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The Pamphlet Collection of Sir Robert Stout: Volume 66
Government Life Assurance
Government Life Assurance.
An Act was passed in 1869 empowering the Governor to grant life assurances and annuities on the security of the colonial revenue, and the business was actually commenced in March, 1870. As may be seen by the statement below, from very small beginnings the business steadily increased; the total number of policies in force up to the 31st December, 1884, being 28,925, representing an aggregate insurance amounting to over £6,300,000, while the amount of the accumulated funds at the same date was £972,775, and has since exceeded one million sterling.
It may be useful in this manual to notice the principal advantages offered to policy-holders by the Government Insurance Association of New Zealand, which is the first British colony that has, by special legislation and exceptional attractions, stimulated the growth of those self-dependent and provident habits that lie at the root of the life-assurance system. These advantages may be briefly stated as follow :—
| 1. | The inviolable security offered to the assured, the payment of every policy being guaranteed by the colony under a special Act of Parliament. |
| 2. | The division of profits, the whole of which are by law to be divided amongst policy-holders only, who thereby enjoy the advantages possessed by members of mutual companies, in addition to that of having the security of the colony for the payment of claims. The first quinquennial investigation showed a profit of over £12,000; and the investigation which took place on the 30th June, 1880, showed the surplus funds to amount to £77,595. Out of this sum, £56,000 was divided amongst policy-holders. |
| 3. | The low scale of premiums comes next in order. The premiums are as low as the non-participating rates in other offices, and yet they entitle policy-holders to a full share of the profits that may accrue. |
| 4. | Policies contain no restrictive conditions as to voyaging, trade, or occupation, and are indisputable and unchallengeable after five years' duration, if age has been admitted. |
The subjoined tabular statement will show the remarkable growth of the business of this department:—
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| Year ending 30th June. | Number of Policies. | Sum Assured. |
|---|---|---|
| £ | ||
| 1870 | 53 | 27,800 |
| 1871 | 400 | 1,78,074 |
| 1872 | 1,355 | 4,50,225 |
| 1873 | 1,101 | 4,29,450 |
| 1874 | 1,499 | 5,00,910 |
| 1875 | 1,450 | 4,98,715 |
| 1876 | 1,485 | 5,04,509 |
| 1877 | 1,409 | 5,63,928 |
| 1878 | 1,991 | 680,600 |
| 1879 | 2,057 | 682,200 |
| 1,880 | 2,274 | 725,254 |
| 1,881 | 1,790 | 550,351 |
| *1882 | 13,259 | 1,335,968 |
| 1883 | 8,718 | 1,077,457 |
| 1884 | 5,988 | 821,442 |
| Totals | 44,898 | 9,759,483 |
* In 1882 the end of the financial year was changed from the 30th June to the 31st December.