180 
MAJORITY REPORT. 
the present basis, and an ‘‘ Insurance Section *’ on a mutual 
basis. The latter section would provide for the persons in ill 
health who prove to the satisfaction of the Department that 
they are unable to obtain admission to an Approved Society, the 
former for all the rest. In respect of the former class, the only 
change we recommend is that the right of a deposit contributor 
on death or emigration to half the balance to his credit should 
be abolished, and that those half-bdlances be dealt with as 
described below. 
411. In the Insurance Section we think that the normal 
benefits of the Act (but no additional benefits) should be paid 
for a certain period of years, and that if, at the end of that 
period a valuation reveals a deficiency, the position should be 
met out of the resources available under the Act in the manner 
explained in paragraph 413 below. The funds for the Insurance 
Section should, we think, be derived from four sources—the 
contributions of the members of the Section; the appropriate 
State grants; the balances of the deposit contributors in the 
Individual Account Section released on death or emigration; 
and the accruing interest on the whole Fund, which, we under- 
stand, runs to about £40,000 a year. It is difficult to say whether 
the total of these resources would sustain the Fund in view of 
the uncertainty as to the number in the Insurance Section. 
We believe, however, that that number would be so small that 
the experiment is worth trying. 
412. Some form of test for admission to the Insurance Section 
would be necessary. A test of the kind we contemplate already 
exists in the case of the Navy, Army and Air Force Insurance 
Fund, namely, rejection by one Society on the grounds of health. 
It might be desirable to require rejection by two or even three 
Societies of different types before admission to the Section was 
allowed and also to provide for a periodical review by requiring 
the members to submit further evidence of the same kind at 
intervals. 
413. As the Insurance Section would have the character of an 
Approved Society we think that the usual deductions for the 
purposes of reserve values, the (Contingencies Fund, and the 
Central Fund should be made from the contributions of its 
members and that if there is a deficiency on valuation of the 
Section, the normal provisions for recourse to the Contingencies 
Fund and Central Fund should have effect. In this connexion we 
refer to the evidence of Sir Walter Kinnear. (Q. 23,643-23,646.) 
414. We have recommended above that the balances released on 
death or emigration and the accruing interest on the whole 
Deposit Contributors Fund should be credited to the Insurance 
Section. In respect of these special sources of revenue, there- 
fore, the Section would differ from the ordinary Approved 
Qociety. It is impossible to forecast what the position of the