§ 18. Mr. Haleasked the Chancellor of the Exchequer whether he is aware that some industrial insurance companies are offering to old-age pensioners who are compelled to surrender their policies, a sum as surrender value less than half the amount of premiums paid over a long number of years; and whether he is prepared to introduce legislation to deal with this matter.
§ Mr. H. BrookeThe owner of a whole life industrial assurance policy is entitled by law to a free policy for a reduced sum assured, if he discontinues payments after five years' premiums have been paid. In practice, the offices generally grant free policies after much shorter periods of payment. I see no need for further legislation, but if the hon. Member has any particular case in mind I will willingly look into it.
§ Mr. HaleIs the hon. Gentleman aware that he has not answered his second Question quite so well as the first? Does he not know that many old-age pensioners are now having to sell their assets and are in very dire straits? Is the hon. Gentleman further aware that I have a case in mind in which premiums were paid for 18 years and that the total amount offered represents 37½ per cent. of the premiums paid; and that a free policy is no good because people need the money and will continue to do so while the present Government permits prices to increase?
§ Mr. BrookeI answered the general Question which the hon. Gentleman put to me, and I offered to look into the details of any particular case which he might submit, so I thought that I had not done so badly.