§ 69. Mr. JOWETTasked the Secretary to the Treasury if he is aware that the Hearts of Oak Approved Society has adopted a rule the effect of which will be to suspend any of its members who have failed to pay a fine imposed by the society within four weeks from the date on which it was inflicted from all benefits under the National Insurance Act; and whether, having regard to the trivial nature of the offences for which under the rules of the said society fines must be imposed, such as, for instance, omitting to state the registered number on a written communication from a member to the society, or neglecting to give notice of a change of address in writing within seven days, and also having regard to the fact that the benefits which will be withheld under this rule are provided by funds contributed by the State and the employer as well as the offending member, he will take action to prevent the imposition of such penalties?
§ Mr. MASTERMANI am aware of the rule in question which also includes a provision giving an insured member who has been subjected to any penalty the right to have the case decided by arbitration with a further appeal to the Insurance Commission. A similar rule has been adopted by the great majority of societies in virtue of the power expressly given by Section 14 of the Act. I understand that the rules thus enforced by penalty are rules which the friendly societies have found essential for the proper working of sick benefit.