HC Deb 31 March 1927 vol 204 cc1461-2W

asked the President of the Board of Trade if he is aware that in 1925 insurance companies received premiums amounting to £5,663,895 in respect of employers' liability insurance; that £3,078,813, or 52.16 per cent., was allocated for payment of compensation (including legal and medical expenses incurred in connection with the settlement of claims), while the balance, £2,585,082, or 47.14 per cent., was allocated to commission payments, management expenses, and profits: and will he introduce legislation to ensure that a larger proportion of the premiums shall go to compensation and less to profits?


I have been asked to reply, but would call attention to the agreement between the Home Office and the Accident Offices Association which in the ease of companies belonging to the Association limits the total expenses and profits to a maximum of 40 per cent. Adjustment is made by means of a rebate to the employers insured with these companies, and the rebate, for the year 1925, amounted to 8½06 per cent. I think that this arrangement affords considerable protection to the employers,, and that no compulsory legislation is necessary.