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JUNE, 191 1













JUNE, 191 i



This Summary has been prepared for those who have
some knowledge of the contents of the National
Insurance Bill, to serve them as a reminder of its

Those engaged in preparing or considering Amend-
ments to the Clauses in the Bill will, of course,
require to refer to the Bill itself, but there are many
others who desire to remember the sense and not the
actual legal phraseology of the Clauses. It is hoped
that this Summary may be of use to them.

It is intended to re-issue this Summary with Notes
and Comments upon the various Clauses as soon as
the consideration of the numerous Amendments now
being suggested has been completed.

L. W. R.
22 June, 1911.

Note. — On page 32 will be found a full Index lo the Bill as




CLAUSE 1.— Insured Persons.


(i) ''Employed persons" engaged in manual labour, and others
not being manual labourers but earning a regular salary of not more than
;£i6o a year, are insured compulsorily, and certain qualified persons
may insure voluntarily.

(2) " Employed persons " include men and women, whether British
subjects or not, engaged in the following employments, specified in
Part 1 of the 1st schedule: —

(a) Employment in the United Kingdom or on any British ship.

(b) Employment as an out-worker in such classes of work as
may be specified in any special order under Part VI. of Factory and
Workshops Act, 1901.

(c) Employment in the United Kingdom in plying for hire
with any vehicle or vessel leased from its owner.

Exceptions from above. Part II. of 1st schedule —

(a) Soldiers and sailors (included under special scheme, see
Clause 36), but excluding Reserves and Territorials, except on
active service.

(b) Employment under the Crown or any local or public
authoritv where employees get provision for sickness or disablement
not less favourable than that given by the Act.

(c) Employment as a teacher entitled to superannuation under
certain Acts.

(d) Agents paid by commission or share in profits, not
ordinarily employed by one employer only.

(e) Employment where no wages are paid, if employer is
occupier of an agricultural holding of the annual value of less than
^20, or where the employer is the parent of, or person liable to
maintain, the person employed, and that person is under 16.

(f) Employment otherwise than in manual labour if getting a
regular salarv or fixed remuneration of over ^160 a year.


(g) Employmenl ol a casual nature, otherwise than fox pur-
poses of the employer's trade or business, and otherwise tha
purposes of an) game or recreation, where persons employed are
paid through a club, and in such case the club is deemed to b

The [nsuranoe Commissioners have power to include by regulations
persons now exempt.


(3) Voluntary insurers are — (a) those engaged in some re,
occupation, mainly dependent on their earnings, or (b) those who have
been employed contributors for five years or upwards.

(4) If a voluntary contributor for five years or upwards ceases to
possess qualifications, he may, nevertheless, continue.

No one over 65 not previously insured under the Act can become

CLAUSE 2. — Exemptions.

(1) Exempts also an employed person who proves that he is not
as a rule employed for more than 39 weeks in the year, and is either —

(a) In receipt of pension or income of £26, not depe
upon his personal exertions; or

(b) Is ordinarily dependent upon some other person.

(2) Certificates of exemption to be granted by Insurance Commis-
sioners in accordance with regulations. Regulations may delegate the
power of exemption to approved Societies or to Loral Health Commil

CLAUSE 3.— Contributions.

Funds for benefits and administration to be derived as to seven-
ninths (women three-fourths) from contributions by insurers and their
employers, and as to two-ninths (women one fourth) by the State.

[Note the State's contribution is worth about i\d. a week.~\

CLAUSE 4.— Employed Rates.

(1) Contributions by employed insurers are specified in the 2nd
schedule of the Act.


plover pays

Insurer pa vs



If daily wages do not exceed is. 6d.


4 d.




4 d.


,, ,, ,, „ 2S. 6d.

4 d.




If daily wages exceed 2s. 6d. ...


4 d.


(2) Employer pays his own and the contributor's amounts, and
deducts the latter from wages or recovers in accordance with rules in the
3rd schedule.

(3) An employed contributor need not pay while unemployed, but
may pay to prevent consequences of arrears

(4) No contributions after 70.

