respect of him and no part of the contributions payable in respect of him phall
be retained by the insurance commissioners toward the discharge of their lia-
bilities in respect of reserve values.
(4) If such a person does not become a member of an approved society as
aforesaid he shall become a deposit contributor, and accordingly all contribu-
tions payable In respect of him (Including contributions out of moneys pro\ided
by Parliament) shali be carried to his credit in the post-offlce fund, but the
Digitized by VjOOQ IC
44 BULLETIN OP THE BUREAU OF LABOB,
benefits to wbich he becomes entitled shall be such as may be determined by
the insurance committee.
(5) No part of the cost of benefits under this section shall be payable out of
moneys provided by Parliament.
Special provisions as to seasonal trades,
50. Where it is proved to the satisfaction of the insurance commissioners
that a trade or business carried on by any employers is of a seasonal nature and
subject to periodical fluctuation, and that those employers systematically em-
ploy persons throughout the year and work short time during the season when
the trade or business is depressed, the Insurance commissioners may make a
special order reducing, as respects such persons, the employed rate and the con-
tributions payable by the employers and contributors to such extent and for
such period in the year as may be specified in the order, and increasing such
rate and contributions to a corresponding extent and for a corresponding period
during the remainder of the year, and the order may contain such incidental,
supplemental, and consequential provisions as may appear necessary for
adapting the other provisions of this part of this act to cases under this section.
Special provisions as to inmates of charitable homes, etc,
51. — (1) Where the managers of any Institution carried on for charitable or
reformatory purposes prove that the persons who are Inmates of and supported
by the Institution receive maintenance and medical attendance when sick, the
insurance commissioners may grant a certificate of exemption to those managers,
and, where such a certificate of exemption is granted, any such inmates who are
employed by the managers of the Institution shall not, In respect of such em-
ployment, be deemed to be employed within the meaning of this part of this act :
Provided that it shall be a condition of such exemption that the managers
fihall be liable to pay in respect of any such inmate who, having been an Inmate
of the Institution for more than six months, leaves the Institution, the following
sums:
(a) In the case of a person who was at the time of entering the institution
below the age of sixteen, such capital sum as will be sufliclent to
secure him benefits under this part of this act at the full rate ;
(6) In the case of a person who was at the time of entering the institution
of the age of sixteen or upwards, and who was at that time an insured
person and a member of an approved society, a sum equal to the
value, calculated In the prescribed manner, of the contributions which,
apart from this section, would have been payable In respect of him
during the time he was In the Institution.
(2) Every such Inmate as aforesaid shall. If he was an Insured person be-
fore entering the institution, be suspended from benefits whilst he Is such an
inmate, and, if he was at such time a member of an approved society and has
been an inmate of the institution for a period exceeding six months, the time
during which he Is In the Institution shall be disregarded for the purpose of
reckoning arrears.
Special provision as to persons becoming certificated teachers,
52. Where a person who has been employed to teach in a public elementary
school ceases to be employed within the meaning of this part of this act by rea-
son of becoming a teacher to whom the Elementary School Teachers (Super-
annuation) Act, 1898,* applies and does not become a voluntary contributor,
there shall be paid to the board of education by the approved society of which
he Is a member or, If he Is not a member of an approved society, out of the
amount standing to his credit in the post-oflJce fund, a sum equal to the value.
calculated in the prescribed manner of the contributions paid by or in respect
of him under this part of this act since he first began to teach in a public ele-
mentary school, or, if the amount standing to his credit is less than that sum,
then the whole amount so standing to his credit ; and the sum so paid to the
board of education shall be placed by them to his credit In the deferred annuity
fund in accordance with the rules for the time being applicable thereto.
» 61 and 62 Vict, c. 07.
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BRITISH NATIONAL INSUBANCE ACT, 1011. 45
Application to other persons in the service of the Crown.
53. — (1) This part of this net shall apply to persons employed by or under
the Crown, other than those with respect to whom special provision Is made by
this part of this act, in like manner as If the employer were a private person :
Provided that, in the case of a person employed In the private service of the
Crown, the head of the department of the royal household in which he is em-
ployed shall be deemed to be his employer.
(2) The provisions of this act relating to reduced insurance in cases where
the employer is liable to pay wages during sickneps shall extend in respect of
persons employed by or under the Crown to cases where two-thirds only of the
fun remuneration are payable during periods, or parts of periods, of disease or
disablem&it, if such remuneration Is so payable for not less than three months
in any year, and those provisions shall apply accordingly as if two-thirds of
the full remuneration were substituted for the full remuneration and as if
three months were substituted for six weeks as the maximum amount of time
during any year such remuneration is payable.
FINANCIAL PROVISIONS.
National Health Insurance Fund.
