Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1928-07-26
400 MILLION
INSURANCE IN
ONEBICPOLICY
General Motors Pro-
vide3 Protection to
100000 rs;
Record Deal

NEW YORK, July 26.-General
Motors Corporation today wrote in
dnstrial as well as insurance history
when II made available TO more than
100000 employees OF its division. sub
salaries, and affiliated companies,
the benefits Of the largest life in
snrance contract ever written.
Alfred P. Sloan, Jr., president Of
General Motors, acting in the inter
est of the employees. signed an APP
plication to the Metropolitan Life
insurance company for group insur-
ance which D. expected to total be-
tween $35O,0O0,000 and 100000 900
more than double the amount of
the largest previous policy-and
group sickness and accident insur-
anee Tor a total weekly benefit two
m one-half times larger than the
former record policy. The cost Of
the insurance will be shared by the
corporation and its employees, thus
giving the case the added distinction
OF being n Of the largest coopera-
tive enterprises ever entered into by
employer and employees.
Many Eligible
The application was signed by Mr..
Sloan in his office here, and imme-
diately thereafter Haley Fiske.
president, who is in London, was
notified by transatlantic telephone
that the transaction had been COM
pleted.
Under the terms OF the ~insurai e
contract all General Motors en-
ployes and those of less than three
months standing automatically be-
come eligible as soon as the wait
ing period has elapsed. Individual
employees will have $4,000 Of life in
surance and benefits Of SIS a week
during absence from work owing TO
illness or accidents happening off
the job. Occupational accidents will
continue TO be covered by workman's
compensation.
No Examination
The insurance will be issued with
out medical examinations condi-
tion that permits the insuring Of
many employees who are unable 10
obtain individual protection because
OF physical impairment-and the
contribution toward the cost will be
the same for all employees, regard
less Of age. The amount that the
individual worker will pay will be
less than 5 cents a day, from one
ninth to o%ne-third Of the cost Of
similar protection IL applied for in
dividually. This low cost is made
possible by the fact that General
Motors will pay a substantial part
OF the premium.
A feature Of the insurance con-
tract is the total and permanent dis
ability clause thaG provides for the
payment Of the life insurance to the
policyholder If he becomes totally
and permanently disabled. Such
payment is made in forty equal
monthly installments. In the event
Of such disability the employe would
first draw his temporary disability
benefits and would then be eligible
for total and permanent disability
benefits. Thus the combined beLe-
fits would cover a period Of three
years and seven months.
Aid Workers
In commenting on the insurance
program. Mr.. Sloan pointed out that
81 is but one Of a number OF plans
for mutual benefit that General Mo
tors and its employees have under
taken comparatively.
"The success that General Motor
has enjoyed" Mr.. Sloan said. INST
urally cannot be attributed to any
single influence, but on the contrary
has resulted from the combined eff
fort of many. However, the fact
that General Motors has prospered
proportionately even more than
many other industrial enterprises
can be attributed almost entirely. !
believe. 70 the increased effective
ness Of its employer-employe rela-
tionship."
Mr.. Sloan mentioned. particularly,
the savings and investment plan un-
der the terms Of which employees are
entitled to pay into a fund a GER
tain percentage Of their earnings.
For each dollar paid in, General Mo-
tors subscribes so cents and invests
this amount for the employees ac-
count.
Encourage HOme-Owning
ANY employe who is willing 20
snve $500 n year. under this ar
rangement," said Mr.. Sloan. should
find himself in an Independent posi-
tion. well able 10 take care Of him
self and his family, in his latter
years"
GENERA MOtOrS mas encouraged
kome-owning among its employees.
Fir. Sloan said. and TO that end has
arranged the savings and investment
plan to permit a contributor TO have
bis payments apply on the pur-
chase OF a home, without any sacri-
flee or benefits. Several thousand
workers have taken advantage az this
provision.
THE corporation also makes il pos
sible for employees 70 purchase Cen
eral Mtors 7 per cent preferred
stock. on which. during employment.
an extra payment Of $500 a share
is guaranteed over a five year per
Tod. in addition TO the regular 500 n
share dividend. Cash proceeds from
the savings and investment plan may
be used for this purpose. or the
stock may be purchased out Of
earnings on convenient installment
terms.