(5) Employer to pay his contribution, notwithstanding that his
workman is not insured if the workman is 65 or has obtained certificate of

Employers' contributions to be dealt with " as may be prescribed."

Voluntary Rates.

( 1 ) Voluntary insurers are to pay at a rate appropriate to age.

(a) [f under 45, and joining within six months, the voluntary
rate is to be the same as the compulsory rate. If over 45, at a
rate " according to tables to be prepared," sufficient to cover, for
men seven-ninths and women three-fourths of the benefits.

(b) A voluntary insurer who has contributed compulsorily for
five years shall continue at the employed rate.

(2) Contributions cease at 70.

CLAUSE 6. — Change from Voluntary to Employed Insurance.

(1) Voluntary contributor to an approved Society is to continue at
the voluntary rate, notwithstanding his becoming employed, unless he
gives prescribed notice to transfer to the employed rate.

(2) If he gives notice, he is to contribute at employed rate, but
benefits are to be reduced in accordance with tables to be prepared.

(3) If he does not give notice, employer's contributions are to be at
employed rate, and are to be credited on account of amount due from
contributor as a voluntary contributor.

(4) An employed contributor becoming a voluntary contributor
without having subscribed for five years, is deemed in arrear to the
amount of the difference between the value of the scales of contribution,
his reserve value being cancelled.

CLAUSE 7.— Cards and Stamps.

Insurance Commissioners may make regulations —

(a) For payment of contributions by stamps.

(b) For entries on contribution cards.

(c) For custody of cards and replacement of lost cards.

CLAUSE 8.— Benefits.

(1) The benefits are —

(a) Medical benefit, i.e., treatment and medicine.

(b) Sanatorium benefit, i.e., treatment in sanatoria for
tuberculosis, or such other diseases as the Eocal Government Board
and Treasury may approve.

(c) Sickness benefit, i.e., weekly payments whilst unfit to
provide their own maintenance by some specific disease or by bodily
or mental disablement, commences from the fourth day after notice,
and continues for 26 weeks.

(d) Disablement benefit commences al the end of sickness
benefit, and continues while unfit.

(e) Maternity benefit. The sum of 30s. to be applied for the

benefit of insured women, or wives of insured men.

(f) Additional benefits mentioned in Part II. of the 4th

schedule when funds permit.

(2) Sickness and disablement benefits are specified in Part I. of

the 4th schedule as follows: —

Sickness benefit —

Men ... ... ... ... 10s. for first 3 months.

Women ... ... ... ... 7s. 6d. for first 3 months.

Men and women ... ... ... 5s. for second 3 months.

Disablement benefit —

Men and women ... ... ... 5s.

If under 21 and unmarried —

Sickness benefit —

Men ... ... ... ... 5s. for 6 months.

Women ... ... ... .... 4s. for 6 months.

Disablement benefit —

Men ... ... ... ... 5s.

Women ... ... .. ... 4s.

If under 16 no Sickness or Disablement Benefits.

If over 50 and under 60 at date of claim, and 500 weekly contri-
butions have not been paid : — [Clause 9 (3)].

Sickness benefit —

Men ... ... ... ... 7s. for 3 months.

Women ... ... ... 6s. for 3 months.

Men and women ... ... ... 5s for second 3 months.

Disablement benefit —

Men ... ... ... ... 5s.

Women ... ... ... ... 4s.

If over 60 —

Men and women ... ... ... 5s. for 6 month-.

(3) No sickness or disablement benefit for insurers under 16 and
over 70. Other benefits continue through life, except the additional

(4) Benefits are not payable while the insured is outside the British
Isles, except with consent of Society or Committee.

(5) Two periods of sickness of the same disease are deemed to be
one continuous period, unless in the interval twelve months have elapsed
and 50 contributions have been paid.

(6) Where a woman is entitled to maternity benefit, no other
benefit shall be paid to her during four weeks after her confinement.

(7) Provides qualifying periods —

(a) No medical benefit for six months after commencement of
the Act.

(b) No sickness benefit till 26 weeks have elapsed and 26
contributions have been paid.

