§ 42. Mr. FELLasked what will be done with the funds arising from the insurances which are now lapsing and which must lapse in increasing numbers as the stamping of the cards gets more and more in arrear in cases where the insured get out of employment?
§ Mr. MASTERMANNo such lapses are taking place as those suggested in the question. In the event of an insured person passing out of insurance before he has paid the minimum number of contributions entitling him to benefit his contributions will normally remain in the hands of his approved society or in the Post Office Fund, as the case may be, and the society or the Post Office Fund will remain liable for his benefits if he returns to insurance. The penalties for arrears are so adjusted as on the whole to compensate—but not more than compensate—societies for the loss of contributions due to the arrears. No such fund will therefore be accumulated through the forfeited benefits of lapsed members.
§ Mr. FELLCan the right hon. Gentleman say there are no cases of lapse? I know of numerous instances in which the persons say they do not know what to do with the stamps.
§ Mr. MASTERMANA partly filled-up card is no lapse of contribution so long as the man is liable to contributions and his contributions are paid by the employer in respect of him.