
 if before L 
 16 July, 1S47.J 
 
 184- 
 
THE PEOPLE'S INSURANCE 295 
 
 The Employer may tear off this page if the Card is likely to remain in 
 his custody during the whole of its current- y. 
 
 INSTRUCTIONS. 
 
 (1) SUPPLY OF STAMPS. 
 
 National Health Insurance Stamps are on sale at all Post Offices. 
 Stamps other than National Health Insurance Stamps found 
 affixed to this Card will not be accepted in payment of 
 Contributions. 
 
 (2) TIME OF AFFIXING STAMPS. 
 
 A Weekly Contribution is payable by the Employer for each week (com- 
 mencing Monday) during the whole or any part of which the Contributor has 
 been employed, but only one contribution is payable for each week and no 
 contribution is payable by the Employer in respect of any week during which 
 the Contributor renders 110 service and receives no remuneration. 
 
 The Employer must, before any payment of wages, affix in the proper 
 space a single National Health Insurance Stamp of the value of the joint 
 weekly contribution of himself and the Contributor for each week (commencing 
 Monday) for the whole or any part of which the wages are payable, and in respect 
 of which a Stamp has not already been affixed, but all contributions payable 
 in respect of the period to 13th October, 1912, must be paid and Stamps 
 affixed by that date whether the wages for the period have been paid or not. 
 
 The number of Stamps to be affixed will be the number of Mondays for 
 which spaces are provided on this Card, and which fall within the period for 
 which wages are payable. When the employment begins on a day of a week 
 other than Monday, a Stamp must also be affixed for that week if a Stamp 
 has not already been affixed for that week. 
 
 Upon the termination of an employment, or at any time on demand by 
 the Contributor, a Stamp must be affixed in respect of each week for which 
 a Contribution is payable by the Employer. 
 
 When no wages are payable by the Employer, he must affix a Stamp on 
 the first day of employment in each week. 
 
 (3) RATE OF CONTRIBUTION. 
 
 The normal rate of Contribution in Great Britain is 7d. per week, divided 
 as follows 
 
 Payable by the Employer ... ... ... ... ... 3d. a week. 
 
 Payable on behalf of, and recoverable from the Contributor 4d. a week. 
 
 In certain cases other rates of Contribution and a different distribution 
 as between Employer and Contributor, are applicable. See Pamphlet A, to 
 be obtained at any Post Office. In the event of the Contributor being 
 employed in Ireland, contributions in respect of him are payable at the Irish rate. 
 
 (4) EMPLOYER'S CONTRIBUTION NOT RECOVERABLE. 
 
 Notwithstanding any contract to the contrary, the Employer is 
 not entitled to deduct from the Wages of or otherwise to recover from the 
 Contributor the Employer's Contribution. 
 
296 THE PEOPLE'S INSURANCE 
 
 (5) CHANGE OF ADDRESS. 
 
 A Contributor changing his address during the currency of this Card 
 should alter the address on page 2, and inform his Society within seven days. 
 
 (6) DEFACING CARD. 
 
 Except as herein provided, no mark of any kind may be made on 
 this Card, nor may anything be affixed to it by the Employer or Contributor,. 
 or any other person. 
 
 (7) EMPLOYER TO OBTAIN CARD WHEN NECESSARY. 
 
 In the event of a Contributor failing to produce his Card to the 
 Employer, the latter must obtain a special Emergency Card for him. A supply 
 of these Cards can be obtained at any Post Office. 
 
 (8) ASSIGNMENT OR TRANSFER. 
 
 No person may assign or charge, or agree to assign or charge any Card, 
 and any sale, transfer or assignment of, or charge on any Card is void and of 
 no effect. 
 
 If any Employer has failed to pay any Contributions 
 which he is liable to pay in respect of an Employed Con- 
 tributor he is for each Offence liable on Summary Con- 
 viction to a fine not exceeding 1 TEN POUNDS, and to pay 
 a sum equal to the amount of the Contributions which he 
 has failed to pay. 
 
 Further, if the Contributor is a Member of an Approved 
 Society, he may take proceedings against his Employer, in 
 which ease the Employer may be compelled to make good 
 any loss of Benefits which the Contributor has suffered. 
 
 If any Insured Person without reasonable cause fails 
 to deliver a Contribution Card to his Employer at the times 
 required by the Regulations, or is guilty of any other 
 contravention of or non-compliance with any of the 
 Regulations made under Part I of the National Insurance 
 Act, 1911, he is for each Offence liable on Summary 
 Conviction to a fine not exceeding TEN POUNDS. 
 
INDEX 
 
 NOTE. The abbreviation H.I. refers][to Health Insurance. 
 
 ,, U.I. ,, Unemployment Insurance. 
 
 ,, cl Clauses of the Act. 
 
 sch. ,, the Schedules. 
 