(c) No disablement benefit till after 104 weeks have elapsed
and 104 contributions have been paid.

(d) No sickness benefit shall be paid in respect of any disease
or disablement which commenced during the 26 weeks, and no dis-
ablement benefit in respect of any disease or disablement which
commenced during 104 weeks next following insured's entry into

(e) No sickness benefit or disablement benefit shall be paid
while insured is provided with board and lodging by his employer.

(f) No maternity benefit shall be paid until 26 weeks have
elapsed and 26 contributions have been paid by employed insurers ;
and double that qualification for voluntary insurers.

(8) Extended benefits as Parliament may determine may be given
when the amounts accumulated under the provisions of Clause 40 are
sufficient to provide 3 per cent, on the sums standing to credit of all
approved Societies.

CLAUSE 9.— Reduction of Benefits.

(1) Reduced benefits to be given to insured under age of 21 and
unmarried. For rates see ante Clause 8 (2).

(2) Sickness and disablement benefits may in any case, and shall
where they exceed two-thirds of the usual rate of wages, be reduced to
such an extent as the Society or Committee with the consent of the
Insurance Commissioners determines. Where reductions made equivalent
additional benefits are to be given.

(3) Reduced sickness benefits to be given to those over 50 unless
500 contributions paid. For rates see ante Clause 8 (2).

(4) In case an employed contributor joins the Insurance when aged
over 16 after one year from commencement of the Act* the rate of sick-
ness and maternity benefit shall be reduced "as may be fixed in
accordance with tables " to be prepared by the Insurance Commissioners,
but not to be less than 5s. for sickness and 15s. for maternity. Excep-
tions are made in favour of employed contributor if he proves that his
time since he attained 16 has been spent at school or college, or if he
pays the difference between the voluntary rate and the employed rate or
pays a sufficient capital sum to secure him full benefits or elects to be
treated as in arrear from 16 or one vear after date of the Act.

CLAUSE 10. — Reduced Benefits if Contributions in Arrear.

(1) If an insured person belonging to a Society is in arrear for
more than thirteen contributions a year on the average his right to
benefits shall be suspended, and if at the end of a further year he is
still suspended a lapse occurs. Any sums credited to his Society shall
be transferred and dealt with '' as may be prescribed." If he again
becomes employed he is to be treated as a new entrant into insurance;
but apparentlv he may elect to be treated as in arrear from his entry into
original insurance.


(2) Where an employed contributor is in arrear for less than 13
■weeks on the average his benefits shall be reduced in accordance with the
Table of the 5th schedule, which is as follows : —




Rates of Sickness Benefit during first

Where the Arrears

Thirteen Weeks.







S. (


4 contributions a year on average













6 9




6 6










6 b





5 <





5 6

I 2 n ,1




5 .



1 1




5s. od.

commencing 5th

day after notice.





1 11











p ''



» 11








1 1.


1 1!




) 11






Where the insured person is by virtue of any of the provisions of Part f. of
this Act, other than those relating to arrears, entitled to sickness benefit at a rate
tower than the full rate, this Table shall nave effect as if the entries in the first
column were so shifted down that the first entry therein was set opposite the entry
in the second column next below the entry specifying the rate of sickness benefit to
which the insured person is entitied.

When the rate of sickness benefit during the first thirteen weeks to which the
insured person is entitled by virtue of any of the provisions of this Act, other than
those relating to arrears, less than 5s. a week, this Table shall have effect as if such
lower rate were therein substituted for the rate of 5s. a week.

(3) Where a voluntary contributor is in arrear he 'hall be liable
to such reduction or suspension of benefits " as may be prescribed."

(4) The following arrears are not to count: —

(a) When in receipt of sickness or disablement benefits

(b) When a woman is insured and entitled to maternity benefit
— two weeks before and four weeks after her confinement.

;c) During the first 12 months after the Act.
(d) While an employed contributor is under 16.

With these exceptions, contributions are payable in respect of every
week from the date of entrv into insurance.

