3

H.-~ 9a

General Remarks. The New Zealand Government Insurance Department is the first institution of the kind originated by a Government that has achieved a marked success. Causes similar to those which led to the establishment of Post Office Savings Banks in Great Britain induced the Home Government to set on foot a system of Government Life Insurance. A recent writer, referring to the action of the British PostmasterGeneral with respect to increasing facilities for inducing habits of provident saving among the people of Great Britain, speaks of the necessity for devising means for popularizing life insurance. He says,— " The fault of the Post Office hitherto is that it has not been sufficiently enterprising in this direction. Its attitude towards insurers has been one of entire indifference—the indifference of a Government department. If something of the temper of an insurance office which has its way to make in the world could be infused into it some better result might perhaps be arrived at. If it is worth the while of the Government to invite insurers at all, it must be worth its while to secure them as well as to bid for them." The spirit and temper here referred to have characterized the action of this Department, and, although that action has undergone antagonistic criticism, —all the less considerate because a Government department was deemed a fair mark for opposition,—the results, as displayed by the Valuations now published, might fairly be left to bear their own unaided testimony Evidences are not wanting to show the interest with which the success of such an experiment as that of the establishment of this Department is elsewhere regarded. Other Governments have heard of its progress, and from time to time official inquiries have been made with respect to its condition and working. Amongst these, were inquiries on behalf of the Government of the German Empire, the Dominion of Canada, and, more recently, of the Kingdom of Belgium and the sister Colonies of South Australia and Tasmania. Copies of the principal forms, the laws, regulations, tables, reports, and other documents of the Department have been supplied in response to these applications. In the Actuarial Reports will be found full details of the business of the Department for the five years ended at the date of the last investigation, with all requisite tabular and other statements prepared in conformity with the provisions of the Act. I). M. Luckie, Commissioner

Revenue Account of the Government Insurance Department (Ordinary Branch) for the Year ended 30th June, 1881.

£ s. d. imount of funds on ist July, 1880 459,335 ]7 ° itenewal premiums Assurance, Annuity, and Endowment .. ... H9>57° 3 2 Sew premiums on 1,790 policies, assuring £S5°,351) alld yielding an annual revenue of £17,515 is. 8d. ... ... ... 8,704 on Jingle premiums—Assurance and Endowment .. .. .. ... 1,023 11 2 Consideration for Annuities granted ... 750 o o interest ... ... ••• 26,505 13 7 Fees ... ... ... ■• 62 1 7 £ s. CI. £ s. A. Claims under policies, Assurance ... 28,425 o o Endowments matured .. .. 755 o o Annuities ... ... .. 2,086 o 6 Surrenders ... .. ... 8,128 7 9 Commission, New ... 5,068 17 8 ,, Renewal .. 1,079 I[ 4 6,148 9 o Expenses of Management, — Salaries, Head Office... 4,8/i 10 6 „ Branch Offices and Agents 1,176 7 3 „ Extra clerical assistance... 421 40 Medical fees ... 2,038 15 1 Travelling expenses ... 479 4 6 Advertising ... ... 21640 Printing and stationery 842 15 n Rent ... ... 350 o o Postage ... ... 475 o o Telegrams ... ... 132 14 2 Exchange ... 93 16 o Office furniture, depreciation ... 126 o o General expenses ... 217 n 2 Compensation for loss of office _ ... _ .. 559 5 9 Quinquennial valuation expenses ... 1,177 IO ° , _ 13,177 18 4 Amount of funds on 30th June, 1881 ...557,230 n 10 £6'5,95' 7 5 * £615,951 7 5