View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

D E PA R TM E N T

O F

C O M M E R C E

B U R E A U

O F

A N D

LA B O R

L A B O R

CHAS. P. NEILL, Commissioner

BRITISH NATIONAL
INSURANCE ACT, 1 9 1 1
B U L L E T IN
STATES

O F

TH E

BU REAU

O F

W HOLE NUM BER

U N IT E D
LA B O R
102

WORKMEN’ S INSURANCE AND COMPENSATION SERIES
No. 2

JULY 15, 1912

<




WASHINGTON
GOVERNMENT PRINTING OFFICE
1912




CONTENTS.
Section.

Introduction....................................................................... ................
Text of the law.................................. - ..............................................
Fart I.—National Health Insurance:
Insured persons—
Insured persons.............................................................
1
Exemptions..................................................................
2
Contributions—
Contributions by insured persons, employers, and the Treas­
ury.............................................................................
S
Rates and rules for contributions by employed contributors
and their employees..................................................
4
Rates and rules for contributions by voluntary contributors
Change from voluntary rate to employed rate and vice versa.
Power to make regulations for the payment of contribu­
tions...........................................................................
7
Benefits—
Benefits.........................................................................
8
Reduced rates of benefits in certain cases....................
9
Reduced rates of benefits t here contributions are in arrear.
v
Previsions in the case of contributors entitled to compensa­
tion or damages.........................................................
11
Provisions in the case of contributors who are inmates of
hospitals, etc.............................................................
12
Power to vary benefits in certain cases........................
13
Administration of benefits—
Administration of benefitsby approved societies or the insur­
ance committee.........................................................
14
Administration of medical benefit...............................
15
Administration of sanatorium benefit..........................
16
Power to extend sanatorium benefit to dependents.....
17
Administration of maternity benefit............................
18
Punishment ofhusband in certain cases of neglect...................
Reinsurance for the purposes of maternity benefit.. . .
20
Power to subscribe to hospitals, etc.............................
21
Power of councils of boroughs and districts to contribute to
certain expenditure on medical and sanatorium benefits.
Approved societies—
Conditions for the approval of approved societies.............. .
Power of societies to undertake business under Part 1.
24
Special provisions for employers* provident funds, etc___ _
Security to be given by approved societies...............................
Provisions as to approved societies...............................
Secessions, etc............................................................................
Withdrawal of approval...............................................
29



3

Page.

7-10
H-87

11
11

11,12
12
12
13

5
6

13
13-15
15
10 15,16
16,17
17,18
18

18,19
19-22
22
22,23
23
19 23
23
23
22 23,24
23

24
24,25
25
25
2625,26
2726
28

26
27

4

CONTENTS.

Part. I.—National Health Insurance—Continued.
Membership of approved societies and transfer of members—
Admission of insured persons to membership in approved section.
societies................. ............................................. .*............
30
Transfer from one approved society to another....................
31
32
Transfers to foreign and colonial societies............................
Transfer values of emigrants who remain members of ap­
proved societies.................................................................
33
Prohibition against double insurance...................................
34
Accounts, valuations, surplus and deficit—
Approved societies to keep proper accounts........................
35
Valuations of approved societies..........................................
36
Surplus..................................................................................
37
Deficit...................................................................................
38
39
Pooling arrangements in the case of small societies..............
Special provisions with regard to societies with branches___
40
Power to separate men’s and women’s funds.....................
41
Deposit insurance—
Provisions as to deposit contributors....................................
42
Transfer from approved society to deposit insurance, and
vice versa..........................................................................
43
Provisions as to special classes of insured persons—
Special provisions with respect to married women..............
44
Special provisions as to aliens..............................................
45
Special provisions with regard to persons in the naval and
military service of the Crown...........................................
46
Special provisions where employer liable to pay wages dur­
ing sickness.......................................................................
47
Special provisions as to the mercantile marine....................
48
Provisions as to persons over 65 at commencementof act.
49
Special provisions as to seasonal trades................................
50
Special provisions as to inmates of charitable homes, etc. . .
51
Special provisions as to persons becoming certificated
teachers.............................................................................
52
Application to other persons in the service of the Crown___
53
Financial provisions—
National Health Insurance Fund.........................................
54
Reserve values......................................................................
55
Transactions between the insurance commissioners and
societies..................................................
56
Insurance commissioners—advisory committee—
Constitution of insurance commissioners, appointment of
inspectors, etc...................................................................
57
Appointment of advisory committee....................................
58
Insurance committees—
Appointment of insurance committees.................................
59
Powers and duties of insurance committees.........................
60
Income..................................................................................
61
Local medical committees....................................................
62 Excessive sickness—
Inquiries into causes of excessive sickness...........................
63
Supplementary provisions—
Provisions of sanatoria, etc...................................................
64
Power to insurance commissioners to make regulations, etc.
65

Determination of questions by insurance commissioners___
66


P
age.
27
27
27,28
28
28
28,29
29
29,30
30,31
31,32
32
32,33
33
33,34
34-36
36
36-39
39-41
41-43
43,44
44
44
44
45
45
46
46,47

47,48
48
48,49
49
50
50
50-52
52
53
53

CONTENTS.

Part I.—National Health Insurance—Concluded.
Supplementary provisions—Concluded.
S
ection
.
Disputes..............
67
Protection against distress and execution in certain cases...
68
Offenses..........................................................v....................
69
Civil proceedings against employer for neglecting to pay
contributions.....................................................................
70
Repayment of benefits improperly paid...............................
71
Provisions as to application of existing funds of friendly
societies.............................................................................
72
Provisions as to existing employers’ provident funds..........
73
Provisions as to minors who are members of approved socie­
ties....................................................................................
74
Power for societies to register under Friendly Societies Act,
1896...................................................................................
75
Application of acts of Parliament to approved societies and
sections..............................................................................
76
Powers of the local government board.................................
77
Power to remove difficulties.................................................
78
Interpretation.......................................................................
79
Application to Scotland........................................................
80
Application to Ireland..........................................................
81
Establishment of commissioners for Wales...........................
82
Joint committee of commissioners........................................
83
Part n.—Unemployment Insurance:
Right of workmen in insured trades to unemployment benefit..
84
Contributions by workmen, employers, and the Treasury.........
85
Statutory conditions for receipt of unemployment benefit.........
86
Disqualifications for unemployment benefit...............................
87
Determination of claims.................................................
88
Appointment of umpire, insurance officers, inspectors, etc.......
89
Courts of referees.........................................................................
90
Regulations..................................................................................
91
Unemployment fund.......................................................... .'___
92
Treasury advances.......................................................................
93
Refund of part of contributions paid by employer in the case of
workmen continuously employed............................................
94
Repayment of part of contributions by workmen in certain cases.
95
^Refund of contributions paid in respect of workmen working
short time...........
96
Saving for occasional employment in rural neighborhoods.........
97
Payment of contributions in case of reservists or territorials dur­
ing training..............................................................................
98
Provisions with respect to workmen engaged through labor ex­
changes .....................................................................................
99
Subsidiary provisions..................................................................
100
Offenses and proceedings for recovery of contribution^, etc.......
101
Periodical revision of rates of contribution.................................
102
Power to extend to other trades..................................................
103
Exclusion of subsidiary occupations...........................................
104
Arrangements with associations of workmen in insured trade
who make payments to members whilst unemployed............
10 )
Repayments to associations who make payments to persons,
whether workmen in insured trade or not, whilst unemployed.
106

Interpretation and application....................................................
107


5
P
age.
53,54
54
54,55
55
55
55,56
56
56
56,57
57
57
57
57,58
58-61
61-65
65
66
66
66, 67
67
67, 68
68
68,69
69
69,70
70
70,71
71
71
72
72
72
72
73
73, 74
74
74
74,75
75
75, 76
76

CONTENTS.

6

Part m .—General:

Provisions as to stamps.....................................................
Outdoor relief...............................................................................
Priority of claims for contributions due by bankrupt employers.
Benefits to the inalienable...........................................................
Powers of inspectors.....................................................................
Procedure for making special orders...........................................
Provisions as to birth certificates.................................................
Short title and commencement...................................................

Section.

Page.

108
109
110
Ill
112
113
114
115

76,77
77
77
77
78
78
78, 79
79

Appendix.

First schedule—
Part I.—Employments within the meaning of Part I of the act relat­
ing to health insurance...................................................................
Part II.—Exceptions........................................................................
Second schedule.—Bates of contributions under Part I of the act relat­
ing to health insurance..........................................................................
Part I.—Employed rate and contributions by employers and em­
ployed contributors........................................................................
Part II.—Employed rate in Ireland and contributions by employ­
ers and employed contributors......................................................
Third schedule.—Rules as to payment and recovery of contributions
paid by employers on behalf of employed contributors under Part I of
the act relating to health insurance......................................................
Fourth schedule.—Benefits under Part I of the act relating to health
insurance...............................................................................................
Part I.—Rates of benefits............... ..................................................
Part II.—Additional benefits.............................................................
Part III.—Benefits for married women who do not become volun­
tary contributors at reduced rates......................................................

Fifth schedule.—Reduction or postponement of sickness benefit and
where contributions are in arrear...........................................................
Table.—Graduated rates of reduction of sickness benefits to men and
women............................................. .............................................
Sixth schedule.—List of insured trades for the purposes of Part II of the
act relating to unemployment insurance......... .....................................
Seventh schedule.—Rates and periods of unemployment benefit...........
Eighth schedule.—Contributions for the purposes of Part II of the act
relating to unemployment insurance.....................................................
Rates of contributions from workmen and employers........................
Ninth schedule.—Provisions of the Factory and Workshops Act, 1901,
applied to special orders made under the act.......................................




80
80,81
81,82
81, 82
82

82.83
83-85
83.84
84
85
85
85
85.86

86
86.87
86*87
87

B U L L E T IN
U N IT E D
w hole no.

102.

S T A T E S

O F THE

B U R E A U

W A SH IN G T O N .

O F

L A B O R .
Ju l y i s ,

1912.

B R I T I S H N A T I O N A L I N S U R A N C E A C T , 1 9 1 1.1

INTRODUCTION.

On July 15, 1912, the National Insurance Act, 1911, enacted De­
cember 16, 1911, came into operation. This act is divided into three
parts, the first relating to health insurance, the second to unemploy­
ment insurance, or provision o f benefits for workmen temporarily
unemployed, and the third to general provisions, the title o f the
act being “ A n act to provide for insurance against loss o f health
and for the prevention and cure o f sickness and for insurance against
unemployment, and for purposes incidental thereto.”
Under its provisions health insurance is compulsory upon all em­
ployed persons aged 16 and upward, except those in the naval or
military services o f the Crown, those in other employment under
the Crown or under local or other public authorities for whom ade­
quate provision respecting sickness or disablement already exists,
employees o f railway companies and the like provided for by suit­
able benefits, teachers provided for under other acts, etc. Those
affected by the exceptions are comparatively few, and may, in the
discretion o f the insurance commissioners, be transferred to the
compulsory insurance scheme set forth in the general plan. Persons
who are not subject to the compulsory insurance may voluntarily
insure i f they are engaged in some regular occupation and are wholly
or mainly dependent for their livelihood on their earnings in such
occupation or have been insured persons for a period of five years or
upward; no person may become a voluntary contributor whose an­
nual income from all sources exceeds £160 ($778.64) unless he has
been previously insured for a period o f five years or upward. There
is no discrimination in respect o f sex or o f citizenship, but all insured
persons must be residents o f the United Kingdom.
The standard rates of contribution for health insurance are 7d.
(14 cents) for men and 6d. (12 cents) for women. This amount is
made up o f contributions from employer, employee, and public
funds, the amount paid by each depending on the insured person’s
rate o f wages. I f this reaches or exceeds 60.8 cents per world ng


1 1 and 2 Geo. V, c. 55.

7

8

BULLETIN OF THE BUREAU OF LABOR.

day, the employer pays G.l cents, male employees pay 8.1, and female
employees 6.1 cents per week, nothing being contributed from the
public funds. I f the rate o f wages falls between 49 and 61 cents a
day the employer pays for male employees 8 and for female em­
ployees 6 cents a week, and the employee, regardless o f sex, pays 6
cents. When the rate o f wages is between 37 and 49 cents a day the
employer pays 10 cents per week for men and 8 cents for women, the
employee pays 2 cents, and 2 cents is contributed from the public
funds. When the rate of wages does not exceed 37 cents a day
the employer pays for men 12 and for women 10 cents a week, the
employee pays nothing, and 2 cents a week is provided from the
public funds. These provisions relate only to employees o f the age
o f 21 or upward. Employers are authorized to make payments in
behalf o f their employees and to deduct the employees’ contributions
from any wages payable by them to such employees. Contributions
by voluntary contributors are to be made at rates fixed in accord­
ance with a table to be prepared by the insurance commissioners,
and are to be payable weekly or at other prescribed intervals by the
contributors themselves. No contributions shall be payable in be­
half either of employed persons or of voluntary contributors after
they have attained the age of 70 years.
The benefits under the provisions for health insurance consist o f
medical treatment and attendance, medicines, and such medical and
surgical appliances as may be prescribed by regulations made by the
insurance commissioners; treatment in sanatoria or otherwise for
persons suffering from tuberculosis or such other diseases as the local
government board may designate is also included, besides periodical
payments during incapacity for work on account o f some specific
disease or bodily or mental disablement, such payments to continue
for a period not exceeding 26 weeks. The sickness benefit is for men
the sum o f 10s. ($2.43) and for women 7s. 6d. ($1.83) during the
full term of 26 weeks. A disablement benefit o f 5s. ($1.22) per week
is allowed in case of either men or women where incapacity results
from a disease or disablement for a period in excess o f the 26 weeks’
sickness-benefit allowance; this disablement benefit continues during
the term o f incapacity. Maternity benefits and additional benefits
are also provided for. Eeduced amounts are payable in cases o f un­
married minors, o f persons over 50 years o f age in certain cases, and
for married women. Insured persons who are entitled to compensa­
tion or damages under the workmen’s compensation act, employers’
liability act, or at common law have their benefits reduced so that
the total shall not exceed the amount provided for by the insurance
act, or if the benefit from other sources is greater than that provided
by the insurance act no benefit from this source shall be paid. Where
insured persons or other beneficiaries under the act are inmates of




BRITISH NATIONAL INSURANCE ACT, 1911.

