[1 & 2 geo. 5. Ch. 55.]
ARRANGEMENT OF SECTIONS
Insured Persons.
1. Insured persons.
2. Exemptions.
Contributions.
3. Contributions by insured persons, employers, and the Treasury.
4. Rates and rules for contributions by employed contributors and their employers.
5. Rates and rules for contributions by voluntary contributors.
6. Change from voluntary rate to employed rate and vice- versa.
7. Power to make regulations for the payment of contributions.
Benefits.
8. Benefits.
9. Reduced rates of benefit in certain cases.
10. Reduced rates of benefits where contributions are in arrear.
11. Provisions in the case of contributors entitled to compensation or damages.
12. Provisions in the case of contributors who are inmates of hospitals, &c.
13. Power to vary benefits in certain cases.
Administration of Benefits.
14. Administration of benefits by approved societies or the Insurance Committee.
15. Administration of medical benefit.
16. Administration of sanatorium benefit.
17. Power to extend sanatorium benefit to dependants.
18. Administration of maternity benefit.
19. Punishment of husband in certain cases of neglect.
20. Reinsurance for the purposes of maternity benefit.
21. Power to subscribe to hospitals, &c.
22. Power of councils of boroughs and districts to contribute to certain expenditure
on medical and sanatorium benefits.
Approved Societies.
23. Conditions for the approval of approved societies.
24. Power of societies to undertake business under Part I.
25. Special provisions for employers' provident funds, &c.
26. Security to be given by approved societies.
27. Provisions as to approved societies.
28. Secessions, &c.
29. Withdrawal of approval.
Membership of Approved Societies and Transfer of Members.
30. Admission of insured persons to membership in approved societies.
31.Transfer from one approved society to another.
32.Transfers to foreign and colonial societies.
33.Transfer values of emigrants who remain members of approved societies.
34. Prohibition against double insurance.
Accounts : Valuations : Surplus and Deficit.
35.Approved societies to keep proper accounts.
36. Valuations of approved societies.
37. Surplus.
38. Deficit.
39. Pooling arrangements in the case of small societies.
40.Special provisions with regard to societies with branches.
41. Power to separate men's and women's funds.
Deposit Insurance
42. Provisions as to deposit contributors.
43. Transfer from approved society to deposit insurance and vice versa.
Provisions as to Special Classes of Insured Persons.
44. Special provisions with respect to married women.
45. Special provisions as to aliens.
46. Special provisions with regard to persons in the naval and military service
of the Crown.
47. Special provisions where employer liable to pay wages during sickness.
48. Special provisions as to the mercantile marine.
49. Provisions as to persons over sixty-five at commencement of Act.
50. Special provisions as to seasonal trades.
51. Special provisions as to inmates of charitable homes, &c.
52. Special provision as to persons becoming certificated teachers.
53. Application to other persons in the service of the Crown.
Financial Provisions.
54. National Health Insurance Fund.
55. Reserve values.
56. Transactions between the Insurance Commissioners and societies.
Insurance Commissioners: Advisory Committee.
57. Constitution of Insurance Commissioners, appointment of inspectors, &c.
58. Appointment of advisory committee.
Insurance Committees.
59. Appointment of Insurance Committees.
60 .Powers and duties of Insurance Committees.
61. Income.
62. Local medical committees.
Excessive Sickness.
63. Inquiries into causes of excessive sickness, &c.
Supplementary Provisions.
64. Provision of sanatoria, &c.
65. Power to Insurance Commissioners to make regulations, &c.
66. Determination of questions by Insurance Commissioners.
67. Disputes.
68. Protection against distress and execution in certain cases.
69. Offences.
70. Civil proceedings against employer for neglecting to pay contributions.
71. Repayment of benefits improperly paid.
72. Provisions as to application of existing funds of friendly societies.
73. Provisions as to existing employers' provident funds.
74. Provisions as to minors who are members of approved societies.
75. Power for societies to register under Friendly Societies Act, 1896.
76. Application of Acts of Parliament to approved societies and sections.
77. Powers of the Local Government Board.
78. Power to remove difficulties.
79. Interpretation.
80. Application to Scotland.
81. Application to Ireland.
82. Establishment of Commissioners for Wales.
83. Joint Committee of Commissioners.
84. Right of workmen in insured trades to unemployment benefit.
85. Contributions by workmen, employers, and the Treasury.
86. Statutory conditions for receipt of unemployment benefit.
87. Disqualifications for unemployment benefit.
88. Determination of claims.
89. Appointment of umpire, insurance officers, inspectors, &c.
90. Courts of referees.
91. Regulations.
92. Unemployment fund.
93. Treasury advances.
94. Refund of part of contributions paid by employer in the case of workmen
continuously employed.
95. Repayment of part of contributions by workmen in certain cases.
96. Refund of contributions paid in respect of workmen working short time.
97. Saving for occasional employment in rural neighbourhoods.
98. Payment of contributions in case of Reservists or Territorials during training.
99. Provisions with respect to workmen engaged through labour exchanges.
100. Subsidiary provisions.
101. Offences and proceedings for recovery of contributions, &c.
102. Periodical revision of rates of contribution.
103. Power to extend to other trades.
104. Exclusion of subsidiary occupations.
105. Arrangements with associations of workmen in insured trade who make payments
to members whilst unemployed.
106. Repayments to associations who make payments to persons, whether workmen
in insured trade or not, whilst unemployed.
107. Interpretation and application.
108.Provisions as to stamps.
109. Outdoor relief.
110. Priority of claims for contributions due by bankrupt employers.
111. Benefits to be inalienable.
112. Powers of inspectors.
113. Procedure for making special orders.
114. Provisions as to birth certificates.
115. Short title and commencement.
An Act to provide for Insurance against Loss of Health and for the Prevention and Cure of Sickness and for Insurance against Unemployment, and for purposes incidental thereto.
[16th December 1911]
BE it enacted by the King's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows : —
1.—(1) Subject to the provisions of this Act, all persons insured per-of the
age of sixteen and upwards who are employed within the meaning of this Part
of this Act shall be, and any such persons who are not so employed but who possess
the qualifications herein-after mentioned may be, insured in manner provided
in this Part of this Act, and all persons so insured (in this Act called "insured
persons") shall be entitled in the manner and subject to the conditions
provided in this Act to the benefits in respect of health insurance and prevention
of sickness conferred by this Part of this Act.
(2) The persons employed within the meaning of this Part of this Act (in this
Act referred to as "employed contributors") shall include all persons
of either sex, whether British subjects or not, who are engaged in any of the
employments specified in Part I. of the First Schedule to this Act, not being
employments specified in Part II. of that schedule :
Provided that the Insurance Commissioners herein-after constituted may, with
the approval of the Treasury, by a special order made in manner herein-after
provided, provide for including amongst the persons employed within the meaning
of this Part of this Act any persons engaged in any of the excepted employments
specified in Part II of the said schedule either unconditionally or subject
to such conditions as may be specified in the order.
(3) The persons not employed within the meaning of this Part of this Act who
are entitled to be insured persons include all persons who either—
(a) are engaged in some regular occupation and are wholly or mainly dependent
for their livelihood on the earnings derived by them from that occupation ;
or (b) have been insured persons for a period of five years or upwards;
and the persons possessing such qualifications who become or continue to be
insured persons are in this Act referred to as voluntary contributors: Provided
always that no person whose total income from all sources exceeds one hundred
and sixty pounds a year shall be entitled to be a voluntary contributor unless
he has been insured under this Part of this Act for a period of five years or
upwards.
(4) Except as herein-after provided, nothing in this section shall require or
authorise a person of the age of sixty-five or upwards not previously insured
under this Part of this Act to become so insured.
2.—(1) Where any person employed within the meaning of this Part of this Act
proves that he is either—
(a) in receipt of any pension or income of the annual value of twenty-six pounds
or upwards not dependent upon his personal exertions; or
(b) ordinarily and mainly dependent for his livelihood upon some other person
;he shall be entitled to a certificate exempting him from the liability to become
or to continue to be insured under this Part of this Act.
(2)All claims for exemption shall be made to, and certificates of exemption
granted by, the Insurance Commissioners in the prescribed manner and subject
to the prescribed conditions, and may be so made and granted before, as well
as after, the commencement of this Act: Provided that the regulations of the
Insurance Commissioners may provide for claims under this section being made
to and certificates granted by approved societies and Insurance Committees herein-after
constituted.
3.Except as otherwise provided by this Act, the funds for providing the benefits
conferred by this Part of this Act and defraying the expenses of the administration
of those benefits shall be derived as to seven-ninths (or, in the case of women,
three-fourths) thereof from contributions made by or in respect of the contributors
by themselves or their employers, and as to the remaining two-ninths (or, in
the case of women, one quarter) thereof from moneys provided by Parliament.
4.—(1) The contributions payable in respect of employed contributors shall be
at the rate specified in Part I. of the Second Schedule to this Act (herein-after
referred to as the employed rate), and shall comprise contributions by the contributors
and contributions by their employers at the rates specified in that Part of
that schedule, and shall be payable at weekly or other prescribed intervals:
Provided that, in the case of an employed contributor of the age of twenty-one
or upwards whose remuneration does not include the provision of board and lodging
by the employer and the rate of whose remuneration does not exceed two shillings
a working day, such part of the contributions payable in respect of him as is
specified in the said schedule shall be paid out of moneys provided by Parliament.
(2) The employer shall, in the first instance, pay both the contributions payable
by himself (in this Act referred to as the employer's contributions), and also
on behalf of the employed contributor the contributions payable by such contributor,
and shall be entitled to recover from the contributor by deduction from his
wages or otherwise the amount of the contributions so paid by him on behalf
of the contributor, in accordance with the rules set out in the Third Schedule
to this Act.
(3) Contributions in respect of employed contributors shall cease to be payable
on their attaining the age of seventy.
(4) The employer of a person who though employed within the meaning of this
Part of this Act is not insured under this Part of this Act by reason either—
(a) that, not having previously been an insured person, he has become employed
within the meaning of this Part of this Act after attaining the age of sixty-five
; or
(b) that he has obtained and still holds a certificate of exemption under this
Part of this Act;
shall be liable to pay the like contributions as would have been payable as
employer's contributions if such person had been an employed contributor, and
such contributions shall be carried to such account and dealt with in such manner
as may be prescribed by regulations made by the Insurance Commissioners, and
those regulations may provide for applying the sums standing to the credit of
the account, or any part thereof, for the benefit of any persons in respect
of whom contributions have been so paid, in the event of such persons subsequently
becoming employed contributors.
5.—(1) The contributions payable by voluntary contributors shall be at the
rate appropriate to their age at the date of their entry into insurance ascertained
in accordance with a table to be prepared by the Insurance Commissioners (herein-after
referred to as the voluntary rate) and shall be paid by the voluntary contributors
at weekly or other prescribed intervals:
Provided that—
(a) In the case of a person who enters into insurance within six months after
the commencement of this Act, the voluntary rate shall, if he is below the age
of forty-five at the date of entering into insurance be the same as the employed
rate, and, if he is of the age of forty-five or upwards, be such rate, ascertained
according to a table to be prepared by the Insurance Commissioners, as having
regard to his age at that date, will be sufficient to cover seven-ninths, or,
in the case of a woman, three-fourths, of the benefits conferred by this Part
of this Act.
(b) Where a person, having been an employed contributor for five years or upwards,
becomes a voluntary contributor, the rate of contribution payable by him shall
continue to be the employed rate.
(2) Contributions by voluntary contributors shall cease to be payable on their
attaining the age of seventy.