(5) Arrears accruing during the current year and the previous year
may be paid up with 3 per cent, interest, and so save reduction of benefits
except that if when the payment is made or within a month the insured
becomes unfit through disease or disablement! the arrears shall be deemed
to continue until one month after his recovery.

CLAUSh II Workmen's Compensation — Accident.

(1) Where an insured person is entitled to compensation or damages
for accident or industrial disease the following provisions apply : —

(a) Sickness benefit and disablement benefit is reduced to the
difference (if any) between the weekly sum or weekly value of any
lump sum paid in respect of such injury or disease.

(b) The weekly value of a lump sum is to be determined by
the Society or the Committee.

(c) The workman is not to compound with his employer
without his Society's or Committee's consent.

(d) The employer may compound under the Workmen's Com-
pensation Act, 1906; but if he does so must give notice to the
Society or Committee.

(e) Where an insured person is entitled to compensation or
damages his Society or Committee may enforce his claim against
the employer.

(2) The Society or Committee may make advances to an insured
person on account of the compensation or damages, and may subsequently
deduct advances from benefits.

CLAUSE 12.— Benefits while in Hospital.

(1) No payment for benefits shall be made while insured is in
workhouse, hospital, asylum, or infirmary, supported out of public funds
or charity or in any sanatorium established under the Act.

(2) During such periods

(a) Benefits shall be paid or applied for dependants as Society
or Committee think fit.

(b) if no dependants, benefits to be paid to local Health
Committee for general purposes.

(3) Dependants include all near relatives if dependent on insured's

(4) The Society or Committee may contract with convalescent
home, etc., admission to which is conditional on payment of not less
than one-half of the cost of maintenance, for paying over benefits to such
home, etc.

CLAUSE 13. — Administration of Benefits.

(1) Sickness, disablement, and maternity benefits and medical
benefit due to insured persons who are members of an approved Society
shall be administered by their Society and for deposit contributors by
the Health Committees. Sanatorium benefit in all cases shall be
administered by the Health Committees.

(2) With the consent of Insurance Commissioners, Societies may
apply their existing rules or make new rules for the conduct of their

, business, and tor infliction of penalties! including suspension from
bun<Mits, lines, etc., but

(a) No fine shall exceed ros. or in case of repeated breaches
of rules 20s.

(b) No benefit shall be suspended for more than one year.

(c) Women shall not be visited otherwise than by women.

(d) Every rule relating to behaviour during disease or dis-
ablement shall be " in prescribed form."

(3) Health Committees may make similar rules.

(4) Medical benefit shall not be suspended.

(5) Rules are to be registered, but are binding before registration.

CLAUSE 14.— Administration of Medical Benefit.

vd [) -n(i) Societies and Health Committees are to make arrangement with

duly qualified medical practitioners for medical attendance and treatment

to the satisfaction of the Insurance Commissioners.

(2) Societies and Committees shall make provision for the supply-
-rnbtg tfOf proper drugs and medicines. No arrangement shall be made

with a medical practitioner for the supply of drugs, etc., at an inclusive

fee without the consent of the Insurance Commissioners, which is not to
- be given except where expedient in rural districts.
teni£§fi(3) Societies may enter into agreements with Health Committees

for the administration of medical benefits at an agreed sum per member,

such; sum to be paid out of the Society's moneys.
v i?;"r - i :n(4) If the agreed sum is insufficient to meet estimated expenditure,

an account may be sent through the Insurance Commissioners, to the

Treasury and the County or Borough Councils, and if satisfied they may

sanction the excess expenditure.

(5) On such sanction they shall each be liable to make good the

expenditure- as to one-half by the Treasury and as to the remaining half

by the Countv or Borough fund or rate.
' ' oih

CLAUSE 15. — Administration of Sanatorium Benefit.

oS(Sj) Health Committees are to make arrangements to the satisfac-
tion of the Insurance Commissioners with those having the management
[email protected]£-M sanatorium for the treatment of insured persons.

(2) The yearly sum available for defraying the expenses of
g tsajaatOrjum treatment shall be : —

(a) One shilling and threepence for each insured person pay-
; ( able out of benefit funds.
ton (b) One penny for each person payable out of State funds,
rbna ojBjflfe the latter may be retained by the Insurance Commissioners for
purposes of research.

