The law of friendly societies, and industrial and provident societies, with the acts, observations thereon, forms of rules etc., reports of leading cases at length, and a copious index

Bibliographic data

Monograph

Identifikator:: 1740277147

URN:: urn:nbn:de:zbw-retromon-132094

Document type:: Monograph

Title:: Report of the Royal Commission on National Health Insurance

Place of publication:: London

Publisher:: Stationery Office

Year of publication:: 1926

Scope:: XII, 394 S.

Digitisation:: 2020

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIII. Miscellaneous questions

Collection:: Economics Books

336 APPENDIX A. be understood that if the tendency of the death rate is to diminish, the proportion of the population surviving to the older ages will be increased with a consequent addition to the liabilities, as originally estimated, for sickness and disablement benefits. The probabilities of survivorship incorporated in the present basis of the system are derived from the mortality experience of the whole population of England and Wales in the years 1908-10. If it were possible it would be desirable to compare this experience with that of the population covered by the system of National Health Insurance. The records of the Approved Societies are not, however, sufficiently complete for this purpose and, to review the basis, recourse must be had to the latest available facts relating to the whole population. It is common knowledge that in recent years the general death rate has fallen substantially, and an approximate measure of the fall since the system of National Health Insurance was established, will be found in Table (A) page 38 of the Report of the Government Actuary on the Financial Provisions of the Contributory Pensions Bill (Cmd. 2406). So far as the future is concerned reasons are given in paragraph 3 of the Appendix to that Report (p. 28) for the assumption that the Life Tables derived from the population of England and Wales at the 1921 Census and the registered deaths in the two years 1920 and 1921 may properly be employed for the purpose of a contributory system which is co-exten- sive with that of National Health Insurance. For the most part the reasons here given apply with equal cogency to the case of the Health Insurance system and we have accordingly adopted these tables for the purpose of the new basis which we shall recommend Tur SioRNESS AND DISABLEMENT RATES. 11. The present basis in regard to sickness and disablement is the Manchester Unity Experience 1893-97 loaded by about 13 per cent. in the case of men and 35 per cent. in the case of women, exclusive of a special provision for married women. So far as men are concerned this basis was adopted at the outset, and has not been subsequently changed. The reasons for its adoption are set out in the first report of the Actuarial Advisory Committee set up in 1912 (published as an Appendix (p. 552) to the Report for 1912-18 on the Administration of the National Insurance Act, Part 1 (Cd. 6907)). The loading is not the result of any exact appraisement of such extra risk as might be expected to be involved in a compulsory and wide-spread system of insurance as compared with that arising under a voluntary system, but is the provision for any feature of the kind that the margin in the original contribution of 7d. a week rendered possible. This margin was fortuitous in its extent since it arose out of the fact that, for administrative reasons, the contribution had necessarily to be an integral number of pence per week. In regard to women the Manchester Unity Experience (which was that of men only) was also adopted originally and with the same margin—about 13 per cent. —in the case of sickness benefit. For disablement benefit the original contribution of 6d. a week enabled the margin to be increased to 19 per cent. Material changes have, however, been subsequently made in the financial basis of women’s insurance, chiefly as the result of the Interim Report of the Departmental Committee on Approved Society Finance and Administration (Cd. 8251). The effect, as indicated in paragraph 11 of the Report of the Government Actuary on the First Valuation of Approved Societies (Cmd. 1662), was to increase the addition to the Manchester Unity rates in the case of women by proportions approxi- mating, over all ages, to 85 per cent. A considerable further provision was made for married women, and this is now financed by the grant of special reserve values for women who remain in insurance after marriage. 12. We have been supplied, for the purposes of our enquiry, with two sets of material relating to the recent experience of Approved Societies in respect of sickness and disablement claims. The first of these is »

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