6.—(1) Where an insured person has become a member of an approved society as
a voluntary contributor, the rate of contributions payable in respect of him
shall, notwithstanding that he becomes employed within the meaning of this Part
of this Act, remain the voluntary rate, unless at any time after becoming so
employed he gives notice in the prescribed manner of his wish to be transferred
to the employed rate.
2) Where he gives such notice, the rate payable in respect of him shall be the
employed rate, but in such case the rate of sickness benefit payable in respect
of him shall be such reduced rate as would have been payable had he not previously
been insured, subject to such addition as may, according to tables prepared
by the Insurance Commissioners, represent the value at that time of the contributions
previously paid by him.
3) Where he does not give such notice, and until he does so, the contributions
payable by his employer in respect of him during any period of employment within
the meaning of this Part of this Act shall be the same as if he had been transferred
to the employed rate, and the contributions so paid by the employer shall be
treated as in part satisfaction of the contributions at the voluntary rate payable
by the contributor, and, if the contributor fails to pay the balance, he shall
be deemed to be in arrear to that extent.
4) Where an employed contributor within five years from his entry into insurance
ceases to be employed within the meaning of this Part of this Act and becomes
a voluntary contributor, he shall be deemed to be in arrear, as from the date
when he so became a voluntary contributor, to the amount of the difference between
the aggregate contributions paid by or in respect of him since his entry into
insurance and the aggregate of the contributions which would have been payable
by him had he throughout been a*voluntary contributor, and the difference between
any reserve value which is credited to the approved society of which he is a
member in respect of him and the reserve value (if any) which would have been
credited to that society in respect of him had he originally become a voluntary
contributor shall be cancelled.
7. Subject to the provisions of this Act, the Insurance Power to make Commissioners
may make regulations providing for any matters in payment of incidental to the
payment and collection of contributions contributions, payable under this Part
of this Act, and in particular for—
(a) payment of contributions whether by means of adhesive or other stamps affixed
to or impressed upon books or cards, or otherwise, and regulating the manner,
times, and conditions in, at, and under which such stamps are to be affixed
or impressed or payments are otherwise to be made ;
(b) the entry in or upon books or cards of particulars of contributions paid
and benefits distributed in the case of the insured persons to whom such books
or cards belong ;
(c) the issue, sale, custody, production, and delivery up of books or cards
and the replacement of books or cards which have been lost, destroyed, or defaced.
8.— (1) Subject to the provisions of this Act, the benefits Benefits, conferred
by this Part of this Act upon insured persons are—
(a) Medical treatment and attendance, including the provision of proper and
sufficient medicines, and such medical and surgical appliances as may be prescribed
by regulations to be made by the Insurance Commissioners (in this Act called
"medical benefit") ;
(b) Treatment in sanatoria or other institutions or other wise when suffering
from tuberculosis, or such other diseases as the Local Government Board with
the approval of the Treasury may appoint (in this Act called "sanatorium
benefit");
(c) Periodical payments whilst rendered incapable of work by some specific disease
or by bodily or mental disablement, of which notice has been given, commencing
from the fourth day after being so rendered incapable of work, and continuing
for a period not exceeding twenty-six weeks (in this Act called "sickness
benefit");
(d) In the case of the disease or disablement continuing after the determination
of sickness benefit, periodical payments so long as so rendered incapable of
work by the disease or disablement (in this Act called “disablement benefit”);
(e) Payment in the case of the confinement of the wife or, where the child is
a posthumous child, of the widow of an insured person, or of any other woman
who is an insured person, of a sum of thirty shillings (in this Act called "maternity
benefit") ;
(f) In the case of persons entitled under this Part of this Act to any of the
further benefits mentioned in Part II. of the Fourth Schedule to this Act (in
this Act called "additional benefits") such of those benefits as they
may be entitled to.
2) Subject to the provisions of this Part of this Act, the rates of sickness
benefit and disablement benefit to which insured persons are entitled shall
be the rates specified in Part I. of the Fourth Schedule to this Act.
3) In the case of insured persons who have attained the age of seventy, the
right to sickness benefit and disablement benefit shall cease.
4) No insured person shall be entitled to any benefit during any period when
he is resident either temporarily or permanently outside the United Kingdom:
Provided that, if a person is temporarily resident in the Isle of Man or the
Channel Islands, he shall not, whilst so resident, be disentitled to benefits
other than medical benefit, and that, if with the consent of the society or
committee by which the benefit is administered a person is temporarily resident
outside the United Kingdom elsewhere than in the Isle of Man or the Channel
Islands, the society or committee may allow him, whilst so resident, to continue
to receive sickness or disablement benefit, and that a person resident out of
the United Kingdom shall not be disentitled to maternity benefit in respect
of the confinement of his wife, if his wife at the time of her confinement is
resident in the United Kingdom.
5) Where an insured person, having been in receipt of sickness benefit, recovers
from the disease or disablement in respect of which he receives such benefit,
any subsequent disease or disablement, or a recurrence of the same disease or
disablement, shall be deemed to be a continuation of the previous disease or
disablement, unless in the meanwhile a period of at least twelve months has
elapsed, and at least fifty weekly contributions have been paid by or in respect
of him.
6) Where a woman confined of a child is herself an insured person, and is a
married woman, or, if the child is a posthumous child, a widow, she shall
be entitled to sickness benefit or disablement benefit (as the case may be)
in respect of her confinement in addition to the maternity benefit to which
she or her husband may be entitled, but, save as aforesaid, a woman shall not
be entitled to sickness benefit or disablement benefit for a period of four
weeks after her confinement, unless suffering from disease or disablement not
connected directly or indirectly with her confinement. Medical benefit shall
not include any right to medical treatment or attendance in respect of a confinement.
7) Where a pension or superannuation allowance is payable by an approved society
in whole or in part as an additional benefit under this Part of this Act, or
out of any fund to which contributions have been made in accordance with paragraph
(10) of Part II. of the Fourth Schedule to this Act, it may be made a condition
of the grant of the pension or allowance that a member of the society shall,
whilst in receipt of such pension or allowance, be excluded in whole or in part
from his right to sickness benefit and disablement benefit, or to either of
such benefits.
8) Notwithstanding anything in this Part of this Act no insured person shall
be entitled—
(a) to medical benefit during the first six months after the commencement of
this Act;
(b) to sickness benefit, unless and until twenty-six weeks have elapsed since
his entry into insurance, and at least twenty-six weekly contributions have
been paid by or in respect of him ;
(c) to disablement benefit, unless and until one hundred and four weeks have
elapsed since his entry into insurance, and at least one hundred and four weekly
contributions have been paid by or in respect of him ;
(d) to maternity benefit, unless and until twenty-six, or in the case of a voluntary
contributor fifty-two, weeks have elapsed since his entry into insurance, and
at least twenty-six, or in the case of a voluntary contributor fifty-two, weekly
contributions have been paid by or in respect of him.
(9) As soon as the sums credited to approved societies as reserve values in
respect of persons who enter into insurance within one year after the commencement
of this Act have been written off in manner provided by this Part of this Act,
the benefits payable to insured persons under this Part of this Act shall be
extended in such manner as Parliament may determine.
9.—(1) In the case of insured persons who are under the age of twenty-one years
and unmarried, sickness benefit and disablement benefit shall be at the reduced
rates specified in Table B. in Part I. of the Fourth Schedule to this Act :Provided
that, where any such person being a member of an approved society proves that
one or more members of his family are wholly or mainly dependent upon him, the
society shall dispense with such reduction.
(2) Where, in the case of any insured persons, the rate of sickness benefit
or disablement benefit (as the case may be) exceeds two-thirds of the usual
rate of wages or other remuneration earned by such persons, the rate of
such benefit may be reduced to such an extent as the society or committee administering
the benefit, with the consent of the Insurance Commissioners, determines
: but. Where such reduction is made, provision shall be made by the society
or committee, with the like consent for the grant of one or more additional
benefits of a value equivalent to such reduction.
(3) The rate of sickness benefit shall be reduced in accordance with Table C.
in Part I. of the Fourth Schedule to this Act in the case of any insured person
who becomes an employed contributor within one year after the commencement of
this Act, and is at the date of so becoming an employed contributor of the age
of fifty years or upwards and the number of weekly contributions paid by or
in respect of him is, at the date of any claim by him for such benefit, less
than five hundred.
(4) In the case of every person who, not having been previously insured under
this Part of this Act, becomes an employed contributor subsequently to the expiration
of one year from the commencement of this Act, and. is, at the time of so becoming
an employed contributor, of the age of seventeen or upwards, the rate of sickness
benefit to which he is entitled shall (unless he proves that his time since
he attained the age of seventeen has been spent in a school or college, in indentured
apprenticeship or otherwise under instruction without wages, or otherwise in
the completion of his education, or unless he undertakes himself to pay the
difference between the voluntary rate and the employed rate, or pays to the
Insurance Commissioners, to be credited to the society, such capital sum as
will be sufficient to secure him benefits at the full rate) be such reduced
rate as may be fixed in accordance with tables to be prepared by the Insurance
Commissioners, but not in any case less than five shillings a week:
Provided that, if at any time subsequently such person would become entitled
to sickness benefit at a higher rate if he were treated as having become an
employed contributor as from the time when he attained the age of seventeen,
or as from the expiration of one year after the commencement of this Act, whichever
date may be the later, and as being in arrear for all contributions which, had
he become an employed contributor at that date, would have been payable in respect
of him between that date and the date when he actually became an employed contributor,
he shall, if he so elects, be entitled to be so treated.
10.—(1) Where an insured person being a member of an approved society is in
arrear to an amount greater than thirteen weekly contributions a year on the
average since his entry into insurance, his right to benefits under this Part
of this Act other than medical benefit, sanatorium benefit, and maternity benefit
shall be suspended, and, where he is in arrears to an amount greater than twenty-six
weekly contributions a year on the average since his entry into insurance, his
right to medical benefit, sanatorium benefit, and maternity benefit shall be
suspended, and at the expiration of the calendar year next after the date when
he becomes suspended from all benefits any sums credited to the society in respect
of him, calculated in the prescribed manner, shall, if his right to benefits
still continues to be suspended, be carried to such account and dealt with in
such manner as may be prescribed for the benefit (except so far as such sums
comprise sums in respect of a reserve value) of the society or any other society
to which such person may subsequently be transferred:
Provided that, if at any time after suspension from any such benefits he becomes
employed within the meaning of this Part of this Act, he shall be entitled to
those benefits at such rate, after the lapse of such time and after the payment
of such number of contributions, as would have been applicable to his case had
he not previously been an insured person, but, if he so elects at any time,
the benefits to which he is entitled shall be such as he would be entitled to,
were the period from the time of his original entry into insurance taken as
a whole.
(2) Where an employed contributor claiming sickness benefit is at the date of
such claim in arrears but the arrears are less than as aforesaid, then the rate
of sickness benefit shall be reduced to a sum not less than five shillings a
week, or the time when sickness benefit commences deferred, proportionately
to the amount of arrears in accordance with the table in the Fifth Schedule
to this Act.
(3) Where a voluntary contributor is in arrears, he shall be liable to such
proportionate reduction of benefits as may be prescribed.
(4) In calculating arrears of contributions, no account shall be taken of any
arrears accruing—
(a) during any period when the person in question has been, or but for this
section or any other provision of this Act disentitling a person to such benefit,
would have been, in receipt of sickness benefit or disablement benefit;
or
(b) in the case of a woman who, being an insured person, is herself entitled
to maternity benefit, during two weeks before and four weeks after her delivery,
or in the case of maternity benefit payable in respect of the posthumous child
of an insured person, during the period subsequent to the father's death; or
(c) in the case of an employed contributor, during the first twelve months after
the commencement of this Act; but, save as aforesaid, contributions shall be
deemed to be payable in respect of every week from the date of entry into insurance.
