New Zealand. 1908, No. 71.

Transcription

1 ] Consolidated Statutes. New Zealand. GOVERNMENT ACCIDENT INSURANCE. 1908, No. 71. Short Title. Enactments consolidated. Savings. AN ACT to consolidate certain Enactments of the General Assembly relating to the Accident Insurance Branch of the Government Insurance Department. BE IT ENACTED by the General Assembly of New Zealand in Parliament assembled, and by the authority of the same, as follows: 1. (1.) The Short Title of this Act is "The Government Accident Insurance Act, 1908 "; and it shall form part of and be read together with " The Government Life Insurance Act, 1908." (2.) This Act is a consolidation of the enactments mentioned in the First Schedule hereto, and with respect to those enactments the following provisions shall apply : (a.) All offices, appointments, regulations, Orders in Council, policies, contracts, accounts, registers, records, instruments, and generally all acts of authority which originated under any of the said enactments, and are subsisting or in force on the coining into operation of this Act, shall enure for the purposes of this Act as fully and effectually as if they had originated under the corresponding provisions of this Act, and accordingly shall, where necessary, be deemed to have so originated. (b.) All capital raised and securities issued under any such enactment shall be deemed to have been raised and issued under the corresponding provisions of this Act. (c.) All matters and proceedings commenced under any such enactment, and pending or in progress on the coming into operation of this Act, may be continued, completed, and enforced under this Act.

2 [No In this A.ct, if not inconsistent with the context, interpretation. "Accident" means accident resulting in loss of life or in 1899, No. 20, sec. 2 bodily injury :. ^IO N * 43 ' Se S " Accident insurance" includes the following, whether the contract be one of primary insurance or of reinsurance, and whether the premium payable is a sum certain, or consists of sums uncertain or variable in time, number, or amount: {a.) Insurance against accident, disease, disability, or any change of physical or mental condition ; (b.) Insurance or indemnity against employers' liability, whether under statutory law or common law; (c.) Insurance or indemnity against charges under section twenty of " The Workers' Compensation for Accidents Act, 1908," taking precedence of incumbrances, mortgages, or charges lawfully existing ; and (d.) Generally any contract in the nature of any of the foregoing whereby the benefit under the contract accrues payable 011 or after the occurrence of some contingent event: "Audit Office" means the Audit Office as defined by " The Public Revenues Act, 1908 " : " Board " means the Board constituted under " The Government Life Insurance Act, 1908 " : " Commissioner" means the Government Insurance Commissioner appointed or holding office under the lastmentioned Act: " Department" means the Government Insurance Department of the General Government of New Zealand carrying on the business of insurance under the authority of " The Government Life Insurance Act, 1908 " : ''Government Insurance Account" means the account constituted under that name by the last-mentioned Act : " Minister " means the Minister of Finance. Accident Insurance Branch of the Business of the Department. 3. In addition to the powers vested in the Commissioner under commissioner's "The Government Life Insurance Act, 1908," the Commissioner powers in respect ot 1 nl "i 1 j 1-1 (, -..,,,,., accident insurance. shall, subject to the provisions of this Act, have power irom time to 1899 No> 2o, sec. 30 time to enter into any contract of accident insurance and such other 1902, No. 43, sec. 10 contracts for or relating to insurances against accident as are usually undertaken by insurers against accident (including the reinsurance in New Zealand or elsewhere of accident risks taken under this Act), and generally to carry on the business of an insurer against accident, and to do whatever he deems necessary or expedient in the premises : Provided that in no case shall the maximum sum payable under any such contract exceed two thousand pounds in respect of accident to any one person. Capital. 4. In order to provide capital for the accident insurance branch capital. of the business of the Department the Governor in Council is hereby 1899, No. 20, sac. 4 empowered to raise from time to time under the provisions of " The

