ACCIDENT AND SICKNESS INSURANCE
BY SCRITTATOR.
THE stupendous growth during the last decade of the insurance companies, as disclosed by the annual accounts published, are a sure indication of the increasing popu- larity of insurance. By using the term " popularity I refer, of course, to the classes of insurance which are not a necessary corollary of trade development or expanding wealth. The older companies, of whom a number have just celebrated their centenary, justified their existence for many years by providing a necessary adjunct to trading and wealth in the older branches of fire and marine. Both of these to-day are accepted as part of the vast system of commerce, and the merchant considers no transaction completed until he has covered the possibility of disaster by the elements of fire or sea, whatever the other risks he may feel disposed to undertake in his business, During the last few years the insurance companies have turned their attention with growing interest to those forms of insurance which may be termed collateral, and it is in these branches that tremendous strides have been made, and the popularity of such branches as motor car, credit, public liability, plate glass, employers liability and personal accident or sickness has arisen from a variety of causes which it would not be possible to detail within the limits of this article. I will only say that it is not so much the development of , trade as the education of the masses which has been responsible. I would, however, like to refer specially to one branch which should be of interest to every man- with family responsibilities—namely, sickness and accident. The strain of modern life is an ever-increasing one on the business man, and it is as much due to his realization that provision must be made to meet premature breakdown of health or results of the multiplying risk of accident as it is to the judicious propaganda of companies concerned that this form of insurance is becoming not only popular but admittedly a necessity. There are two methods by which the necessary pre- cautions can be effected—the annual policy and the per-, manent policy. The former I would dismiss as unsatisfactory, because being an annual contract the underwriter is entitled to decline renewal for any disease which may be contracted of a recurring nature; Moreover, assuming you were afflicted with an illness of long standing and running over the term of the contract you might find yourself without insurance and also without the likelihood of again being accepted. On the other hand, the permanent contract, whilst costing you more, cannot be determined so long as the annual premiums are paid. It is closely allied to life assurance, and it behoves every man, not only to see that the benefits are ample to give him the compensa- tion needed, but that it be taken in his earlier years if possible, when the medical examination is much more a- formal matter and incidentally the premiums are on a lower scale.. Premiums for the permanent contract are. based on a scale according to age, and as a rough guide• it can be stated that for a man aged thirty insurance for' £10 a week for twenty-six weeks reducible thereafter to. 15 a week for the remainder of incapacity by sickness or accident the annual premium amounts to about £22 10s., covering total benefits up to £390 in the first year and £260. per annum thereafter ; whereas at the age of forty the' same benefits cost about £29 a year.
It may be contended that such an insurance is a luxury which can only be taken by the opulent, but if you con-' sider that the artisan has his Workmen's Compensation, Acts and National Health Insurance to :tide him over, troubles of this kind it should be very obvious that what has been considered so necessary for him is equally essential for the man who, though having an income which debars him from the benefits of the State schemes has not sufficient capital to be able to meet the contingency of being laid aside even for a few weeks. The policies that are issued can be varied in form to meet alternative conditions. Insurance cover can be obtained with benefits to start from the date of illness.
Alternatively for a cheaper premium the first few weeks of disability can be borne by the insured. This meets the needs of the man who, whilst he cannot contemplate with equanimity the cost of a lengthy illness, would not feel the strain of being laid up for a short period. A third alternative is that the insurer can combine the insurance with his life policy. Some of the life coin; panics are already granting in a modified form benefits of this nature, but of necessity the life premium is loaded to carry the extra benefit and the business is not specialised. Fourthly, it can be arranged that weekly benefits only are insured ; that is to say, capital sums payable for loss of limbs or sight can be omitted, and yet again partial disablement can be distinguished from total disablement and the policy and premium can be adjusted to include both or either.
As a closing point it- must be understood that as every- one duly reaches the age where illness is so much a possi- bility that it cannot be insured against the policies are all written to cease at the age of sixty-five. But by that time the majority of us hope at least to have a sufficient com- petency to enable us to meet contingencies, and this rule is not one which need prevent any man from realizing the value of the remedy at his hand. Whilst the policy gives a payment in the event of death from accident, it does not grant the same privilege in case of death from sickness, as this would, of course, be pure life insurance, and is rated on a very different basis. This article is intended to show that a real need is being provided for, and if people realize their responsibilities this' department of insurance will become one of the foremost; in the land.
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