(5) Where an insured person has paid any arrears of contributions payable
by or in respect of him which accrued during the calendar year current at the
date of payment and the previous calendar year, he shall be treated for the
purposes of this section as if the arrears so paid had never become due:
Provided that, if such person is at the date of payment or subsequently within
one month thereafter becomes incapable of work by reason of disease or disablement,
he shall, for the purposes of this section, be deemed to be still in arrear
in respect of the amount so paid until after the expiration of one month from
the date of such payment.
(6) Any approved society may, if it thinks fit, excuse any part of the arrears
which may have accrued due by or in respect of any member who is an employed
contributor during any period of unemployment not exceeding such part as would
have been payable by the employer had the member continued in his last employment,
and in such case the amount of the arrears of that member shall be reduced accordingly.
(7)The average amount of arrears for the purposes of this section shall be calculated
in such manner as the Insurance Commissioners may prescribe.
11.—(1) Where an insured person has received or recovered or is entitled to
receive or recover, whether from his employer or any other person, any compensation
or damages under the Workmen's Compensation Act, 1906, or any scheme certified
thereunder, or under the Employers' Liability Act, 1880, or at common law, in
respect of any injury or disease, the following provisions shall apply :—
(a) No sickness benefit or disablement benefit shall be paid to such person
in respect of that injury or disease in any case where any weekly sum or the
weekly value of any lump sum paid or payable by way of compensation or
damages is equal to or greater than the benefit otherwise payable to such person,
and, where any such weekly sum or the weekly value of any such lump sum is less
than the benefit in question, such part only of the benefit shall be paid as,
together with the weekly sum or the weekly value of the lump sum, will be equal
to the benefit:
(b) The weekly value of any such lump sum as aforesaid may be determined by
the society or committee by which the sickness and disablement benefits payable
to such person are administered, but, if the insured person is aggrieved by
such determination, the matter shall be settled in manner provided by this Part
of this Act for settling disputes between insured persons and societies or committees
:
(c) Where an agreement is made as to the amount of such compensation as aforesaid,
and the amount so agreed is less than ten shillings a week, or as to the redemption
of a weekly payment by a lump sum, under the Workmen's Compensation Act, 1906,
the employer shall, within three days thereafter, or such longer time as may
be prescribed, send to the Insurance Commissioners, or to the society or committee
concerned, notice in writing of such agreement giving tlft prescribed particulars
thereof, and proviso (d) to paragraph (9) of the Second Schedule of the Workmen's
Compensation Act, 1906 (which relates to the powers of registrars of county
courts to refuse to record memoranda of agreements and to refer the matter to
the judge) shall, in cases where the work-man is an insured person, apply to
agreements as to the amount of compensation in like manner as to agreements
as to the redemption of weekly payments by lump sums.
(2) Where an insured person appears to be entitled to any such compensation
or damages as aforesaid and unreasonably refuses or neglects to take proceedings
to enforce his claim, it shall be lawful for the society or committee concerned,
either—
(a) at its own expense, to take in the name and on behalf of such person such
proceedings, in which case any compensation or damages recovered shall be held
by the society or committee as trustee for the insured person; or
(b) to withhold payment of any benefit to which apart from this section such
person would be entitled. In the event of the society or committee concerned
taking proceedings as aforesaid and failing in the proceedings, it shall be
responsible for the costs of the proceedings as if it were claiming on its own
account.
(3) Nothing in this section shall prevent the society or committee paying to
an insured person benefit by way of advance pending the settlement of his claim
for compensation or damages, and any advance so made shall, without prejudice
to any other method of recovery, be recoverable by deductions from or suspension
of any benefits which may subsequently become payable to such person.
12.—(1) No payment shall be made on account of sickness disablement or maternity
benefit to or in respect of any person during any period when the person to
or in respect of whom the benefit is payable is an inmate of any workhouse,
hospital, asylum, convalescent home, or infirmary, supported by any public authority
or out of any public funds or by a charity, or voluntary subscriptions, or of
a sanatorium or similar institution approved under this Part of this Act.
(2) During such period as aforesaid the sum which would otherwise have been
payable on account of any such benefit to or in respect of such person—
(a) shall be paid to or applied in whole or in part for the relief or maintenance
of his dependants (if any) in such manner as the society or committee by which
the benefit is administered, after consultation whenever possible with
such person, thinks fit; or
(b) if such person, being a member of an approved society, is an inmate of a
sanatorium or similar institution in which he is receiving treatment in accordance
with the provisions of this Part of this Act, and has no dependants, shall be
paid to the Insurance Committee towards the general purposes thereof; or
(c) if such person, being a member of an approved society,is an inmate of a
hospital, asylum, convalescent home, or infirmary supported by a charity or
by voluntary subscriptions and has no dependants, shall, if an agreement for
the purpose has been made between the society or committee and the hospital,
asylum, convalescent home, or infirmary, be paid, in whole or in part, according
to such agreement, towards the maintenance of such person in the hospital, asylum,
convalescent home, or infirmary: Provided that—
(i) any part of such sum which is not so applied as aforesaid may, if the society
or committee thinks fit, be applied in the provision of any surgical appliances
required for the insured person or otherwise for his benefit; and
(ii) if such an inmate as aforesaid is a married woman or widow, and the sums
so payable or applicable as aforesaid include the sums which would have been
payable both on account of sickness or disablement benefit and on account of
maternity benefit, no part of the sum which would otherwise be payable on account
of maternity benefit shall be paid or applied for the relief or maintenance
of her dependants, but such sum may be paid to the hospital, asylum, convalescent
home, or infirmary of which she is an inmate as aforesaid in like manner as
if she had no dependants.
(iii)Where any person who is entitled to any benefit under this Part of this
Act, or a woman whose husband is entitled to maternity benefit in respect of
her confinement, applies for admission to any workhouse infirmary, admission
thereto shall not be refused on the ground only of the right to such benefit.
13.—(1) Any approved society may submit to the Insurance Commissioners
a scheme for substituting any of the additional benefits for sickness benefit
and disablement benefit or either of those benefits or any part thereof, and
the scheme may provide as respects the members of the society to whom the scheme
applies that any such benefits shall be abolished or the rate thereof reduced
or, in the case of sickness benefit, the commencement thereof postponed; and
the scheme may contain such incidental and consequential provisions as appear
necessary for adapting the other provisions of this Part of this Act to the
members to whom the scheme applies.
(2) The scheme shall apply either to all members of the society or to any specified
class thereof or to any members of the society who may elect to come under the
scheme, according as may be provided by the scheme.
(3) A scheme made under this section shall not have any effect unless and until
confirmed by the Insurance Commisioners, and the Insurance Commissioners shall
not confirm any such scheme unless satisfied that the value of the additional
benefits conferred by the scheme is equivalent to the value of the benefits
for which they are substituted, and that, in view of the special circumstances
of the members or class of members intended to come under the scheme, there
is good reason for substituting the additional benefits conferred by the scheme
for the benefits for which they are substituted.
(4) Nothing in this section or in any scheme made thereunder shall affect
the amount of any reserve value to be credited to a society in respect of a
member, and such reserve values shall be calculated as if the scheme had not
been made.
14.—(1) Sickness benefit, disablement benefit, and maternity benefit shall
be administered, in the case of insured persons who are members of an approved
society, by and through the society, or a branch thereof, and in other cases
by and through the Insurance Committees; medical and sanatorium benefits shall
in all cases be administered by and through the Insurance Committees, additional
benefits shall be administered by the society or branch of which the persons
entitled thereto are members, except where such benefits are in the nature of
medical benefits, in which case they shall be administered by and through the
Insurance Committees.
(2) Subject to the provisions of this Part of this Act, an approved society
may, with the consent of the Insurance Commissioners, provide for the application
of its existing rules or make new rules with regard to the manner and time of
paying •or distributing, and mode of calculating, benefits, suspension of benefits,
notices and proof of disease or disablement, behaviour during disease or disablement,
and the visiting of sick or disabled persons, and for the infliction and
enforcement of penalties (whether by way of fines or suspension of benefits
or otherwise) in the case of any member being an insured person who is guilty
of any breach of any such rule, or of any imposition or attempted imposition
in respect of any benefit under this Part of this Act, and may, from time to
time with the like consent, alter or repeal any such rules; but—
(a) no fine imposed under any such rule shall exceed ten shillings or, in the
case of repeated breaches of rules, twenty shillings;
(b) no such rule shall provide for the suspension of any benefit for a period
exceeding one year ;
(c) every such rule relating to the visiting of insured persons by visitors
appointed by the society shall provide that women shall not be visited otherwise
than by women;
(d) every such rule relating to behaviour during disease or disablement shall
be in the prescribed form ;
(e) no such rule shall prescribe any penalty, nor shall any insured person be
subject to any penalty, whether by suspension of benefit or otherwise, on account
of the refusal by any such person to submit to a surgical operation, or vaccination,
or inoculation of any kind, unless such refusal in the case of a surgical operation
of a minor character is considered by the society, or on appeal the Insurance
Commissioners, unreasonable;
(f) No such rule shall provide for inflicting as a penalty for breach of rules
or imposition or attempted imposition on the part of an insured person suspension
of maternity benefit in respect of the confinement of his wife, where his wife
has not herself been guilty of any such breach, imposition, or attempted imposition.
(3) The Insurance Committee shall, subject to the approval of the Insurance
Commissioners, make rules in respect of any of the matters mentioned in the
last preceding subsection with regard to the administration of benefits by the
committee;
Provided that no such rule relating to anything to be done by, to, or through
the Post Office shall be made without the consent of the Postmaster-General.
(4) Where, under any such rule as aforesaid, payment of sickness or disablement
benefit is suspended on the ground that the disease or disablement has been
caused by the misconduct of the person claiming the benefit, such person shall
not thereby become disentitled to medical benefit.
(5) Where under any Act regulating the constitution of a society which becomes
an approved society the rules of the society are required to be registered,
any rules approved under this section by the Insurance Commissioners shall forthwith
be registered, but till so registered shall have effect as if they had been
duly registered.
15.—(1) Every Insurance Committee shall, for the purpose of administering medical
benefit, make arrangements with duly qualified medical practitioners in accordance
with regulations made by the Insurance Commissioners.
(2) The regulations made by the Insurance Commissioners shall provide for the
arrangements made being subject to the approval of the Insurance Commissioners
and being such as to secure that insured persons shall, save as herein-after
provided, receive adequate medical attendance and treatment from the medical
practitioners with whom arrangements are so made, and shall require the adoption
by every Insurance Committee of such system as will secure—
(a) the preparation and publication of lists of medical practitioners who have
agreed to attend and treat insured persons whose medical benefit is administered
by the committee;
(b) a right on the part of any duly qualified medical practitioner who is desirous
of being included in any such list as aforesaid of being so included, but, where
the Insurance Commissioners, after such inquiry as may be prescribed, are satisfied
that his continuance in the list would be prejudicial to the efficiency of the
medical service of the insured, they may remove his name from the list;
(c) a right on the part of any insured person of selecting, at such periods
as may be prescribed, from the appropriate list the practitioner by whom
he wishes to be attended and treated, and, subject to the consent of the practitioner
so selected, of being attended and treated by him;
(d) the distribution amongst, and so far as practicable,under arrangements made
by, the several practitioners whose names are on the lists, of the insured persons
who after due notice have failed to make any selection, or who have been refused
by the practitioner whom they have selected;
(e) the provision of medical attendance and treatment on the same terms as to
remuneration as those arranged with respect to insured persons, to members of
any friendly society which, or a separate section of which, becomes an approved
society who were such members at the date of the passing of this Act, and who
are not entitled to medical benefit under this Part of this Act by reason either
that they are of the age of sixty-five or upwards at the date of the commencement
of this Act, or that being subject to permanent disablement at that date
they are not qualified to become insured persons:
Provided that, if the Insurance Commissioners are satisfied after inquiry that
the practitioners included in any list are not such as to secure an adequate
medical service in any area, they may dispense with the necessity of the adoption
of such system as aforesaid as respects that area, and authorise the Committee
to make such other arrangements as the Commissioners may approve; or the
Commissioners may themselves make such arrangements as they think fit, or may
suspend the right to medical benefit in respect of any insured persons in the
area for such period as they think fit, and pay to each such person a sum equal
to the estimated cost of his medical benefit during that period, and, where
the Commissioners take any such action themselves, they shall retain and apply
for the purpose such part of the sums payable to the Insurance Committee in
respect of medical benefit as may be required.