3 ] Consolidated Statutes. New Zealand Loans Act, 1908," any sum or sums of money not exceeding in the whole the sum of twenty-live thousand pounds ; and for that purpose the Governor in Council may prescribe the mode and conditions of repayment of the sums so raised, the rates of interest thereon, and the time and place of the payment of principal and interest. Rate of interest 5. No debenture, scrip, or other security issued in respect of on debentures^&c.^ any sum raised under this Act shall be sold or otherwise disposed of 1903! No! 43,' sec! 3 at a price that will yield to the purchaser a higher rate of interest by the year than four pounds ten shillings for every one hundred pounds of purchase-money, but such securities may, for the purpose of temporary advances pending the raising of such sums, be hypothecated or mortgaged upon such terms as to interest and otherwise as are deemed expedient. Temporary advances 6. The Board is hereby authorised to make such temporary out of Government advances as aforesaid out of the Government Insurance Account. Insurance Acoount , No. 20, sec I he proceeds of the disposal of all securities issued m respect Proceeds of of capital shall, as and when received, be paid into the Government securities. Accident Insurance Account. Ibid, sec. 11 sinking fund foe Sinking Fund. 8. In order to create a fund for the redemption at maturity of capltrtfsumtto be securities issued in respect of capital raised under this Act the paid to Public following provisions shall apply : ibid^sec 12 ( 0 ^ ^e expiration of twelve months from the issue of any such securities, and annually thereafter during their currency, the Commissioner shall, out of the Government Accident Insurance Account, pay over to the Public Trustee, to the credit of an account called the " Government Accident Insurance Sinking Fund Account," such sum as the Minister from time to time deems necessary for the creation of a sinking fund for the redemption of such securities at maturity. (b.) The sums so paid over to the Public Trustee, and all accumulations of interest in respect thereof, shall be invested by him in such of the modes of investment sanctioned by " The Public Trust Office Act, 1908," as will yield the highest rate of interest, (c.) The moneys in the last-mentioned account, and the investments for the time being representing the same, and all accumulations of interest in respect thereof, shall be held by the Public Trustee at the disposal of the Minister for the purpose of redeeming such securities at maturity. (d.) The Public Trustee shall, without further appropriation than this Act, pay to the Minister out of the lastmentioned account such sums as he from time to time requests for such purpose. Statements to be 9. (1.) The Public Trustee shall supply to the Minister, and Siistee^by PubliC a^so to Commissioner, statements made up to the close of ibid, sec. 13 each calendar year, and also for such other periods as are from time to time requested, showing the accretions of sinking fund and the investments representing the same.

4 Government Accident Insurance. [No (2.) A copy of such statement for each financial year shall be laid before Parliament by the Public Trustee within fourteen days after the close of such year, if Parliament is then in session, or if not, then within fourteen days after the commencement of the next ensuing session. 10. As soon as the Minister is satisfied that the accuinu- when annual lations of sinking fund in respect of any securities will suffice f > u a n' to n cease 8inking to redeem such securities at maturity, he shall notify the Public 1399, No. 20, sec. 14 Trustee and the Commissioner thereof, whereupon the annual payments of sinking fund in respect of such securities shall thereafter cease, and all subsequent accretions of interest shall, without further appropriation than this Act,.be paid into the Government Accident Insurance Account, unless and until the Minister otherwise directs. Accounts and Audit. 11. (1.) The Commissioner shall keep with the bank with which Government for the time being the Public Account of New Zealand is kept an Accident insurance. Account account to be called " the Government Accident Insurance Account." Ibid> sec 15 to the credit of which shall be paid all moneys from time to time and for the time being payable to the Commissioner on account of the accident insurance branch of the business of the Department. (2.) The said account shall be operated on only by cheque signed by the Commissioner and countersigned by the Audit Office. 12. There shall be paid out of the Government Accident Insur- Moneys payable ance Account, without further appropriation than this Act, without (a.) All costs and expenses incurred in raising capital under this i^te^iet Act, and all interest and sinking fund payable on securities issued in respect of such capital, and all interest, costs, and expenses in connection with the hypothecation of such securities: (b.) All payments in respect of accident insurance contracts entered into by the Commissioner : (c.) All payments for investments duly authorised. 13. All salaries and, except where otherwise expressly provided Salaries, &c., to be by this Act, all expenses and outgoings expended or incurred in con- j^0^^' nection with the accident insurance branch of the business of the Department shall be paid out of moneys from time to time appropriated by Parliament from the Government Accident Insurance Account. 14. All moneys payable under this Act, whether in connection Charge in respect of with contracts entered into by the Commissioner, or for expenses, or moae y s payable, otherwise, are hereby charged on the moneys in the Government 1 ' sec ' Accident Insurance Account. 15. (1.) If, after recourse has been had to the available funds Provision for and securities, the balance in the Government Accident Insurance deficien y- Account is at any time insufficient to meet the charges thereon, Ibld ' seo ' 19 it shall be the duty of the Controller and Auditor-General, under the warrant of the Governor and on the requisition of the Minister, countersigned by the Commissioner, to issue (without further appropriation than this Act) the amount of such deficiency out of the Consolidated Fund to the Minister, to be transferred by him to the credit of the Government Accident Insurance Account.

