§ 52. Mr. W. THORNEasked the Financial Secretary to the Treasury whether his attention has been called to the fact that hundreds of industrial assurance policies lapse every week for which the owners receive no monetary compensation; and whether he will consider the advisability of instituting an inquiry into the matter?
Mr. SAMUELI have no particulars of the number of industrial assurance policies that lapse every week. In many cases a cash surrender value is paid or a free paid-up policy is granted under the terms of the contract. The hon. Member is no doubt aware that this matter was investigated by a Departmental Committee under Lord Parmoor. The recommendations of the Committee were embodied in the Industrial Assurance Act, 1923. Section 24 of that Act is designed to protect policy-owners in the event of the lapsing of their policies. It will become operative on 7th June next; consequently, I do not think an inquiry is necessary or advisable.