(3) The regulations made by the Insurance Commissioners shall authorise the
Insurance Committee by which medical benefit is administered to require any
persons whose income exceeds a limit to be fixed by the Committee, and to allow
any other persons, in lieu of receiving medical benefit under such arrangements
as aforesaid, to make their own arrangements for receiving medical attendance
and treatment (including medicines and appliances), and in such case the Committee
shall, subject to the regulations, contribute from the funds out of which medical
benefit is payable towards the cost of medical attendance and treatment (including
medicines and appliances) for such persons sums not exceeding in the aggregate
the amounts which the Committee would otherwise have expended in providing medical
benefit for them.
(4) The regulations shall provide that, in the case of persons who are entitled
to receive medical attendance and treatment under any system or through any
institution existing at the time of the passing of this Act and approved by
the Insurance Committee and the Insurance Commissioners, such medical attendance
and treatment may be treated as, or as part of, their medical benefit under
this Part of this Act, and may provide for the Committee contributing towards
the expenses thereof the whole or any part of the sums which would be contributed
in the case of persons who have made their own arrangements as aforesaid, so,
however, that such regulations shall secure that no person be deprived of his
right, if he so elects, of selecting the duly .qualified medical practitioner
by whom he wishes to be attended and treated, in accordance with the foregoing
provisions of this section.
(5) Every such Committee shall also make provision for the supply of proper
and sufficient drugs and medicines and prescribed appliances to insured persons
in accordance with regulations made by the Insurance Commissioners, which shall
provide for the arrangements made being subject to the approval of the Insurance
Commissioners and being such as to enable insured persons to obtain from any
persons, firms, or bodies corporate with whom arrangements have been made such
drugs, medicines, and appliances if ordered by the medical practitioner by whom
they are attended, and shall require the adoption by every Insurance Committee
of such a system as will secure—
(a) The preparation and publication of lists of persons, firms, and bodies corporate
who have agreed to supply drugs, medicines, and appliances to insured persons
whose medical benefit is administered by the Committee, according to such scale
of prices as may be fixed by the Committee
(b) A right on the part of any person, firm, or body corporate desirous of being
included in any such list as aforesaid of being so included, for the purpose
of supplying such drugs, medicines, and appliances as such person, firm, or
body corporate is entitled by law and authorised by the Committee to supply,
except in cases where the Insurance Commissioners after inquiry are satisfied
that the inclusion or continuance of the person, firm, or body corporate in
such list would be prejudicial to the efficiency of the service:
Provided that—
(i) If the Insurance Commissioners are satisfied that the scale of prices fixed
by the Committee is reasonable, but that the persons, firms, or bodies corporate
included in any list are not such as to secure an adequate and convenient supply
of drugs, medicines, and appliances in any area, they may dispense with the
necessity of the adoption of such system as aforesaid as respects that area
and authorise the Committee to make such other arrangements as the Commissioners
may approve;
(ii) Except as may be provided by regulations made by the Insurance Commissioners,
no arrangement shall be made by the Insurance Committee with a medical practitioner
under which he is bound or agrees to supply drugs or medicine to any insured
persons;
(iii) Subject to the regulations made by the last foregoing-proviso the regulations
shall prohibit arrangements for the dispensing of medicines being made with
persons other than persons, firms, or bodies corporate entitled to carry on
the business of a chemist and druggist under the provisions of the Pharmacy
Act, 1868, as amended by the Poisons and Pharmacy Act, 1908, who undertake that
all medicines supplied by them to insured persons-shall be dispensed either
by or under the direct supervision of a registered pharmacist or by a person
who, for three years immediately prior to the passing of this Act, has acted
as a dispenser to a duly qualified medical practitioner or a public institution;
(iv) Nothing in this Act shall interfere with the rights and privileges conferred
by the Apothecaries Act, 1815, upon any person qualified under that Act to act
as an assistant to any apothecary in compounding and dispensing medicines.
(6) There shall in each year be paid to the Insurance Committee for each county
or county borough out of moneys credited to a society which has members resident
in the county or county borough such sum in respect of the medical benefit of
such members and the cost of administration thereof as may be agreed between
the society and committee or, in default of agreement, may be determined by
the Insurance Commissioners.
(7) If in any year the amount payable to an Insurance Committee in respect of
all persons for the administration of whose medical benefit it is responsible
is insufficient to meet the estimated expenditure thereon, the Committee may,
through the Insurance Commissioners, transmit to the Treasury and to the council
of the county or county borough an account showing the amount so payable and
the estimated expenditure, and the Treasury and the county council or the council
of the county borough may, if they think fit and if satisfied that the amounts
so payable and the proposed expenditure are reasonable and proper in the circumstances,
sanction the expenditure.
(8)The Treasury and the council of the county or county borough sanctioning
any such expenditure as aforesaid shall thereupon each be liable to make good,
in the case of the Treasury out of moneys provided by Parliament, and, in the
case of the council of a county or county borough, out of the county fund or
borough fund or borough rate, as the case may be, one half of any sums so sanctioned
by them and expended by the Insurance Committee on medical benefit in the course
of the year in excess of the amounts so payable to the Insurance Committee as
aforesaid.
16.—(1) For the purpose of administering sanatorium benefit, Insurance Committees
shall make arrangements, to the . satisfaction of the Insurance Commissioners,—
(a) with a view to providing treatment for insured persons suffering from tuberculosis
or any other such disease as aforesaid in sanatoria and other institutions,
with persons or local authorities (other than poor law authorities) having the
management of sanatoria or other institutions approved by the Local Government
Board, which treatment it shall be lawful for a local authority to provide as
respects insured persons resident outside as well as respects those resident
within their area; and
(b) with a view to providing treatment for such persons otherwise than in sanatoria
or other institutions, with persons and local authorities (other than poor law
authorities) undertaking such treatment in a manner approved by the Local Government
Board, which treatment (including the appointment of officers for the purpose)
it shall be lawful for a local authority, if so authorised by the Local Government
Board, to undertake.
(2) The sums available for defraying the expenses of sanatorium benefit in each
year shall be—
(a) one shilling and threepence in respect of each insured person resident in
the county or county borough, payable out of the funds out of which benefits
are payable under this Part of this Act;
(b) one penny in respect of each such person payable out of moneys provided
by Parliament:
Provided that the Insurance Commissioners may retain the whole or any part of
the sums so payable out of moneys provided by Parliament to be applied, in accordance
with regulations made by the Commissioners, for the purposes of research.
(3) An insured person shall not be entitled to sanatorium benefit unless the
Insurance Committee recommends the case for such benefit.
(4)An Insurance Committee may, out of the sums available for defraying the expenses
of sanatorium treatment, defray in whole or in part the expenses of the conveyance
of an insured person to or from any sanatorium or institution to which he may
be sent for treatment therein, or may make advances for the purpose.
17.—(1) The Insurance Committee for any county or county borough may, if it
thinks fit, extend sanatorium benefit to the dependants of the insured persons
resident in the county, or to dependants. any part of the county, or in the
county borough, or any class of such dependants, and in such case the arrangements
to be made by the committee shall include arrangements for the treatment of
such dependants, and the sums available for sanatorium benefit shall be applicable
to the purpose.
(2) If in any year the amount available for defraying the expenses of sanatorium
benefit is insufficient to meet the estimated expenditure on sanatorium benefit
for insured persons and such dependants, the Insurance Committee may, through
the Insurance Commissioners, transmit to the Treasury and the council of the
county or county borough an account showing the estimated expenditure for the
purpose and the amount of the sums available for defraying the expenses of sanatorium
benefit, and the Treasury and council may if they think fit sanction such expenditure.
(3) The Treasury and the council of the county or county borough sanctioning
such expenditure as aforesaid shall thereupon each be liable to make good,
in the case of the Treasury out of moneys provided by Parliament, and, in the
case of the council of the county or county borough, out of the county fund
or borough fund or borough rate, as the case may be, one-half of any sums so
sanctioned by them and expended by the Insurance Committee on sanatoriiim benefit
for insured persons and their dependants in the course of the year in excess
of the amount available for defraying the expenses of the committee on sanatorium
benefit.
18.—(1) Where the mother of the child is herself an insured person, and is
not the wife or, in the case of a posthumous child, the widow of an insured
person, maternity benefit shall be treated as a benefit for her and shall be
administered in cash or otherwise by the approved society of which she is a
member, or, if she is not a member of any society, by the Insurance Committee
; in any other case, the benefit shall be treated as a benefit for her husband
and shall be administered in cash or otherwise by the approved society of which
he is a member, or, if he is not a member of any such society, by the Insurance
Committee, and shall be payable in respect of a posthumous child as if the husband
were still alive:
Provided always that the mother shall decide whether she shall be attended by
a duly qualified medical practitioner or by a duly certified midwife, and shall
have free choice in the selection of such practitioner or midwife, but if, in
the case of a midwife being selected, a duly qualified medical practitioner
is subsequently summoned in pursuance of the rules made under the Midwives Act,
1902, the prescribed fee shall, subject to regulations made by the Insurance
Commissioners, be recoverable as part of the maternity benefit.
(2) In deciding whether or not they shall make an order under the Bastardy Laws
Amendment Act, 1872, for the payment of the expenses incidental to the birth
of a child, the justices shall not take into consideration the fact that the
mother of the child is entitled to receive maternity benefit under this Part
of this Act.
19. Without prejudice to any other legal liability, where, under the immediately foregoing section, which relates to the administration of maternity benefit, of this Act, maternity benefit is given or paid to the husband, it shall be the duty of the husband to make adequate provision to the best of his power for the maintenance and care of his wife during her confinement, and for a period of four weeks after her delivery, and if he neglects or refuses to do so he shall be liable upon summary conviction to imprisonment, with or without hard labour, for any term not exceeding one month.
20. For the purpose of the administration of maternity benefit, the Insurance Commissioners may, if they think fit, by special order provide for the reinsurance with them of the liabilities of all approved societies in respect of maternity benefit, and the order may provide for the method of calculating the premiums to be charged against the several societies in respect of such reinsurances and may contain such other incidental, consequential, and supplemental provisions as may appear necessary for the purpose.
21. It shall be lawful for an approved society or Insurance Committee to grant such subscriptions or donations as it may think fit to hospitals, dispensaries, and other charitable institutions, or for the support of district nurses, and to appoint nurses for the purpose of visiting and nursing insured persons, and any sums so expended shall be treated as expenditure on such benefits under this Part of this Act as may be prescribed.
