Evening star., 1951-04-25
Agencies Opposed
To Signing Of New
GI Insurance Bill
By William J. WheotIey

W - w
Strong opposition is developing
against the President signing the
new veterans insurance bill, which
is now on his desk. it was learned
today.
This opposition was said to come
largely from the Government
agencies charged with administra-
ton of the measure. which has
been termed an administrative
monstrosity." Opponents say 1t
will cost many millions Of dollars
more to handle than any of the
previous veteran insurance plans.
In the meantime, thousands of
veterans all over the country are
rushing into regional Offices of the
Veterans Administration in an ef-
fort to renew their National Serv-
ice Life Insurance, which they
have allowed to expire. From the
moment that the President signs
the measure, any veterans who
have allowed their insurance con-
tracts to expire will lose their
chance to renew or get new con-
tracts under previous acts. AS Of
now, any veteran may get Gov
ernment insurance.
The President has until Friday
to sign the measure. 1t has been
submitted to the agencies con-
cerned for report. These in
clude the Veterans AdminiStra-
ton, the Bureau of the Budget,
the Treasury and the Defense De-
partment.
Largely the opposition has de-
veloped against the measure in
all the agencies except the Budget
Bureau, it was said. But the lat
ter. it was indicated, is rather linn
tied to the opinion that it is not
in violation of the Presidents
financial program.
AS originally introduced, it was
a straight indemnity bill giving
the men protection only during
the time that they were in the
service and for short term there
after. However, as finally adopt
ed. it provides that the term in
surance may be continued by the
veterans after they leave the
service.
Expense viii Rise.
With term insurance, which
must be renewed every five years
with increased premiums with each
renewal, it was asserted the in
surance becomes increasingly ex-
pensive with age. The high pre-
miums will occur at time of prob
able diminishing civilian income at
the age when most veterans need
it more than ever. 1t does not au-
thorize permanent insurance plans
for veterans of the current conflict
under the various methods pro-
vided for the former armed serv-
ice men of World Wars I and II.
Most of the complications and
expense of administration will oc-
cur in the cases of former vet
erans who have permanent in
surance from previous wars. In
order to put them on some form of |
equality, premiums on insurance
which they now hold will be waived
during the time they are in service.
However. they will be required to!
pay the reserve" each month, and
this varies from month to month";
They will have to make an allot-I
ment through their outfits to pay
this reserve, but as the amount |
will vary they probably either will
pay too much each month or too
little. Each month the insurance
accounts Of each veteran will have
to be examined to determine the
amount of reserve he must pay to
keep his old policy in force. This.
it was pointed out, will require
a very large administrative force
in either the Defense Department. |
or the Veterans Administration,
or possibly both. /
Discrimination Charged.
On the other hand, it was
pointed out that the new law dis
eliminates against veterans of the
last war who still hold their term
insurance. Their first term was
for five years, but Congress ex-
tended it for three years, with a
privilege of one renewal for a
period of five years. Prior to the
expiration of this 13-year period
they must convert it to one of the |,
permanent forms of insurance.
But under the measure now on
the Presidents desk the later
veterans of this war may have
their term insurance as long as
they live. if they renew it every
five years.
This practice is expected to be
followed by pressure to grant the
same privileges of renewing term
insurance of World War II vet
erans for an indefinite period.