 ACCOUNTS of approved societies, cl. 35 (p. 92) 
 Actions at law by societies, 41 
 Additional benefits in H.I., cl. 8 (p. 72) 
 Administration of sickness benefits, els. 14-22 
 
 (pp. 79-86) 
 
 Advances, Treasury, in U.I., cl. 93 (p. 151) 
 Advances on compensations, 41 
 Advisory committee, cl. 58 (p. 119) 
 Age adjustment under Act, 23 
 question, 9, 10, 23, 43 
 in sick allowance, 17 
 limit for voluntary class, 13, 38 
 
 in sickness benefits, 39, 48 
 over-age benefits, 20 
 under-age benefits, 20 
 I Agents, life insurance, and the Act, 188 
 |Agents paid by commission, exempt from com- 
 pulsory clause, 7, 36 
 
 ^Aliens, special provisions as to, cl. 45 (p. 103) 
 Application of H.I. to Ireland, cl. 81 (p. 138) 
 Application of H.I. to Scotland, cl. 80 (p. 132) 
 Approval, conditions of, for societies, 44 
 'Approved societies, 21, 44-5 1, els. 23-41 (pp. 
 
 86-98) 
 ability of friendly societies and trade 
 
 unions to become approved, 44 
 accounts, valuations, surplus, and deficit, 
 
 els. 35-41 (pp. 92-98) 
 administration of sickness benefits by, 
 
 cl. 14 (p. 79) 
 
 admission of insured persons to member- 
 ship, cl. 30 (p. 90) 
 advantages of joining, 242 
 and local control, 45 
 and requirements of Act, 45 
 conditions for approval, cl. 23 (p. 86) 
 deficit, cl. 38 (p. 94) 
 disputes, cl. 67 (p. 127) 
 membership of and transfer of members, 
 
 els. 30-34 (pp. 90-92) 
 must keep proper accounts, cl. 35 (p. 92) 
 new, 50 
 open to any society satisfying conditions 
 
 to become approved, 44 
 persons who enter or re-enter scheme late 
 
 in life, 43 
 
 power to demand inquiries into causes of 
 excessive sickness, cl. 63 (p. 123) 
 
 Approved societies, power to subscribe to hos- 
 
 pitals, &c., cl. 21 (p. 86) 
 prohibition against double insurance, cl. 34 
 
 (P- 92) 
 
 provisions as to, cl. 27 (p. 89) 
 secessions, &c., cl. 28 (p. 90) 
 security to be given by, cl. 26 (p. 89) 
 special provision for employers' super- 
 
 annuation funds, cl. 25 (p. 88) 
 surplus, cl. 37 (p. 93) 
 transfer to deposit insurance, cl. 43 (p. 
 
 100) 
 foreign and colonial societies, cl. 32 
 
 r (P- 9i) 
 
 from one society to another, cL 31 
 
 (P- 9 1 ) 
 
 valuations of, cl. 36 (p. 93) 
 withdrawal of approval, cl. 29 (p. 90) 
 Arrear, members in, 43, cl. 10 (p. 75), 231 
 
 voluntary members in, 43 
 
 Assignment of sickness benefits, prohibited, 42 
 Association, societies which join, 45 
 Associations in H.I., 49 
 of workmen in U.I., 62 
 arrangements with, when making payments 
 to members whilst unemployed, cl. 
 
 105 (p. 157) 
 repayments to, cl. 106 (p. 158) 
 
 Bankrupt employers, priority of claims for 
 
 contributions due by, cl. no (p. 160) 
 Behaviour of patients in H.I., 41 
 Benefits, cost of, 229 
 disablement, explained, 248 
 provided by the Act, 247 
 value of, 229 
 
 sickness, sch. 4 (p. 167), 194 
 additional, 39, 40 
 administered by approved societies or 
 
 Insurance Committee, cl. 14 (p. 79) 
 administration of, els. 14-22 (pp. 79-86) 
 assignment of prohibited, 42 
 benevolent fund, 39 
 conditions under which they are payable, 
 
 40, 41 
 
 distributed through- friendly societies, 21 
 distribution of, machinery for, 44 
 domestic servants, 212-216 
 
 297 
 
298 
 
 INDEX 
 
 Benefits, sickness, effects of, 196 
 explained, 248 
 improperly paid, repayment of, cl. 71 
 
 (P- 130) 
 inalienable, cl. in (p. 160) 
 
 maternity, 16, 39, 42, 183, 193, 197 
 administration of, cl. 18 (p. 85) 
 reinsurance for purposes of, cl. 20 (p. 86) 
 
 medical relief, 14-21, 38-40 
 
 no deductions from in sickness, 12 
 
 power to vary in certain cases, cl. 13 (p. 79) 
 
 rates and conditions of, els. 8-13 (pp. 72-79) 
 
 reduction in certain cases, 40, els. 9, 10 
 (PP- 74, 75), sch. 5 (P. 169) 
 
 sanatoria, 17, 18, 26, 38, 40 
 
 sick-pay period, extension of, 29 
 
 societies, 185 
 
 State, 185 
 
 to be increased after i8| years, 9 
 
 under German scheme, small, 8 
 
 unemployment, 29, 57, 184 
 amount and duration of, 58 
 appointment of umpires, insurance officers, 
 
 inspectors, &c., cl. 89 (p. 148) 
 arrangements with associations of work- 
 men in insured trades making pay- 
 ments to members whilst unemployed, 
 cl. 105 (p. 157) _ 
 conditions under which paid, 57 
 conditions under which withheld, 58 
 courts of referees, cl. 90 (p. 148) 
 determination of claims, cl. 88 (p. 147) 
 disqualifications for, cl. 87 (p. 147) 
 fund, cl. 92 (p. 150) 
 interpretation and application of, cl. 107 
 