22.—(1) The council of any borough or urban or rural district may agree with
the council of the county in which the borough or district is situate to repay
to the latter council the whole or any part of the sums payable by that council
in accordance with the provisions of this Part of this Act towards the excess
expenditure on medical or sanatorium benefit so far as such excess is properly
attributable to the borough or district, and any sums payable by the council
of the borough or district in pursuance of such an agreement shall be payable,
in the case of a borough, out of the borough fund or borough rate, and, in any
other case, as part of the general expenses incurred by council in the execution
of the Public Health Acts.
(2) The agreement may provide that the county council shall not raise any sum
on account of any expenditure incurred by them under this Part of this Act for
the purpose to which the agreement relates within the borough or urban or rural
district the council of which has entered into such agreement, during the continuance
of such agreement.
23.—(1) Any society, that is to say, any body of persons corporate or unincorporate
(not being a branch of another such body), registered or established under any
Act of Parliament, or by Royal Charter, or, if not so registered or established,
having a constitution of such a character as may be prescribed, which complies
with the requirements of this Act relating to approved societies, may be approved
by the Insurance Commissioners, and, if so approved, shall be an approved society
for the purposes of this Part of this Act:
Provided that, where any society establishes for the purposes of this Part of
this Act a separate section consisting of insured persons, whether with or without
honorary members not being insured persons, and so constituted as to comply
with the requirements of this Act relating to approved societies, such separate
section may be approved by the Insurance Commissioners, and, if so approved,
shall be an approved society, and the provisions of this Part of this Act relating
to the conditions of approval of societies and to approved societies shall apply
only to such separate section of the society.
(2) No society shall receive the approval of the Insurance Commissioners unless
it satisfies the following conditions:—
(i) It must not be a society carried on for profit;
(ii) Its constitution must provide to the satisfaction of the Insurance Commissioners
for its affairs being subject to the absolute control of its members being insured
persons or, if the rules of the society so provide, of its members whether insured
persons or not, including provision for the election, and removal of the committee
of management or other governing body of the society, in the case of a society
whose affairs are managed by delegates elected by members, by such delegates,
and, in other cases, in such manner as will secure absolute control by its members
;
(iii) If the society has honorary members, its constitution must provide for
excluding such honorary members from the right of voting in their capacity of
members of the society on all questions and matters arising under this Part
of this Act.
(3) Applications for approval under this section may be made and approval granted
at any time before or after the commencement of this Act, and the Insurance
Commissioners may grant approval either unconditionally or subject to the condition
of the society taking within such time as the Commissioners may allow such steps
as may be necessary to make the society comply with the requirements of this
Part of this Act relating to approved societies.
24.—(1) It shall be lawful for any body of persons, corporate or unincorporate,
established before the passing of this Act which under is desirous of transacting
insurance business under this Part of this Act, or of making any amendments
in its constitution, or administration, or contributions, or benefits, or otherwise
which may be necessary or expedient in consequence, of the passing of this Act,
notwithstanding anything in the provisions of the Acts under which it is established
or registered or carried on, or of its memorandum or articles of association,
rules, or other instruments governing its constitution or denning its objects,
to do all such acts and things (including the establishment of a separate section
as aforesaid) as may be necessary for the purpose of enabling the body to undertake
the transaction of such business as soon as may be after the passing of this
Act and, if the instrument regulating the constitution of the body contains
provisions requiring any interval to elapse before action can be taken, such
provisions shall not apply to action taken for the purposes aforesaid.
(2) Subsections (3) and (4) of section seventy of the Friendly Societies Act,
1896, shall not apply to any resolutions for amalgamation or transfer of engagements
when the resolution is made expressly for the purposes of this Part of this
Act.
(3) This section shall come into operation on the passing of this Act, and shall
not continue in force beyond the expiration of one year from the commencement
of this Act, except so far as may be necessary to enable a society which has
undertaken the transaction of insurance business under this Part of this Act
to continue to transact such business.
25.—(1) Where a society consists of persons entitled to rights in a superannuation
or other provident fund established for the benefit of persons employed by one
or more employers, the society may be approved, notwithstanding that the employer
is entitled to representation on the committee or other body administering the
fund to an extent not exceeding one quarter of the total number of the body,
if the employer, in addition to the employer's contributions payable by him
under this Part of this Act, is responsible for the solvency of the fund or
for the benefits payable thereout, or is liable to pay a substantial part of,
or to make substantial contributions to, or substantially to supplement, the
benefits payable out of the fund:
Provided that no such society as aforesaid shall be approved unless by its constitution
it is prohibited so far as concerns the benefits under this Part of this Act
from refusing to allow a member to transfer to another approved society, and
from refusing to allow a member who is discharged from or leaves the employment
of the employer and is unable to obtain admission to another approved society
on account of the state of his health to continue a member, and unless its.
Constitution provides for the election of the members of the committee of management
(other than the employer's representatives) by ballot:
Provided also that no such society shall be approved if the employer makes membership
of such society a condition of employment.
(2) Where, for the purpose of enabling any such society to become an approved
society, it is necessary to make any alteration in the existing rules or constitution
of the society which it is not competent for the society under its existing
constitution to make, a scheme for the purpose may be submitted for the approval
of the Insurance Commissioners.
(3) Where such a scheme has been approved by the Insurance Commissioners, the
Act or deed constituting the society shall have effect subject to the provisions
of the scheme, but the Insurance Commissioners shall not approve any such scheme
unless they are satisfied that the members of the society have been given an
opportunity of voting by ballot thereon, and that the scheme makes proper provision
for safeguarding existing rights and interests.
26.—(1) Every approved society and every society desirous of becoming an approved
society shall give such security as the Insurance Commissioners may consider
sufficient to provide against any malversation or misappropriation by officers
of the society of any funds coming to the hands of the society under this Part
of this Act, and in determining the amount of the security to be required the
Commissioners shall have regard to the amount of the funds so coming into the
hands of the society:
Provided that no security shall be required from any society which proves to
the Insurance Commissioners that the only funds coming into the hands of the
society under this Part of this Act are such funds as are required for reimbursing
to the society sums previously expended by the society under this Part of this
Act.
(2) In the case of an approved society with branches having insured persons
among their members, security shall be given in respect of each such branch
by the society.
(3) The Insurance Commissioners may from time to time vary the amount of security
to be given or maintained by an approved society as may be thought proper, and,
where security is given by way of deposit of securities, the society which made
the deposit may, with the consent of the Insurance Commissioners, substitute
other securities for the securities for the time being deposited.
(4) Any dividends or interest arising from securities deposited by an approved
society under this section shall be paid to the society.
27.—(1) Every approved society shall, as respects the administration of the
affairs of the society under this Part of this Act, make proper provisions by
rules to the satisfaction of the Insurance Commissioners for the government
of the society, and if a society with branches—
(a) for the government of the society and its branches;
(b) for the determination of disputes arising 'between the society and any branch
thereof, or between one such branch and another;
(c) for the administration of benefits by the branches as respects insured persons
who are members of such branches;
(d) for the keeping of proper books of account by the branches in any case where
separate accounts are usually kept by those branches ;
(e) for depriving of or suspending from the right of administering benefits
under this Part of this Act any branch which is guilty of maladministration
of those benefits, or is convicted of any offence under any Act, and for providing
in such a case for their administration by the society or otherwise.
(2) Every approved society and every branch thereof shall comply with any regulations
made by the Insurance Commissioners as to the place in which meetings are to
be held, and those regulations may provide for the use for such meetings, with
or without payment, of any offices or other buildings under the control of a
Government department (including offices or buildings occupied by or in connexion
with a labour exchange) or belonging to or under the management of a local authority,
but subject to the consent of the Government department or the local authority
concerned.
(3) Where under any Act regulating the constitution of an approved society the
rules of the society are required to be registered, any rules approved under
this section by the Insurance Commissioners shall forthwith be registered, but
until so registered shall have effect as if they had been duly registered.
28.—(1) No branch of an approved society having insured persons among its members
shall be entitled to secede or withdraw from the society without the consent
of the Insurance Commissioners ; but such consent shall not be given unless
the seceding or withdrawing branch complies with the conditions of approval
requisite in the case of approved societies, and, on any such consent being
given, the branch shall be subject in all respects to the provisions and requirements
of this Part of this Act relating to approved societies:
Provided that such consent shall not be required if the branch makes provision
to the satisfaction of the Insurance Commissioners for the transfer to other
approved societies or to other branches of the society from which it is seceding
or withdrawing of such of its members as are insured persons.
(2) An approved society or a branch thereof shall not be dissolved without the
sanction of the Insurance Commissioners and any such dissolution, so far as
it affects members who are insured persons, shall be carried out in the prescribed
manner.
(3) No branch of an approved society shall be expelled from the society, unless
proper provision is made to the satisfaction of the Insurance Commissioners
with respect to any members of the branch who are insured persons.
(4) This section shall have effect notwithstanding anything contained in any
Act regulating the constitution of the society.
29. Where an approved society or a branch of any approved society fails to comply with any of the provisions or requirements of this Part of this Act relating to approved societies, or where such a society or branch or the body of which the society forms a separate section is convicted of any offence under any Act regulating its constitution or under any other Act, the Insurance Commissioners may withdraw their approval, and thereupon the society shall cease to be an approved society and the Insurance Commissioners shall make such provision as they may consider necessary with respect to members of the society who are insured persons.
30.—(1) Subject to the provisions of this Act, any insured person and any person
entitled to become an insured person may apply to an approved society for membership
therein.
(2) An approved society shall be entitled, in accordance with its rules, to
admit or reject any such applicant, or to expel any of its members being insured
persons: Provided that no such application shall be refused solely on the ground
of the age of the applicant.
(3) This section shall come into operation on the passing of this Act.
31.—-(1) If an insured person, being a member of an approved society, ceases
to be a member of that society, whether voluntarily or by expulsion, and becomes
a member of another approved society, there shall be transferred to such other
society in respect of such person a sum representing the liability under this
Part of this Act of the first-mentioned society in respect of him (in this Act
called "transfer value") calculated in accordance with tables to be
prepared by the Insurance Commissioners :
Provided that such transfer value shall not be so transferred in any case where
the first-mentioned society proves that the insured person voluntarily ceased
to be a member of that society without the consent of the society, and that
that consent was not unreasonably withheld.
(2) This section shall apply to transfers from one branch of an approved society
to another branch of the same or any society in like manner as it applies to
transfers from one society to another society.
32.—(1) If an insured person ceases to be permanently resident in the United
Kingdom and becomes a member of any society or institution established in a
British possession or foreign country, of a kind similar to an approved society,
which is approved by the Insurance Commissioners, or of any branch established
outside the United Kingdom of an approved society, the transfer value of such
person, or, in the case of a deposit contributor, the amount standing to his
credit in the Post Office fund, shall be paid to such society or institution
or branch ; but no such payment shall be made, unless the Insurance Commissioners
are satisfied that the society, institution, or branch in question gives corresponding
rights to any of its members becoming resident in the United Kingdom.
(2) Where an arrangement has been made with the Government of any British
possession or with the Government of any foreign State, whereby insured persons
may be transferred to a society or institution established in the British possession
or foreign State similar to an approved society or the Post Office fund, and
members of any such society or institution may be transferred to approved societies
or to the Post Office fund, it shall be lawful for the Insurance Commissioners
to make such arrangements as may be necessary for any such transfer as aforesaid,
and for the determination of the amount to be transferred in any such case,
and of the rights to which any person transferred is to be entitled ; so, however,
that nothing in this section shall affect the rights of a society under this
Part of this Act to refuse applications for membership.
