asked the Minister for Industry and Commerce if he will state the maximum sum for which assurance companies may issue a policy of industrial life assurance to one person in respect of the life of another person and the authority which limits the amount.
Ceisteanna—Questions. Oral Answers. - Industrial Life Assurance.
20.
Mr. Ryan
In the case of adults the Insurance Acts do not impose any fixed maximum on the amount for which a policy of industrial life assurance may be issued provided the sum assured does not exceed a reasonable amount in the particular circumstances of each case. In the case of children under 10 years of age, however, there are statutory limits varying between £6 and £15 (exclusive of bonus) depending on the age of the child at death.
Can the Minister say is there any restriction on the company issuing a multiplicity of policies resulting in a vast accumulation of premiums in the hands of the company with no corresponding benefit possible for the beneficiaries of the policies?
That is a question that I could not answer offhand. If the Deputy likes to put down a question I shall look into it.
Would the Minister consider investigating the conditions which I am informed have obtained here whereby as much as £1,600 was paid into an industrial insurance company, the total possible convenanted benefit of the policies being of the order of £620 and the actual redemption of the policies when the insurer ceased to pay premiums being of the order of £180, so that the insurance company collected, I think, £1,600, and the beneficiary could not hope in any event to get more than £620?
If the Deputy is referring to a specific case, I should be glad to look into it if he gives me the particulars. If he is referring to the practice in general I shall look into it.
I should be much obliged if the Minister would look into the practice in general.
21.
Mr. Ryan
asked the Minister for Industry and Commerce if in view of the profits far in excess of the risks carried being made by assurance companies in respect of industrial life policies he will in the interests of justice to the poorer sections of the community take steps, including the introduction of amending legislation, to relate the premiums more equitably to the amounts paid under such policies.
There are five companies or societies transacting industrial assurance business in this country, and the competition generated as a result should ensure that premiums are not fixed at unduly high levels. There is no evidence available to me which would indicate that excessive profits are being earned on this class of business and I would not propose to amend the legislation in this connexion, even if it were practicable, which it is not, to control premium rates by Statute.
Mr. Ryan
Is the Minister aware that if a policy were taken out 20 years ago, with a weekly premium of 2/- to cover the sum of £37, the total amount of premiums already paid would be in the region of £110—three times the amount covered by a policy 20 years ago? Is the Minister further aware that if a policy were taken out ten years ago to cover a sum of £135, with a weekly premium of 12/6d., over £315 would not be paid in respect of such a policy and in light of that would he not reconsider his attitude?
The companies to which I have referred have a system whereby they can distribute surpluses among shareholders and/or their policy holders. I suggest to the Deputy that by these means, with any surpluses or excess profits that they might get, they can make a reasonable distribution amongst those who contribute to the funds of the insurance company.
Mr. Ryan
I wonder if the Minister has available the figures showing the percentage of cases in which the companies do in fact distribute these large profits to policy holders?
I believe each one of them does.
Mr. Ryan
Has the Minister any idea of the percentage——
To ordinary industrial policy holders?
That I do not know.
These are the victims.