Evening star., 1932-08-19
HIT
INSURANCE RAISE
$500, 900 More IN Compen-
sation Premiums Paid
Here Is Feared.

Increases in employees compensation
insurance rates In the District. ranging
up to 26.9 per cent. which were an
nounced by companies writing this type
of insurance here, effective August /,
have brought forth numerous COM
plants from various branches of busi-
ness, it was learned today at the office
Of the superintendent of insurance OF
the District and at the United States
Employees Compensation Commission.
The increase in rates, which 1t Is
estimated will represent an increase OF
approximately 100000 yearly in pre-
miums paid by Washington employers
for this compulsory insurance, affect all
present policies, according to William
H. Davis. manager of the District of
Columbia Compensation Rating Bureau.
Salary Reductions Cause.
According to Davis, the raise in pre-
miums is made necessary through ma
tionwide salary reductions and unem-
ployment. The premium rates, he ex-
planned, are predicated on the total
payrolls Of employers, and since these
have dropped Is to 80 per cent during
the time that the last rates were IN
effect, 1t has been necessary to increase
the rates to Offset the compensation
outlay, which has remained as high
and in some instances risen higher,
due to increased hazards.
All complaints being filed at the
Office Of the Superintendent of In
surance in the District Building are
being referred to the United States En-
ployes' Compensation Commission. but
at the latter Office it was said the COM
mission has no control over such
matters.
The increase of 269 per cent in the
District has been announced by the
stock insurance companies Mutual and
reciprocal groups have announced an
increase of only 15.9, according to
Davis. The District of Columbia in
crease is greater than that OF several
other States, Davis explained. because
of the fact that the rates IN the Capt.
tai have been increased only once
81 per cent-since the law went into
effect here July l, 1928.
Light Virginia Increase.
In Virginia this year the rate is being
increased only per cent, he explained,
but last year Virginia's premiums went
up 10 per cent.
Insurance companies handling COM
pensation policies during 1929, 1880 and
1881, suffered losses totaling in excess
of s58. 900 900. according to Davis. OF
this. s23 900 900 occurred in 1881 alone
The rates of compensation insurance
are fixed by the National Council on
Compensation Insurance, representing
all such companies, and are based on
national workmen's compensation ex-
perience.
The annual report of the superin-
tendent of insurance for the District
last year showed that premiums PAID
here during 1881 totaled sl,549,470.
1925-1930 Salaries Basis.
Davis said the rates up till August l
had been based on salaries OF 1928 70
1890, which he said was unquestiona bly,
a period of unusual prosperity. adding
that such rates could not be expected
to apply to the present era.
The matter of rate increase is to be
discussed by the Committee on Law
and Legislation of the Washington
Chamber of Commerce at a meeting
called for next Tuesday at the head
quarter, of the chamber, In the Homer
Building 1t was announced today by
Dorsey w. Hyde, jr., secretary of the
chamber. DR.. George c. Havenner
chairman of the committee, will pre-
side Hyde said such an increase does
not require approval by any depart
ment of government in the District such
as is required in some States.