33. If a person who has for not less than five years been a member of an approved society for the purposes of this Part of this Act has ceased permanently to reside in the United Kingdom, and does not join such a society, branch, or institution as is in the last foregoing section mentioned, and 4he approved society is willing to permit him to remain a member of the society and to become entitled to benefits independently of this Act, the society may, subject to regulations by the Insurance Commissioners, transfer from the account of the society under this Part of this Act to the credit of the society independently of this Act such sum as would have been transferred to the Post Office fund had the member ceased to be a member of the society and become a deposit contributor, and so much of any reserve value which may have been credited to the society in respect of him as would in such a case have been cancelled shall be cancelled.
34.A person shall not be or attempt to become a member for the purposes of this Part of this Act of more than one approved society at the same time, or, being a deposit contributor, to become at the same time a member for the purposes of this Part of this Act of an approved society, but nothing in this Act shall prevent any person who is a member of an approved society under this Part of this Act becoming a member of the same or any other society independently of this Act, or prevent a deposit contributor becoming a member of any society independently of this Act, or affect the right of an approved society to reject or expel from membership any person not being an insured person, or the rights or liabilities of an approved society or of any member thereof arising otherwise than under this Part of this Act; and, subject to the provisions of this Part of this Act, all rules made by a society which becomes an approved society or any branch thereof shall remain and be of the same force and effect as though this Act had not been passed.
35.—(1) Every approved society and every branch of an approved society must—
(a) Keep its books and accounts under this Part of this Act separate from all
other books and accounts of the society or branch, and in such form as may be
prescribed by the Insurance Commissioners, and, when required, submit them to
audit by auditors to be appointed by the Treasury;
(b) Submit to have its assets and liabilities under this Part of this Act valued
in accordance with the provisions of this Part of this Act;
(c) In the event of a surplus or deficiency being shown upon any such valuation,
comply with the provisions relating to surpluses and deficiencies herein-after
contained;
(d) Render such returns as the Insurance Commissioners may require.
(2) Regulations made under this section shall provide for a separate account
being kept showing the amount expended on administration, and for limiting the
amount which may be carried to that account out of the contributions under this
Part of this Act, and for requiring any deficiency in such account (if not otherwise
defrayed) to be met forthwith by a special levy.
(3) The provisions of this Part of this Act relating to accounts audit valuation
and returns shall, as respects the transactions of any approved society or branch
thereof under this Part of this Act, be substituted for such of the provisions
of any Act regulating the constitution of the society or branch as deal with
the like matters.
(4) In the case of a society or branch transacting other business besides that
of insurance business under this Part of this Act, all funds and credits of
the society or branch under this Part of this Act shall be as absolutely the
security of the members for the purposes of this Part of this Act as if they
belonged to a society or branch carrying on no other business contracts of the
society or branch for which they would not have been liable had the business
of the society or branch been only that of such insurance, and shall not be
applied directly or indirectly for any purposes other than those of insurance
business under this Part of this Act.
Where a separate section of a society has been established and such separate
section is an approved society under this Part of this Act, the expression "society"
in this subsection means the society of which the separate section has been
established and not the separate section.
36.— (1) A valuation of the assets and liabilities arising under this Part
of this Act of every approved society and of every branch, of an approved society
snail be made by a valuer, to be appointed by or with the approval of the Treasury,
at the expiration of every three years dating from the commencement of
this Act, or at such other times as the Insurance Commissioners appoint; the
times so appointed may be at shorter or longer intervals than three years and
at regular or irregular intervals, and may apply to all approved societies or
any particular society or societies.
(2) Every such valuation shall be made on such basis as may be prescribed.
37—(1) If upon any such valuation a surplus (certified by the valuer to be
disposable) is found, the following provisions shall apply:—
(a) If the society is not a society with branches, the society may submit to
the Insurance Commissioners a scheme for distributing out of such surplus any
one or more additional benefits among insured persons who are members thereof
for the purposes of this Part of this Act and, upon any such scheme being sanctioned
by the Insurance Commissioners, the society may distribute such additional benefit
or benefits in accordance with the provisions thereof:
(6) If the society is a society with branches, any surplus in the central fund
of the society, including any surplus transferred from the branches to the society
under the provisions of this section, shall, subject to the provisions of the
next succeeding section of this Act, be applied in the first instance towards
making good any deficiency shown by any of its branches; and the society may
distribute the balance of the surplus, after making good deficiencies as aforesaid,
amongst such of its branches as have a surplus in proportion to the amounts
of such surpluses, and the sum so apportioned to a branch shall be treated as
an addition to the disposable surplus of that branch :
(c)If, on the valuation of a branch of an approved society, a surplus is shown
in respect of such branch, there shall be transferred to the central body or
other central authority of the society of which it is a branch one-third of
the surplus and the branch may, with — the approval of the society, submit to
the Insurance Commissioners a scheme for distributing out of the remaining two-thirds
of such surplus, together with any such addition as aforesaid, any one or more
additional benefits, and, upon any such scheme being sanctioned by the Insurance
Commissioners, the branch may distribute such additional benefit or benefits
in accordance with the provisions thereof:
(d) If, at any time after a scheme submitted by a society or branch has been
so sanctioned as aforesaid, there is found to be a deficiency in the funds of
the society or branch, no additional benefits shall be distributed under the
scheme until such deficiency is extinguished and a surplus shown.
(2) A scheme made under this section may prescribe the conditions to be complied
with as respects any additional benefit conferred by the scheme, and every such
scheme shall, so far as practicable, provide for the reduction, suspension,
or deprivation of the additional benefits conferred by the scheme in the case
of members who are in arrears, and may make a corresponding reduction in the
amount to which such members are to be deemed to be in arrears for the purpose
of reckoning the rate of sickness benefit.
(3) No surplus and no part of any surplus shall be applied for the purpose of
paying any benefits payable on death or any benefits other than one or more
of the additional benefits specified in Part II. of the Fourth Schedule to this
Act.
38.—(1) If upon any such valuation a deficiency is found, Deficit, the following
provisions shall apply:
(a) If the deficiency is shown by a branch of an approved society, three-quarters,
or, if the society thinks fit, the whole thereof, shall, in the first place,
so far as possible, be made good out of any surplus available for that purpose
in the hands of the central body or other central authority of the society :
Provided that the society may, if it is satisfied that the deficiency is due
to any maladministration on the part of the branch in question, with the consent
of the Insurance Commissioners, refuse to make good any part of the deficiency
out of such, surplus :
(b) Subject as aforesaid, every deficiency shall be made good in accordance
with a scheme for that purpose to be prepared by the society, or, in the case
of a deficiency in a branch, by the branch subject to the approval of the society,
and submitted to the Insurance Commissioners for their sanction; such a scheme
shall provide for making good the deficiency, within a period of three years
from the date at which the valuation was made, in any one or more of the following
ways :—
(i) By a compulsory levy, by way of increase of the weekly rate of contributions,
upon members of the society or branch being insured persons ;
(ii) By reducing the rate of sickness benefit either for the whole period during
which sickness benefit is payable or for any part thereof;
(iii) By deferring the day as from which sickness benefit becomes payable;
(iv) By reducing the period during which sickness benefit is payable;
(v) By increasing the period which is required by this Part of this Act to elapse
between two periods of disease or disablement to prevent the one being treated
as a continuation of the other ;
(vi) By any other method approved by the Insurance Commissioners, and, on the
sanction of the Insurance Commissioners being given to the scheme, the society
or branch shall proceed to make good the deficiency in accordance therewith:
(c) Payment of the amount of any compulsory levy made in accordance with a scheme
sanctioned under this section may be enforced in such manner as may be provided
by the rules of the society or branch ; and, where those rules so provide, it
shall be lawful for the society or branch in the case of any member to enforce
payment of the amount of the levy by giving notice in the prescribed manner
to the employer of such member requiring him to pay the amount of the levy,
and, upon such notice being given, such amount shall be payable as if it were
part of the contribution to be paid by the employer on behalf of the member,
and all the provisions of this Part of this Act relating to the payment of such
contributions and the recovery thereof from members shall apply accordingly:
(d) If a member chargeable with a levy falls into arrears, his arrears shall
reckon as though the total sum thereof, inclusive of the levy, consisted of
the contributions payable by or in respect of him had no levy been made :
(e) If within six months after the declaration of a deficiency, or, where an
enquiry as to excessive sickness is pending under this Part of this Act, such
longer period as the Insurance Commissioners determine, such scheme as aforesaid
has not been submitted to and sanctioned by the Insurance Commissioners, or
if at any time thereafter it appears to the Insurance Commissioners that the
society or branch to which the scheme relates is not enforcing the provisions
of the scheme, the Insurance Commissioners may take over the administration
of the affairs of the society or branch under this Part of this Act, and shall,
as soon as possible thereafter, take such steps as they may think necessary
to make good the deficiency by any or all of the methods mentioned in paragraph
(b) of this section, and for that purpose they shall be entitled to exercise
all or any of the powers given to the society or branch by this Part of this
Act:
(f) The Insurance Commissioners after taking over the administration of the
affairs of any society or branch shall within a reasonable time, not exceeding
three years, make arrangements for the restoration to the society or branch
of its powers of self-government or, failing that, for the transfer of the members
of the society or branch, being insured persons, to other approved societies
or branches or to the Post Office fund:
(g) Any question or dispute arising between the Insurance Commissioners and
the society or branch in respect of the amount of the deficiency, or as to the
adequacy of any scheme proposed for making it good, shall be submitted to an
independent valuer to be appointed by the Lord Chief Justice, and such valuer
shall, subject to the provisions of this Act and of the regulations thereunder,
act, so far as practicable, on his own knowledge and experience, and shall have
power to determine how and by what parties the costs of proceedings, including
his own remuneration, not exceeding such amount as the Treasury may prescribe,
are to be defrayed, and his decision shall be final and conclusive:
(h) A scheme made under this section shall not affect any person who becomes
a member of the society or branch after the date as at which the valuation was
made, or any member over seventy years of age:
(i)Any insured person who, having been a member of the society or branch at
the date as at which the valuation disclosing the deficiency was made, is transferred
to another society or to another branch of the same or any other society before
the deficiency is made good, shall be liable to any levy or reduction of benefits
which has been or may be made in respect of such deficiency in like manner in
all respects as if he had not ceased to be a member, and if the transfer took
place before the scheme imposing the levy or reduction of benefits was sanctioned,
such adjustment in the amount of any transfer value paid in respect of him shall
be made
(2) Any member liable to a levy payable at intervals may relieve himself of
the liability thereto, and a member subject to a diminution of benefits by virtue
of any such scheme may, with the consent of the society or branch, acquire a
right to undiminished benefits, on payment to the Insurance Commissioners
of the capitalised value of the levy or diminution of benefits, as the case
may be, ascertained in the prescribed manner.
39.— (1) Subject to the provisions of this section, all approved societies
which at the date of any valuation have less than five thousand insured persons
as members for the purposes of this Part of this Act shall, for the purposes
of the valuation —
(a) if they have joined an association formed under this section, be associated
with the other societies in the same association ; and
(b) if they have not joined any such association, be grouped together according
to the localities in which they carry on business.
(2) Any such societies may, with the consent of the Insurance Commissioners,
form for the purposes of this section an association with a central financial
committee, provided that the aggregate number of insured persons who are members
of the associated societies is not less than five thousand, and the conditions
on which a society shall be entitled or allowed to join, or having joined to
secede from, an association, shall be such as may be prescribed.
(3) Any such .society which has not joined any such association as aforesaid,
and which carries on business in any county or county borough, shall, for the
purposes of this section, be grouped with the other unassociated societies carrying
on business in the same county or county borough.
(4) The provisions of this Part of this Act as to the application of surpluses
of branches of societies with branches shall apply to such associated and grouped
societies as if all the societies in any association or group were branches
of a single society, subject to the following modifications: —
(a) A reference to the central financial committee in the case of an association,
and to the Insurance Committee for the county or county borough in the case
of a group, shall be substituted for the reference to the central authority
of the society ;
(b) The approval of the central financial committee or Insurance Committee shall
not be required to any scheme prepared by an associated or grouped society for
the distribution of any surplus.