54. — (1> All sums received in respect of contributions under this part of this
act and all sums paid out of moneys provided by Parliament under this part
of this act In respect of the benefits thereunder and the expenses of administra-
tion of such benefits shall be paid into a fund, to be called the National Health
iDsuranee Fund, under the control and management of the insurance commis-
rfoners, and the sums required to meet expenditure properly Incurred by ap-
proved societies and insurance committees for the purposes of the benefits ad-
ministered by them and the administration of such benefits shall be paid out
of that fond.
<2) The sums payable to the said fund out of moneys provided by Parlia-
ment shall be paid in such manner and at such times as the Treasury may
determine.
(3) The insurance commissioners shall ascertain periodically what sums
standing in the National Health Insurance Fund to the credit of the several
societies and of the po8t-ofl9ce fund and of the Navy and Army Insurance Fund
are available for Investment, and the amount so ascertained shall, so far as not
required under the provisions of this part of this act to be paid over to societies
for investment, or to be retained for investment on their behalf, or for the dls-
diarpe of liabilities of societies, be carried to a separate account, called the
investment account, and shall be paid over to the national debt commissioners
and by them invested in accordance with regulations made by the Treasury In
any securities which are for the time being authorized ^y Parliament as invest-
ments for savings banks funds, but those commissioners shall, in making the
investment, give preference to stock or bonds issued under the provisions of
the acts relating to borrowing for raising capital for the purposes of the local
loans funds where the purposes for which such capital Is required in the making
of advances for the purposes of the Housing of the Working Classes Acts, 1890
to 1909:
Provided that nothing in this provision shall prevent the insurance commis-
sioners laying over to the national debt commissioners for temporary Invest-
ment, pkiding the ascertainment of the amount available for Investment hs
nforesaid, any sums in the National Health Insurance Fund not required to
meet current liabilities
(4) There shall be credited to the post-office fund and to the Navy and
Army Insurance Fund interest at the prescribed rate per annum on the sums
from time to time standing to the credit of those funds in the investment
account.
(5) The accounts of the National Health Insurance Fund shall be audited by
the comptroller and auditor general in such manner as the Treasury may direct.
(6) The national debt commissioners shall present to Parliament annually
an account of the securities In which moneys forming part of the said fund
are for the time being invested.
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46 BULLETIN OF THE BUREAU OP LABOR.
Reserve values,
55. — (1> The Insurance commissioners shall, cause tables to be prepared
showing, in cases In which such provision is necessary, the capital sums (in this
part of this act referred to as ** reserve values") which it is necessary to pro-
vide in respect of members entering into Insurance at ages over the age of
sixteen to meet the estimated loss (if any) arising through the acceptance by
an approved society of such persons as members upon the terms and conditions
as regards contributions and benefits prescribed by this part of this act.
(2) On a person of the age of seventeen or upwards joining an approved
society for the purposes of this part of this act, there shall be credited to the
society the reserve value (if any) appropriate to such person in accordance with
such tables.
The sums so credited to a society in respect of reserve values shall carry
interest at the rate of three per centum per annum.
(3) Out of each weekly contribution paid by or in respect of an insured per-
son who is a member of an approved society (other than a voluntary contributor
who entered into Insurance within six months after the commencement of this
act and at the date of that entry was of the age of forty-five years or upwards)
there shall be retained by the insurance commissioners the sum of one penny
and five-ninths [3.16 cents] (or in the case of women one penny halfpenny [3
cents]), and the amounts so retained shall, together with any other moneys
available for the purpose, be applied in mann'er provided by this part of this
act toward discharging the liabilities of the insurance commissioners to ap-
proved societies in respect of the reserve values created by this section.
(4) The insurance commissioners shall periodically apportion amongst the
several societies, including the Navy and Army Insurance Fund, the sums re-
tained by them, and tlie sums, if any, otherwise available for the discharge of
such liabilities as aforesaid, in proportion to the amount of reserve values for
the time being credited to the several societies, and shall credit to each society
the amount so apportioned, and any balance of the sums so credited to a society,
after providing for Interest on the reserve values for the time being credited to
the society, shall be written off the amount of the reserve values so credited.
(5) If any person is convicted of the offence of knowingly making any false
statement as to his age in any declaration made for the purpose of obtaining a
reserve value to be credited to an approved society in respect of him, the reserve
value shall be canceled, and the member of the society in respect of whom it
was credited shall be treated as if he had entered into insurance after the ex-
ITlration of one year from the commencement of this act.
