MAJORITY REPORT. 
ei 
am 
Insurance. We examined Sir Walter Kinnear on this proposal, 
and we give the following extract from his reply : — 
. +. . The Department considers that it would not 
be practicable or desirable to merge the Workmen’s Com- 
pensation Scheme in the Health Insurance Scheme. . . . 
The risks covered by the Workmen's Compensation Act vary 
very greatly in various trades. These risks entail consider- 
able variation in the rates of premium as between different 
occupations and a frequent revision of rates according to 
claim experience. I suggest that such a system could not 
be worked in conjunction with a general scheme of insurance 
based on flat contributions. If a flat rate of contribution 
were charged, it is suggested that such a system would be 
inequitable to the trades carrying the lighter risks, and would 
in any case remove from employers the incentive which at 
present exists to reduce the risk of accidents and thus secure 
a reduction in their premiums. In any case, the Depart- 
ment considers that it would not be practicable for Approved 
Societies organised on their present lines to administer 
workmen's compensation insurance. The workers con- 
tribute a substantial proportion of the contributions to the 
funds of the Approved Societies, and the Act provides for 
those Societies being under the absolute control of their 
members. If on the valuation of a Society’s funds a defi- 
ciency is found, the members may be rendered liable to an 
increase in their contributions or a reduction in their 
benefits. In workmen’s compensation insurance the whole 
of the premiums are contributed by the employers, who alone 
would be affected by any excess of claims and expenses over 
income. The working of such a scheme could not be 
entrusted to Societies controlled solely by the workers. 
Moreover, the financial liabilities of workmen’s compensa- 
tion insurance are more onerous than could with prudence 
be undertaken by many of the 9,000 Approved Societies and 
Branches throughout the country, and if these liabilities 
were pooled in a central fund, I submit to the Commission 
that the Societies could not retain that independence in 
government and administration which characterises their 
operations at the present time.” (Q. 23,461.) 
627. We consider that the arguments advanced by Sir Walter 
Kinnear are conclusive on this subject, and we cannot recom- 
mend that the Health Insurance Scheme should be widened to 
cover the liability now provided under the Workmen’s Compen- 
sation Acts. 
628. The National Association of Trade Union Approved 
Societies (App. XCII, 117-120) called our attention to cases 
in which insured persons who are incapacitated by accident