(5) Where an associated or grouped society is a society with branches, the provisions
of this Part of this Act relating to surpluses and deficiencies of societies
with branches (except those requiring the approval of a society to a scheme
prepared by a branch as to the distribution of a surplus or the making good
of a deficiency) shall not apply to the society, but each branch shall, for
the purposes of this section, be deemed to be a separate society.
(6) For the purposes of this section, a society shall be deemed to carry on
business only in the county or county borough in which its registered office
or other principal place of business is situate:
Provided that, where of the insured persons who are members of a grouped society
at the date of any valuation more than one hundred or more than one-sixth reside
in some county or county borough other than that in which the registered office
or other principal place of business is situate, the proper proportion of any
surplus or deficiency of the society shall, if application for the purpose is
made by any of the Insurance Committees concerned, be apportioned to the Insurance
Committee of that other county or county borough, such proportion to be determined,
in default of agreement between the Insurance Committees concerned, by the Insurance
Commissioners.
(7) The Insurance Commissioners may exempt from this section any society consisting
of persons entitled to rights in a superannuation or other provident fund established
for the benefit of persons employed by one or more employers, if the employer,
in addition to the contributions payable by him under this Part of this Act,
is responsible for the solvency of the fund, or for the benefits payable thereout,
or is liable to pay a substantial part of, or to make substantial contributions
to, or substantially to supplement the benefits payable out of the fund, and
this section shall not apply to any society to which such an exemption has been
granted.
(8) Except so far as relates to the power of refusing to make good any part
of a deficiency due to maladministration on the part of any society, nothing
in this section shall be construed as conferring on any central financial committee
or Insurance Committee any powers of control over the administration of associated
or grouped societies.
40.—(1) Where a society with branches is so organised that the branches in
different geographical areas are grouped together for the purposes of this section,
the branches in any societies with such area may, if and to such extent as the
rules of the society branches, so provide, and if the number of members of the
branches being insured persons in the area exceeds five thousand, be treated
for the purposes of the provisions of this Part of this Act relating to valuations,
surpluses, and deficiencies as if they formed a separate society.
(2) The rules of any society with branches may provide for the branches reinsuring
with the society their liabilities in respect of any of the benefits under this
Part of this Act, or, if the society is so organised as aforesaid, for such
reinsurance either with the society or with the group.
(3) Where a society with branches has among its members insured persons who are not members of any branch, and the benefits of such members are administered by the society itself, such members shall be treated for the purposes of this Part of this Act relating to valuations, surpluses, and deficiencies as if they formed a separate branch.
41. Where an approved society, not being a society with branches, has amongst its members both men and women, and the rules of the society so provide, the provisions ofthis Part of this Act with respect to valuations, surpluses, and deficiencies shall apply to the society as if it were a society consisting of two branches, the one comprising the male members and the other comprising the female members.
42. Until the first day of January nineteen hundred and fifteen, the following provisions shall apply in the case of insured persons (in this Act referred to as deposit contributors) who have not joined an approved society within the prescribed time, or who, having been members of an approved society, have been expelled or have resigned therefrom and have not, within the prescribed time, joined another approved society :—
(a) Contributions by or in respect of a deposit contributor shall be credited
to a special fund to be called the Post Office fund:
(b) The sums required for the payment of any sickness, disablement, or maternity
benefit payable to a deposit contributor, except so far as they are payable
out of moneys provided by Parliament, shall be paid out of the moneys standing
to his credit in the Post Office fund, and his right to benefits under this
Part of this Act shall be suspended on the sums standing to his credit in that
fund being exhausted, except that his right to medical benefit and sanatorium
benefit shall continue until the expiration of the then current year, and that
the Insurance Committee, if it has funds available for the purpose and thinks
fit so to do, may allow him to continue to receive medical benefit or sanatorium
benefit or both such benefits after the expiration of such year :
(c) Such sum as may be prescribed shall in each year be payable in respect of
each deposit contributor towards the expenses incurred by the Insurance Committee
in the administration of benefits:
(d) Such sum as the Insurance Committee may, with the consent of the Insurance
Commissioners, determine shall in each year be payable in respect of each deposit
contrrtmtor for the purposes of the cost of medical benefit:
(e) The sums payable in respect of a deposit contributor for the purposes of
medical benefit and sanatorium benefit, and towards the expenses of administration,
shall, except so far as they are payable out of moneys provided by Parliament,
be deducted at the commencement of each year from the amount standing to his
credit in the Post Office fund, and, if at the commencement of any year the
amount so standing to his credit is insufficient to provide such sums, he shall
not, unless the Insurance Committee consents, and except subject to such conditions
as that committee may impose, be entitled to any benefits during that year:
(f) Upon the death of a deposit contributor, four-sevenths (or in the case of
a woman one-half) of the amount standing to his credit in the Post Office fund
shall be paid to his nominee or, in default of a nomination, to the person entitled
to receive the sum as if it were money payable on the death of a member of a
registered friendly society, and the balance thereof shall be forfeited, and
sections fifty-six to sixty-one of the Friendly Societies Act, 1896, as amended
by any subsequent enactment, shall, subject to the prescribed adaptations, apply
accordingly :
(g) Where a deposit contributor proves to the satisfaction of the Insurance
Committee that he has permanently ceased to reside in the United Kingdom, four-sevenths
(or in the case of a woman one-half) of the amount standing to his credit in
the Post Office fund may be paid to him.
43.—(1) If an insured person, being a member of an approved society, ceases
to be a member of that society, whether voluntarily or by expulsion, and fails
to become within the prescribed time a member of another approved society, then—
(a) if he becomes a deposit contributor, his transfer value shall be carried
to his credit in the Post Office fund : Provided that, if a reserve value has
been credited to the society in respect of him, such part of that reserve value
as is still outstanding (or if the amount so outstanding exceeds the transfer
value such part of the reserve value as is equal to the transfer value) shall
be cancelled, and the amount, if any, by which the transfer value exceeds the
amount so cancelled shall be carried to the credit of the deposit contributor;
(b) if he does not become a deposit contributor, his transfer value shall be
carried to such account and dealt with in such manner as may be prescribed.
(2) If an insured person who is a deposit contributor subsequently becomes a
member of an approved society for the purposes of this Part of this Act, there
shall be transferred to the society the amount standing to his credit in the
Post Office fund :
Provided that—
(a) if that amount exceeds the value of the contributions paid by or in respect
of him estimated on the assumption that he had been a member of an approved
society since his entry into insurance, the excess shall not be transferred
to the society but shall be carried to the credit of the Post Office fund;
(b) if that amount is less than such value, the insured person shall be treated
as being in arrear to the amount of the deficiency.
44.—(1) Where a woman who has before marriage been an insured person marries,
she shall be suspended from receiving the ordinary benefits under this Part
of this Act until the death of her husband, and, if she is a member of an approved
society, one-third of her transfer value shall be carried to a separate account
called the married women's suspense account, but, if at any time after the death
of her husband she becomes an employed contributor, the period between her marriage
and the expiration of one month from the death of her husband shall be disregarded
for the purpose of reckoning arrears, and there shall be transferred from the
married women's suspense account to the society of which she is a member the
proper reserve value calculated according to tables to be prepared by the Insurance
Commissioners:
Provided that, where a woman who has been employed within the meaning of this
Part of this Act before marriage, proves that she continues to be so employed
after marriage, she shall not be so suspended so long as she continues to be
so employed, and that, where a married woman so suspended from the ordinary
benefits becomes employed within the meaning of this Part of this Act before
the death of her husband, contributions shall thereupon again become payable
in respect of her, and she shall cease to be suspended from receiving the ordinary
benefits, but, subject to regulations made by -the Insurance Commissioners,
she shall, for the purposes of those benefits, be treated as if she had not
previously been an insured person.
(2) Where a married woman being a member of an approved society is so suspended
from the ordinary benefits as aforesaid, she may, if she so elects within one
month after such suspension, or, subject to the consent of the society, after
the expiration of that month, and notwithstanding that she is not engaged in
any regular occupation, become whilst so suspended a voluntary contributor,
subject to the following modifications, but not otherwise :—
(a) The rate of contributions payable by her shall be threepence a week
;
(b) The benefits to which she shall be entitled shall be— (i) medical benefit;
and
(ii) sickness benefit and disablement benefit at the rates and subject to the
conditions specified in Table D. of Part I. of the Fourth Schedule to this Act
;
(c) No part of her contributions shall be retained by the Insurance Commissioners
for the purpose of discharging their liabilities to approved societies
in respect of the reserve values created under this Act: Provided that, where
a married woman elects not to become such a voluntary contributor, she shall
be entitled to have a sum equal to the remaining two-thirds of her transfer
value applied in accordance with regulations of the Insurance Commissioners
towards the payment of any of the benefits specified in Part III. of the Fourth
Schedule to this Act until the same is exhausted, except that, where a reserve
value was credited to the society in respect of such woman at the date of her
entrance into insurance, so much of such sum as aforesaid as may be prescribed
shall not be so applied but shall be written off the amount of the reserve values
credited to the society.
(3) Where the husband of a married woman who has been so suspended from ordinary
benefits as aforesaid and who is a member of an approved society dies, she may,
if she is qualified to become a voluntary contributor, and elects to do so within
one month after the death of her husband, become an ordinary voluntary contributor
paying contributions at the rate which would have been applicable to the case
had she become such a contributor at the date of her entry into insurance: Provided
that she may, whether or not so qualified, if she so elects within one month
after the death of her husband, continue to be or become a voluntary contributor
on the same terms and subject to the same conditions as above provided as respects
married women.
In either such case there shall be transferred from the married women's suspense
account to the society the proper reserve value calculated as aforesaid.
(4) Where a married woman who was at the date of her marriage a deposit contributor
is by virtue of this section suspended from the ordinary benefits under this
Part of this Act, two-thirds of the sum standing to her credit in the Post Office
fund shall be applied in accordance with the regulations of the Insurance Commissioners
towards the payment of any of the benefits specified in Part III. of the Fourth
Schedule to this Act until the same is exhausted.
(5) Where a woman who was a married woman at the commencement of this Act
at any time subsequently either before or within one year after the death of
her husband becomes an employed contributor and a member of an approved society,
she shall be entitled to full benefits, notwithstanding that at the time of
so becoming she is of the age of seventeen or upwards.
(6) Where any arrears of contributions have accrued due in respect of a married
woman during coverture such arrears shall, on the death of her husband, be disregarded
and she shall be thenceforth entitled to benefits as if such arrears had never
accrued due.
(7) Except as provided by this section, a married woman shall not be entitled
to become a voluntary contributor, and, if a woman is before marriage a voluntary
contributor, she shall on marriage not be entitled to continue to be such a
contributor.
(8) If a woman, whilst a voluntary contributor at such reduced rates of benefit
as are provided by this section, becomes employed within the meaning of this
Part of this Act, she shall be entitled to a certificate (to be granted in manner
herein-before provided) exempting her from liability to become an employed contributor
so, however, that such exemption shall not exempt the employer from his liability
to pay contributions in respect of her, or deprive him of his right to recover
such part of those contributions as is payable on her behalf, but of each weekly
contribution so paid by the employer threepence shall be treated as her contribution
as a voluntary contributor and the balance shall be applied for her benefit
in such manner as the society may determine.
(9) If at any time the married women's suspense account is insufficient to meet
the liabilities imposed on it by this section, the deficiency shall be made
good out of the sums retained by the Insurance Commissioners for discharging
their liabilities in respect of the reserve values created by this Act.