 ' (P- 158) 
 
 methods of payment, 30 
 offences, cl. 101 (p. 154) 
 periodical revision of rates of contribution, 
 
 cl 102 (p. 155) 
 power to extend to other trades, cl 103 
 
 (P. 156) 
 
 provisions with respect to workmen en- 
 gaged through Labour Exchanges, 
 
 d- 99 (P- 153) 
 
 rates and periods of, sch. 7 (p. 170) 
 
 refund of contributions paid in respect of 
 workmen working short time, cl 96 
 (P- 152) 
 
 refund of part of contributions paid by 
 employer in the case of workmen con- 
 tinuously employed, cl 94 (p. 152) 
 
 regulations, cl 91 (p. 149) 
 
 repayment of part of contributions by 
 workmen in certain cases, cl 95 
 
 (P- 152) 
 
 repayments to associations, cl 106 (p. 
 
 158) 
 
 right of workmen in insured trades to, 
 cl. 84 (p. 145) 
 
 same persoi. unable to draw both unem- 
 ployed and sick, 55 
 
 statutory conditions for receipt of, cl 86 
 
 (p. '146) 
 
 Benefits, unemployment, subsidiary provisions, 
 cl. 100 (p. 154) 
 
 Treasury advances, cl 93 (p, 151) 
 
 variations in rates of, 58 
 
 Benevolent fund, additional sickness insui 
 
 ance benefit, 39 
 Birth certificates, provisions as to, cl. 11. 
 
 (p. 162) 
 Blacksmith, village, a probable voluntary 
 
 tributor, 13 
 Board of Trade, subsidy from, towards U.I., 
 
 60 
 Boatmen, who are employed by boat owners, 
 
 37 
 Branches, societies with, inducements for 
 
 economical administration of, 24 
 valuation of, 24 
 Building trades, and U.I., 29, 57, 63 
 
 Cab drivers, exempt from compulsory H.I., 7 
 
 who are employed by cab owners, 37 
 Caddies, golf, exempt from compulsory H.I., 7 
 Cards, insurance, purpose of, 55 
 remain property of employee, 55 
 specimen of, 293-296 
 Casual domestic employment, exempt from 
 
 compulsory H.I., 37 
 labourers, exempt from compulsory H.I., 7 
 
 provisions for, under H.I., 55 
 trades, methods of collection of contribu- 
 tions in respect of, 54 
 Charitable homes, special provisions as to 
 
 inmates of, cl. 51 (p. 114) 
 Charwomen under the Act, 258 
 Civil proceedings against employer for neg- 
 lecting to pay contributions, cl 70 
 (p. 126) 
 Claims, determination of, in U.I., cl 88 
 
 (P- 147) 
 
 Clerks, position of, 233 
 Collections of contributions, 21 
 Cologne, unsuccessful effort in regard to U.I., 
 
 28 
 
 Colonial societies, transfers to, cl 32 (p. 91) 
 Commissions, persons employed on, 234 
 Commission agents, exempt from compulsory 
 
 H.I., 7, 37 
 
 Commissioners, insurance, cl 57 (p. 118) 
 for Wales, establishment of, cl 82 (p. 143) 
 joint committee of, cl 83 (p. 144) 
 transaction with societies, cl 55 (p. 117) 
 Committees, advisory, cl 58 (p. 119) 
 Liberal, 22 
 of employers and insured pejrsons to advise 
 
 insurance office, 55 
 Compensation cases, workmen's, 231 
 Compensations, advances on, 41 
 
 provisions in case of contributors entitled to, 
 
 cl ii (p. 77) 
 
 Compulsory contributors to H.I., 67, 68 
 classes of, 36 
 estimated number of, 14 
 exemptions from, 6, 7, 36, 37, cl 2 (p. 70) 
 Consumption, 182, 193, 196 
 
 annual number of deaths from, 17 
 prevalency of, 17 
 proposals as to suppression of, 17 
 sanatoria for, 17, 18 
 See al$o Sanatoria 
 Contracts, illegal, 55 
 
 Contributions, compulsory, collection of Post 
 Office, 54 
 
INDEX 
 
 299 
 
 ontributions, collection of in H.I., 21 
 
 ;ion of in U.I., 57 
 of employed persons, in 1 1. 1., 37, cl. 3 
 
 (p- 7) 
 of employed persons, in U.I., 57, cl. 85 
 
 (p. 145) 
 
 of employers, in H.L, 38, cl. 3 (p. 70) 
 of employers, in U.I., 57, cl. 85 (p. 145) 
 of State, in H.L, u, 38, cl. 3 (p. 70) 
 of State, in U.I., 57, cl. 85 (p. 145) 
 payment of, power to make regulations for, 
 
 cl. 7 (p. 72) 
 periodical revision of rates of, in U.I., 
 
 cl. 102 (p. 155) 
 i. -payment of part by workmen in certain 
 
 cases in U.I., cl. 95 (p. 192) 
 rules for, cl. 4 (p. 70) 
 under the Act, how affected by rates of 
 
