Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-07-28
NEW zEALAND'S WAY
PUBLIC AFFAIRS CONDUCTED IN
PEACE And PRoB1TY.

From the Independent.
One Of the deepest Of the many pleasant
Impressions which New Zealand makes
upon the visitor is that in Its public affairs
1t Is . land Of peace and probity. The In
conduct Of public and semi-public business.
the dust and stencil OF constant disclosures.
which have come to be almost the normal
condition Of life In the United States, are
practically unknown in that island colony
OF the southern seas Such q national dis
grace as the insurance scandals. which
have 50 shocked and amazed the American
public, would be impossible there The
methods Of the government insurance de-
partment and the honesty and publicity
with which the ONCE Is administered give
absolute confidence to the New Zealandei'
Insured therein. In thirty-six years there
has not been even suspicion OF wrong
doing In the department.
Government life insurance has had thor
ough test in the colony, but fire insurance
Is one OF Its recent experiments. The life
insurance department began work In 1870.
having been established because of the fall
ure of two British companies In which many
New Zealanders held policies 1t was the
result Of a general public conviction tina,
there must be greater security In life In
surance and that their own government was
| the likeliest place In which to find It, The
| act establishing the department was passed
| by unanimous vote of parliament.
The government insurance Office does bus
| mess In competition with all the other COM
| panies that wish to enter Its field and 1t
| has not only beaten them In the contest,
but Is steadily gaining on their business.
| 1t does Al per cent of the entire life insur-
| ance business of the colony. and now trans
acts the largest amount OF new business.
! Ten foreign companies compete with IL.
Six Of these are Australian, two British.
and two are American. the New York Life
| and the New York Equitab bic. The two
latter have been in the colony nearly TWEEN
ty years. and hold together only 5000 pol
| icies, assuring $5,500,oo0. The big Austria
| liar Mutual Provident Association Is the
only foreign company that transacts any
thing near the amount of the government
business. IT has beeV in New Zealand more
than forty years and holds 30,7O0 policies,
fee has in force over 1900 policies, assur-
ing $55, 000,0
The utmost publicity is afforded by the
reports issued annually and triennially,
which give full details of the work and
progress of the office. An English insur-
ance expert has declared that in form and
contents its annual report is we'll deserving
Of imitation by all offices that court public
inspection.
But the unique distinction of this insur-
ance office Is that behind every policy stands
the government of New Zealand guaran-
teeing its payment. No fears need ever
corning his security.
Cooperation.
The department is cooperative and is
conducted on practically the same meth
DDS used by private mutual life insurance
companies. 1t is entirely self-supporting,
even to It's kilograms and postage, and
the expenses and taxes are borne by the
poIicyholders. who share. the whole of the
profits. Its officials work for modest
salaries, comparable to what they would
be able to command elsewhere and these
they endeavor to earn by honest. efficient
work and devotion to their duties. The
department does not consider the creation
of a big surplus TO be sound business
management, and, as 1t does not have to
pay large sums to legislative agents, con-
tribute to campaign funds, create kind
ly feeling by means of expensive social
functions. the policy-holders find there is
something to share when the profits are
divided. These now accrue at the rate of
nearly $4,000 per annum. The uepart-
ment has distributed in dividends to pol
icy holders 100000 in cash.
Bonuses are allotted every three years,
but by a recent arrangement interim boz
muses. are given in the case of claims by
death or maturity, and are included in all
calculations of surrender values, whether
the policies are actually surrendered or
are borrowed upon or the premiums are
overdue. II Is the policy of the office to
make things as easy as possible for those
who get into temporary financial straits,
and in accordance with this purpose the
policy-holder who is compelled to surren-
der receives the proper proportion of ac-
crued bonuses for every premium paid
since the last valuation. 1t is the same
kindly, human, brotherly spirit which
marks the administration of every depart
ment of the New Zealand government.
This kindly unwillingness to take ad-
vantage of another's necessities is shown
| also is the system by which policy on
which premiums are overdue continues in
%foal II, he moi tow
holders in the Equitable who have allowed
their policies to lapse during the insur-
ance disclosures and commissions would no
doubt be thankful were such scheme
in force here. Surrender values and loan
values are allowed after two years, and
II after that time the premium is not paid
an account is opened crediting >-ie policy
holder with the surrender value and in
creases therein and debiting him with pre-
miums and interest thereon as they fall
due. AS long the amount to credit
exceeds the amount owing the policy is
in full force, and in the event of death or
maturity the sum assured and bonuses
less the arrears with interest paid.
During one recent year twenty-nine over
due policies fell in by the deaths of the
persons assured, and, although on most of
them not a penny of premium had been
paid for six years or more, the depart
ment recognized claims upon them to the
amount of $4,000, exclusive OF bonuses.
Lapsed policies which have not acquired
surrender value, or In which the sur
render value has become exhausted may
| be revived within twelve months by Civ
ing proof of health and paying arrears and
fine
The policy of holder committing sui
| eide within six months of the date of the
policy does or does not become void, ac-
| eording to the discretion of the commits
sioner If he is satisfied after making
careful inquiry that there was no suicidal
| intention at the time of the taking out of
| the policy he pays the claim. The extent
| to which the officials of the New Zealand
| government are allowed to exercise their
common sense and their human feeling
| in their dealings with the people is a bit
| surprising. In every department one meets
! with that same kindness and fair play
| instead of strict adherence to the letter
| of the law. 1t has the effect of making
| the government in its relation to the people
| seem more like a band of elder brothers
| than a complicated machine.
Endowment Assurance.
Endowment assurance is the class of
policy chiefly issued. This fact makes COM
parison of New Zealand rates with those
| in this country somewhat difficult. but they
are lower than those charged by the pri-
! vate companies doing business in the col
| ony The Australian Provident Association
| pays larger bonuses. but charges higher