MAJORITY REPORT.
23
to endorse a proposal which would be resisted by the Societies,
and probably with reason, as being likely to increase whatever
difficulties are now encountered in the oversight of claims. A
system of fortnightly certificates in connection with sickness
claims which, as the figures given by the Actuarial Committee
show, do not last on the average for as long as five weeks in the
case of men or more than six weeks in the case of women, would
give the insured person such a wide discretion, unfettered by
medical control; as to the day of ‘‘ declaring off,”” as to create
the risk of the period of claim being seriously prolonged in a
certain proportion of cases with corresponding effect on the cost
of the benefit. We cannot doubt that this would be the result in
the case of disablement benefit, and in these circumstances we
feel that it is impossible for us to endorse the proposal made to us
by the British Medical Association.
RE-INSURANCE OF MATERNITY BENEFIT.
506. Section 25 of the Act enables the Minister to make pro-
vision for the re-insurance with him of the liabilities of all
Societies in respect of Maternity Benefit. Up to the present,
this provision has not been put into operation. Suggestions were
made to us by witnesses from various Approved Societies for
giving effect to the Section, and in support of the case for re-
surance of the risk it was stated that the maternity benefit
experience is the highest in the case of those Societies
with the least favourable sickness experience. Thus, the
National Association of Trade Union Approved Societies
State that °° the incidence of risk in respect of maternity
benefit varies considerably as between Society and Society.
There is also considerable variation in the cost to Societies of
Section 14 (4) and (5) of the Act, which provides for a second
Maternity benefit being payable in certain cases from the woman’s
insurance.”” The Association submit ‘‘ that the Minister should
take the powers conferred upon him by Section 25 of the Act
for the reinsurance of maternity benefit, thus spreading the risks
equitably over the whole insured population.” (App. XCII,
125-126; Q. 22,057.) Similar suggestions were made to us by
the representatives of other Societies.
507. We also examined a representative of the Ministry of
Health on the subject. (Kinnear, Q. 23,480.) We are informed
that this question was examined in 1912 by the Actuarial
Advisory Committee set up when the Act came into force, who
advised that re-insurance was not to be recommended. The
Committee indicated that deviations from normal experience
Would be either—
(1) temporary fluctuations due to limitations of number
of members of particular Societies ; or
(2) permanent deviations due to the character and cir-
cumstances of sections of the population or to geographical
differences.
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