9

any workhouse, hospital, asylum, etc., supported out o f public funds,
no payments shall be made on account of sickness, disablement, or
maternity during the period o f such residence.
The administration o f the sickness, disablement, and maternity
benefits is committed, in the case o f insured persons who are mem­
bers o f an approved society (friendly societies, trade unions, provi­
dent societies, etc.), to the societies o f which they are members,
which societies are also charged with the duty o f receiving the con­
tributions o f their members in this behalf. Medical and sanitary
benefits are administered through the insurance committees described
below. Persons not members of an approved society may pay their
contributions through the post office, the fund thus created being sub­
ject to the control o f the insurance committees. Special provisions
are made in respect of married women, aliens, persons employed in
the mercantile marine, in seasonal trades, etc.
A central administrative body known as the insurance commis­
sioners is created as a body corporate, with the power to appoint
officers, inspectors, referees, etc., subject to the approval o f the Treas­
ury as to their numbers and compensation, for the carrying out of
the purposes o f this act. An insurance committee is also constituted
for every county and county borough, its membership to consist of
not less than 40 nor more than 80 persons, some o f whom must be
women. These committees are authorized to subdivide the counties
or boroughs into areas over which district insurance committees shall
have supervision, and are required to make reports as to the health of
insured persons and the conditions affecting the same within their
respective counties and county boroughs, and also to disseminate
information on matters relative to health, cooperating, i f thought
best, with local educational and other institutions for this purpose.
Causes o f excessive sickness may be inquired into at the instance of
insurance commissioners or o f an approved society or by an insurance
committee, and where such excess is due to neglect or insanitary con­
ditions the costs of any extra expense may be demanded from the
persons chargeable with such neglect, and an inquiry may be made
by a special appointee o f the secretary of state or local government
board to determine as to the facts in the case and the justice of such
claim.
The second part establishes a scheme o f compulsory insurance pro­
viding for benefits in cases of unemployment in certain trades. The
list o f trades may be extended by the board of trade, which will
administer this portion of the act, but for the present those included
are seven in number; i. e., building, including the construction,
alteration, demolition, etc., o f buildings; the construction o f works,
including railroads, docks, harbors, canals, etc.; shipbuilding; me­
chanical engineering, including the manufacture o f ordnance and




10

BULLETIN

OF

THE BUREAU

OF

LABOR.

firearms; iron founding; the construction o f vehicles; and sawmill­
ing, including machine woodwork. The contributions fo r this form
o f insurance are made partly by the workmen, partly by employers,
and partly drawn from the public funds. Workmen and employers
pay equal shares o f a weekly contribution o f 5d. (10 cents), while
Parliament contributes annually a sum equal to one-third o f the total
contributions received from employers and workmen during that year.
In general the employer is expected to pay the contributions o f both
himself and his workman, deducting the workman’s portion o f the
contribution from wages payable to the latter.
Applicants for benefits under this branch o f the act must show
that they have been employed in an insured trade in each o f not less
than 26 separate calendar weeks in the preceding five years, that
they are capable o f working but unable to obtain suitable employ­
ment, and have not exhausted their right to benefits under this part
o f the act. Workmen are not required to accept employment in
place o f striking workmen, or at a lower rate of pay than is cus­
tomary in their line o f employment in their district. Where, how ­
ever, the employment is lost by reason o f a stoppage o f work due to
a trade dispute in the establishment in which the workman was
employed he can receive no benefits so long as such stoppage o f work
continues unless he has during such stoppage become actively em­
ployed elsewhere in an insured trade. Workmen losing employment
through misconduct or voluntarily leaving employment without just
cause may receive no benefits for a period o f six weeks from the date
o f such loss o f employment. The benefits payable in cases o f unem­
ployment begin after the first week o f the period o f unemployment
and are fixed at 7s. ($1.70) per week unless some other rate is pre­
scribed. Employment benefits are net pajrable for more than 15
weeks within a period of 12 months unless some other benefit period
is prescribed, nor shall workers in general receive any unemployment
benefit in excess o f one week’s benefit for every five contributions
paid by them under the act.
Provision is made for the determination o f claims and the arbitra­
tion o f disputes in both branches o f the act, and many exceptions and
modifications are made to meet various conditions as to transfers o f
funds, refunds, creation o f reserves, etc., but the above presents an
outline of the principal features o f the act. It is estimated that
there are 14,000,000 insurable persons in the compulsory class and
approximately an additional 2,000,000 who may become voluntary
members* i f they so desire, though probably not more than half o f
these would care to do so. It was estimated that o f the above num­
ber 10,000,000 registered with the approved societies and an addi­
tional 500,000 took out cards at the post office within the first three
days after the act came into operation.




BRITISH NATIONAL INSURANCE ACT, 1011.

II

TEXT OF THE LAW.
An A ct to provide for Insurance against Loss of Health and for the Prevention
and Cure of Sickness and for Insurance against Unemployment, and for pur­
poses incidental thereto. [16th December 1011.]
PART I.— N a t io n a l H e a l t h I n s u r a n c e .
INSURED PERSONS.

1.
— (1) Subject to the provisions of this act, all persons 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 hut who possess the
qualifications hereinafter mentioned may he, insured in manner provided in
tils 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 pro­
vided in this act to the benefits in respect of health insurance and prevention
of sickness conferred by this part of this aet.
(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 hereinafter constituted may, with
the approval of the Treasury, by a special order made in manner hereinafter
provided, provide for including amongst the persons employed within the mean­
ing of this part of this act any persons engaged in any of the excepted employ­
ments specified in Part II of the said schedule either unconditionally or subject
to such conditions as may be specified in the order.
(S )
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 w holly or mainly
dependent fo r their livelihood on th e earnings derived by them from
that occupation;

of

(5)
have been insured persons for a period of five years or upwards;
and the persons possessing such qualifications who become ©r continue to be
insured persons are in this act referred to as voluntary contributors: P ro v id e d
a lw a y s , That no person whose total income from all sources exceeds one hundred
and sixty pounds E
$178.64} a year shall be entitled to be a voluntary contributor
unless he has been insured under this part of this aet for a period of five years
or upwards.
(4)
Except as hereinafter provided, nothing in this section shall require or
authorize a person of the age of sixty-five or upwards not previously insured
under this part of this act to become so insured.
E x e m p tio n s .

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 [$126.53] or upwards not dependent upon his personal exer­
tions; or
(b) ordinarily and mainly dependent for his livelihood upon some other
p erson ;

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: P ro v id e d , That the regulations of the
insurance commissioners may provide for elalms under this section being made
to and certificates granted by approved societies and insurance committees
hereinafter constituted.
CONTRIBUTIONS.

C o n trib u tio n s by in s u re d persons , em ployers , a n d th e T re a s u ry .

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


12

BULLETIN OF THE BUREAU OF LABOR.

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 pro­
vided by Parliament.
R a te s and ru le s f o r c o n trib u tio n s by em ployed c o n trib u to rs a nd th e ir em ployers.

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 (hereinafter
referred to as the employed rate), and shall comprise contributions by the con­
tributors and contributions by their employers at the rates specified in that
part of that schedule, and shall be payable at weekly or other prescribed in­
tervals: P ro v id e d , 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 [49 cents] a working-day, such part of the contribu­
tions 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 de­
duction from his wages cr 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 pay­
able 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
Kh) 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 man­
ner 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.
R a te s an d ru le s f o r co n trib u tio n s by v o lu n ta ry c o n trib u to rs .

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 ascer­
tained in accordance with a table to be prepared by the insurance commis­
sioners (hereinafter 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 fortyfive 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 o f seventy.



BRITISH NATIONAL INSURANCE ACT, 1911.

13

C hange fro m v o lu n ta ry ra te to em ployed ra te and vice v e rs a .

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 be­
coming 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 contribu­
tions payable by his employer in respect of him during any period of em­
ployment* 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 com
tributor, 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 canceled.
P o w e r to m a k e re g u la tio n s f o r the p a y m e n t o f c o n trib u tio n s .

7* Subject to the provisions of this act, the insurance commissioners may
make regulations providing for any matters incidental to the payment and
collection of 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.
BENEFITS.

8.— (1) Subject to the provisions of this act, the 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 com­
missioners (in this act called “ medical benefit” ) ;
( b ) Treatment in sanatoria or other institutions or otherwise when suf­
fering from tuberculosis, or such other diseases as the local govern­
ment 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 wsickness benefit” ) ;


14

B U LLE T! S’ OF TH E BTJEEAXT OF LABOR

( d ) In tiie ease of the disease or disablement continuing after the determi­

nation of sickness benefit, periodical payments so long as so rendered
incapable of work by the disease or disablement fin this act called
* disablement benefit ” ) *
fe> Payment in the ease of the confinement of the wife or, where the
ehUd la 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 [$7.30] (in this act called “ maternity benefit” ) ;
Cf) In the ease of persons entitled under this part of this act to any of
the farther 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 insored persons are entitled shall be
the rates specified in Part I of the Fourth Schedule to this act.
(3) In the ease of insured persons who hare 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 alow Mm, 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 re­
spect 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 en­
titled 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
soeiety 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 tlie grant of the pension or allowance that a member of the
soeiety shall, wMlst 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 con­
tributions 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
Mm;




BRITISH NATIONAL INSURANCE ACT, 1911.

15

( 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 com­
mencement 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.
R educed ra te s o f benefit in c e rta in cases .

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 adminis­
tering 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 bene­
fits 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 [$1.22] 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, which­
ever 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.
R educed ra te s o f benefits w h e re c o n trib u tio n s a re in a r r e a r .

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 in­



16

BU LLETIN OF TH E BUREAU OF LABOR.

surance, 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 be­
comes 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 pay­
ment 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
[$1.22] a week, or the time when sickness benefit commences deferred, pro­
portionately 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—
( а ) 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
(б) in the case of a woman who, being an insured person, is herself enti­
tled to maternity benefit, during two weeks before and four weeks
after her delivery, or in the case of maternity benefit payable in re­
spect 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 pur­
poses 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 em­
ployed 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.
P ro v is io n s in th e case o f c o n trib u to rs e n title d to com pensation o r dam ages.1

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 com­
pensation or damages under the Workmen’s Compensation Act, 1906,1 or any
scheme certified thereunder, or under the Employers’ Liability Act, 1880,2 or at
1 6 Edw. VII, c. 58.




2 43 and 44 Viet., c. 42.

BKITISH NATIONAL INSUBANCE ACT, 1911.

17'

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
r
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 deter­
mined by the society or committee by which the sickness and disable­
ment 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 dis­
putes 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
[$2.43] a week, or as to the redemption of a weekly payment by a
lump sum, under the Workmen’s Compensation Act, 1906, the em­
ployer 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 the prescribed particulars thereof, and proviso ( d ) to para­
graph (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 workman is an insured per*
son, 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 proceed­
ings to enforce his claim, it shall be lawful for the society or committee con­
cerned, either—
( a ) at its own expense, to take in the name and on behalf of such persons
such proceedings, in which case any compensation or damages recov­
ered shall be held by the society or committee as trustee for the
insured person; or
(» ) to withhold payment of any benefit to which apart from this section
b
such person would be entitled.
In the event of the society or committee concerned taking proceedings as afore­
said 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 preju­
dice to any other method of recovery, be recoverable by deductions from or
suspension of any benefits which may subsequently become payable to such
person.
P ro visio n s in th e case o f c o n trib u to rs w ho a re in m a te s o f h o sp itals , etc .

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 main­
tenance of his dependents (if any) in such manner as the society
or committee by which the benefit is administered, after consulta­
tion whenever possible with such person, thinks fit; or

49976°—12-----2


18

B U LLETIN OF TH E BUREAU OF LABOR.

( 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 treat­
ment in accordance with the provisions of this part of this act, and
has no dependents, shall be paid to the insurance committee toward
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
charity or by voluntary subscriptions and has no dependents, shall,
if an agreement for the purpose has been made between the society
or committee and the hospital, asylum, convalescent home, or in­
firmary, 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 dependents, 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 dependents.
(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.
P o w e r to v a r y benefits in c e rta in cases .

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 thereofreduced or, in the case of sickness benefit, the commencement thereof post­
poned; and the scheme may contain such incidental and consequential pro­
visions 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 commissioners, and the insurance commis­
sioners 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 cir­
cumstances 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.
ADMINISTRATION OF BENEFITS.

A d m in is tra tio n o f benefits by approved societies o r th e in s u ra n c e c o m m itte e .

14.— (1) Sickness benefit, disablement benefit, and maternity benefit shall
be administered, in the case of insured persons who are members of an ap­



BRITISH NATIONAL INSURANCE ACT, 1911.

19

proved society, by and through the society, or a branch thereof, and in other
cases by and through the insurance committee; medical and sanatorium bene­
fits shall in all cases be administered by and through the insurance commit­
tees, 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 admin­
istered 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 appli­
cation of its existing rules or make new rules with regard to the manner and
time of paying or distributing, and mode of calculating, benefits, suspensions
of benefits, notices and proof of disease or disablement, behavior during
disease or disablement, and the visiting of sick of disabled persons, and for
the infliction and enforcement of penalties (whether by way of fines or sus­
pension 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
[$2.43] or, in the case of repeated breaches of rules, twenty shillings
[$4.87];
(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 behavior during disease or disablement
shall be in the prescribed form;
( e ) no such rule shall prescribe any penalty, nor shall any insured per­
son 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;
(/) No such rule shall provide for inflicting as a penalty for breach of
rules or imposition or attempted imposition on the part of an in­
sured person suspension of maternity benefit in respect of the con­
finement 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 dis­
ablement benefit is suspended on the ground that the disease or disablement
has been caused by the misconduct of the person claiming the benefit, such per­
son 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 regis­
tered, 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.
A d m in is tra tio n o f m e d ic a l benefit,

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 commis­
sioners and being such as to secure that insured persons shall, save as herein­
after provided, receive adequate medical attendance and treatment from the



20

B U LLETIN OF TH E BUBEAU OF LABOB.

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 o.f 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 arrange­
ments 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 per­
sons, to members of any friendly society which, or a separate sec­
tion of which, becomes an approved society who were such mem­
bers 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 dis­
ablement 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 authorize
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 authorize
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 toward the cost of medical
attendance and treatment (including medicines and appliances) for such per­
sons 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 en­
titled to receive medical attendance and treatment under any system or
through any institution existing at the time of the passing of this act and ap­
proved by the insurance committee and the insurance commissioners, such
medical attendance and treatment may be treated as, or as part of, their medi­
cal benefit under this part of this act, and may provide for the committee
contributing toward 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.



BRITISH NATIONAL INSURANCE ACT, 1911.