 remuneration, 243 
 
 variations in apportionment, in H.L, 38 
 voluntary ; see Voluntary contributions 
 
 under the Act, 260 
 
 ouncils of boroughs and districts, power of, 
 
 to contribute to certain expenditure on 
 
 medical and sanatorium benefits, 
 
 cl. 22 (p. 86) 
 
 ouiily Health Committees, and public health, 
 
 26 
 
 check on, 26 
 lectures, 26 
 nature of, 26 
 powers with regard to medical benefits 
 
 or sanatoria, 26 
 relations with societies for medical 
 
 work, 26 
 
 to administer sanatorium funds, 26 
 See also Insurance Committees 
 ourts of Referees, in U.I., 59, cl. go (p. 148) 
 rown employees, exempt from compulsory 
 
 sickness insurance, 7, 37 
 provisions as, to, cL 53 (p. 115) 
 
 Damages, provisions in case of contributors 
 
 entitled to, cl. n (p. 77) 
 Death benefits, 3, 4 
 present insurance of working classes against, 
 
 Deaths from consumption, annual number of, 
 X 7 
 
 Debt, paper, working of, 48 
 Deductions from wages, compulsory, 6 
 exceptions from, 6, 7 
 in case of young persons, 14 
 employers', 46 
 Deficiency in scheme to be worked out in 15 
 
 to 1 6 years, 35 
 Deficit in funds of an approved society, course 
 
 to be taken, 24, 49, cl. 38 (p. 94) 
 Deposit insurance, els. 42, 4^ (pp. 98-100) 
 provisions as to, cl. 42 (p. 98) 
 transfer from an approved society to, 
 
 cl. 43 (p. 100) 
 
 See also Post Office contributors. 
 Disablement benefit, .21, cl. 8 (p. 72) 
 
 benefits explained, 248 
 
 Disputes in approved societies, cl. 67 (p. 127) 
 Distress allowance, unemployment, 29 
 
 ss fund, unemployment, 30, cl. 92 
 
 (P- 1 S) 
 
 those excluded from participation in, 30 
 protection against in certain cases, in 1 1. 1., 
 
 cl. 68 (p. 128) 
 District nurses, 234 
 Dividing societies, position of, 276 
 Doctors, 181, 221, 222 
 certificates, 41 
 
 improved standard of payment of, 15 
 present relations with friendly societies, 15 
 Domestic servants, 212-216, 234, 254 
 Double insurance, not permitted, 55, 232 
 Drugs, expense of certain, 15 
 separation of from doctor's attendance 
 charges, 15, 53 
 
 Ejectment of insured persons, 56 
 Emigrants, case of, 47 
 
 who remain members of approved societies, 
 
 transfer values of, cl. 33 (p. 91) 
 Employed, men who have been, and are now 
 
 independent workers, case of, 13 
 men in H.I., committee of, to advise insur- 
 ance office, 55 
 persons, contributions of, in H.I., 37, cl. 4 
 
 (P- 7o) 
 persons, contributions of, in U.I., 57, cl. 85 
 
 (P- MS) 
 Employees of Crown exempt from compulsory 
 
 H.I., 7 
 
 provisions as to, cl. 53 (p. 145) 
 Employers, committee of, to advise insurance 
 
 office, 55 
 contribution of, in H.I., 9, 10, 38, els. 3, 4 
 
 (pp. 70, 71), fe. 3 (P- 166) 
 contribution of, in U.I., cl. 85 (p. 145) 
 contribution of, in U.I., refund of part of 
 
 in certain cases, cl. 94 (p. 152) 
 deductions, 46 
 
 duties of, under the Act, 281 
 German, amount of contribution for H.I., 
 
 ii 
 
 amount of contribution for U.I., 29, 57 
 their approval of insurance, n 
 penalty in case of excessive sickness, 50 
 provident funds of, provisions as to, cl. 25 
 
 (p. 88), cl. 73 (P- 131) 
 representation of, in H.I., 46 
 responsibility of, 37 
 
 where liable to pay wages during 1 sickness, 
 
 special provisions as to, cl. 47 (p. 108) 
 
 Employment, regular, provisions to encourage, 
 
 60 
 
 Employments in H.I., sch. i (p. 163) 
 Engineering trades and U.I., 29, 57, 60 
 
 benefits, 30 
 Equalising societies accepting members of 
 
 different ages, 47 
 Excessive sickness and local authorities, 207- 
 
 212 
 
 Excessive sickness in certain trades, 50 
 
 various localities, 50 
 Exclusion from insurance of persons under 16, 
 
 m cl. i (p. 69) 
 
 Execution, protection ag-ainst in certain cases, 
 in H.I., cl. 68 (p. 128) 
 
300 
 
 INDEX 
 
 Exemptions from insurance, 6, 7, 36, 37, cl. 2 
 
 (p. 70), 232 
 
 Existing members of societies, position of, 230 
 Expenditure on medical and sanatorium 
 benefits, power of Crown to contri- 
 bute to, cl. 22 (p. 86) 
 Expenses of management of approved societies, 
 
 rule for, 47 
 Explanations of the Act, by the Insurance 
 
 Commissioners : 
 