5 ] Consolidated Statutes. «Property to vest in Crown. 1899, No. 20, sec. 20 Moneys declared to be public moneys. Ibid, sec. 21 Investment of surplus funds. Ibid, sec. 22 Dealings with securities. Ibid, sec. 23 Division of profits. Ibid, sec. 24 (2.) It shall be the duty of the Minister to certify every such deficiency to both Houses of Parliament within fourteen days after the issue of such moneys from the Consolidated Fund, if Parliament is sitting, or if not, then within fourteen days after the commencement of the next ensuing session thereof. (3.) All moneys so issued and transferred shall be deemed to be advances by way of loan, and, with interest thereon, or on so much thereof as for the time being remains unpaid, computed at the rate of five per centum per annum, shall, without further appropriation than this Act, be repaid into the Consolidated Fund by the Commissioner out of the Government Accident Insurance Account as soon as practicable, having regard to the balance in that account. 16. All moneys in the Government Accident Insurance Account, or payable into that account by any person whomsoever, and all real and personal property of any kind whatsoever, which at any time are acquired for the purposes of or with moneys belonging to the accident insurance branch of the business of the Department shall vest m His Majesty, and be held and disposed of for the purposes of the accident insurance branch of the business of the Department, in the same manner, mutatis mutandis, as in the case of moneys and property subject to " The Government Life Insurance Act, 1908." 17. All moneys in the Government Accident Insurance Account, or payable thereto as aforesaid, are hereby declared to be public moneys within the meaning of "The Public Eevenues Act, 1908," and the provisions of that Act shall apply thereto in the same manner as in the case of moneys in the Government Insurance Account. 18. All moneys belonging to the accident insurance branch of the business of the Department which are for the time being not required for the purposes of the business of that branch shall be invested by the Board on any of the securities on which moneys in the Government Insurance Account may be invested, except on policies held under " The Government Life Insurance Act, 1908." 19. The provisions of " The Public Eevenues Act, 1908," relating to the safe custody, transmission, and disposition of securities of the Government Life Insurance Office shall also apply to all securities in which moneys belonging to the accident insurance branch of the business of the Department are from time to time invested ; and such securities may from time to time be realised, sold, hypothecated, charged, or otherwise dealt with for the purposes of that branch in such manner as the Board thinks fit. 20. Subject to the provisions of this Act, and after all payments in respect of interest, sinking fund, and otherwise have been duly made or provided for, the net surplus profits of the accident insurance branch of the business of the Department for the triennial period ending the thirty-first day of December, one thousand nine hundred and eight, and for each triennial period thereafter, shall be applied in manner following, that is to say: (a.) In forming such reserve fund for the purposes of the accident insurance branch of the business of the Department as the Governor by Order in Council from time to time determines; and

