§ Mr. GODFREY LOCKER-LAMPSONasked the Chancellor of the Exchequer what guarantee an insured person has under the National Insurance Bill that he will receive the minimum benefits for which he is to be compelled to pay?
§ The CHANCELLOR of the EXCHEQUER (Mr. Lloyd George)The funds provided by the Bill from the contributions and from the State grant are applicable to the benefits and to the necessary expenses incidental thereto, and to no other purpose. The minimum benefits are the first charge before any additional benefits can be given, and the actuarial calculations show that there is a sufficient margin to secure that the full minimum benefits can be provided in practically all cases. The arrangements for valuation and for the timely dealing with a deficiency will be such as absolutely to secure the members of a society against the loss entailed by a financial collapse of the society.
§ Mr. G. LOCKER-LAMPSONAre we to understand that no actual guarantee for minimum benefit will be made?
§ Mr. LLOYD GEORGEThere is the guarantee that the funds are more than 574 adequate for the purpose. There is a considerable surplus.
Mr. WORTHINGTON-EVANSIs it not the fact that there is no national guarantee or guarantee by the Insurance Commissioners that there will be sufficient, because that depends on good management?
§ Mr. LLOYD GEORGEI have pointed out previously that if there were a guarantee there would be no inducement to good management. The arrangement of the Bill is such that there is an inducement to good management on the part of the societies.
§ Mr. LLOYD GEORGECertainly; as my hon. Friend knows, I have repeatedly pointed that out in Committee.