21

(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 arrange­
ments 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 appli­
ances 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 author­
ized by the committee to supply, except* in cases where the insurance
commissioners after inquiry are satisfied that the inclusion or con­
tinuance 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 appli­
ances in any area, they may dispense with the necessity of the adop­
tion of such system as aforesaid as respects that area and authorize
the committee to make such other arrangements as the commis­
sioners may approve;
(ii) Except as may be provided by regulations made by the insurance com­
missioners, 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 medi­
cines being made with persons other than persons, firms, or bodies
corporate entitled to carry on the business of a chemist and drug­
gist under the provisions of the Pharmacy Act, 1868,1 as amended by
the Poisons and Pharmacy Act, 1908,2 who undertake that all medi­
cines 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 prac­
titioner or a public institution;
(iv) Nothing in this act shall interfere with the rights and privileges con­
ferred by the Apothecaries Act, 1815,3 upon any person qualified
under that act to act as an assistant to any apothecary in compound­
ing 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 mem­
bers 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.
131 and 32 Viet, c. 121.




3 s Edw. T il, c. 55.

355 Geo. Ill, c. 194.

22

BU LLETIN OF TH E BUREAU OF LABOR.

(8)
The Treasury and the council of the county or county borough sanction­
ing 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.
A d m in is tra tio n o f s a n a to riu m benefit.

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 insti­
tutions 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 authorized 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 [30 cents] 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 [2 cents] 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 institu­
tion to which he may be sent for treatment therein, or may make advances
for the purpose.

Power to extend sanatorium benefit to dependents.
17.
— (1) The insurance committee for any county or county borough may,
if it thinks fit, extend sanatorium benefit to the dependents of the insured per­
sons resident in the county, or any part of the county, or in the county borough,
or any class of such dependents, and in such case the arrangements to be made
by the committee shall include arrangements for the treatment of such de­
pendents, 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 sana­
torium benefit is insufficient to meet the estimated expenditure on sanatorium
benefit for insured persons and such dependents, 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 ex­
penses 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 sanction­
ing 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



BRITISH NATIONAL INSURANCE ACT, 1911.

23

case of tlie council of tlie 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 sanatorium
benefit for insured persons and their dependents in the course of the year in
excess of the amount available for defraying the expenses of the committee on
sanatorium benefit.
A d m in is tra tio n o f m a te rn ity 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 husr
band 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 subse­
quently summoned in pursuance of the rules made under the Midwives Act,
1902,1 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, 1872,2 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.
P u n is h m e n t o f husband in c e rta in cases o f neglect.

19. Without prejudice to any other legal liability, where, under the im­
mediately 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 labor, for any term not exceeding one month.
R ein su ra n c e f o r th e purposes o f m a te rn ity benefit.

20. For the purpose of the administration of maternity benefit, the insurance
commissioners may, if they think fit, by special order provide for the rein­
surance with them of the liabilities of all approved societies in respect of
maternty benefit, and the order may provide for the method of calculating the
premiums to be charged against the several societies in respect of such rein­
surances and may contain such other incidental, consequential, and supplemental
provisions as may appear necessary for the purpose.
P o w e r to subscribe to hospitals , etc.

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.
P o w e r o f councils o f boroughs an d d is tric ts to c o n trib u te to c e rta in e x p e n d itu re
on m e d ic a l a n d s a n a to riu m benefits.

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
1 2 Edw. VII, c. 17.




^35 and 36 Viet., 65.

24

BU LLETIN OF THE BUREAU OF LABOR.

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 toward 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 the 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.
APPROVED SOCIETIES.

C onditions f o r the a p p ro v a l o f approved societies .

23.
— (1) Any society, that is to say, any body of persons, corporate or unin­
corporate (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 with­
out 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 com­
missioners for its affairs being subject to the absolute control of its
members being insured persons or, if the rules of the society so pro­
vide, of its members whether insured persons or not, including provi­
sion 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 dele­
gates, 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.
(8)
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 insur­
ance 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 require­
ments of this part of this act relating to approved societies.
P o w e r o f societies to u n d e rta k e business u n d e r P a r t /.

24.
— (1) It shall be lawful for any body of persons, corporate or unincorpo­
rate, established before the passing of this act which 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 estab­
lished or registered or carried on, or of its memorandum or articles of associa­
tion, rules, or other instrument governing its constitution or defining its objects,



BRITISH NATIONAL INSURANCE ACT, 1911.

25

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 under­
take 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 pro­
visions shall not apply to acton taken for the purposes aforesaid.
(2) Subsections (3) and (4) of section seventy of the Friendly Societies Act,
1896,1 shall not apply to any resolutions for amalgamation or transfer of engage­
ments 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.
S p ecial provision s f o r em ployers' p ro v id e n t fu n d s , etc.

25.
— (1) Where a society consists of persons entitled to rights in a super­
annuation or other provident fund established for the benefit of persons em­
ployed 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 num­
ber 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 ap­
proved 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 pro­
visions 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.
S e c u rity to be giv e n by approved societies .

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 reim­
bursing to the society sums previously expended by the society under this part
of this act.



159 and 60 Viet,, c. 25.

26

BU LLETIN OF TH E BUREAU OF LABOR.

(2) In the ease 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 ap­
proved society under this section shall be paid to the society.
P ro v is io n s as to ap p ro ved societies .

27.
— (1) Every approved society shall, as respects the administration of the
affairs of the society under this part of this act, make proper provision by rules
to the satisfaction of the insurance commissioners for the government of the
society, and if a society with branches—
( а ) for the government of the society and its branches;
(б) for the determination of disputes arising between the society and any
branch thereof, dr 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 malad­
ministration of those benefits, or is convicted of any offense 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 meet­
ings are to be held and those regulations may provide for the use for such meet­
ings, 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
connection with a labor 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.
Secessions , etc.

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 ap­
proval 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 require­
ments of this part of this act relating to approved societies:
Provided that such consent shall not be required if the branch makes pro­
vision 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 commis­
sioners 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.



BRITISH NATIONAL INSURANCE ACT, 1911.

27

W ith d r a w a l o f a p p ro v a l.

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 relat­
ing 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 offense under any
act regulating its constitution or under any other act, the insurance commis­
sioners may withdraw their approval, and thereupon the society shall cease to
be an approved society and the insurance commissioners shall make such pro­
vision as they may consider necessary with respect to members of the society
who are insured persons.
MEMBERSHIP OF APPROVED SOCIETIES AND TRANSFER OF MEMBERS.

A d m is s io n o f in s u re d persons.

SO.— (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.
M e m b e rs h ip in approved societies.

(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 in­
sured persons: P ro v id e d , 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.
T ra n s fe r fr o m one approved society to an o th e r.

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.
T ra n s fe rs to fo re ig n an d c o lo n ia l societies.

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 stand­
ing to his credit in the post-office fund, shall be paid to such society or institu­
tion or branch; but no such payment shall be made, unless the insurance commis­
sioners 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 per­
sons 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 commis­
sioners 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




28

B U LLETIN OF THE BUREAU OF LABOR.
/

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.
T ra n s fe r valu es o f e m ig ra n ts w h o re m a in m em bers o f approved societies .

33. If a person who has for not less than five years been a member of an ap­
proved 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 the 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 regula­
tions 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 canceled shall be canceled.
P ro h ib itio n a g a in s t double in s u ra n c e .

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 pur­
poses 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 independ­
ently 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 nbt been passed.
ACCOUNTS— VALUATION S— SURPLUS AND DEFICIT.

A p p ro v e d societies to keep p ro p e r accounts .

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 de­
ficiencies hereinafter 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 valua­
tion 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 pro­
visions 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



BRITISH NATIONAL INSURANCE ACT, 1911.

29

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 than such insurance business,
and shall not be liable for any 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.
V a lu a tio n s o f approved societies .

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
shall 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 commence­
ment of this act, or at such other times as the insurance commissioners ap­
point ; 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.
S u rp lu s .

37.
— (1) If upon any such valuation a surplus (certified by the valuer to be
disposable) is found, the following provisions shall apply:
(а) 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 com­
missioners, the society may distribute such additional benefit or
benefits in accordance with the provisions thereof.
(б) 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 ap­
proval 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 addi­
tional 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.
( 4 ) 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 dis­
tributed 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, sus­
pension, 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.




30

B U LLETIN OF THE BUREAU OF LABOR.

<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 of this act.
D e fic it,

38.— (1) If upon any such valuation a deficiency is found, the following pro­
visions shall apply:
(a) If the deficiency is shown by a branch of an approved society, threequarters, 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 avail­
able 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 in­
sured 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 be­
comes 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 commis­
sioners,
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 pay­
ment 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
inquiry 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 ap­
pears 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 administra­
tion of the affairs of the society or branch under this part of this




BRITISH NATIONAL INSURANCE ACT, 1911,

31

act, and shall, as scon 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 (5) 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:
(/) 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 prac­
ticable, on his own knowledge and experience, and shall have power
to determine how and by what parties the costs of proceedings, in­
cluding 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 as the circum­
stances require.
(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
light to undiminished benefits, on payment to the insurance commissioners of
the capitalized value of the levy or diminution of benefits, as the ease may be,
ascertained in the prescribed manner.
P o o lin g a rra n g e m e n ts in th e case o f s m a ll societies .

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—
(а) if they have joined an association formed under this section, be asso* ciated with the other societies in the same association; and
(б) if they have not joined any such association, be grouped together ac­
cording 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 con­
ditions 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 carry­
ing on business in the same county or county borough.



32

BU LLETIN OF TH E BUREAU OF LABOR.

(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 asso­
ciation, 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 com­
mittee shall not be required to any scheme prepared by an associ­
ated 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 onesixth 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 pro­
portion 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 pro­
portion to be determined, in default of agreement between the insurance com­
mittees 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 pay­
able 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 exemp­
tion 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 asso­
ciated or grouped societies.
S p ecial p ro visio n s w ith re g a rd to societies w ith branches.

40.
— (1) Where a society with branches is so organized that the branches
in different geographical areas are grouped together for the purpose of this
section, the branches in any such area may, if and to such extent as the rules
of the society 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 organized 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 ad­
ministered 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.
P o w e r to s e p a ra te m e n ’s a nd w o m e n ’s fu n d s .

41. Where an approved society, not being a society with branches, has

Digitized foramongst its members both men and women, and the rules of the society so pro­
FRASER


BRITISH NATIONAL INSURANCE ACT, 1911.

33

vide, the provisions of this 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.
DEPOSIT INSURANCE.

P ro v is io n s as to deposit co n trib u to rs .

42. Until the first day of January nineteen hundred and fifteen, the follow­
ing 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 money standing to his credit in the post-office fund,
and his right to benefits under this part of this act shall be sus­
pended on the sums standing to his credit, in that fund being ex­
hausted, 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 contributor 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 toward 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 stand­
ing 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:
'(/) 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 nom­
ination, 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-se\enths (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.
T ra n s fe r fr o m ap p ro ved society to deposit in s u ra n c e a n d v ic e v e rs d .

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
49976°— 12-----3



34

B U LLETIN OF TH E BUREAU OF LABOR.

to become within the prescribed time a member of another approved society,
then—
(а) if he becomes a deposit contributor, his transfer value shall be carried
to his credit in the post-office fund: P ro v id e d , 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 canceled, and the amount,
if any, by which the transfer value exceeds the amount so canceled
shall be carried to the credit of the deposit contributor;
(б) 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 mem­
ber 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.
PEOVISIONS AS TO SPECIAL CLASSES OF INSUKED PEESONS.

S pecial p rovision s w ith respect to m a r r ie d w o m e n .

4 4 .~ (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 be­
tween 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 em­
ployed 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 com­
missioners, 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 apprQved 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 eugaged 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 three-pence [6 cents]
a week;
(&) 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 com­
missioners for the purpose of discharging their liabilities to approved
societies in respect of the reserve values created under this act:




BRITISH NATIONAL INSURANCE ACT, 1911.

35

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 twothirds of her transfer value applied in accordance with regulations of the insur­
ance commissioners toward 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 volun­
tary contributor paying contributions at the rate which would have been ap­
plicable 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 pro­
vided as respects married women.
In either such case there shall be transferred from the married women’s sus­
pense 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 insur­
ance 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 hus­
band, 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 volun­
tary 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 hereinbefore provided) exempting her from liability to become an em­
ployed contributor so, however, that such exemption shall not exempt the em­
ployer 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 three pence [6
cents] 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,




36

B U L L E T IN

OF T H E B U R E A U OF LABOR,

and in tlie rates of benefit to wliich 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
bad 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.

Special provisions as to aliens.
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 hereinafter 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 sevenninths, 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 toward the expenses of adminis­
tration 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 fol­
lowing 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 dis­
charge 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 sep­
arate 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.

Special provisions with regard to persons in the naval and military service of
the Grown.
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 hereinafter 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, 1865,1 and of every soldier of the regular forces (other than



128 and 29 Viet., c. 73.

B R IT IS H

N A T IO N A L IN S U R A N C E A C T , 1911.

37

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 r3 cents] a week, and there shall be contributed by the Ad­
miralty and the Army Council respectively, out of moneys provided by Parlia­
ment 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 [3 cents] per week, and, in respect of every
other such seaman, marine, and soldier, such sum per week as may be pre­
scribed :
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 reengaged 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 commence­
ment 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 [G cents], 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 insur­
ance commissioners toward the discharge of their liabilities in
respect of reserve values shall be one penny [2 cents], and the
remaining five-ninths of a penny [1.1 cents] shall be paid out of the
Navy and Army Insurance Fund hereinafter 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, sana­
torium, 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 ap­
proved societies and entitled to such benefits as employed con­
tributors :
'(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 stand­
ing 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:




38

B U L L E T IN

OF T H E B U R E A U

OF LABOR,

(e) In the case of a seaman, marine, or soldier serving at the commence­
ment of this act, there shall be credited to the Navy and Army Insur­
ance 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: *P ro v id e d , That no such reserve value
shall be credited to that fund if at the date aforesaid he had com­
pleted the period of his first engagement and had reengaged for pen­
sion, 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 hereinafter mentioned:
(/) Every such man shall, until discharged, be entitled to maternity bene­
fit payable out of the Navy and Army Insurance Fund, and shall be
entitled to such benefit, notwithstanding that both he and his wife
ai:e at the date of the confinement resident outside the United King­
dom, 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 Insur­
ance 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 hereinafter mentioned, be carried to his credit in the postoffice fund the transfer value which would have been payable in
respect of him had he been a member of an approved society through­
out 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
canceled as would have been canceled had he been transferred from
an approved society to the post-office fund:
; w
A man discharged from service as a seaman, marine, or soldier who
proves that the state of his health is such that he can not 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 afore­
said, 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 deduction 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 seven­
teen 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 [$1.22] a week.
(iii) there shall in each year be repaid to the Navy and Army
Insurance Fund, otit 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




B R IT IS H

N A T IO N A L IN S U R A N C E A C T , 1911.

