HC Deb 31 October 1912 vol 43 cc574-5W
Captain FABER

asked the Chancellor of the Exchequer whether he is aware that approved insurance companies are offering a premium for the introduction of each member introduced; and whether he will take steps to prevent such companies from offering pecuniary inducements to a person introducing a member, seeing that friendly societies are not in a position to do so?


I believe that payments of the kind referred to in the question have been made, not only by insurance companies but also by other approved societies. The Insurance Commission sanctioned such payments out of the administration expenses account during the first few months, but in future such payments will not be allowed out of the insurance funds. I should add, however, to prevent misapprehension, that payments of reasonable amounts to a society's own officers or agents for actual work done in connection with receiving applications, enrolling members, and writing up contribution cards and registers will obviously be a proper charge against the administration account under the Act, provided that their object and effect is to provide proper remuneration for the services actually rendered in connection with these operations, and not to give a bonus for canvassing.