Tvansariions hettceen the ivsuranee eommissioners and societies,
56. — (1) The Insurance commissioners shall, subject to the approval of the
Treasury, make regulations with respect to crediting and debiting to the several
societies sums received and paid by the Insurance commissioners on behalf of
and to societies and as to the payments to be made by and to the commissioners
to and by societies, and those regulations shall, amongst other things —
(a) provide for crediting to each society the contributions paid by or in
respect of the members of the society after deducting the amounts
retained thereout for discharging the liabilities of the Insurance com-
missioners in respect of reserve values;
(6) require the insurance commissioners, on carrying any sum to the credit
of an approved society in the investment account, to pay over to the
society for investment, or. at the request of the society, to retain for
investment on behalf of the society, four-sevenths, or, so far as the
sums are attributable to women, one- half, of the amount so credited
to the society ;
(c) provide for crediting to each society interest at the prescribed rate per
annum on the sums for the time being standing to the credit of the
society in the investment account;
(d) provide for the discharge of debit balances in such manner as the insur-
ance commissioners determine, either by the reduction ol^ the reserve
values credited to the society or out of the proceeds of the realization
of securities held by the society or by the commissioners on behalf of
the society, and out of the sums standing to the credit of the society
in the investment account, proportionately;
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BRITISH NATIONAL INSURANCE ACT, 1911. 47
ProTided tliat. In the case of any society which gives notice to thut effect to
the insurance commissioners, no part of the sums carried to the credit of the
society In the investment account shall be paid over to the society or retained
by the commissioners for investment on Its behalf, but the whole amount shall
remain to tlie credit of the society in the investment account, and in such case
the r^nlations made under the foregoing provisions shall apply to the society
subject to the prescribed modifications.
(2) Every approved society shall invest any sums paid to the society for
investm^it, and shall for the purpose have power to invest in any securities
in which trustees are for the time being by law empowered to invest trust
fands, or in any stoclvs, mortgages, or other securities issued by any local
authority within the meaning of the Local Loans Act, 1875,* and charged on any
ntes levied by or on the order or precept of such authority, or in any other
securities for the time being approved by the insurance commissioners.
<3) Where, at the request of a society, the insurance commissioners instead
of paying over any sum to the society retain such sum for Investment on behalf
of the society, they shall invest such sum in accordance with the directions of
the society in any securities in which the society might have invested it had it
been paid over to the society, and shall from time to time vary such investments
in accordance with the like directions, and shall pay over to the society all sums
rec^ved by way of interest or dividend on the investments held by them on
behalf of the society.
<4) Every approved society shall apply the snms received by way of interest
or dividend on investments held by the society or by the insurance commls-
lioners on behalf of the society toward the cost of the benefits under this part
of this act of the members of the society and th« cost of the administration of
those benefits, or otherwise, as the insurance commissioners may prescribe.
IWSITBAlfCE COMMISSIONERS — ADVISOBY COMMITTEE.
Constitution of insurance commissioners , appointment of inspectors, etc.
57. — (1) As soon as may be after the passing of this act there shall be consti-
tuted for the purposes of this part of this act commissioners (to be called the
iiwnrance commissioners), with a central office In LK)ndon, and with such branch
offices as the Treasury may think fit, and the commissioners shall be appointed
by the Treasnry, and of the commissioners so appointed one at least shall be
t duly qualified medical practitioner who has had personal experience of general
practice.
(2) The insurance commissioners may sue and be sued, and may for all pur-
poses be described by that name, and shall have an official seal which shall be
officially and Judicially noticed, and such seal shall be authenticated by any com-
missioner or the secretary to the commissioners, or some person authorized by
the commissioners to act on behalf of the secretary.
(3) The Insurance commissioners may appoint such officers, inspectors, ref-
erees, and servants, for the purposes of this part of this act as the commis-
sioners, subject to the approval of the Treasury as to number, may determine,
and there shall be paid out of moneys provided by Parliament to the commis-
sioners and to such officers. Inspectors, referees, and servants, such salaries or
remuneration as the Treasnry may determine; and any expenses incurred by
the Treasury (including the remuneration of valuers and auditors appointed
by the Treasury) or the commissioners in carrying this part of this act into
effect, to such extent as the Treasury may sanction, shall be defrayed out of
moneys provided by Parliament.
(4) Every docnment purporting to be an order or other Instrument issued by
the insnrance commissioners and to be sealed with the seal of the commissioners
authenticated in manner provided by this section, or to be signed by the secre-
tary to the commissioners or any person authorized by the commissioners to
act on behalf of the secretary, shall be received in evidence and be deemed to be
such order or instrument without further proof, unless the contrary is shown.
(5) Tlie Insurance commissioners may empower any inspector appointed by
them to exercise in re^>ect of any approved society or any branch of an ap-
proved society all or any of the powers given by section seventy-six of the
Frisidly Societies Act, 1806,* to an inspector appointed thereunder.
» 38 and 30 Vict., c. 83. ■69 and 60 Vict., c. 25.
Digitized by VjOOQ IC
48 BULLETIN OF THE BUREAU OP LABOR.
Provided that any complalut or report as to any such branch as aforesaid
made by an inspector under this subsection shall be communicated to the central
body or other central authority of the society.