39

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 trans­
fer value, and for the purpose of qualifications for becoming a volun­
tary contributor;
(iii) 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 reside
in England.
(5) Discharge shall, in the case of a seaman, marine, or soldier who on the
completion of any term of service is transferred to a reserve, include such
transfer.
(6) This section shall not apply to a seaman, marine, or soldier who
entered or enlisted before the age of sixteen until he attains that age, and on
attaining that age shall apply to him as if he had entered or enlisted at the
time when he attained that age.
(7) The foregoing provisions of this section shall, subject to such adapta­
tions and modifications as may be prescribed, apply to men belonging to the
naval reserves when employed on service during war or any emergency, and
to men of the army reserve when called out on permanent service, and to men
of the territorial force when called out on embodiment, but, except as afore­
said, shall not apply to any such men.
(8) Where a man of the naval reserves, the army reserve, or the terri­
torial force is being trained and is in receipt of pay out of the moneys pro­
vided by Parliament for navy or army services, he shall, for the purposes of
this part of this act, be deemed, whilst so training, to be employed within
the meaning of this part of this act and to be in the sole employment of the
Crown: P ro v id e d , That this subsection shall not apply to a man who was not
immediately before the training an insured person, except in such cases and
under such circumstances as may be specified in a special order made by the
insurance commissioners.

Special provisions where employer liable to pay wages during sickness.
47.— (1) The insurance commissioners shall from time to time make special
orders specifying any classes of employment in which a custom or practice is
shown to their satisfaction to prevail according to which the persons employed
receive full remuneration during periods of disease or disablement, or any part
thereof, and, where the custom or practice is confined to certain localities, the
order shall also specify the localities in which the custom prevails, and, subject
to the provisions of this section, the order may contain such incidental, supple­
mental, and consequential provisions as appear necessary for adapting the
other provisions of this part of this act to cases under this section.
(2)
It shall be lawful for any employer who employs persons in any class
of employment specified in any such order, within a locality (if the custom is
confined to certain localities) so specified, to give to the insurance commis­
sioners the prescribed notice, and thereupon the employer shall, as respects all
such persons, be subject to the liabilities, and this part of *this act shall apply
in respect of all such persons, subject to the modifications, hereinafter men­
tioned.




40

B U L L E T IN

OF T H E B U R E A U

OF LABOR.

(3) The employer shall be liable to pay full remuneration to every such
person during any period or periods not exceeding six weeks in the aggregate
in any one year during which such person may be suffering from any disease
or disablement commencing while such person is in his employment, notwith­
standing that such person may have left his employment before the expiration
of that time:
Provided that, if any such person is engaged for a term of not less than six
months certain, the employer shall be liable to pay full remuneration during
any period of disease or disablement lasting less than six weeks, and for the
first six weeks of any period of disease or disablement lasting more than six
weeks, notwithstanding that the aggregate exceeds six weeks, but, where any
such period extends beyond the term of the engagement, the employer shall
not be liable to make any payment in respect of any part thereof after the
expiration of such term.
(4) This part of this act shall apply in respect of persons so employed as
aforesaid, subject to the following modifications:
(a) Sickness benefit shall not be payable in respect of any period during
which full remuneration is payable by the employer under this sec­
tion, but, for the purpose of calculating the rate and duration thereof,
shall be deemed to have been paid for six weeks before the date as
from which it becomes actually payable:
(&) The employed rate shall be reduced by two pence [4 cents] (or, where
the employed contributor is a woman, one penny halfpenny [3
cents]) :
( c ) The weekly contributions payable by the employer shall be reduced by
one penny [2 cents] (or, where the employed contributor is a woman,
one halfpenny [1 cent]), and the weekly contributions payable by
the employed contributor shall be reduced by one penny [2 cents]:
( d ) There shall be credited to the approved society of which any such
person is a member, or, if he is a deposit contributor, to his account
in the post-office fund, the difference between the amount of contri­
butions at such reduced rate actually paid in respect of him and the
amount which would have been paid if those contributions had been
at the full rate, and the amount of that difference shall be treated
as having been expended on sickness benefit, and the proper pro­
portion thereof shall accordingly be paid out of moneys provided by
Parliament:
( e ) Contributions shall not be payable in respect of any period of disease
or disablement during which full remuneration is payable under this
section if the prescribed notice has been given:
(/) The rules of an approved society or insurance committee as to notices
and proof of disease and disablement may extend to periods of dis­
ease and disablement during which full remuneration is payable
under this section.
(5) Where a person on ceasing to be so employed becomes temporarily unem­
ployed, paragraphs (&) and ( d ) of the last foregoing subsection shall continue
to apply in respect of him, and sickness benefit shall not be payable in respect
of the first six weeks of any period of disease or disablement commencing after
he ceased to be so employed, but, for the purpose of calculating the rate and
duration thereof, shall be deemed to have been paid during those six weeks,
and notwithstanding anything in this part of this act a disease or disablement
shall not, for the purposes of sickness benefit, be treated as a continuation of a
previous disease or disablement unless the medical practitioner attending such
person certifies that it in fact is so.
(6) Where such a person as aforesaid ceases to be employed within the mean­
ing of this part of this act, and is entitled to become a voluntary contributor
paying contributions at the employed rate, paragraphs ( b ) and ( d ) of subsec­
tion (4) shall, if he becomes a voluntary contributor, continue to apply in respect
of him, and sickness benefit shall not be payable in respect of the first six weeks
of any period of disease or disablement commencing after he became a volun­
tary contributor, but, for the purpose of calculating the rate and duration
thereof, shall be deemed to have been paid during those six weeks, and, notwith­
standing anything in this part of this act, a disease or disablement shall not,
for the purposes of sickness benefit, be treated as a continuation of a previous
disease or disablement, unless the medical practitioner attending such person
certifies that it in fact is so;



B R IT IS H

N A T IO N A L IN S U R A N C E A C T , 1911.

41

Provided that, if any such person at any time wishes to become an ordinary
voluntary contributor, he may become such after the payment of twenty-six
weekly contributions at the full rate, or, if the society of which he is a member
consents, after the payment of such less number of such contributions as the
society may appoint.
(7) Where any employers wish to avail themselves of the provisions of this
section as respects the persons employed by them in a class of employment, or
in a locality, in which no such custom or practice as aforesaid exists, they may
apply to the insurance commissioners, and the commissioners, if, after ascer­
taining the views of the persons so employed, they think fit, may make a special
order extending the provisions of this section as respects the applicants to the
class of employment or locality mentioned in the application as if it were a
class of employment or locality in which such a custom or practice as aforesaid
prevailed.
(8) Any question as to whether an employer is entitled to avail himself of
the provisions of this section as respects any persons employed by him shall be
determined by the insurance committee, subject to appeal to the insurance
commissioners.
(9) The payment of contributions purporting to be at the reduced rate author­
ized by this section as respects any persons employed by an employer in any
class of employment, shall be conclusive evidence that he is, as respects those
persons and all other persons employed by him in the same class of employment
in the same locality, under the liability imposed by this section.
(10) An employer who has given such notice as aforesaid may, by giving
three months’ previous notice to the insurance committee, withdraw his notice
as from the commencement of the next calendar year, and in such case, as from
that date, this section shall cease to apply in respect of the persons employed
by him in the class of employment to which the notice of withdrawal relates.
(11) None of the provisions of this section shall apply as respects any person
employed at a rate of remuneration which is less than ten shillings [$2.43] «a
week.
(12) Nothing in this section shall relieve any employer from any legal lia­
bility to pay wages during sickness to any person employed by him in accord­
ance with any established custom.
S pecial provision s as to th e m e rc a n tile m a rin e .

48.
In the application of this part of this act to masters, seamen, and ap­
prentices to the sea service and the sea fishing service, the following provisions
shall have effect:
(1) Neither sickness benefit nor disablement benefit shall be paid to a master,
seaman, or apprentice suffering from any disease or disablement in
respect of any period during which the owner of the ship is under the
Merchant Shipping Act, 1894,1 as amended by any subsequent enactment,
or otherwise, liable to defray the expense of the necessary surgical and
medical advice and attendance and medicine, and of his maintenance,
but, for the purpose of calculating the rate and duration of sickness
benefit, such benefit shall be deemed to have been paid from the com­
mencement of the disease or disablement until the determination of
such liability as aforesaid, and he shall not be entitled to medical benefit
during such period:
(2) In the case of masters, seamen, and apprentices serving on foreign-going '
ships or ships engaged in regular trade on foreign stations, the em­
ployed rate and the employer’s contributions shall each be reduced by
one penny [2 cents] a week, and every four weekly contributions paid
in any calendar year by a master, seaman, or apprentice whilst serving '
on such a ship shall, for the purposes of determining the number of
contributions to be paid by him in that year and for the purposes of
calculating arrears, be treated as five such contributions:
Provided that—
{ a ) nothing in this provision shall affect the number of em­
ployer’s contributions to be paid in respect of such a master,
seaman, or apprentice, but no employer’s contributions paid in
respect of any week in respect of which no contribution is payable
by the master, seaman, or apprentice shall be taken into account
in reckoning the amount of his arrears;



1 57 and 58 Viet., c. CO.

42

(3)

(4)

(5)

(6)
#

(7)

(8)

B U L L E T IN

OF T H E B U R E A U OF LABOR.

(b)
there shall be credited to the approved society of which the
master, seaman, or apprentice is a member, or, if he is a deposit
contributor, to his account in the post-office fund, a sum equal to
two-fifths of the amount of the contributions actually paid in
respect of him, and an equal sum shall be treated as having been
expended on sickness benefit, and the proper proportion thereof
shall accordingly be paid out of moneys provided by Parliament:
A master, seaman, or apprentice who is neither domiciled nor has a
place of residence in the United Kingdom shall not be deemed to be
employed within the meaning of this part of this act, but the em­
ployer shall be liable to pay the same contributions in respect of him
as would otherwise have been payable by him as employer’s contri­
butions, except in cases where the ship is engaged in regular trade on
foreign stations:
The Board of Trade shall, as soon as may be after the passing of this
act, cause a society to be formed, to be called the Seamen’s National
Insurance Society, of which any masters, seamen, and apprentices to
the sea service and the sea fishing service who are employed within the
meaning of this part of this act shall be entitled to become members,
but nothing in this section shall prevent any such person joining
another approved society instead of the society so formed:
The affairs of the Seamen’s National Insurance Society shall be managed
by a committee constituted in accordance with a scheme to be pre­
pared by the Board of Trade with the approval of the insurance com­
missioners, comprising representatives of the Board of Trade, of ship­
owners, and of members of the society in equal proportions, and the
society shall, notwithstanding anything in this part of this act, become
an approved society:
All contributions paid by employers in respect of masters, seamen, or
apprentices who are neither domiciled nor have a place of residence
in the United Kingdom, and consequently deemed not to be employed
within the meaning of this part of this act, shall be credited to the
Seamen’s National Insurance Society:
In addition to medical, sanatorium, sickness, disablement, and maternity
benefits, members of the Seamen’s National Insurance Society shall be
entitled to such other benefits as may be provided under a scheme to
be prepared by the committee of management, with the approval of
the Board of Trade and the insurance commissioners, and such other
benefits shall include pensions for masters and seamen with long sea
service, and the scheme may provide for preference being given to
masters and seamen who have served in foreign-going ships or ships
engaged in foreign trade over those who have served in the coasting
and home trade ships, and such preference may be proportionate to
the length of time spent in the first-mentioned service:
Provided that—
(a) the scheme shall provide for making a proper proportion
of the sums credited to the Seamen’s National Insurance Society
under the last foregoing subsection applicable toward the pay­
ment of pensions or superannuation allowances granted by other
approved societies to members with such sea service that, had
they been members of the Seamen’s National Insurance Society,
they would have been entitled to pensions under the scheme; and
(b) in the case of the transfer of a member of the society to
another approved society, the transfer value payable in respect
of him shall be calculated with reference to the liabilities of the
society for benefits other than such pensions as aforesaid:
The rules of the Seamen’s National Insurance Society shall provide for
allowing a member who leaves the sea service and is unable to obtain
admission to another approved society on account of the state of his
health to continue a member of the Seamen’s National Insurance So­
ciety for the purposes of this part of this act, and the rules of that
society may provide that a member of the society who has fulfilled
the conditions entitling him to such pension as aforesaid shall not be
deprived of his right to the pension by reason only that he has ceased
to be a member of the society at the time when the pension first be­
comes payable or ceases so to be at any subsequent time:




B R IT IS H

N A T IO N A L IN S U R A N C E A C T , 1911.

43

(9) Where a master, seaman, or apprentice is at the commencement of this
act a member of a society which becomes an approved society he may,
if that society and the Seamen’s National Insurance Society so agree,
continue to be a member of the first-mentioned society for the pur­
poses of benefits under this part of this act other than pension, and
become a member of the last-mentioned society for the purposes of
pension only, and in such case the balance of the contributions payable
in respect of him (after deducting the sums to be retained by the
insurance commissioners toward discharging their liabilities in respect
of reserve values) shall be divided between the two societies in such
proportion as they may agree:
(10) Expressions in this section have the same meaning as in the Merchant
Shipping Acts, 1894 to 1907, but the expressions “ foreign-going ships ”
and “ home trade” ships include ships engaged in the sea fishing
service, and the expression “ ship engaged in regular trade on foreign
stations ” means a ship engaged regularly in trade between ports out­
side the British Islands when trading between such ports, but, for the
purposes of this provision, a ship shall not be deemed not to be en­
gaged in such a trade by reason only that she puts into a port in the
United Kingdom for the purpose of survey or repair:
(11) The provisions of this part of this act affecting the employed rate and
the rates of contributions of employers and contributors in Ireland,
and depriving insured persons in Ireland of medical benefit, shall not
apply to any such master, seaman, or apprentice, unless he has a per­
manent place of residence in Ireland and is not a member of the Sea­
men’s National Insurance Society; and, in the case of a master, sea­
man, or apprentice serving on a foreign-going ship or a ship engaged
in foreign trade to whom such provisions do apply the amount by
which the employed rate and the employer’s contributions are to be
reduced shall be one halfpenny [1 cent] a week:
(12) Members of the Seamen’s National Insurance Society shall, for the
purposes of this part of this act, be deemed to reside in England, and
the medical benefit and sanatorium benefit of such members shall be
administered by the society instead of by the insurance committee, and
the provisions of this part of this act relating to the administration of
those benefits shall apply accordingly subject to such modifications as
may be prescribed; but nothing in this provision shall prevent the
society agreeing with insurance committees for the administration of
those benefits by the committees in relation to individual members of
the society.

