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

90
Motors Corporation today wrote in
dustrial as we'll as insurance history
when it made available to more than
100000 employees Of its division, SUBJ
salaries. and affiliated companies,
the benefits Of the largest life in
surance contract ever written.
Alfred p. Sloan, Jr., president OF
General Motors, acting in the inter
est Of the employees. signed an ap-
plication TO the Metropolitan Life
insurance company for group insur-
anee which IS expected to total be-
tween S350,000, 900 and Si00, 000, 900
more than double the amount of
the largest previous nolicy-and
group sickness and accident insur-
ance for a total weekly benefit two
and one-half times larger than the
former record policy. The cost Of
the insurance will be shared by the
corporation and it's employees. thus
giving the case the added distinction
OF being one 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-
otaAtlN thereafter haAeN I4HhE-
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 thar 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 70
illness or accidents happening off
the job. Oc%cupational accidents will
continue to be covered by workman's
compensation.
No Examination
the insurance will be issued with
out medical examination-a condi-
tion that permits the insuring Of
many employees who are unable 70
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 ) cents a day. from one
ninth to one-third of the cost Of
similar protection il applied for in
d~ividually. 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 that 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 instailments. 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 Motors
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, j
believe, to 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
"Ary employee who IS willing TO
save $500 n year. under this ar
r~angement." said Mr.. Sloan, should
find himself in an independent posi-
tion. well able TO take care OF him
self and his family, in his latter
years"
General Motors has encouraged
homecoming among its employees.
Hr. Sloan said. and 20 that end has
arranged the savings and investment
plan TO permit n contributor 10 have
his payments apply on the pur-
chase of a home, without any sacri-
flee Of benefits. Several thousand
workers have taken advantage OF this
provision.
TIE corporation also makes Il pos
sible for employees to purchase Cen
eral Mtors z 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 70 the regular $500 a
share dividend. Cash proceeds from
the savings and investment plan NAV
be used for this purpose. or the
stock may be purchased out OF
earnings on convenient installment
tnrr-r