 Advantages of joining an approved society, 242 
 Benefits provided by the Act, 247 
 Charwomen under the Act, 258 
 Domestic servants under the Act, 254 
 Duties of employers under the Act, 281 
 Finance of the Act, 278 
 Friendly society contributions before and 
 
 after the Act, 264 
 
 How rates of remuneration affect contri- 
 butions under the Act, 243 
 How to become insured, 240 
 Position of dividing societies and slate- 
 clubs, 276 
 
 Position of members of friendly societies, 261 
 Position of members of trade unions, 274 
 Position of small societies under the Act, 270 
 Questions and answers for society officials, 
 
 266 
 Sickness and disablement benefits explained, 
 
 248 
 
 Voluntary contributors under the Act, 260 
 Who will be insured, 239 
 Women under the Act, 251 
 Working-men under the Act, 250 
 Expulsion of members from societies, 47 
 
 Factory and Workshop Act, relating to Insur- 
 ance Act, sch. 9 (p. 172) 
 
 Farmers, tenant, liability of, 234 
 
 Finance of the Act, 278 
 in H.I., 27 
 in U.I., 31 
 
 Financial provisions, els. 54-56 (pp. 116-118) 
 
 Fines for offences, in H.I., 41 
 
 Foreign societies, transfers to, cl. 32 (p. 91) 
 
 Foresters' Society, 23 
 
 Fourpenny contribution, 230 
 
 Friendly societies, see Societies 
 
 Funds, existing, of friendly societies, pro- 
 visions as to application of, cl. 72 
 (P- !3o) 
 
 Gardeners, jobbing, exempt from compulsory 
 
 H.I., 37 
 
 German employers, approval of insurance, n 
 lectures on public health, success of, 27 
 plan of insurance, 8, 35 
 
 differs from Act on several points, 
 
 35. 36 
 
 State contribution, n 
 
 Golf caddies, exempt from compulsory H.I., 7 
 Government action, reasons for, 4 
 
 Health fund, national, cl. 54 (p. 116) 
 insurance, see Sickness insurance 
 public, and Insurance Committees, 26 
 committees of, 51-54 
 
 Health, lectures and information on, 27 
 
 Hearts of Oak Society, 23 
 
 Hospitals, provisions in case of contributors 
 
 who are inmates of, cl. 12 (p. 78) 
 Husband, punishment of, in cases of neglect 
 
 of his wife, in H.I., cl. 19 (p. 86) 
 
 Income limit, the, 223 
 of Insurance Committees, cl. 61 (p. 122) 
 Post Office deposit insurance, 53, 54 
 Infirm, allowance for, 183 
 Insanitary housing conditions, 52 
 Inspection of societies' accounts, &c., 56 
 Inspectors, appointment of, cl. 57 (p. 118), 
 
 cl. 89 (p. 148) 
 powers of, cl. 112 (p. 161) 
 Insurance Commissioners, cl. 57 (p. 118) 
 
 determination of questions by, cl 66 
 
 (p. 126) 
 powers as regards societies, 49, 56 
 
 to make regulations, cl. 65 (p. 126) 
 committees, see Local Health Committees 
 Insurance, deposit, els. 42, 43 (pp. 98-100) 
 of working classes at present against death, 
 
 of working classes at present against sick- 
 ness, 4 
 
 of working classes at present against un- 
 employment, 4 
 Interpretation of terms used in Act, cl. 79 
 
 (P- 132) 
 
 Invalidity benefit, additional, 40 
 Investment and availability of funds of 
 
 approved societies, 47 
 
 Ireland, application of H.I. to, cl. 81 (p. 138) 
 duties of Insurance committees of, 52 
 
 Jobbing- occupations, exempt from compulsory 
 H.I., 37 
 
 Labour exchanges, close alliance with, in 
 
 U.L, 59 
 provision with respect to workmen 
 
 engaged through, cl. QO (p. 153) 
 to administrate scheme of U.I., 59 
 Labourers, casual, exempt from compulsory 
 
 H.I., 7 
 
 provisions for, in H.I., 55 
 Lapsed policies, large proportion of at 
 
 present, 5 
 
 Lectures on public health, 27, 53 
 Life insurance agents and the Act, 188 
 Local authorities and excessive sickness, 
 
 207-212 
 Local Government Board, powers of, in H.I., 
 
 cl. 77 (p. 132) 
 Health Committee, 22, 51-54, els. 59-62 
 
 (pp. 119-122), 186 
 appointment of, cl. 59 (p. 119) 
 income, cl. 61 (p. 122) 
 power to remove difficulties, cl. 78 
 
 (P- 132) 
 
 powers and duties of, cl. 60 (p. 121) 
 to administer sickness benefits, cl. 14 
 
 (P- 79) 
 
INDEX 
 
 301 
 
 Local Government Board, control, requires for 
 approved societies, as well as central, 
 
 45 
 
 Luggage carriers, exempt from compulsory 
 H.I., 37 
 
 Malingering, real check on, 24 
 
 scheme to check, 19, 56 
 Management expenses, rule for, 47 
 Marriage and domestic servants, 216 
 