Provisions as to persons over slccty-five at commencement of act.
49.— (1) If any person who is of the age of sixty-five or upwards and under
the age of seventy at the commencement of this act is employed within the
meaning of this part of this act, the like contributions shall, until he attains
the age of seventy, be payable by his employer in respect of him as in the case
of employed contributors, and the provisions of this part of this act relating
to the payments of contributions and the recovery thereof shall apply accord­
ingly.
(2) For every weekly contribution made by or in respect of such a person,
there shall be contributed out of moneys provided by Parliament the sum of
two pence [4 cents].
(3) If such a person becomes a member of an approved society for the pur­
poses of this section all contributions payable in respect of him under this sec­
tion (including contributions out of moneys provided by Parliament) shall be
credited to the society, and he shall become entitled to such benefits as the so­
ciety may determine, but no reserve value shall be credited to the society in
respect of him and no part of the contributions payable in respect of him shall
be retained by the insurance commissioners toward the discharge of their lia­
bilities in respect of reserve values.
(4) If such a person does not become a member of an approved society as
aforesaid he shall become a deposit contributor, and accordingly all contribu­
tions payable in respect of him (including contributions out of moneys provided
by Parliament) shall be carried to his credit in the post-office fund, but the



44

B U L L E T IN

OF T H E B U K E A U OF LAB OK,

benefits to which he becomes entitled shall be such as may be determined by
the insurance committee.
(5)
No part of the cost of benefits under this section shall be payable out of
moneys provided by Parliament.

Special provisions as to seasonal trades.
50. Where it is proved to the satisfaction of the insurance commissioners
that a trade or business carried on by any employers is of a seasonal nature and
subject to periodical fluctuation, and that those employers systematically em­
ploy persons throughout the year and work short time during the season when
the trade or business is depressed, the insurance commissioners may make a
special order reducing, as respects such persons, the employed rate and the con­
tributions payable by the employers and contributors to such extent and for
such period in the year as may be specified in the order, and increasing such
rate and contributions to a corresponding extent and for a corresponding period
during the remainder of the year, and the order may contain such incidental,
supplemental, and consequential provisions as may appear necessary for
adapting the other provisions of this part of this act to cases under this section.
S p e c ia l provision s as to in m a te s o f c h a rita b le hom es, etc .

51.
— (1) Where the managers of any institution carried on for charitable or
reformatory purposes prove that the persons who are inmates of and supported
by the institution receive maintenance and medical attendance when sick, the
insurance commissioners may grant a certificate of exemption to those managers,
and, where such a certificate of exemption is granted, any such inmates who are
employed by the managers of the institution shall not, in respect of such em­
ployment, be deemed to be employed within the meaning of this part of this act:
Provided that it shall be a condition of such exemption that the managers
shall be liable to pay in respect of any such inmate who, having been an inmate
of the institution for more than six months, leaves the institution, the following
sums:
( а) In the case of a person who was at the time of entering the institution
below the age of sixteen, such capital sum as will be sufficient to
secure him benefits under this part of this act at the full rate;
(б) In the case of a person who was at the time of entering the institution
of the age of sixteen or upwards, and who was at that time an insured
person and a member of an approved society, a sum equal to the
value, calculated in the prescribed manner, of the contributions which,
apart from this section, would have been payable in respect of him
during the time he was in the institution.
(2)
Every such inmate as aforesaid shall, if he was an insured person be­
fore entering the institution, be suspended from benefits whilst he is such an
inmate, and, if he was at such time a member of an approved society and has
been an inmate of the institution for a period exceeding six months, the time
during which he is in the institution shall be disregarded for the purpose of
reckoning arrears.

Special provision as to persons becoming certificated teachers.
52. Where a person who has been employed to teach in a public elementary
school ceases to be employed within the meaning of this part of this act by rea­
son of becoming a teacher to whom the Elementary School Teachers (Super­
annuation) Act, 1898,1 applies and does not become a voluntary contributor,
there shall be paid to the board of education by the approved society of which
he is a member or, if he is not a member of an approved society, out of the
amount standing to his credit in the post-office fund, a sum equal to the value
calculated in the prescribed manner of the contributions paid by or in respect
of him under this part of this act since he first began to teach in a public ele­
mentary school, or, if the amount standing to his credit is less than that sum,
then the whole amount so standing to his credit; and the sum so paid to the
board of education shall be placed by them to his credit in the deferred annuity
fund in accordance with the rules for the time being applicable thereto.



161 and 62 Viet., c. 57.

B R IT IS H

N A T IO N A L IN S U R A N C E A C T , 1911.

45

Application to other persons in the service of the Crown.
53.
— (1) This part of this act shall apply to persons employed by or under
the Crown, other than those with respect to whom special provision is made by
this part of this act, in like manner as if the employer were a private person:
Provided that, in the case of a person employed in the private service of the
Crown, the head of the department of the royal household in which he is em­
ployed shall be deemed to be his employer.
(2)
The provisions of this act relating to reduced insurance in cases where
the employer is liable to pay wages during sickness shall extend in respect of
persons employed by or under the Crown to cases where two-thirds only of the
full remuneration are payable during periods, or parts of periods, of disease or
disablement, if such remuneration is so payable for not less than three months
in any year, and those provisions shall apply accordingly as if two-thirds of
the full remuneration were substituted for the full remuneration and as if
three months were substituted for six weeks as the maximum amount of time
during any year such remuneration is payable.
FINANCIAL PROVISIONS.

N a tio n a l H e a lth In s u ra n c e F u n d .

54.
— (1) All sums received in respect of contributions under this part of this
act and all sums paid out of moneys provided by Parliament under this part
of this act in respect of the benefits thereunder and the expenses of administra­
tion of such benefits shall be paid into a fund, to be called the National Health
Insurance Fund, under the control and management of the insurance commis­
sioners, and the sums required to meet expenditure properly incurred by ap­
proved societies and insurance committees for the purposes of the benefits ad­
ministered by them and the administration of such benefits shall be paid out
of that fund.
(2) The sums payable to the said fund out of moneys provided by Parlia­
ment shall be paid in such manner and at such times as the Treasury may
determine.
(3) The insurance commissioners shall ascertain periodically what sums
standing in the National Health Insurance Fund to the credit of the several
societies and of the post-office fund and of the Navy and Army Insurance Fund
are available for investment, and the amount so ascertained shall, so far as not
required under the provisions of this part of this act to be paid over to societies
for investment, or to be retained for investment on their behalf, or for the dis­
charge of liabilities of societies, be carried to a separate account, called the
investment account, and shall be paid over to the national debt commissioners
and by them invested in accordance with regulations made by the Treasury in
any securities which are for the time being authorized by Parliament as invest­
ments for savings banks funds, but those commissioners shall, in making the
investment, give preference to stock or bonds issued under the provisions of
the acts relating to borrowing for raising capital for the purposes of the local
loans funds where the purposes for which such capital is required in the making
of advances for the purposes of the Housing of the Working Classes Acts, 1890
to 1909:
Provided that nothing in this provision shall prevent the insurance commis­
sioners paying over to the national debt commissioners for temporary invest­
ment, pending the ascertainment of the amount available for investment as
aforesaid, any sums in the National Health Insurance Fund not required to
meet current liabilities.
(4) There shall be credited to the post-office fund and to the Navy and
Army Insurance Fund interest at the prescribed rate per annum on the sums
from time to time standing to the credit of those funds in the investment
account.
(5) The accounts of the National Health Insurance Fund shall be audited by
the comptroller and auditor general in such manner as the Treasury may direct.
(6) The national debt commissioners shall present to Parliament annually
an account of the securities in which moneys forming part of the said fund
are for the time being invested.



46

B U L L E T IN

OF T H E B U K E A U OF LABOE,
R eserve

v a lu e s.

55.
— (1) The insurance commissioners shall cause tables to be prepared
showing, in cases in which such provision is necessary, the capital sums (in this
part of this act referred to as “ reserve values ” ) which it is necessary to pro­
vide in respect of members entering into insurance at ages over the age of
sixteen to meet the estimated loss (if any) arising through the acceptance by
an approved society of such persons as members upon the terms and conditions
as regards contributions and benefits prescribed by this part of this act.
(2) On a person of the age of seventeen or upwards joining an approved
society for the purposes of this part of this act, there shall be credited to the
society the reserve value (if any) appropriate to such person in accordance with
such tables.
The sums so credited to a society in respect of reserve values shall carry
interest at the rate of three per centum per annum.
(3) Out of each weekly contribution paid by or in respect of an insured per­
son who is a member of an approved society (other than a voluntary contributor
who entered into insurance within six months after the commencement of this
act and at the date of that entry was of the age of forty-five years or upwards)
there shall be retained by the insurance commissioners the sum of one penny
and five-ninths [3.16 cents] (or in the case of women one penny halfpenny [3
cents]), and the amounts so retained shall, together with any other moneys
available for the purpose, be applied in manrier provided by this part of this
act toward discharging the liabilities of the insurance commissioners to ap­
proved societies in respect of the reserve values created by this section.
(4) The insurance commissioners shall periodically apportion amongst the
several societies, including the Navy and Army Insurance Fund, the sums re­
tained by them, and the sums, if any, otherwise available for the discharge of
such liabilities as aforesaid, in proportion to the amount of reserve values for
the time being credited to the several societies, and shall credit to each society
the amount so apportioned, and any balance of the sums so credited to a society,
after providing for interest on the reserve values for the time being credited to
the society, shall be written off the amount of the reserve values so credited.
(5) If any person is convicted of the offence of knowingly making any false
statement as to his age in any declaration made for the purpose of obtaining a
reserve value to be credited to an approved society in respect of him, the reserve
value shall be canceled, and the member of the society in respect of whom it
was credited shall be treated as if he had entered into insurance after the ex­
piration of one year from the commencement of this act.

Transactions between the insurance commissioners and societies.
56.
— (1) The insurance commissioners shall, subject to the approval of the
Treasury, make regulations with respect to crediting and debiting to the several
societies sums received and paid by the insurance commissioners on behalf of
and to societies and as to the payments to be made by and to the commissioners
to and by societies, and those regulations shall, amongst other things—
( a ) provide for crediting to each society the contributions paid by or in
respect of the members of the society after deducting the amounts
retained thereout for discharging the liabilities of the insurance com­
missioners in respect of reserve values;
( b ) require the insurance commissioners, on carrying any sum to the credit
of an approved society in the investment account, to pay over to the
society for investment, or. at the request of the society, to retain for
investment on behalf of the society, four-sevenths, or, so far as the
sums are attributable to women, one-half, of the amount so credited
to the society;
( c ) provide for crediting to each society interest at the prescribed rate per
annum on the sums for the time being standing to the credit of the
society in the investment account;
( d ) provide for the discharge of debit balances in such manner as the insur­
ance commissioners determine, either by the reduction of the reserve
values credited to the society or out of the proceeds of the realization
of securities held by the society or by the commissioners on behalf of
the society, and out of the sums standing to the credit of the society
in the investment account, proportionately:



BRITISH NATIONAL INSURANCE ACT, 1911.

47

Provided that, in the case of any society which gives notice to that effect to
the insurance commissioners, no part of the sums carried to the credit of the
society in the investment account shall be paid over to the society or retained
by the commissioners for investment on its behalf, but the whole amount shall
remain to the credit of the society in the investment account, and in such case
the regulations made under the foregoing provisions shall apply to the society
subject to the prescribed modifications.
(2) Every approved society shall invest any sums paid to the society for
investment, and shall for the purpose have power to invest in any securities
in which trustees are for the time being by law empowered to invest trust
funds, or in any stocks, mortgages, or other securities issued by any local
authority within the meaning of the Local Loans Act, 1875,1 and charged on any
rates levied by or on the order or precept of such authority, or in any other
securities for the time being approved by the insurance commissioners.
(3) Where, at the request of a society, the insurance commissioners instead
of paying over any sum to the society retain such sum for investment on behalf
of the society, they shall invest such sum in accordance with the directions of
the society in any securities in which the society might have invested it had it
been paid over to the society, and shall from time to time vary such investments
in accordance with the like directions, and shall pay over to the society all sums
received by way of interest or dividend on the investments held by them on
behalf of the society.
(4) Every approved society shall apply the sums received by way of interest
or dividend on investments held by the society or by the insurance commis­
sioners on behalf of the society toward the cost of the benefits under this part
of this act of the members of the society and the cost of the administration of
those benefits, or otherwise, as the insurance commissioners may prescribe.
INSURANCE COMMISSIONERS— ADVISORY COMMITTEE.

Constitution of insurance commissioners, appointment of inspectors, etc.
57.— (1) As soon as may be after the passing of this act there shall be consti­
tuted for the purposes of this part of this act commissioners (to be called the
insurance commissioners), with a central office in London, and with such branch
offices as the Treasury may think fit, and the commissioners shall be appointed
by the Treasury, and of the commissioners so appointed one at least shall be
a duly qualified medical practitioner who has had personal experience of general
practice.
(2) The insurance commissioners may sue and be sued, and may for all pur­
poses be described by that name, and shall have an official seal which shall be
officially and judicially noticed, and such seal shall be authenticated by any com­
missioner or the secretary to the commissioners, or some person authorized by
the commissioners to act on behalf of the secretary.
(3) The insurance commissioners may appoint such officers, inspectors, ref­
erees, and servants, for the purposes of this part of this act as the commis­
sioners, subject to the approval of the Treasury as to number, may determine,
and there shall be paid out of moneys provided by Parliament to the commis­
sioners and to such officers, inspectors, referees, and servants, such salaries or
remuneration as the Treasury may determine; and any expenses incurred by
the Treasury (including the remuneration of valuers and auditors appointed
by the Treasury) or the commissioners in carrying this part of this act into
effect, to such extent as the Treasury may sanction, shall be defrayed out of
moneys provided by Parliament.
(4) Every document purporting to be an order or other instrument issued by
the insurance commissioners and to be sealed with the seal of the commissioners
authenticated in manner provided by this section, or to be signed by the secre­
tary to the commissioners or any person authorized by the commissioners to
act on behalf of the secretary, shall be received in evidence and be deemed to be
such order or instrument without further proof, unless the contrary is shown.
(5) The insurance commissioners may empower any inspector appointed by
them to exercise in respect of any approved society or any branch of an ap­
proved society all or any of the powers given by section seventy-six of the
Friendly Societies Act, 1896,a to an inspector appointed thereunder.
1 38 and 39 Viet., c. 83.




2 59 and 60 Viet., c. 25.

48

B U L L E T IN

OP T H E B U R E A U OP LABOR,

Provided that any complaint or report as to any such branch as aforesaid
made by an inspector under this subsection shall be communicated to the central
body or other central authority of the society.