(10) Transfer value for the purposes of this section shall be calculated in
such manner as the Insurance Commissioners may prescribe.
(11) Where a woman is a member of an approved society at the time when she is
entitled to exercise an option under this section, it shall be the duty of the
society to give her full information as to the nature of her rights.
(12) Where a deficiency has been found in respect of the society or branch of
which a woman is a member at a valuation previous to the time when she became
suspended from ordinary benefits under this Part of this Act, and that deficiency
has not been made good at the time of her marriage, or where a woman is in arrears
at that time, such adjustments in the sums transferred to the married women's
suspense account, and in the balance of her transfer value, and in the rates
of benefit to which she is entitled under this section, shall be made as the
Insurance Commissioners may prescribe.
(13) Save as aforesaid, the provisions of this Part of this Act shall apply
to a woman who has been married, both during and after coverture, in like manner
as if she had never been married.
(14) This section shall apply in the case of a woman whose marriage has been
dissolved or annulled, or who has, for a period of not less than two years,
been actually separated from or deserted by her husband, as if her husband had
died at the date at which such dissolution or annulment took effect, or, as
the case may require, at the expiration of such period of two years.
45.—(1) This Part of this Act shall apply to persons of the age of seventeen
or upwards at the date of entry into insurance who are not British subjects,
subject to the following modifications:—
(a) No such person shall be qualified to become a member of an approved society
for the purposes of this Part of this Act, except upon the terms and subject
to the conditions herein-after mentioned;
(b) No part of the benefits to which such persons may become entitled shall
be paid out of moneys provided by Parliament;
(c) The rate of sickness, disablement, and maternity benefit shall, as respects
a deposit contributor, be reduced, in the case of men, to seven-ninths, or in
the case of women to three-quarters, of the rate to which they would otherwise
be entitled under this Part of this Act;
(d) No part of the sums payable in respect of such persons for medical benefit
and sanatorium benefit or towards the expenses of administration of benefits
shall, in the case of such persons, be paid out of moneys provided by Parliament.
(2) Where such a person becomes a member of an approved society the following
provisions shall have effect: —
(i)The contributions payable by or in respect of such person shall be credited
to the society ;
(ii) The society shall in each year pay to the Insurance Committee the whole
of the sums payable in respect of such person for medical benefit and sanatorium
benefit;
(iii) The rate and conditions of sickness benefit, and disablement benefit,
and maternity benefit shall be such as may be determined by the society;
(iv)Such person shall not be deemed to have joined an approved society for the
purposes of the provisions of this Part of this Act relating to reserve values,
and no part of the contributions of such person shall be retained by the Insurance
Commissioners towards the discharge of their liabilities in respect of reserve
values.
(3) A woman who, having been a British subject before marriage, has ceased to
be a British subject by reason of marriage with a person not being a British
subject, shall not be subject to the provisions of this section if her husband
is dead, or the marriage has been dissolved or annulled, or she has for a period
of not less than two years been actually separated from or deserted by her husband.
(4) This section shall not apply to any person who, on the fourth day of May
nineteen hundred and eleven, was a member of a society which, or a separate
section of which, becomes an approved society, and had then been resident in
the United Kingdom for five years or upwards, or to any person who is transferred
to an approved society or the Post Office fund in pursuance of an arrangement
with the Government of any foreign State.
46.—(1) For the purpose of providing seamen, marines, and soldiers with such
benefits during their term of service and after their return to civil life as
are herein-after in this section mentioned, there shall be deducted from the
pay of every seaman and marine within the meaning of the Naval and Marine Pay
and Pensions Act, 1865, and of every soldier of the regular forces (other than
soldiers of His Majesty's Indian Forces, the Royal Malta Artillery, and native
soldiers of any regiment raised outside the United Kingdom), the sum of one
penny halfpenny a week, and there shall be contributed by the Admiralty and
the Army Council respectively, out of moneys provided by Parliament for navy
and army services, in respect of every such seaman, marine, and soldier who
has joined an approved society in the manner hereafter mentioned, the sum of
one penny halfpenny per week, and, in respect of every other such seaman, marine,
and soldier, such sum per week as may be prescribed:
Provided that no such deduction shall be made from the pay of a seaman, marine,
or soldier who has completed the period of his first engagement and has re-engaged
for pension unless he so elects within the prescribed time, and that no contribution
shall be made by the Admiralty or Army Council in respect of any week in respect
of which such a deduction is not made.
(2} A seaman, marine, or soldier—
(a) who was at the date of his entry or enlistment an insured person and had
joined and was at that date a member of an approved society ; or
(b) who within six months from the date of his entry or enlistment, or, in the
case of a seaman, marine, or soldier serving at the commencement of this Act,
within six months after the commencement of this Act, or within such longer
period as may be prescribed, joins an approved society for the purposes
of this Part of this Act;
shall, for the purposes of this Part of this Act, be treated as if he were an
employed contributor, subject, until his discharge, to the following modifications
:—
(i) The employed rate shall be three pence, and the deductions made from
his pay and the contributions made in respect of him by the Admiralty or Army
Council shall be treated as the contributions paid in respect of him ;
(ii) He shall not be entitled to medical benefit, sanatorium benefit, sickness
benefit, or disablement benefit;
(iii) Maternity benefit shall be payable, notwithstanding that both he and his
wife are resident outside the United Kingdom at the date of the confinement,
and the society may arrange with the Admiralty or Army Council for the administration
of the benefit through the Admiralty or Army Council;
(iv)The sum to be retained out of each weekly contribution by the Insurance
Commissioners towards the discharge of their liabilities in respect of reserve
values shall be one penny, and the remaining five-ninths of a penny shall be
paid out of the Navy and Army Insurance Fund herein-after constituted.
(3) With respect to seamen, marines, and soldiers who have not joined an approved
society as aforesaid, the following provisions shall have effect:—
(a) The sums so deducted and the contributions so made as aforesaid in respect
of such men shall be paid into the National Health Insurance Fund, and out of
such sums there shall be retained by the Insurance Commissioners towards
discharging their liabilities in respect of the reserve values created under
this Part of this Act the like amount as if such men were members of approved
societies, and the balance shall be credited to a special fund to be called
the Navy and Army Insurance Fund:
(b) There shall also be paid into the Navy and Army Insurance Fund in each year
out of moneys provided by Parliament a sum equal to two-ninths of the amount,
calculated in the prescribed manner, which would have been payable in that year
in respect of medical, sanatorium, sickness, and disablement benefits (including
expenses of administration) had all seamen, marines, and soldiers from whose
pay deductions are made under this section been members of approved societies
and entitled to such benefits as employed contributors:
(c) The weekly contributions to be made by the Admiralty and Army Council in
respect of such men shall be such as may from time to time be required to keep
the Navy and Army Insurance Fund solvent:
(d) If any such man was at the date of his entry or enlistment a deposit contributor,
he shall, for the purpose of dealings with the sum standing to his credit in
the Post Office fund, be treated as if the Navy and Army Insurance Fund had
been an approved society, and he had at the date of his entry or enlistment
become a member of that society :
(e) In the case of a seaman, marine, or soldier serving at the commencement
of this Act, there shall be credited to the Navy and Army Insurance Fund such
reserve value as would have been credited to an approved society had he at that
date become a member of the society as an employed contributor : Provided that
no such reserve value shall be credited to that fund if at the date aforesaid
he had completed the period of his first engagement and had re-engaged for pension,
unless he elects to have deductions made from his pay, or unless, not having
so elected, he becomes on discharge entitled to benefits payable out of that
fund as herein-after mentioned :
(f) Every such man shall, until discharged, be entitled to maternity benefit
payable out of the Navy and Army Insurance Fund, and shall be entitled to such
benefit, notwithstanding that both he and his wife are at the date of the confinement
resident outside the United Kingdom, and the benefit shall be administered by
the Admiralty and Army Council either directly or through Insurance Committees:
(g) On the discharge of a seaman, marine, or soldier, from whose pay deductions
have been made and continue to be made up to the date of his discharge, there
shall be debited to the Navy and Army Insurance Fund, and, if he becomes a member
of an approved society within the prescribed time from his discharge, there
shall be credited to that society, or, if he does not become a member of such
a society within the prescribed time from his discharge, there shall, unless
he becomes entitled to benefits out of the Navy and Army Insurance Fund as herein-after
mentioned, be carried to his credit in the Post Office fund the transfer value
which would have been payable in respect of him had he been a member of an approved
society throughout his period of service, or, in the case of a man serving at
the date of the commencement of this Act, since that date, and, if he becomes
a deposit contributor, so much of the reserve value, if any, credited to the
Navy and Army Insurance Fund in respect of him shall be cancelled as would have
been cancelled had he been transferred from an approved society to the Post
Office fund:
(h) A man discharged from service as a seaman, marine, or soldier who proves
that the state of his health is such that he cannot obtain admission to an approved
society may, if he so elects, on making application to the Insurance Commissioners
in the prescribed manner within three months of his discharge, or such longer
time as may be prescribed, become, subject to regulations made by the Insurance
Commissioners after consultation with the Admiralty and Army Council, entitled
to benefits (other than additional benefits) provided under this Part of this
Act at the full rate, the cost of which benefits shall be payable out of the
Navy and Army Insurance Fund, and such benefits shall be administered by Insurance
Committees or otherwise in such manner as may be prescribed by such regulations
as aforesaid, and any contributions paid under this Part of this Act by or in
respect of him shall be paid into that fund:
Provided that—
(i) no deductions from benefits shall be made on account of any pension to which
a man may be entitled;
(ii) the rate of sickness benefit shall be reduced, in the case of a man who
entered into insurance when of the age of seventeen or upwards or who is in
arrears, to the like extent as it would be reduced had he been an employed contributor
and a member of an approved society who entered into insurance at the like age
or who is in arrears to the like extent, so however that the rate of sickness
benefit shall in no case be reduced below five shillings a week ;
(iii) there shall in each year be repaid to the Navy and Army Insurance Fund,
out of moneys provided by Parliament, a sum equal to two-ninths of the amount
expended out of the fund on such benefits as aforesaid, including the expenses
of administration;
(iv) if a man who is so entitled to benefits payable out of the Navy and Army
Insurance Fund at any time becomes a member of an approved society for the purposes
of this Part of this Act, he shall cease to be entitled to benefits payable
out of that fund, and there shall be debited to that fund and credited to such
society the transfer value which would have been so debited and credited if
he had been at that time transferred from one approved society to another approved
society.
(4) In the application of this Part of this Act to a man who is or has been
a seaman, marine, or soldier, and to whom this section applies—
(i) the date of his entry or enlistment as a seaman, marine, or soldier, or,
if he was serving at the commencement of this Act, the date of that commencement,
shall, unless he was an insured person at the date of his entry or enlistment,
be treated as the date of his entry into insurance ;
(ii) deductions from pay, with the corresponding contributions made by the Admiralty
and Army Council, shall be treated as payments of contributions at the employed
rate for the purpose of reckoning the number of contributions made in respect
of him, arrears, and transfer value, and for the purpose of qualifications for
becoming a voluntary contributor ; a seaman, marine, or soldier during his term
of service shall, if he has joined an approved society as aforesaid before
his entry or enlistment, be deemed to reside in that part of the United Kingdom
in which he resided immediately before his entry or enlistment, or, if after
his entry or enlistment, in the part of the United Kingdom in which the registered
office or other principal place of business of the society or branch which he
has joined is situate, and in any other case in England, and all persons entitled
to benefits payable out of the Navy and Army Insurance Fund shall be deemed
to res