§
(1) If upon any such valuation a deficiency is found, the following provisions shall apply:—
(a) If the deficiency is shown by a branch of an approved society, it shall, in the first place, so far as possible, be made good out of any surplus in the hands of the central body or other central authority of the society:
Provided that the society may, if it is satisfied that the deficiency is due to any maladministration on the part of the branch in question, with the consent of the Insurance Commissioners, refuse to make good the deficiency or any part thereof out of such surplus:
(b) Subject as aforesaid, every deficiency shall be made good in accordance with a scheme for that purpose to be prepared by the society and
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submitted to the Insurance Commissioners for their sanction; such a scheme shall provide for making good the deficiency, within a period of three years from the date at which the valuation was made, in any one or more of the following ways:—
and on the sanction of the Insurance Commissioners being given to the scheme the society shall proceed to make good the deficiency in accordance therewith:(c) Payment of the amount of any compulsory levy made in accordance with a scheme sanctioned under this section may be enforced in such manner as may be provided by the rules of the society; and where those rules so provide it shall be lawful for the society in the case of any member to enforce payment of the amount of the levy by giving notice in the prescribed manner to the employer of such member requiring him to pay the amount of the levy, and upon such notice being given such amount shall be payable as if it were part of the contribution to be made by the employer on behalf of the member, and all the provisions of this Part of this Act relating to the payment of such contributions and the recovery thereof from members shall apply accordingly:
(d) If a member chargeable with a levy falls into arrears his arrears shall reckon as though the total sum thereof, inclusive of the levy,
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consisted of weekly sums of the premium payable by him had no levy been made:
(e) If within six months after the declaration of a deficiency, or where an inquiry as to excessive sickness is pending under this Part of this Act, such longer period as the Insurance Commissioners determine, such scheme as aforesaid has not been submitted to and approved by the Insurance Commissioners, or if at any time thereafter it appears to the Insurance Commissioners that the society or branch to which the scheme relates is not enforcing the provisions of the scheme, the Insurance Commissioners may take over the administration of the affairs of the society or branch under this Part of this Act, and shall as soon as possible thereafter take such steps as they may think necessary to make good the deficiency by any or all of the methods mentioned in paragraph (b) of this Section, and for that purpose they shall be entitled to exercise all or any of the powers given to the society by this Part of this Act:
(f) The Insurance Commissioners after taking over the administration of the affairs of any society or branch shall within a reasonable time, not exceeding three years, make arrangements for the restoration to the society or branch of its powers of self-government or, failing that, for the transfer of the members of the society or branch, being insured persons, to other approved societies or branches or to the Post Office fund:
(g) Any question or dispute arising between the Insurance Commissioners and the society in respect of the amount of the deficiency, or as to the adequacy of any scheme proposed for making it good, shall be decided by an independent valuer to be appointed by the Lord Chief Justice:
(h) A scheme made under this Section shall not affect any person who becomes a member of the society after the date as at which the valuation was made, or any member over seventy years of age:
(i) Any member of the society or branch, being an insured person, who is transferred to another society or to
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another branch of the same or any other society before the deficiency is made good, shall be liable to any levy or reduction of benefits which may be made in respect of such deficiency in like manner in all respects as if he had not ceased to be a member.
§ (2) Any member liable to a levy payable at intervals may relieve himself of the liability thereto, and a member subject to a diminution of benefits by virtue of any such scheme may, with the consent of the society, acquire a right to undiminished benefits on payment to the Insurance Commissioners of the capitalised value of the levy or diminution of benefits, as the case may be, ascertained in the prescribed manner.
§ Amendments made: In Sub-section (1) (a), leave out the word "it" ["it shall"], and insert instead thereof the words "three-quarters or, if the society thinks fit, the whole thereof."
§ After the word "surplus," insert the words "available for that purpose."
§ After the word "good" ["refuse to make good "], insert the words "any part of."
§ Leave out the words "or any part thereof."
§ In paragraph (b), after the word "society" ["prepared by the Society"], insert the words "or, in the case of a deficiency in a branch, subject to the approval of the society."
§ In paragraph (b) (i), after the word "levy," insert the words "by way of increase of the weekly rate of contributions."
§ In paragraph (b) (ii), after the word "benefit," insert the words "either for the whole period during which sickness benefit is payable or for any part thereof."
§ In paragraph (b) (iv), leave out the words "first or the second."
§ Leave out the words "of thirteen weeks."
§ Leave out the words "or both such periods."
§ At end of paragraph (b) (v), insert the words "(vi) by any other method approved by the Insurance Commissioners."
§ After the word "society" ["the society shall proceed"], insert the words "or branch."
707§ In paragraph (c), after the word "society" ["rules of the society"], insert the words "or branch."
§ After the word "society" ["lawful for the society"], insert the words "or branch."
§ Leave out the word "made" ["contributions to be made"], and insert instead thereof the word "paid."
§ In paragraph (d), leave out the words "weekly sums of the premium payable by," and insert instead thereof the words "contributions payable by or in respect of."
§ In paragraph (e), after the word "society" ["powers given to the society"], insert the words "or branch."
§ In paragraph (g), after the word "society" ["Commissioners and the society"], insert the words "or branch."
§ Leave out the words "decided by," and insert instead thereof the words "submitted to."
§ After the word "Justice" ["Lord Chief Justice"], insert the words "and such valuer shall subject to the provisions of this Act and of the regulations thereunder act, so far as practicable, on his own knowledge and experience, and shall have power to determine how and by what parties the costs of proceedings, including his own remuneration, not exceeding such amount as the Treasury may prescribe, are to be defrayed, and his decision shall be final and conclusive."
§ In paragraph (h), after the word "society," insert the words "or branch."
§ In paragraph (i), after the word "Any," insert the words "insured person who having been a."
§ Leave out the words "being an insured person, who," and insert instead thereof the words "at the date as at which the valulation disclosing the deficiency was made."
§ After the word "which," insert the words "has been or."
§ At end of paragraph (i), insert the words "and if the transfer took place before the scheme imposing the levy or reduction of benefits was sanctioned, such adjustment in the amount of any transfer value paid in respect of him shall be made as the circumstances require."
§ In Sub-section (2), after the word "society," insert the words "or branch."—[Mr. Lloyd George.]