Appointment of advisory committee.
58. The insurance commissioners shall, as soon as may be after the passing
of this act, appoint an advisory committee for the purpose of giving the insur­
ance commissioners advice and assistance in connection with the making and
altering of regulations under this part of this act, consisting of representatives
of associations of employers and approved societies, of duly qualified medical
practitioners who have personal experience of general practice, and of such
other persons as the commissioners may appoint, of whom two at least shall
be women.
INSURANCE COMMITTEES.

Appointment of insurance committees.
59.
— (1) An insurance committee shall be constituted for every county and
county borough.
(2) Every such committee shall consist of such number of members as the
insurance commissioners, having regard to the circumstances of each case,
determine, but in no case less than forty or more than eighty, of whom—
( a ) three-fifths shall be appointed in such manner as may be prescribed
by regulations of the insurance commissioners so as to secure repre­
sentation of the insured persons resident in the county or county
borough who are members of approved societies, and who are deposit
contributors, in proportion, as nearly as may be, to their respective
numbers;
(b) one-fifth shall be appointed by the council of the county or county
borough;
(c) two members shall be elected in manner provided by regulations made
by the insurance commissioners, either by any association of duly
qualified medical practitioners resident in the county or county
borough which may have been formed for that purpose under such
regulations, or, if no such association has been formed, by such
practitioners;
( d ) one member or, if the total number of the committee is sixty or up­
wards two members, or, if the total number of the committee is
eighty, three members, shall be duly qualified medical practitioners
appointed by the council of the county or county borough;
( e ) the remaining members shall be appointed by the insurance com­
missioners :
Provided that—
(i) The regulations with respect to the appointment of members to rep­
resent insured persons shall provide for conferring on the ap­
proved societies which have members resident in the county or
county borough the power of appointing the representatives of
such members, and, where an association of the deposit con­
tributors resident in the county or county borough has been
formed under such regulations as aforesaid, for conferring on
such association the power of appointing the representatives of
the deposit contributors;
(ii) Of the members appointed by the council of the county or county
borough two at least shall be women, and of the members ap­
pointed by the insurance commissioners one at least shall be a
duly qualified medical practitioner and two at least shall be
women.
(3) The insurance commissioners may, where any part of the cost of medical
benefit or sanatorium benefit is defrayed by the council of the county or county
borough, increase the representation of the council and make a corresponding
diminution in the representation of the insured persons.
(4) The insurance commissioners may make regulations as to the appoint­
ment, quorum, term of office, and rotation of members and proceedings generally
(including the appointment of subcommittees consisting wholly or partly of
members of the committee) of the committee, and the employment of officers



B R IT IS H

N A T IO N A L IN S U R A N C E A C T , 1911.

49

and the provision of offices by the committee, including the use by the committee,
with or without payment, of any offices of a local authority, but subject to the
consent of such authority, and any such regulations may provide for the consti­
tution of district insurance committees, and for apportioning amongst the several
district insurance committees any of the powers and duties of the insurance
committee and regulating the relations of district insurance committees to the
insurance committee and to one another:
Provided that the regulations so made shall require the insurance committee
of every county (except in cases where, owing to special circumstances, the
commissioners consider it unnecessary) within six months after the commence­
ment of this act to prepare after consultation with the county council and
submit for approval to the commissioners a scheme for the appointment of dis­
trict insurance committees for the county and prescribing the area to be assigned
to each such committee, and in particular the scheme shall provide for the ap­
pointment of a district insurance committee for each borough (including the
city of London and a metropolitan borough) within the county having a popula­
tion of not less than ten thousand, and for each urban district within the county
with a population of not less than twenty thousand, but, if the insurance com­
mittee or, on appeal, the insurance commissioners consider it expedient in the
case of any such borough (outside London) or urban district, any adjoining
areas may be grouped with such borough or urban district for the purpose of
the appointment of a district insurance committee.
(5)
Any insurance committee may, and shall if so required by the insurance
commissioners, combine with any one or more other insurance committees for
all or any of the purposes of this part of this act, and, where they so combine,
the provisions of this part of this act shall apply with such necessary adapta­
tions as may be prescribed.
P o w e rs an d du tie s o f in s u ra n c e com m ittees .

60.— (1) The insurance committee of a county or county borough shall, in
addition to the other powers and duties conferred and imposed on it by this
part of this act, have the following powers and duties:
( a ) It shall make such reports as to the health of insured persons within
the county or county borough as the insurance commissioners, after
consultation with the local government board, may prescribe, and
shall furnish to them such statistical and other returns as they may
require, and may make to them such other reports on the health of
such persons and the conditions affecting the same, and may make
such suggestions with regard thereto as it may think fit, and the
insurance commissioners shall forward to the councils of the counties,
boroughs, and urban and rural districts, which appear to them to be
affected by or interested in any such reports, returns, or suggestions,
copies of such reports, returns, and suggestions, and the reports and
returns so made shall include such reports and returns as will
enable an analysis and classification to be made of the persons who
are deposit contributors:
(ft) It shall make such provision for the giving of lectures and the publica­
tion of information on questions relating to health as it thinks neces­
sary or desirable, and may, if it thinks fit, for that purpose make
arrangements with local education authorities, universities and other
institutions:
(c) It shall keep proper books and accounts in the prescribed form and
shall, when required, submit such accounts to audit by auditors ap­
pointed by the Treasury.
(2) For the purpose of assisting insurance committees in the exercise and
performance of their powers and duties under this part of this act, and with a
view to promoting cooperation between such committees and the councils of
counties, boroughs, and urban and rural districts, any medical officer of health
may, at the request of an insurance committee and with the consent of the
council by whom he is appointed, attend meetings of the committee* and give
such advice and assistance as is in his power.
(3) For the purposes of this section, the council of a borough includes the
mayor, aldermen, and commons of the city of London in common council as­
sembled, and the council of a metropolitan borough.
4 9 9 7 6 °— 12------- 4




50

BU LLETIN OF THE BUEEAU OF LABOB.

Income .
61.
— (1) All sums available for sanatorium benefit in a county or county
borough, and all sums payable in respect of the members of approved societies
and deposit contributors resident in the county or county borough for the pur­
poses of medical benefit and administrative expenses in any year, shall be paid
or credited to the insurance committee at the commencement of that year.
(2) There shall also be paid to the insurance committee in every year by
each approved society having members who are insured persons resident in the
county or county borough, in respect of each such member, the sum of one
penny [2 cents] toward the administrative expenses of the committee:
Provided that, if the special circumstances of any county are such that the
insurance commissioners consider that the traveling expenses of the members
of the committee should be repaid to them by the committee, the insurance
commissioners may authorize such repayment, and in such case may increase
the said sum of one penny [2 cents] to such sum, not exceeding twopence
[4 cents] as they may determine.
(3) It shall be lawful for any local authority, out of any fund or rate out of
which the expenses of the authority are payable, to subscribe such sums as it
may think fit toward the general purposes of the insurance committee.
L o c a l m e d ic a l com m ittees.

62. Where a local medical committee has been formed for any county or
county borough or for any area for which a district committee has been formed
and the insurance commissioners are satisfied that such committee is representa­
tive of the duly qualified medical practitioners resident in the county or county
borough or such area as aforesaid, they shall recognize such committee, and,
where a local medical committee has been so recognized, it shall, subject to regu­
lations made by the insurance commissioners, be consulted by the insurance
committee or district committee, as the case may be, on all general questions
affecting the administration of medical benefit, including the arrangements made
with medical practitioners giving attendance and treatment to insured persons,
and shall perform such other duties, and shall exercise such powers, as may be
determined by the insurance commissioners.
E X C E S S IV E S IC K N E S S .

In q u irie s in to causes o f excessive sickness , etc.

63.
— (1) Where it is alleged by the insurance commissioners or by any ap­
proved society or insurance committee that the sickness which has taken place
among any insured persons, being, in the case where the allegation is made by
a society or committee, persons for the administration of whose sickness and
disablement benefits the society or committee is responsible, is excessive, and
that such excess is due to the conditions or nature of employment of such
persons, or to bad housing or insanitary conditions in any locality, or to an
insufficient or contaminated water supply, or to the neglect on the part of any
person or authority to observe or enforce the provisions of any act relating to
the health of workers in factories, workshops, mines, quarries, or other industies, or relating to public health, or the housing of the working classes, or any
regulations made under any such act, or to observe or enforce any public health
precautions, the commissioners or the society or committee making such
allegation may send to the person or authority alleged to be in default a claim
for the payment of the amount of any extra expenditure alleged to have been
incurred by reason of such cause as aforesaid, and, if the commissioners, society,
or committee and such person or authority fail to arrive at any agreement on
the subject, may apply to the secretary of state or the local government board,
as the case may require, for an inquiry, and thereupon the secretary of state
or local government board may appoint a competent person to hold an inquiry.
(2)
If, upon such inquiry being held, it is proved to the satisfaction of the
person holding the inquiry that the amount of such sickness has—
(i) during a period of not less than three years before the date of the
inquiry; or
(ii) if there has been an outbreak of any epidemic, endemic or infectious
disease, during any less period;
been in excess of the average expectation of sickness by more than ten per
cent, and that such excess was in whole or in part due to any such cause as
aforesaid, the amount of any extra expenditure found by the person holding




BRITISH NATIONAL INSURANCE ACT, 1911.

51

the inquiry to have been incurred under this part of this act by any societies
or committees where the allegation is made by the insurance commissioners,
or, if the allegation is made by a society or committee, by the society or
committee in question, by reason of such cause shall be ordered by him to be
made good in accordance with the following provisions:
(a) Where the excess or such part thereof as aforesaid is due to the
conditions or nature of the employment or to any neglect on the
part of any employer to observe or enforce any such act or regulation
as aforesaid, it shall be made good by the employer:
(b) Where such excess or such part thereof as aforesaid is due to bad
housing or insanitary conditions in t\\e locality, or to any neglect on
the part of any local authority to observe or enforce any such act
or regulation or such precautions as aforesaid, it shall be made good
by such local authority as appears to the person holding the inquiry
to have been in default, or, if due to the insanitary condition of any
particular premises, shall be made good either by such authority or
by the owner, lessee, or occupier of the premises who is proved to
the satisfaction of the person holding the inquiry to be responsible:
(c) Where the excess or such part thereof as aforesaid is due to an insuffi­
cient or contaminated water supply, it shall be made good by the
local authority, company, or person by whom the water is supplied,
or who having imposed upon them the duty of affording a water
supply have refused or neglected to do so, unless the local authority,
company, or person prove that such insufficiency or contamination
was not due to any default on the part of the authority, company,
or person, but arose from circumstances over which they had no
control.
(3) Where any such inquiry as aforesaid is held in respect of bad housing
or insanitary conditions in any locality, it shall be lawful for the local author­
ity to serve notice upon the owner, lessee, or occupier of any premises which are
the subject matter of the inquiry, and, where it is proved that such a notice
has been served and that any such extra expense as aforesaid, or any part
thereof, has been caused by the act or default of such owner, lessee or occupier,
the person holding the inquiry may order the owner, lessee or occupier to repay
to the local authority the amount of the extra expenditure or part thereof
which has been so caused.
(4) For the purpose of this section, the average expectation of sickness shall
be calculated in accordance with the tables prepared by the insurance commis­
sioners for the purpose of valuations under this part of this act, but any
excessive sickness attributable to any disease or disablement which is due to
any disease or injury in respect of which damages or compensation are payable
under the Employers’ Liability Act, 1880, or the Workmen’s Compensation Act,
1906, or at common law, shall not be taken into account.
(5) The insurance commissioners shall make regulations as to the procedure
on inquiries under this section, and a person holding an inquiry under this
section shall have all such powers as an inspector of the local government board
has for the purposes of an inquiry under the Public Health Acts, and shall
have power to order how and by what parties costs, including such expenses
as the secretary of state or local government board may certify to have been
incurred by them, are'to be paid, and an order made by such person under this
section may, by leave of the high court, be enforced in the same manner as a
judgment or order of the court to the same effect:
Provided that a society or committee shall not be ordered to pay the costs
of the other party to the inquiry if the person holding the inquiry certifies that
the demand for an inquiry was reasonable under the circumstances, and,
when he so certifies, the Treasury may repay to the society or committee the
whole or any part of the costs incurred by it.
(6) Without prejudice to any other method of recovery, any sum ordered
under this section to be paid by a local authority may, in accordance with the
regulations of the local government board with the approval of the Treasury,
be paid out of the local taxation account and deducted from any sums payable
either directly or indirectly out of that account to the local authority.
(7) For the purposes of this section, any expenditure on any benefit admin­
istered by an insurance committee shall be deemed to be expenditure of that
committee, but any sums paid to any such committee under this section to meet
extra expenditure on sickness benefit or disablement benefit shall be dealt with



52

BULLETIN OF THE BUREAU OF LABOR,

for the benefit of deposit contributors in accordance with regulations made by
the insurance commissioners.
(8) Where under this section any sum is paid to the insurance commission­
ers, the insurance commissioners shall apply the same in discharge of any
expenses incurred by the commissioners under this section and shall distribute
the balance amongst the societies and committees which appear to the com­
missioners to have incurred extra expense on account of the excessive sickness
in such proportions as the commissioners think just.
(9) Where an association of deposit contributors resident in any county or
comity borough has been formed under regulations made by the insurance
commissioners, the insurance committee for the county or county borough shall,
if so required by the association, take proceedings under this section on behalf
and at the expense of the association.
SUPPLEMENTARY PROVISIONS.

P ro v is io n o f s a n a to ria , etc .

