The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-12
u. S. INSURANCE
FOR VETERANS
IN SAD MESS
Plan Framed to Eliminate
Pension Evils Defeated
by Legislation.
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Continued from Page II
vert, and today there are 100000 of
these policy holders.
While these thrifty veterans were
paying their premiums regularly,
congress made its first change.
This provided liberal enactments
which worked to the advantage of
those men who had dropped their
insurance, and which ultimately
may penalize those men who did
carry their insurance.
The old war-risk insurance act
provided certain modest sums for
permanent and total disability in
addition to the insurance provision
Congress added to these, so that
now any man disabled 10 per cent
or more is receiving regular pay
ments in addition to what he may
collect on his insurance.
Congress Remedies Again
Later, congress did another large
remodeling job. 1t enacted a law
permitting any one who had allowed
his term insurance to lapse, who
cancelled or reduced it, and who
afterwards had become permanently
and totally disabled from any cause,
to have his insurance put back in
force from the date of the disability.
Even more liberal was a section
of this law permitting the estates
of dead men to revive the insurance
after the soldiers death.
This legislation can be visualized
more clearly by citing a hypothetical
case. Assume that John Smith took
out $4,000 in war risk insurance
while he was in the service, paid
his premiums, and continued with
his insurance after the war. Assume
then, that in 1920 he dropped this
insurance.
He goes along, gets married, has a
couple of children, and in 1880 dies
of tuberculosis
Widow Gets Money
His widow goes before the vet
Grams administration, and presents
a claim. She presents witnesses to
show that John Smith had tuber-
culosis, or at least symptoms of tu-
berculosiS, prior to 1920, when he
dropped his insurance. She must
show by medical testimony that her
husband was treated, but lay testi-
mony is sufficient to prove how
much he was disabled.
The government then is obligated
to do the following First, to pay
John Smiths widow $4,000, not in
one lump sum, but at the rate OF
$3.50 a month, until the $4,000
policy is expended; second, to pay
to John Smiths widow, in one lump
sum, an amount of money equal to
$3.50 a month from the time John
Smiths disability occurred in 1920
until the time he died in 1880.
Premiums Smith owed while his
insurance was unrevived are de-
Quoted from the lump sum.
If the widow establishes her case,
1t will be seen that the government,
first, assumes that because John
Smith died of disability incurred
prior to dropping his insurance. he
was diabled more than 10 per cent
during all the years in which his
insurance had lapSed; second, that
lay testimony of the extent of dis
ability is sufficient evidence.
Other Clauses Confusing
Further than that, this Insurance.
feature carries other disability pro-
visions which are equally confusing,
and equally at variance with ac-
cepted insurance practices.
To illustrate further the point
with a hypothetical case, let us as
sumo that John Smith did not die
in 1880. Instead, John Smith dis
covered in 1880 that he had tuber-
culosis.
He went to the veterans admin
istration and presented witnesses to
testify that he had tuberculosis, or
at least symptoms of tuberculosis,
prior to the time he dropped his
insurance in 1920.
If that claim is substantiated,
John Smith qualities as being per-
mnaently or totally disabled, and
draws $3.50 a month for the rest Of
his life.
In addition to that, he draws back
disability pay in lump sum,
amounting to $3.50 month, to
the time when his disability was
established.
Given Right to Sue
Further than that, congress
passed a law permitting ex-soldiers,
or their dependents, to sue the gov
eminent for these claims, if the
claims are disallowed by the yeter-
ans administration.
Again, for the purpose of visual
ling the manner in which the law
works, we will take the hypothetical
case of John Jones.
He permitted his insurance to
lapse in 1920. In 1880 he discovered
that he had tuberculosis. He went
before the veterans administration
and attempted to show that his tu-
berculosis was incurred prior TO the
dropping of his insurance in 1920.
He does not have sufficient evil
dence to convince the veterans adj
ministration, and his claim is disal-
lowed.
Jones then goes to a lawyer,
many Of whom have made special
ty of cases of this kind, and his
case is presented in court. The
hearing is in federal court, either
before a federal judge or a jury, or
both.
Gravy for Lawyers
Those who administer the bureau
say that veteran whose case APP
peared weak to them, and who had
little supporting evidence, usually
turns up with an impressive array
OF witnesses when he gets in court.
1t is not difficult to understand
the possibilities this law opened up
for lawyers. Hundreds Of thousands