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generally lower than elsewhere; that the placing of the rates on this low basis has been effected without friction with the private companies, who in point of fact defer to the Department's scientific assessment; and that a considerable reserve has now been built up against contingencies, rendering the Branch strong enough to be able to contemplate the granting of rebates of premium to the policyholders in accordance with the amendment in the Act already mentioned. The question of the rebates to be allowed is now receiving careful consideration, and the matter will be dealt with at an early date. I think it can be claimed that the working of the Branch has not only saved thousands of pounds to the insuring public, but that its actuarial analysis of the business has placed beyond doubt the equities as between different classes of insurers. In order to illustrate more forcibly what has been achieved I may say that in the older business of fire insurance not only has no attempt been made to ascertain - the net cost of the separate classes of business, but that the premiums charged to tin; public have never been reduced to the low point that applies in accident insurance. In the latter business the premiums are fixed at double the actual claim cost, whereas an examination of the returns of fire offices will show that the premiums charged by the companies for fire insurance are equivalent to about three times the claim cost. Tt can therefore be said that the business of accident insurance has reached a considerably higher point of efficiency in economical service to the public, thanks to the work done by the Accident Branch. J. FT. Richardson, Commissioner.

Revenue Account op the Accident Branch op the Government Insurance Department for the Year ended 31st December, 1922. £ s. d. £ s. d. Amount of Acoident Funds, Ist January, Claims .. .. .. .. 20,329 15 5 1922 .. .. .. .. 11,472 7 7 Commission.. .. .. .. 4,043 4 10 Premiums .. .. £33,982 10 5 Salaries .. .. .. .. 3,870 0 0 Less reinsurance pre- Expenses of management .. .. 1,708 4 1 miums .. .. 634 16 2 Amount of Accident Funds, 31st Decem33,347 14 3 ber, 1922 .. .. .. .. 21,068 15 5 Interest .. .. 7,598 0 1 Less land and inoome tax .. .. 1,489 6 10 6,108 13 3 Defalcations recovered .. .. 914 8 £51,019 19 9 £51,019 19 9 Balance-sheet of the Accident Branch of the Government Insurance Department on 31st December, 1922. Liabilities. jg s. d. Assets. £ s. d. Acoident Funds, as per Revenue Account 21,068 15 5 Debentures issued under authority of the Claims admitted (proofs not yet com- Finance Act, 1915 .. .. .. 10,000 0 0 pleted) .. .. .. 12,000 0 0 New Zealand Inscribed Stock — War Commission.. .. .. .. 355 19 7 Loans .. .. .. .. 100,500 0 0 Premium and other deposits .. .. 74 14 5 New Zealand Inscribed Stock .. .. 3,000 0 0 Sundry creditors .. .. .. 2,466 2 4 Mortgages on property .. .. 40,720 0 0 Officers' Fidelity Fund .. .. 300 0 0 Outstanding interest due but Reserve for unearned premiums .. 14,929 0 0 not overdue .. .. £220 3 9 Investment Fluctuation Reserve .. 3,000 0 0 Interest accrued but not due 1,596 15 9 Reserve Fund constituted under sec- 1,816 19 6 tion 20 of the Government Accident Agents' balances .. .. .. 558 18 4 Insuranoe Act, 1908 .. .. 115,019 19 11 Sundry debtors .. .. .. 11110 Gash in hand and on current acoount .. 12,617 2 0 £169,214 11 8 £169,214 11 8 Government Insurance Department, 6th March, 1923. , J. H. Richardson, Commissioner. G. A. Kennedy, Acting-Secretary. The Audit Office, having examined the Revenue Account and balance-sheet, and compared them with the relative books, documents, and securities, hereby certifies them to be in accordance therewith. G. F. C. Campbell, Controller and Auditor-General.

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