64.— (1) If under any other act of the present session any sum is made
available for the purposes of the provision of or making grants in aid to
sanatoria and other institutions for the treatment of tuberculosis or such
other diseases as the local government board with the approval of the Treasury
may appoint, such sum shall be distributed by the local government board with
the consent of the Treasury in making grants for those purposes, and the
Treasury before giving their consent shall consult with the insurance com­
missioners :
Provided that such sum shall be apportioned between England, Wales, Scot­
land, and Ireland in proportion to their respective populations ascertained in
accordance with the returns of the census taken in the year nineteen hundred
and eleven.
(2) If any such grant is made to a county council, the local government
board may authorize the county council to provide any such institution, and,
where so authorized, the county council shall have power to erect buildings
and to manage and maintain the institution and for that purpose to enter into
agreements and make arrangements with insurance committees and other
authorities and persons, and to do all such things as may be necessary for
the purposes aforesaid, and any expenses of the county council, so far as not
defrayed out of the grant, shall be defrayed out of the county fund as expenses
for general county purposes, or, if the order of the local government board
so directs, as expenses for special county purposes charged on such part of the
county as may be provided by the order.
(3) For the purpose of facilitating cooperation amongst county councils,
county borough councils, and other local authorities (not being poor-law
authorities) for the provision of such sanatoria and other institutions as afore­
said, the local government board may by order make such provisions as appear
to them necessary or expedient, by the constitution of joint committees, joint
boards, or otherwise, for the joint exercise by such councils and authorities
of their powers in relation thereto, and any such order may provide how, in
what proportions, and out of what funds or rates the expenses of providing
such institutions, so far as they are not defrayed out of grants under this
section, are to be defrayed, and may contain such consequential, incidental,
and supplemental provisions as may appear necessary for the purposes of the
order, and an order so made shall be binding and conclusive in respect of the
matters to which it relates.
(4) An insurance committee may, with the consent of the insurance com­
missioners, enter into agreements with any person or authority (other than
a poor-law authority) that, in consideration of such person or authority
providing treatment in a sanatorium or other institution or otherwise for per­
sons recommended by the committee for sanatorium benefit, the committee
will contribute out of the funds available for sanatorium benefit toward the
maintenance of the institution or provision of such treatment, such annual
or other payment, and subject to such conditions and for such period as may
be agreed, and any such agreement shall be binding on the committee and their
successors, and any sums payable by the committee thereunder may be paid
by the insurance commissioners and deducted from the sums payable to the
committee for the purposes of sanatorium benefit.



BRITISH NATIONAL INSURANCE ACT, 1911.

53

P o w e r o f in su ran ce com m issioners to m a k e re g u la tio n s , etc .

65. The insurance commissioners may make regulations for any of the
purposes for which regulations may be made under this part of this act or
the schedules therein referred to, and for prescribing anything which under
this part of this act or any such schedules is to be prescribed, and generally
for carrying this part of this act into effect, and any regulations so made shall
be laid before both Houses of Parliament as soon as may be after they are
made, and shall have effect as if enacted in this act:
Provided that, if an address is presented to His Majesty by either House of
Parliament within the next subsequent twenty-one days on which that House
has sat next after any such regulation is laid before it, praying that the regu­
lation may be annulled, His Majesty in council may annul the regulation, and
it shall thenceforth be void, but without prejudice to the validity of anything
previously done thereunder.
D e te rm in a tio n o f questions by in s u ra n c e com m issioners .

66. — (1) If any question arises—
( a ) as to whether any employment or any class of employment is or
will be employment within the meaning of this part of this act or
as to whether a person is entitled to become a voluntary contrib­
utor; or
( b ) as to the rate of contributions payable by or in respect of any in­
sured person; or
( c) as to the rates of contributions payable in respect of an employed con­
tributor by the employer and the contributor respectively;
the question shall be determined by the insurance commissioners, in accord­
ance with regulations made by them for the purpose:
Provided that—
(i) if any person feels aggrieved by the decision of the insurance com­
missioners on any question arising under paragraph (a), he may
appeal therefrom to the county court, with a further right of appeal
upon any question of law to such judge of the high court as may be
selected for the purpose by the lord chancellor, and the decision of
that judge shall be final;
(ii) the regulations of the insurance commissioners may provide for ques­
tions under paragraph ( b ) being determined, in the case of any per­
son who is or is about to become a member of an approved society,
by the society;
(iii) the insurance commissioners may, if they think fit, instead of them­
selves deciding whether any class of employment is or will be employ­
ment within the meaning of this part of this act, submit the question
for decision to the high court in such summary manner as subject
to rules of court may be directed by the court, and the court, after
hearing such parties and taking such evidence (if any) as it thinks
just, shall decide the question, and the decision of the court shall be
final.
(2) This section shall come into operation on the passing of this act.
D is p u te s .

67.
— (1) Subject to the provisions of the foregoing section every dispute
between—
( a ) An approved society or a branch thereof and an insured person who is
a member of such society or branch or any person claiming through
him;
( b ) An approved society or branch thereof, and any person who has ceased
to be a member for the purposes of this part of this act of such
society or branch, or any person claiming through him;
(c) An approved society and any branch thereof;
( d ) Any two or more branches of an approved society;
relating to anything done or omitted by such person, society, or branch (as the
case may be) under this part of this act or any regulation made thereunder,
shall be decided in accordance with the rules of the society, but any party to
such dispute may, in such cases and in such manner as may be prescribed,
appeal from such decision to the insurance commissioners.



54

BULLETIN OF THE BUREAU OF LABOR.

(2) Every dispute between an insured person and the insurance committee,
relating to anything done or omitted by such person or the insurance committee
under this part of this act, or any regulation made hereunder, shall be decided
in the prescribed manner by the insurance commissioners.
(3) The insurance commissioners may authorize referees appointed by them
to decide any appeal or dispute submitted to the insurance commissioners under
this section.
(4) The insurance commissioners may make regulations as to the procedure
on any such appeal or dispute, and such regulations may apply any of the
provisions of the Arbitration Act, 1889,1 but, except so far as it may be so
applied, the Arbitration Act, 1889, shall not apply to proceedings under this
section, and any decision given by the insurance commissioners or a referee
under this section shall be final and conclusive.
P ro te c tio n a g a in s t distress a n d exe c u tio n in c e rta in cases .

68.
— (1) Where the medical practitioner attending on any insured person
in receipt of sickness benefit certifies that the levying of any distress or execu­
tion upon any goods or chattels belonging to such insured person and being on
premises occupied by him, or the taking of any proceedings in ejectment or for
the recovery of any rent or to enforce any judgment in ejectment against such
person, would endanger his life, and such certificate has been sent to the insur­
ance committee and has been recorded in manner hereinafter provided, it shall
not be lawful during any period named in the certificate for any person to levy
any such distress or execution or to take any such proceedings or to enforce any
such judgment against the insured person :
Provided that, if any person desirous of levying such distress or execution
or taking such proceedings or enforcing such judgment disputes the accuracy
of the certificate, he may apply to the registrar of the county court, who, if he
is of opinion that the certificate should be canceled or modified, may make an
order canceling or modifying it, and no appeal shall lie against any such order
or a refusal to make any such order.
(2) A certificate granted for the purpose of this section shall continue in
force for one week or such less period as may be named in the certificate, but
may be renewed from time to time for any period not exceeding one week, lip
to but not beyond the expiration of three months from the date of the grant of
the original certificate, but no such renewal shall have effect unless sent to the
insurance committee and recorded as aforesaid:
Provided that the protection conferred by this section shall not extend beyond
the expiration of one month from such date if, on demand being made by the
person desirous of levying such distress or execution, or taking such proceedings,
or enforcing such judgment, proper security is not given for payment of rent
thereafter to become due from the insured person or the amount of the judgment
debt, as the case may be, and any dispute as to the sufficiency of the security
shall be determined by the registrar of the county court whose decision shall be
final and not subject to appeal.
(3) If any person knowingly levies or attempts to levy any such distress or
execution or takes any such proceedings or enforces or attempts to enforce any
such judgment in contravention of this section, he shall be liable on summary
conviction to a fine not exceeding fifty pounds [$243.33].
(4) A certificate or renewal thereof granted under this section shall forthwith
be sent to the insurance committee, and the committee shall, unless it has reason
to suspect its genuineness, record it in a special register without fee, and such
register shall, at all reasonable times, be open to inspection; and, where so
recorded, its genuineness shall not be questioned in any proceedings against a
sheriff or other officer for failure to levy any distress or execute any warrant.
(5) Where the time within which a warrant may be executed is limited,
any period during which the warrant can not be executed by reason of the pro­
visions of this section shall be disregarded in computing the time within which
the warrant may be executed.
O ffenses .
69.
— (1) If, for the purpose of obtaining any benefit or payment or the
crediting of a reserve value under this part of this act, either for himself or for




152 and 53 Viet., c. 49.

BRITISH NATIONAL INSURANCE ACT, 1911,

55

any other person, any person knowingly makes any false statement or false
representation, he shall be liable on summary conviction to imprisonment for a
term not exceeding three months with or without hard labor.
(2)
If any employer has failed to pay any contributions which under this
part of this act he is liable to pay in respect of an employed contributor, or
if any such employer, any insured person, or any other person is guilty of any
other contravention of or noncompliance with any of the requirements of this
part of this act or the regulations made thereunder in respect of which no
special penalty is provided, he shall for each offense be liable on summary con­
viction to a fine not exceeding ten pounds [$48.67], and where the offense is
failure or neglect on the part of the employer to make any such contributions,
to pay to the insurance commissioners a sum equal to the amount of the con­
tributions which he has so failed or neglected to pay, which sum when paid
shall be treated as a payment in satisfaction of such contributions:
Provided that no person shall be liable to any penalty in respect of any matter
if he has acted in conformity with any decision in respect thereto by the insur­
ance commissioners, or, if the matter is one which the insurance committee is
competent to decide, in conformity with its decision.
C iv il proceedings a g a in s t em p lo yer f o r n eglecting to p a y c o n trib u tio n s .

70.
— (1) Where an employer has failed or neglected to pay any contributions
which under this part of this act he is liable to pay in respect of a person
being a member of an approved society in his employment, and by reason thereof
that person has been deprived in whole or in part of his right to any benefits
which would otherwise have been payable to him, he shall be entitled to take
proceedings against the employer for the value of the right of which he has
been so deprived, and in any such proceedings the employer may be ordered to
pay to the insurance commissioners a sum equal to the value so ascertained,
which sum when paid shall be carried to the credit of the society of which
r
such person is a member, and thereupon such persons shall thenceforth be en­
titled to receive from the society benefits at the same rate as he would have
been entitled to had the contributions been properly paid, together with the
difference between the amount of the benefits (if any) he has actually received
and the benefits he would have received had the contributions been properly
paid.
(2)
Proceedings may be taken under either this or the last preceding section
notwithstanding that proceedings have also been taken under the other section
in respect of the same failure or neglect to pay contributions.
R e p a y m e n t o f benefits im p ro p e rly p a id .

71. If it is found at any time that a person has been in receipt of any pay­
ment or benefit under this part of this act without being lawfully entitled
thereto he, or in the case of his death his personal representatives, shall be
liable to repay to the insurance commissioners the amount of such payment or
benefit, and any such amount may be recovered as a debt due to the Crown
and when so recovered shall be carried to the credit of the society of which
such person was a member, or if he was not a member of any approved society,
of the post-office fund.
P ro v is io n s as to a p p lic a tio n o f e x is tin g fu n d s o f fr ie n d ly societies .

72.
— (1) Every registered friendly society which provides benefits similar to
any of those conferred by this part of this act, shall submit to the registrar of
friendly societies a scheme for continuing, abolishing, reducing, or altering such
benefits as respects members who become insured persons and for continuing,
abolishing, or reducing the contributions of such members, so, however, that
the combined effect of the alteration of the benefits and contributions shall
not prejudicially affect the solvency of the society, and, if the scheme or a sup­
plementary scheme shows on an actuarial valuation that, owing to the altera­
tions in the benefits and contributions effected by the scheme, any part of the
existing funds of the society is set free as not being required to meet the lia­
bilities of the society, the scheme or the supplementary scheme shall provide for




56

BULLETIN OF THE BUREAU OF LABOR.

the application of the part of the funds so set free in any one or more of the
following ways:
( a ) toward the cost of the provision of other or increased benefits payable
by the society independently of this part of this act to existing mem­
bers whether insured persons or not;
( b ) in reduction of the contributions payable by such members in respect
of the benefits payable by the society independently of this part of
this act;
(c) toward the payment or repayment of contributions payable under this
part of this act by such of its existing members as are entitled and
elect to receive benefits under this part of this act through the
society.
(2) This section shall apply to branches of registered societies in like man­
ner as to societies: P ro v id e d , That a society with branches may, if it so de­
sires (subject always to the exercise of any right of a branch, expressly con­
ferred by the rules of the society, to dispose of any of its funds for the benefit
solely of the members of the branch), submit a scheme applicable to all its
branches, and it shall be competent for the society to provide by its scheme or
supplementary scheme for the application of the whole or any part of any
sums so set free toward the discharge of any deficiencies in any of its branches
which may be found to exist on such actuarial valuation as aforesaid.
(3) Any scheme adopted by a society or branch of a society in accordance
with its rules when confirmed by the registrar of friendly societies shall be
deemed to be incorporated in the registered rules of the society or branch and
may be amended accordingly, so, however, that no amendment shall be incon­
sistent with the provisions of this section.
(4) This section shall apply to seamen, marines, and soldiers, from whose
pay deductions are made under this part of this act as if they were insured
persons, and for the purposes of this section “ existing ” means existing at the
passing of this act.
(5) This section shall come into operation on the passing of this act.
P ro visio n s as to e x is tin g em ployers p ro v id e n t fu n d s .

73.
— (1) Where at the passing of this act a superannuation or other provi­
dent fund has been established for the benefit of the persons employed by one
or more employers, the provisions of the last foregoing section shall apply with
the necessary adaptations and with this modification that, where under the
act, deed, or other instrument establishing the fund or otherwise any sum is
payable by the employer toward benefits secured by the act or deed, and those
benefits include benefits similar to any of those conferred by this part of this
act, the scheme may provide for allowing the employer to deduct from any con­
tributions payable by him as aforesaid toward benefits of a nature similar to
those under this part of this act an amount not exceeding the amount of the
employer’s contributions payable by him under this part of this act.
(2)
Where the fund is one out of which pensions or superannuation allow­
ances are payable, and it is proved to the satisfaction of the insurance com­
missioners that the rearrangements required in consequence of this part of this
act will, upon a valuation under the existing rules of the fund, affect prejudi­
cially the sum available for the payment of pensions or superannuation allow­
ances, the insurance commissioners may grant a certificate authorizing the
value of the prospective extension of benefits under this part of this act when
the reserve values have been written off as hereinbefore provided, to be brought
into account in the valuation of the assets available for the discharge of the
liabilities of the fund in respect of pensions and superannuation allowances.
P ro visio n s as to m in o rs w h o a re m em bers o f a pproved societies .

74. Any member of an approved society who is a minor may execute all in­
struments and give all acquittances necessary to be executed or given under
the rules of such society, but shall not be a member of the committee, or a
trustee, manager, or treasurer of such society or any branch thereof.
P o w e r f o r societies to re g is te r u n d e r F r ie n d ly Societies A c t , 1896 .

75. Any society for the purpose of carrying on business under this act, either
alone or together with any purpose mentioned in section eight, subsection (1),




BRITISH NATIONAL INSURANCE ACT, 1911.

57

of the Friendly Societies Act, 1896, may, after the passing of this act, be regis­
tered as a friendly society under the Friendly Societies Act, 1896, notwithstand­
ing that the contributions under this act are not voluntary.
A p p lic a tio n o f acts o f P a r lia m e n t to approved societies a n d sections .