6 [No Allocation of bonuses. 1899, No. 20, sec. 25 Balance-sheet. Ibid, sec. 26 Funds, assets, and liabilities of both branches of Department to be kept separate. Ibid, sec. 27 Adjustment of charges. Ibid, sec. 28 Also in case of buildings and office furniture. Ibid, sec. 29 Taxation in respect of accident insurance business Ibid, sec. 30 Oommissioner not personally liable. Ibid, sec. 31 Judge who is policyholder not interested. (b.) As to the residue thereof, in providing bonuses for such persons as at the close of such period are policyholders in the accident insurance branch of the Department, and have held their policies during the whole of such period: Provided that no person shall be entitled to a bonus for such period if during the period he has made a claim under his policy. 21. The periodical allocation of bonuses shall be made as soon after the close of the period as is practicable, and in such manner as is prescribed by regulations; and the bonuses shall be payable without further appropriation than this Act. 22. The Commissioner shall prepare and lay before Parliament if' sitting, or if not, then within fourteen days after the commencement of the next session, a balance-sheet and statement of accounts of the accident insurance branch of the business of the Department made up to the thirty-first day of December last preceding, in the form in the Second Schedule hereto, together with a report on the year's business. Generdl. 23. The funds, assets, and liabilities of the Department in respect of its accident insurance branch shall at all times be kept separate and distinct from the funds, assets, and liabilities of the Department in respect of its life insurance branch, and.in no case shall the funds or assets of the one branch be chargeable with any of the liabilities of the other branch. 24. In all cases in which salaries, expenses, or outgoings are expended or incurred on behalf of the Department as a whole, part of which should, in the opinion of the Commissioner, be paid out of the Government Insurance Account and part out of the Government Accident Insurance Account, it shall be lawful for the Commissioner to charge such amounts temporarily to either account as he may think fit, and from time to time thereafter to transfer from one account to the other such sum or sums as are in his opinion necessary to effect an equitable adjustment. 25. The provisions of the last preceding section shall, mutatis mutandis, apply in cases where buildings, office-furniture, or other property belonging to one branch of the Department are used for the purposes of the other branch, and in any such case the Commissioner may charge against the branch using the same such sums as are in his opinion necessary to effect an equitable adjustment. 26. The Commissioner shall be liable to assessment and taxation in respect of the accident insurance business in the same manner and to the same extent as in the case of an accident insurance company. 27. The Commissioner shall not be personally liable upon any contract entered into by him under this Act, or in respect of any action, suit, or other proceeding by or against him. 28. No action brought by or against the Commissioner shall be abated or dismissed on the ground of interest in the Judge or Magistrate hearing the same by reason merely that such Judge or Magis- ibid, sec. 32 träte is the holder of or otherwise interested in any policy granted by the Commissioner.

7 ] Consolidated Statutes. «Provisions of 29. For the more effective administration of this Act, and the Government Life better conduct of the accident insurance branch of the business of Insurance \ct, r % applied hereto. the Department, the provisions of " The Government Life In- 1899,No. 20,sec. 33 surance Act, 1908," shall, mutatis mutandis, appty in so far as they relate to (a.) The powers and functions of the Governor and the Minister ; (b.) The powers, functions, and duties of the Board, the Commissioner, the Deputy Commissioner, and also of the Actuaries, clerks, and other officers of the Department; (c.) The management and control of investments ; and (d.) Generally the administration of the Department, and the conduct of its business. Regulations. 30. (1.) In addition to the powers vested in the Governor under ihid, sec. 34 "The Government Life Insurance Act, 1908," the Governor may from time to time by Order in Council make regulations for all or any of the purposes following : (a.) For directing the use of tables fixing the rates of premium to be charged in connection with accident insurance contracts: Provided that nothing herein shall prevent the Commissioner from fixing the premium in the case of any contract not specifically provided for in the said tables : (b.) For prescribing conditions or provisions to be contained or implied in contracts entered into by the Commissioner under this Act : (c.) For defining the nature and extent of the risks to be covered under contracts entered into by the Commissioner under this Act: (d.) For prescribing and defining the method in which the profits of the accident insurance branch of the business of the Department shall be ascertained and bonuses allotted : (e.) Generally for the purpose of carrying this Act into effect, and providing for the efficient administration thereof, and the proper conduct of the accident insurance business. (2.) A copy of such regulations shall be laid before the House of Representatives within ten days after the commencement of each session, and referred to such Sessional Committee for report as the House directs. SCHEDULES. FIRST SCHEDULE. ENACTMENTS CONSOLIDATED. 1899, No. 20. " The Government Accident Insurance Act, 1899."

8 [No SECOND SCHEDULE. REVENUE ACCOUNT of the Accident Insurance Branch of the Business of the Government Insurance Department for the Year ended the 31st December, 19 Section , No. 20, Schedule. Amount of accident funds beginning of the year Premiums Interest at the s. d. Claims Interest Commission Salaries Expenses of management Appropriated to reserve for unearned premiums Amount of accident funds at end of year BALANCE-SHEET of the Accident Insurance Branch of the Business of the Government Insurance Department on the 31st December, 19 Liabilities. Capital authorised by " The Government Accident Insurance Act, 1908" Less not raised Net Accident funds as per Revenue Account Claims admitted, proofs not yet completed Reserve for unearned premiums Other sums owing s. d. Assets. Investments (Details to be specified) Agents' balances Outstanding premiums interest Interest accrued, but not due Cash in hand, and on current account Other sums due.. 3. d.