Appointment of (Advisory committee,
58. The insurance commissioners shall, as soon as may be after the passing
of this act, appoint an advisory committee for the purpose of giving the insur-
ance commissioners advice and assistance In connection with the making and
altering of regulations under this part of this act, consisting of representatives
of associations of employers and approved societies, of duly qualified medical
practitioners who have personal experience of general practice, and of such
other persons as the commissioner may apiK)int, of whom two at least shall
be women.
INSURANCE COMMITTEES.
Appointment of insurance committees,
50. — (1) An insurance committee shall be constituted for every county and
county borough.
(2) Every such committee shall consist of such number of members as the
insurance commissioners, having regard to the circumstances of each aise,
determine, but In no case less than forty or more than eighty, of whom —
(a) three-fifths shall be ai)|)oiuted in such manner as may be i>rescrlbed
by regulations of th^ insurance commissioners so as to secure repre-
sentation of the Insured persons resident in the county or county
borough who are members of approved societies, and who are deposit
contributors, in proportion, as nearly as may be, to their resi)ective
numbers ;
(6) one-fifth shall be appointed by the council of the county or county
borough ;
(c) two members shall be elected in manner provided by regulations made
by the insurance commissioners, either by any association of duly
qualified medical practitioners resident in the county or county
borough which may have been formed for that puri)08e under such
regulations, or, If no such association has been formed, by such
practitioners ;
(d) one member or, if the total number of the committee Is sixty or up-
wards two members, or, if the total number of the committee is
eighty, three members, shall be duly qualified medical practitioners
appointed by the council of the county or county borough ;
(e) the remaining members shall be appointed by the Insurance com-
missioners :
Provided that—
(i) The regulations with respect to the appointment of members to rep-
resent insured persons shall provide for conferring on the ap-
proved societies which have members resident in the county or
. county borough the power of apiwinting the representatives of
such members, and, where an association of the deposit con-
tributors resident in the county or county borough has been
formed under such regulations as aforesaid, for conferring on
such association the jwwer of appointing the representatives of
the deiK)sit contributors ;
(ii) Of the members appointed by the council of the county or county
borough two at least shall be women, and of the members ap-
pointed by the insurance commissioners one at least shall be a
duly qualified medical practitioner and two at least shall be
women.
(3) The insurance commissioners may, where any part of the cost of medical
benefit or sanatorium benefit is defrayed by the council of the county or county
borough, increase the representation of the council and make a corresponding
diminution in the representation of the insured persona
(4) The insurance commissioners may make regulations as to the appoint-
ment, quorum, term of oflSce, and rotation ol members and proceedings generally
(Including the aprwlntment of subcommittees consisting wholly or partly of
members of the committee) of the committee, and the employment of officers
Digitized by VjOOQIC
BRITISH NATIOKA.L INSUKANCE ACT, 1911. 49
and the provision of offices by the committee, including the use by the committee,
with or without payment, of any oflSces of a local authority, but subject to the
eonsent of such authority, and any such regulations may provide for the consti-
tution of district insurance committees, and for apportioning amongst the several
district insurance committees any of the powers and duties of the insurance
eommittee and regulating the relations of district Insurance committees to the
insurance committee and to one another :
Provided that the regulations so made shall require the insurance committee
of every county (except In cases where, owing to special circumstances, the
wmmissioners consider It unnecessary) within six months after the commence-
ment of tliis act to prepare after consultation with the county council and
submit for approval to the commissioners a scheme for the appointment of dls.
trict insurance committees for the county and prescribing the area to be assigned
to each such committee, and In particular the scheme shall provide for the ai>
pointment of a district insurance committee for each borough (Including the
city of London and a metropolitan borough) within the county having a popula-
tion of not less than ten thousand, and for each urban district within the county
with a population of not less than twenty thousand, but, if the Insurance com-
mittee or, on appeal, the insurance commissioners consider It expedient in the
rase of any such borough (outside London) or urban district, any adjoining
tresis may be groui)ed with such borough or urban district for the purpose of
the appointment of a district insurance committee.
(5) Any insurance committee may, and shall If so required by the Insurance
commissioners, combine with any one or more other insurance committees for
all or any of the purposes of this part of this act, and, where they so combine,
the provisions of this part of this act shall apply with such necessary adapta-
tions as may be prescribed.
Powers and duties of insurance committees,
60. — (1) The insurance committee of a county or county borough shall. In
addition to the other powers and duties conferred and Imiwsed on It by this
[•art of this act. have the following powers and duties :
(a) It shall make such reports as to the health of Insured persons within
the county or county borough as the Insurance commissioners, after
consultation with the local government board, may prescribe, and
shall furnish to them such statistical and other returns as they may
require, and may make to them such other reports on the health of
such persons and the conditions affecting the same, and may make
such suggestions with regard thereto as It may think fit, and the