 I Married women and voluntary contributors, 
 13. 37. 234 
 special provisions as to, cl. 18 (p. 85), 
 
 cl. 44 (p. 100) 
 Maternity benefit, 16, 39, 40, 42, cl. 8 (p. 72), 
 
 183, '93. *97 
 
 reinsurance for purposes of, cl. 20 (p. 86) 
 Medical aid, additional benefit in sickness, 20, 
 
 39 
 
 and County Health Committees, 26, 53 
 for Post Office contributors, 25 
 numbers at present insured for, 4 
 relations between societies and County 
 Health Committees in regard to, 
 26, 53 
 benefit, cl. 8 (p. 72) 
 
 administration of, cl. 15 (p. 81) 
 committees, local, cl. 62 (p. 122) 
 relief, 14-21, 38 
 Membership of approved societies, els. 30-34 
 
 (pp. 90-92) 
 
 of two or more friendly societies, 232 
 Mercantile marine, special provisions as to, 
 
 in H.I., cl. 48 (p. no) 
 Military service, persons in, special provisions 
 
 as to, cl. 46 (p. 104) 
 
 Minors, who are members of approved socie- 
 ties, provisions as to, cl. 74 (p. 131) 
 Misconduct, illness due to contributor's own, 
 
 case of, 19 
 
 Misstatements as to proposals of Act, 189, 212 
 Modifications of existing rules of societies, 
 
 members' votes on, 46 
 
 Municipal employees, exempt from compulsory 
 H.I., 7, 37 
 
 National Health Insurance fund, cl. 54 (p. 116) 
 Naval service, persons in, special provisions as 
 
 to, cl. 46 (p. 104) 
 Notice of sickness to be given, 40 
 Nurses, district, 234 
 
 Occasional employment, definition of, 37 
 
 in rural neighbourhoods, saving for, cl. 97 
 
 (P- 'S3) 
 
 exemption from compulsory H.I., 37 
 Offences in H.I., cl. 69 (p. 129) 
 
 in U.I., cl. 101 (p. 154) 
 Officials of societies, questions and answers 
 
 for, 266 
 
 Outdoor relief, 56, cl. 109 (p. 159) 
 Over-age benefits, 20 
 
 Paper Debt, working of, 48 
 Party measure, Act not a, 31 
 Pauperism, 30 per cent, attributable to sick- 
 ness, 3 
 
 Penalties, against employers and workmen 
 under Post Office insurance scheme, 
 
 54. 55 
 
 Penalty clause, 56 
 " Pocket money," 40 
 Post Office contributors, els. 42, 43 (pp. 
 
 98-100) 
 administration of funds through County 
 
 Health committees, 26 
 distribution of funds, 25 
 method of insurance, 51 
 no inducement to become, 25 
 provisions as to, cl. 42 (p. 98). 
 transfers to approved societies, cl. 43 
 
 (p. 100) 
 
 who they are, 25, 51-55 
 
 Precarious employments, exempt from com- 
 pulsory H.I., 37 
 Premiums, difficulty of keeping up, among 
 
 working classes, 5 
 
 Profit anticipated from H.I. scheme, 39 
 Protection, extension of period in case of 
 
 sickness, 56 
 Public authorities, employees of, 234 
 
 Reciprocity agreements in cases of emigrants, 
 
 47 
 
 Referees, Court of, in U.I., 59, cl. go (p. 148) 
 Regularity of employment, provisions to en- 
 courage, 60 
 
 Regulations for payment of contributions, 
 power to make, cl. 7 (p. 72) 
 power of insurance office to make, 
 
 cl. 65 Cp. 126) 
 Relief, outdoor, 56 
 
 Remuneration, rates of, how they affect con- 
 tributions under the Act, 243 
 Repayment of benefits improperly paid in 
 
 H.I., cl. 71 (p. 130) 
 
 Representation of employers in H.I., 46 
 Research, provision for, 54 
 Reserve values in H.I., cl. 55 (p. 116) 
 Reserves of societies, disposal of, 230 
 Reservists, payment of contributions of, in 
 
 U.I., cl. 98 (p. 153) 
 Rules of individual societies, modifications of, 
 
 46 
 
 not interfered with by Act, 22, 23 
 Rural labourers, the case of, 219 
 
 Sailors (of R.N.), exempt from compulsory 
 
 H.I., 6, 37 
 
 special provisions as to, cl. 46 (p. 104) 
 Salaries of more than ^Ji6o per annum, 
 persons receiving, exempt from com- 
 pulsory H.I., 37 
 Sanatoria, administered by County Health 
 
 Committees, 26 
 erection of, cl. 64 (p. 125) 
 for consumption, 17, 18, 38, 40 
 maintenance of, not an additional contribu- 
 tion, 1 8 
 
 Sanatorium benefit, cl. 8 (p. 72), 197 
 administration of, cl. 16 (p. 84) 
 power to extend to dependents, cl. 17 (p. 85) 
 Scale, one, for all classes, 8 
 
