D5&
MAJORITY REPORT.
for which compensation is payable are unable to obtain com-
pensation by reason of the employer or other person responsible
being unable to meet his liability, and are at the same
time unable, by reason of the disentitling provisions of the
National Health Insurance Act, to obtain any benefit from their
Approved Societies. The Association suggested that in order
to meet the very unsatisfactory position which thus arises, the
Act should provide that ‘‘ unless an insured person unreasonably
neglects or refuses to enforce his claim, benefit should be payable
if compensation is not recovered
629. We have no reason to think that cases of this kind are
numerous as they are confined to those in which an insured
person has established his title to compensation prior to
the employer becoming insolvent. Moreovér, even in such
cases, the employed person’s claim to compensation ranks pre-
ferentially on the assets of the employer. At the same time,
though the cases may be few they involve real hardship, and in
our opinion the present position cannot be justified. We, there-
fore, recommend that provision should be made whereby in any
case where an award of compensation or damages has been made
in favour of an insured person, and the payment cannot be
recovered by reason of the insolvency of the employer or other
person liable, sickness or disablement benefit should then become
payable.
630. The only other matter in connexion with workmen's
compensation on which we desire to make a recommendation
relates to the notification of agreements. On this point we may
quote from a question addressed to Sir Walter Kinnear and his
reply :
““ Are you satisfied with the present arrangements under
which Societies are notified of cases in which their members
become entitled to claim compensation under the Work-
men’s Compensation Act?—Under the Workmen's Compen-
sation Act, 1923, and the Rules of Court made under that Act,
Approved Societies are now recognised as interested parties in
any agreements for the payment of a lump sum, and arrange-
ments have been made for the notification of such agreements
by the Registrars of the County Courts to the Approved Society
concerned. These arrangements are working well and should
enable a Society to receive prompt information of the cases about
which it is important that it should know. There is still in force
Section 16 (1) (¢) of the Act, which requires the employer or
insurance company—in fact it is really the insurance com-
pany—to forward a notification to the Ministry or
Society where there is an agreement for compensation
at less than 15s. a week, or for redemption of a
weekly payment by a lump sum. This provision has never
been of much use. as out of thousands of cases notified it has not