Volume 1

Report of the departmental committee on sickness benefit claims under the National Insurance Act.

  • Great Britain. Sickness Benefits Claims Committee.
Date:
1914
Catalogue details

Licence: Public Domain Mark

Credit: Report of the departmental committee on sickness benefit claims under the National Insurance Act. Source: Wellcome Collection.

    25/108 (page 11)
    40. This result is somewhat surprising having regard to the financial position of many of the societies at the passing of the Act. Valuations of the private funds of many of the societies had disclosed deficiencies—sometimes to a very considerable extent ; and it might have been anticipated that governing bodies of societies, by endeavouring to induce their members to take advantage of the section and to reduce their contribu- tions and benefits, would use this opportunity to bring the societies back to solvency on the private side. In fact, however, except in very few cases, the only action taken has been to offer an option to the members to submit to a reduction of contribution and benefit. | Faure of Section 72. 41. In consequence, in many cases brought to the notice of the Committee the effect of section 72 has been negligible. In the Order of Druids Friendly Society, 96 per cent. of the membership continued their full contribution (Shaw, Q. 6511) ; in the Hampshire and General Friendly Society, the percentage is about 91 (Bunch, Q. 10,878); in the Ideal Benefit Society the number applying for reduction is given as negligible (Daniels, Y. 13,854) ; in a female branch of the National United Order of l’'ree Gardeners, only two members reduced (Wigglesworth, Y. 17,838) ; in the largest district of the Sons of Temperance only 14 per cent. reduced (Wightman, Q. 25,388) ; in the National Independent Order of Oddfellows about 93 per cent. continued their full contribution (Johnson, (. 26,478) ; in the Manchester Unity the figures given for those reducing their contributions indicate a percentage of 9 and 2 in certain districts (W. P. Wright, Q. 31,669-31,824) ; although in other lodges the number reducing is much higher (W. P. Wright, Q. 31,828), and in the Sheffield Equalised Independent Druids only about 35 per cent. reduced (Mander, Q. 21,692). Figures such as these indicate that the members of the societies themselves could only with difficulty have been induced to sanction a compulsory reduction of contribution and benefit. It was stated by the High Chief Ranger of the Ancient Order of Foresters that the rank and file of the Order would not for a moment have countenanced a compulsory reduction under the section (Hyner, Y. 19,336), and evidence in the same sense was received from the Grand Master of the Manchester Unity (W. P. Wright, Q. 32,218). The difficulty experienced in effecting a compulsory reduction is also evidenced by the failure of one society which endeavoured to do so, but was unable to obtain the consent of its members to the adoption of this course (Pumble, Y. 37,164-5). Lxtent of Double Insurance. 42. In this connection a few figures may be given to illustrate the extent to which members who are insured for the purpose of the Act are also members on the voluntary side. In the Rational Association Friendly Society, out of a membership for State purposes of 108,087, 76,000 are also members on the voluntary side (J. Duncan, (. 3545); in the Order of United Sisters practically ail on the private side are also on the State side (Pearce, Y. 6097); in the Order of Druids, of 68,422 men who are members on the State side, 50,000 are also members on the private side (Shaw, Q. 6478); in the Tunbridge Wells and 8.E. Counties Equitable Friendly Society, of a total membership for State purposes of 30,000, about 20,000 are members on the voluntary side (Saunders, Q. 9334); in the Ancient Order of Foresters, of a State membership of 658,096, 448,354 are contributing also for voluntary benefits (Hyner, Q. 19,019) ; im the Amalgamated Union of Co-operative Employees, all the members on the State side are also members on the voluntary side (Davies, Q. 35,980), and the same is true of the Amalgamated Society of Tramway and Vehicle Workers (Jackson, Y. 36,471); in the Gloucester Conservative Benefit Society (Men), 90 per cent. of the State members are members of the parent society, while in the case of the corresponding women’s society, 80 per cent. are members of both (Pimble (107,026*7). 43. In contrast to the general failure to take advantage of the provision of section 72 of the Act, special mention must be made of the action taken by the Royal Oak Benefit Society. The committee of this society, apparently with some difficulty, induced its members to agree to a compulsory reduction of contributions and benefits (Dyer, Q. 23,615-7). The experience of the society has been an eminently favourable one, and, in the opinion of the secretary, the action taken under section 72 is likely to prove its salvation. A similar compulsory scheme has been put into operation by the Midland Railway Friendly Society (Woodcock, . 15,035) which has : B 2