3 2 
 
 INDEX 
 
 Schoolmaster, village, a probable voluntary 
 
 contributor, 13 
 School teachers, exempt from compulsory 
 
 H.I., 7 
 
 Scotland, application of H.I. to, cl. 80 (p. 133) 
 Season servants, 215 
 Seasonal trades, special provisions as to, in 
 
 H.I., cl. 50 (p. 114) 
 Secessions, 50, 51 
 
 by approved societies, cl. 28 (p. 90) 
 from orders and associations, 51 
 Security, and approved societies, 45 
 
 to be given by approved societies, cl. 26 
 
 (p. 89) 
 
 Sempstresses, exempt from compulsory H.I., 37 
 Separation of men's and women's funds, 
 
 power of, cl. 41 (p. 98) 
 Servants, domestic, 212-216, 234, 254 
 Short time, refund of contributions paid in 
 respect of workmen working, in U.I., 
 cl. 96 (p. 152) 
 Sick allowance, 18, 39, 40 
 
 conditional on obedience to doctor's orders, 
 
 19, 41 
 
 duration of grant, 18 
 grant for women, 19 
 Sickness, allowance during, 18 
 1 refits, 20, 21, 38-44, 48 
 Sec also Benefits 
 Vnefits explained, 248 
 due to contributor's own misconduct, rase 
 
 of, 19 
 
 excessive, and local authorities, 207-212 
 inquiries into cause of, 27, 50, cl. 63 
 
 (P- I2 3) 
 ension of period of protection in case 
 
 of, 56 
 Government plan of insurance against, 
 
 explained, 6-28 
 
 malingering, scheme to check, 19 
 method of payment during, 12 
 no deductions during, 12 
 present insurance of working classes against, 
 
 4, 6 
 
 proof of required, 41 
 
 rates and conditions of benefits, cl. 8 (p. 72) 
 recurrence of illness, 41 
 rules as to benefits, 40 
 special provisions proposed, 12 
 Sickness insurance benefits, sch. 4 (p. 167) 
 
 reduction or nostponement of, sch. 5 
 
 (p. 169) 
 
 compulsory contributors, 36, cl. i (p. 69) 
 exemptions from, cl. 2 (p. 70) 
 finance of scheme, 27 
 rates of contribution, sch. 2 (p. 165) 
 scope of scheme, 36 
 
 Sec also Benefits, sickness 
 
 Sick-pay period, date of commencement of, 40 
 extension of, 39 
 refusals of, 41 
 
 Sixteen, persons under, excluded from insur- 
 ance, cl. 2 (p. 70) 
 Sixty-five, persons over, provisions as to in 
 
 H.I., cl. 40 (p. 113) 
 Slate-clubs, position of, 276 
 Societies, actions at law against individual 
 members, 41 
 
 Societies, administration of sickness insurant 
 
 35 
 
 rind convalescent homes, 42 
 and security, 45 
 and the Act, 185, 199 
 approved, 21, 44-51 
 
 advantages of joining, 242 
 
 Acts of Parliament to apply to, cl. 
 
 (P. 130 
 
 benefits, 21, 185 
 
 provisions as to, cl. 27 (p. 89) 
 
 small, pooling arrangements in case < 
 
 . cl- 39 (p. 97) 
 conditions of approval, 44 
 
 contributions before and after the Act, 2 
 deficiency in funds, course to be taken, 24 
 deficits, 49 
 
 disposal of reserves of, 230 
 dividing, 188, 276 
 equalising, accepting members of differc 
 
 ages, 47 
 friendly, provisions as to applications 
 
 existing funds of, cl. 72 (p. 130) 
 investments and availability of funds, 47 
 nature of, not to 'be altered, 22 
 new, 50 
 
 officials, questions and answers for, 266 
 points of difference from the Germ; 
 
 scheme, 35 
 possible agreement with County Heal 
 
 committees for medical work, 26 
 position of existing members of, 230, 261 
 power of domestic servants to form the 
 
 own, 213 
 power of, to register under Friend 
 
 Societies' Act, cl. 75 (p. 131) 
 power of, to undertake business, cl. 
 
 . (P- 87) 
 required to be on sound footing to 
 
 approved, 47 
 
 small, position of, under the Act, 270 
 surpluses, 49 
 transactions with insurance commissione 
 
 cl. 56 (p. 117) 
 transfers between, 46 
 valuation of funds of, 2224 
 which join an association, 45 
 with branches, valuation of, 24 
 Soldiers, exempt from compulsory H.I., 6, 
 
 special provisions as to, cl. 46 (p. 104) 
 Special orders, provisions for making-, cl. 
 
