934 
=): 
MAJORITY REPORT 
valuation, to be associated with other Societies in an Association 
formed for the purpose, or if they had not joined any such Asso- 
ciation, to be compulsorily grouped on a geographical basis. 
The 1918 Act amended these provisions, and the existing enact- 
ment provides for the approval of Associations of Societies formed 
for mutual assistance against adverse results on valuation by 
means of a pooling of the Contingencies Funds of the constituent 
Societies. The Association in effect acts as a Society, and the 
constituent Societies as its branches for the purpose of dealing 
with surpluses and deficiencies. The Act further provides that 
in the case of Societies with less than 1,000 members which 
have not at the date of valuation joined a recognised Associa- 
tion, any balances of the Contingencies Funds not required for 
making good deficiencies in the Societies themselves are to be 
applied pro rata to such an extent, not exceeding one-half, as 
may be necessary towards making good the balances of the 
deficiencies remaining in the case of other Societies of this 
class. 
565. We are informed that no case has arisen in which it has 
been necessary to put into operation the main provision for 
which Associations were formed. (Kinnear, Q. 594 and 23.598.) 
566. While we recognise that statutory Associations fulfilled a 
useful purpose under the original scheme, we consider that their 
main function is now rendered unnecessary, having regard to the 
adequate protection afforded to small Societies by the financial 
provisions relating to the formation of Contingencies Funds and 
the Central Fund. 
567. We accordingly recommend that the provisions of Seec- 
tion 76 of the Act, enabling Associations to be formed for the 
pooling of Contingencies Funds, should be repealed. At the same 
time, we see certain advantages in allowing Associations of 
Societies to continue on a voluntary basis for purposes of con- 
sultation and general co-operation in the work of the Insurance 
Scheme, and we have no desire to interfere with the continuance 
of such Associations, should they see fit to continue in existence 
on a wholly voluntary basis for the purpose of affording each other 
mutual counsel on’ questions that mav arise. 
PERIOD OF SCHEMES OF ADDITIONAL BENEFITS. 
568. The next matter to which our attention was directed was 
the period of operation of schemes of additional benefits provided 
out of a surplus disclosed on valuation. (Kinnear, Q. 23.651.) 
569. Section 75 of the Act provides that where, on the valua- 
tion of a Society or Branch, there is found to be a surplus which 
is certified by the valuer to be disposable, the Society or Branch 
may submit to the Minister a scheme of additional benefits for 
his approval. The Section fixes no limit to the period of currency