§ 54. Mr. ROBINSONasked the Financial Secretary to the Treasury whether his attention has been called to the liquidation of the Hearts of Oak Assurance Company, Limited; whether he is aware that the savings of a number of poor people, which had been invested in endowment policies, have been lost; and whether the Government will consider 1592 legislative steps by means of which a similar disaster may be prevented in future?
§ Mr. HORE-BELISHAThe insolvency and consequent winding up of this company have been brought about by depletion of its assets in respect of which an ex-official of the company has been committed for trial on a charge of fraudulently converting assets of the company to the value of approximately £100,000. The ease appears to be an exceptional one and it would be premature to consider legislation at the present juncture. I am not at present in a position to say to what extent holders of industrial assurance endowment policies will suffer loss.
§ Mr. T. WILLIAMSDoes not the Financial Secretary think that the regulations regarding insurance companies ought to be tightened up, as in this case many thousands of miserable poor people have been paying premiums and have now lost all the benefits?
§ Mr. HORE-BELISHAI do not know to what extent that is true.
§ Mr. BUCHANANSeeing the importance of this matter, may I ask what steps the Department are taking to see that nothing resembling this occurs again?
§ Mr. HORE-BELISHAThe legislation on the subject is drawn as carefully as it is possible to draw it, and whenever any defects appear they are at once dealt with.
§ Mr. BUCHANANBut what steps are the Department taking to see that the provisions of the Statute are administratively carried out? Is the Financial Secretary calling for a special report on the administration?