(3) Health Committee is to determine if a person is entitled to
sanatorium treatment.

CLAUSE 16 Administration of Maternity Benefit.

l£Dib»m :

v??io(.'H(t).'/< Maternity benefit is to be administered by the woman's Society
vdifishecSslinsured, or by the husband's Society if she is not insured, and
ad by! the Health Committee if he or she is a deposit contributor.

(2) Money payable by way of maternity benefit is to be expended
vcrffas^jrimyobe prescribed." No payment to be made if the mother has
iK»rlaited tancomply "with prescribed conditions."


CLAUSE 17 Subscriptions.

Societies may subscribe to hospitals, charitable institutions, district
nurses, and pay visiting nurses out of funds provided for benefits.

CLAUSE 18.— Approved Societies.

(r) Any registered society (not being a branch of another) which
gives security and complies with the requirements of the Act may be
approved by the Insurance Commissioners.

(2) No Society shall be approved unless —
(i.) It has 10,000 members.

(ii.) It is precluded by its constitution from distributing any
of its funds otherwise than by way of benefits.

(iii.) Its members have absolute control.

(iv.) Its Committee, Representatives, and Officers are all
elected by its members.

(3) Conditional approval may be given and time allowed to a
Society to make up its numbers to 10,000.

CLAUSE 19.— Employers' Funds.

(1) Persons entitled to superannuation and similar funds estab-
lished by employers may form an approved Society.

(a) Notwithstanding that the numbers are less than 10,000,

(b) If the employer guarantees the solvency of the fund, or
makes greater contributions to benefits than the Act provides, he
may be represented on the management of the fund not exceeding

(2) Where an alteration in existing constitution is required a
scheme must be submitted for the approval of the Insurance Com-

(3) Insurance Commissioners shall not approve unless the members
have been given an opportunity of voting on this scheme, and the scheme
safeguards existing rights and interests.

CLAUSE 20. — Securities to be given by Societies.

(1) Every Societv shall give security to the Insurance Commissioners
tb provide against misappropriation by officers of any fund. The
security shall not be less in value than half of the aggregate annual
contributions unless the Insurance Commissioners are willing to accept
smaller security.

(2) Security shall be given in respect of each branch if the Society
has branches.

(3) Investments belonging to the Society are to be deposited except
where Insurance Commissioners are willing to accept other security.

(4) Insurance Commissioners may vary the amount of the security
and substitute other securities for the securities at first deposited.

(5) Any dividends or interest on deposited security shall be paid
to the Society.


CLAUSE 21.— Societies to Provide for Local Management.

(i) Every Society with branches shall make rules to the satisfac-
tion of the Insurance Commissioners.

(a) For the government of the Society and its branches.

(b) For the determination oi disputes.

(c) For the administration of benefits by the branches.

(d) For proper books of account to be kept by the branches.

(e) For suspending a branch in default and providing for
the administration of the branch by the Society.

(2) Every Society whose affairs are managed by delegates, or whose
rules permit voting by proxy or by post, or which distributes benefits in
towns more than three miles and in the country more than ten miles from
the Head Office, must establish Local Committees for at least every members.

(3) Subject to regulations made by the Insurance Commissioners
on the requisition of 50 members, such Society must establish a Local
Committee for every 250 members.

(4) Rules to the satisfaction of the Insurance Committee are to be
made for the election of such Committees by the members residing in
the locality.

(5) Regulations may be made by the Insurance Commissioners as
to the places of meetings, and for providing with or without payment
any offices or buildings under the management of a Local Authority.

CLAUSE 22.— Secessions.

(1) No branch may secede or withdraw from its Society without
the consent of the Insurance Commissioners, which shall not be given
unless the branch complies with the conditions of approved Societies and
gives security, etc.

(2) No Society or branch shall be dissolved without the consent
of the Insurance Commissioners.

(3) No branch shall be expelled unless provision is made for

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Online LibraryLaming Worthington EvansThe National insurance bill summarised → online text (page 1 of 4)