Mr. CHANCELLORasked whether societies hitherto granting only death benefits can, by adding medical and sick benefits to their operations, qualify as approved societies under the National Insurance Bill?
§ Mr. LLOYD GEORGEAny society which is in a position to provide the benefits prescribed by the Bill and which conforms to the conditions laid down there in, can be recognised as an approved society, even if it has not hitherto provided medical and sick benefits, and even if it is brought into existence solely for the purpose of the Bill.
Mr. CHANCELLORasked whether commission paid for collection of contributions for death benefits only will prevent societies from becoming approved societies?
§ Mr. LLOYD GEORGEThe answer is in the negative.
Mr. CHANCELLORasked whether there is any fixed limit of working expenses excess of which will disqualify societies otherwise qualified to become approved societies; and whether, for this purpose, expenses in working death benefit business or other branches of insurance, if kept separate, will be taken into account?
§ Mr. LLOYD GEORGEThe answer to the first part of the question is in the850W negative, and therefore the second does not arise. The expenses incurred in respect of death benefits by any society are not a matter with which the National Insurance will be in any way concerned. I may mention that the burden of extravagance in management so far as the benefits provided by the Bill are concerned, will fall on the members of an approved society in the form either of a deficit which they must make good or of a reduction in a surplus, which they might apply to additional benefits.
§ Mr. ASHTONasked whether approved friendly societies, under the National Insurance Bill, which now make use of medical institutes supported by a combination of friendly societies to provide their medical benefits, will still be able to make use of those medical institutes and support them out of their funds?
§ Mr. LLOYD GEORGEThe answer is in the affirmative.