 (p. 161) 
 
 Stamps, provisions as to, cl. 109 (p. 159) 
 State benefits, 185 
 
 contribution in H.I., u, 38, cl. 3 (p. 70) 
 in U.I., 57, cl. 86 (p. 146) 
 German, n 
 Sub-committees of Health, Local, format. 
 
 of, 52 
 
 duties of, 52 
 Subsidiary occupations, exclusion of, in U. 
 
 cl. 104 (p. 156) 
 
 provisions in U.I., cl. 100 (p. 154) 
 Subsidy from Board of Trade, towards U.I.,i 
 Superannuation benefit, additional, 40 
 
 funds, 46, 233 
 
 Surplus, approved societies in possession 
 49, cl. 37 (p. 93) 
 
1NDKX 
 
 33 
 
 !ers, certificated, special provision a 
 
 cl. 52 (p. US) 
 
 ;npt from compulsory 11.1., 7 
 position of, 234 
 
 Tenant farmers, liability of, 234 
 Territorials, payment of contributions of, in 
 
 U.I., cl. 98 (P- 153) 
 Three per cent, basis of H.I. fund, 49 
 Trade, Board of, subsidy from, in U.I., 60 
 , unions, absolute freedom of, under Act, 23 
 ^ and medical relief, 4 
 
 and unemployment insurance, 28, 30 
 membership of, 63 
 members of, 233, 274 
 rades, insured in U.I., sch. 6 (p. 170) 
 radesmen, small, a probable voluntary con- 
 
 tributor, 13 
 transfers from employed to voluntary classes 
 
 in H.I., 42-44 
 of members from one approved society to 
 
 another, 46, cl. 31 (p. 91) 
 of members from an approved society to 
 deposit insurance and vice-versd, cl. 
 
 43 (P- 100) 
 
 >f members from an approved society to 
 foreign or colonial societies, cl. 32 
 (P- 9i) 
 
 n mpires, appointment of, in U.I., cl 89 
 
 (p. 148) 
 Pnder-age benefits, 20 
 
 lemployment, distress allowance, 29 
 i. fund, 30, cl. 92 (p. 150) 
 * r main principles underlying Government 
 n scheme of insurance, 59 
 
 leasures for diminution of, 59 
 ^ lethod of payment during, 12 
 Sssibility of foreseeing, 28 
 
 insurance of working 
 against, 4, 6 
 
 provisions proposed, 12 
 Mo icfit, 184 
 
 aethod of payment of, 30 
 ites and periods of, sch. 7 (p. 170) 
 -ance, administration of, 59 
 .ounts paid by workmen and employers, 
 
 29 
 
 nd trade unions, 28 
 ssociations of workmen, 60 
 Contributions for, sch. 8 (p. 171) 
 
 stimated number of persons affected by 
 
 scheme, 60 
 Q^ .qnc'e of scheme, 31 
 
 memorandum with regard to, 57-63 
 lethod of collection of contributions, 
 Miscellaneous provisions, 60 
 QJ itline of, 28-31 
 
 ,issible extension to other trades, 60 
 QJ revisions to encourage regular employ- 
 
 ment, 60, 6 1 
 Out 
 Ov 
 
 Pap. 
 Part} 
 Paup 
 
 classes 
 
 57 
 
 Unemployment, insurance, right of woi I 
 in insm unemplo)i 
 
 benefit, cl. 84 (p. 145) 
 scope of the scheme, 29, 31, 57 
 unsuccessful efforts on the Continent 
 
 inwards, 28 
 
 voluntary, preservation and encourage- 
 ment of, 61 
 See also Benefits, unemployment 
 
 Valuation of approved societies, 22-24, 49. 5> 
 
 cl - 36 (p. 93) 
 
 Values, reserve, in H.I., cl. 55 (p. 116) 
 Variations in appointment of sickness contri- 
 butions, 38 
 Voluntary contributions to H.I., 13, 38 
 
 age limit for, 13 
 
 and married women, 13 
 
 estimated numbers of, 14 
 
 in arrear, 43 
 
 rates and rules for, 69 
 
 transfers to compulsory class, 42-44, cl. 6 
 
 (P- 7i) 
 unemployment insurance, preservation and 
 
 encouragement of, 61 
 contributors under the Act, 260 
 
 Wages, deduction from, compulsory, 6, 7 
 lowness of, prevents working classes from 
 
 insurance, 5 
 
 Waiters, exempt from compulsory H.I., 7 
 Waiting period, in sickness benefits, duration 
 
 of, 41 
 Wales, establishment of Commissioners for, 
 
 cl. 82 (p. 143) 
 Washerwomen, exempt from compulsory ILL, 
 
 37 
 Wives, employed by husbands, exempt from 
 
 compulsory H.I., 37 
 Women under the Act, 203, 251 
 Women of working-classes, attitude towards 
 
 insurance, 5 
 
 and employments under H.I., 42 
 sick grant for, 19 
 
 Workers, independent, who have been em- 
 ployed, case of, 13 
 
 Working classes and insurance at present, 3-6 
 Working-men under the Act, 250 
 Workmen's compensation cases, 231 
 Workmen, rate of contribution, for U.I., 29, 
 
 cl. 85 (p. 145) 
 associations of, in U.I., 60 
 provisions with respect to those engaged 
 
 through Labour Exchanges, cl. 90 
 
 (P- 153) 
 refund of contributions paid in respect of 
 
 those working short time, in U.I., 
 
 cl. 96 (p. 152) 
 return of part of contributions by, in certain 
 
 cases, in U.I., cl. 95 (p. 152) 
 
RICHARD CLAY AND SONS, LIMITED, 
 BRUNSWICK STREET, S.E., AND 
 BUNGAY, SUFFOLK. 
 

 
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