76.
— (1) Except in so far as may be inconsistent with this part of this act,
any business transacted under this part of this act by any approved society
shall be treated as part of the ordinary business transacted by societies of the
class to which that society belongs, and any enactment applying to the society
in relation to the transaction of such ordinary business shall apply accordingly
in relation to the business transacted by the society under this part of this act.
(2)
This section shall apply to an approved society which is a separate sec­
tion of another body, subject to the necessary adaptation.
P o ivers o f th e lo c a l g o vernm ent h oard .

77.
— (1) The local government board may, for the purposes of their powers
and duties under this part of this act, hold such local inquiries and investiga­
tions as they may think fit, and the board and their inspectors shall have for
the purposes of such an inquiry the same powers as they respectively have for
the purposes of an inquiry under the public health acts, and the expenses in­
curred by the board in respect of such inquiries and other proceedings under
this part of this act (including the salary of any inspector or officer of the
board engaged in the inquiry or proceedings, not exceeding three guineas
[$15.33] a day) shall be paid by such authorities and persons and out of such
funds and rates as the board may by order direct, and the board may certify
the amount of the expenses so incurred, and any sum so certified and directed
by the board to be paid by the authority or person shall be a debt from that au­
thority or person to the Crown: P ro v id e d , That this provision shall not apply
to inquiries with respect to responsibility for excessive sickness.
(2) Any approval given by the local government board under this part of
this act may be given for such term, and subject to such conditions as the
board may think fit, and the board shall have power to withdraw any approval
which they have given.
(3) The local government may make it a condition of any approval to be
given, or grant of money to be made under this part of this act, that the board
shall have such powers of inspection as may be agreed.
P o w er to rem o ve difficulties.

78. If any difficulty arises with respect to the constitution of insurance com­
mittees, or the advisory committee, or otherwise in bringing into operation this
part of this act, the insurance commissioners, with the consent of the Treasury,
may by order make any appointment and do anything which appears to them
necessary or expedient for the establishment of such committees or for bring­
ing this part of this act into operation, and any such order may modify the
provisions of this act so far as may appear necessary or expedient for carrying
the order into effect: P ro v id e d , That the insurance commissioners shall not
exercise the powers conferred by this section after the first day of January
nineteen hundred and fourteen.
In te r p r e ta tio n .

79.
For the purposes of this part of this act, unless the context otherwise
requires,—
The expression “ branch,” in relation to a society, shall not include any
branch of the society which is not itself separately registered;
The expression “ disease or disablement” means such disease or disable­
ment as would entitle an insured person to sickness or disablement
benefit;
The expression “ dependents,” in relation to any person, includes such per­
sons as the approved society or insurance committee shall ascertain to be
wholly or in part dependent upon his earnings;
A person whose normal occupation is employment within the meaning of
this part of this act shall, for the purpose of reckoning the number and
rate of contributions, be deemed to continue to be an employed con­




58

BULLETIN OF THE BUREAU OF LABOR,

tributor notwithstanding that he is temporarily unemployed, but, if such
period of unemployment extends beyond twelve months, he shall not con­
tinue to be an employed contributor unless the approved society of which
he is a member or, if he is not a member of such a society, the insurance
committee, is satisfied that his unemployment is due to inability to obtain
employment, and is not due to any change in his normal occupation;
The suspension of a member of an approved society from benefits under
this part of this act shall not be deemed to deprive the member of his
membership ;
Membership of an approved society means membership for the purposes of
this part of this act;
The expression “ valuer ” means a person possessing actuarial qualifica­
tions as may be approved by the Treasury;
The expression “ county ” means administrative county;
The Scilly Isles shall be deemed to be a county and the council of those
isles the council of a county, but the insurance committee for the Scilly
Isles shall be constituted in such manner as the insurance commissioners
prescribe;
Monmouthshire shall be deemed to form part of Wales;
A person shall be deemed according to the law in England, Wales, and
Ireland, as well as according to the law in Scotland, not to have attained
the age of seventeen until the commencement of the seventeenth anni­
versary of the day of his birth, and similarly with respect to other ages.
A p p lic a tio n to S co tland.

80.
This part of this act in its application to Scotland shall be subject to the
following modifications:
(1) For the purpose of carrying this part of this act into effect in Scotland,
there shall be constituted, as soon as may be after the passing of this
act, commissioners for Scotland (to be called the Scottish insurance
commissioners) with a central office in Edinburgh, and with such
branch offices in Scotland as the Treasury may think fit, and the
Scottish insurance commissioners, of whom one at least shall be a duly
qualified medical practitioner, shall be appointed by the Treasury, and
may appoint such officers, inspectors, referees, and servants for the pur­
poses aforesaid as the Scottish insurance commissioners, subject to the
approval of the Treasury, may determine, and the provisions of this
part of this act with respect to the payment of the salaries and re­
muneration of the insurance commissioners, and the officers, inspectors,
referees, and servants appointed by them, and with respect to the pay­
ment of the expenses incurred by the Treasury or the insurance com­
missioners in carrying this part of this act into effect shall, with the
necessary modifications, apply to the payment of the salaries and re­
muneration of the Scottish insurance commissioners and the officers,
inspectors, referees, and servants appointed by them and to the pay­
ment of expenses incurred by the Treasury or the Scottish insurance
commissioners in carrying this part of this act into effect in Scotland,
and for the purpose aforesaid the Scottish insurance commissioners,
and the officers, inspectors, referees, and servants appointed by them
shall respectively have all the like powers and duties as are, by the pro­
visions of this act, conferred and imposed on the insurance commis­
sioners and the officers, inspectors, referees, and servants appointed by
thepi, and references in those provisions to the insurance commissioners
shall be construed as references to the Scottish insurance commis­
sioners :
(2) All sums received from contributions under this part of this act in re­
spect of insured persons resident in Scotland, and all sums paid out of
moneys provided by Parliament in respect of benefits under this part
of this act to such persons, and the expenses of administration of such
benefits shall be paid into a fund to be called the Scottish National
Health Insurance Fund, under the control and management of the
Scottish insurance commissioners, and the sums required to meet ex­
penditures properly incurred by approved societies and insurance com­
mittees for the purposes of such benefits and the administration of
such benefits shall be paid out of that fund, and the foregoing pro­
visions of this act, with respect to the National Health Insurance Fund,



BRITISH NATIONAL INSURANCE ACT, 1011.

59

shall, with the necessary modifications, apply to the Scottish National
Health Insurance Fund accordingly:
(3) The expression “ local government board” means the local government
board for Scotland (in this section referred to as the board) : P ro v id e d ,
That, as regards the making bf regulations respecting sums payable
out of the local taxation (Scotland) account, the said expression means
the secretary for Scotland; the expression “ local taxation account ”
means the local taxation (Scotland) account; and the expression “ in­
spector of the local government board ” includes a person acting under
section seven or section eight of the Public Health (Scotland) Act,
18971:

(4) The expression “ county borough ” means a burgh or police burgh within
the meaning of the Local Government (Scotland) Act, 1889a (in this
section referred to as the act of 1889), containing within the police
boundaries thereof according to the census of nineteen hundred and
eleven a population of twenty thousand or upwards, an! includes the
d
burgh of Dumfries and the police burgh of Maxwelltown, as if they
were a single burgh, and all other burghs and police burghs shall, for
the purposes of this, part of this act, be held to be within the county,
and unless already represented on the county council shall, for the pur­
poses of this part of this act, be represented thereon as may be deter­
mined by the secretary for Scotland: P ro v id e d , That references to the
council of a county borough shall, in the case of Dumfries and Maxwelltown, be construed as references to a joint committee of the town
councils thereof which shall from time to time be appointed subject to
the provisions of section seventy-six of the act of 1889:
(5) Keferences to a county and the county council thereof shall, as regards—
( a ) the counties of Kinross and Clackmannan; and
(b ) the counties of Elgin and Naim;
be construed in each case as references respectively to a combination
of the two recited counties and to a joint committee of the county
councils thereof which shall from time to time be appointed subject to
the provisions of section seventy-six of the act of 1889:
(6) The minimum number of an insurance committee for any area containing
a population of less than forty thousand shall be twenty-five instead of
forty; and, where a number less than forty is fixed, the constitution of
the committee may be varied as may be prescribed, so, however, that
the proportion of members to be appointed by insured persons and by a
county or town council and the number of members possessing a medi­
cal qualification shall not be altered:
(7) No person, except a medical practitioner qualified as such, shall be quali­
fied for appointment as member of an insurance committee by a county
or town council unless he is a member of a local authority within the
county under the Public Health (Scotland) Act, 1897, or of the town
council, as the case may be; but this requirement shall not apply to
women if women so qualified are not available:
(8) Before submitting for approval a scheme prescribing areas to be assigned
to distiict committees, the insurance committee of a county shall con­
sult with the county council, or any committee thereof appointed for
the purpose, and shall consider any representation received from them:
(9) Where, owing to sparseness of population, difficulties of communication,
or other special circumstances, they consider it desirable, an insurance
committee shall have power, with the consent of the Scottish insurance
commissioners, to modify or suspend any benefits for the administra­
tion of which they are responsible; but, where such modification or
suspension takes place, provision shall be made by the committee, with
the like consent, for the increase of other benefits or the grant of one
or more additional benefits to an amount equivalent to the value of the
modification or suspension:
(10)— ( a ) If it appears to any county council that, having regard to the num­
ber of employed contributors resident in the county who are not mem­
bers of any society approved under the foregoing provisions of this act,
it is desirable that steps should be taken for the establishment under
the council of an approved society for the county (in this section re1G and 61 Viet., c. 38.
O



252 and 53 Viet., c. 50.

60

BULLETIN OF THE BUREAU OF LABOR,

ferred to as a county society) tlie council may, at any time before the
expiration of one year from the commencement of this act, submit to
the Scottish insurance commissioners a scheme for the establishment of
a county society;
(5) The scheme may provide for—'
(i) the representation of the council on the committee of manage­
ment of the society;
(ii) the appointment of officers subject to the approval of the council;
(iii) the delegation of powers to committees;
(iv) the giving of security by means of a charge upon the general
purposes rate or otherwise;
(v) the restriction of membership to insured persons resident in the
county not being members of any other approved society;
(vi) the reduction of benefits below the minimum rates fixed by this
part of this act; and
(vii) such other matters as may appear necessary, and in particular
such further modifications of the provisions of this part of this
act with respect to approved societies as may be required for the
purpose of adapting those provisions to the case of a county
society;
(c) Where such a scheme has been approved by the Scottish insurance
commissioners, the provisions of the scheme shall have effect not­
withstanding anything to the contrary in this part of this act; and,
subject to those provisions, the county society shall be an approved
society for all the purposes of this part of this act;
( d ) A county council desirous of submitting a scheme under this section
may, at any time after the passing of this act, take such steps as
appear necessary with a view to ascertaining what insured persons
resident in the county are eligible and willing to become members of
the proposed county society, and generally for the formation of the
society;
(11) A person appointed in terms of the section of this act relating to exces­
sive sickness to hold an inquiry shall report to the authority appointing
him, and any further action following on such inquiry which, in accord­
ance with the provisions of that section, is to be or may be taken by
the person making the inquiry, shall not be taken by him, but may be
taken by that authority after consideration of the report, and that
section shall be read and construed accordingly:
(12) Expenses incurred by a county council under this part of this act shall
be defrayed out of the general purposes rate: P ro v id e d , That, not­
withstanding anything contained in the act of 1889, the rate payers
of a police burgh shall not be assessed by the county council for any
such expenses unless the police burgh is, for the purposes of this part
of this act, held to be within the county: A n d p ro v id e d f u r t h e r , That,
with respect to every burgh within the meaning of the act of 1889,
which is, for the purposes of this act, held to be within the county,
subsection (3) and subsection (4) of section sixty, and section sixtysix, of the act of 1889, shall, so far as applicable, have effect as if
such expenses were expenditure therein mentioned:
(13) Expenses incurred by a town council under this part of this act (whether
under requisition from the county council or otherwise) shall be
defrayed out of the public health general assessment, but shall not be
reckoned in any calculation as to*the statutory limit of that assessment ;
and references to the borough fund or borough rate shall be construed
accordingly:
(14) The expression ‘‘ borough” and the expression “ urban district” mean
a burgh or police burgh within the meaning of the act of 1889, and the
expressions “ rural district ” and “ council of a rural district,” unless
inconsistent with the context, mean respectively a district of a county
within the meaning of the said act and the district committee thereof:
P ro v id e d , That the population limit prescribed for boroughs and urban
districts in the subsection of this act relating to the appointment of
district committees for these areas shall not apply:
(15) The expression “ lord chief justice” means the lord president of the
court of session:



BRITISH NATIONAL INSURANCE ACT, 1911.

61

(16)

The expression “ county court” means the sheriff court; and, in lieu
of an appeal from the county court upon any question of law, there
shall be substituted an appeal from the sheriff upon any question of
law in terms of subsection (17) (b) of the second schedule to the
Workmen’s Compensation Act, 1906: P ro v id e d , That the decision of
either division of the court of session on such appeal shall be final:
17) The expression “ workhouse” means poorhouse; “ coverture” means
marriage; “ levy any distress or execution ” means use any diligence;
“ ejectment ” means removing; “ amount of judgment debt ” means
amount decerned for; “ registrar of the county court ” means court
exercising jurisdiction in the proceedings; “ certified midwife” means
any midwife possessing such qualifications as may be prescribed; “ pub­
lic elementary school ” means public school; “ public health acts ”
means the Public Health (Scotland) Act, 1897 and 1907;* “ Local Loans
Act 1875” means the Local Authorities Loans (Scotland) Acts, 1891
and 1893 ;a and “ high court ” means court of session:
(18) Unless inconsistent with the context, references to the Elementary
School Teachers’ Superannuation Act, 1898, to the deferred annuity
fund under that act, and to the board of education, shall be construed,
respectively, as references to section fourteen of the Education (Scot­
land) Act, 1908,® and a scheme thereunder, to the Scottish Teachers’
Superannuation Fund, and to the Scotch education department.
A p p lic a tio n to Ir e la n d .

81.
This part of this act, in its application to Ireland, shall be subject to the
following modifications:
(1) For the purpose of carrying this part of this act into effect in Ireland,
there shall be constituted, as soon as may be after the passing of this
act, commissioners for Ireland (to be called the Irish insurance com­
missioners), with a central office in Dublin, and with such branch
offices in Ireland as the Treasury may think fit, and the Irish insur­
ance commissioners, of whom one at least shall be a duly qualified
medical practitioner, shall be appointed by the Treasury, and may
appoint such officers, inspectors, referees, and servants for the purposes
aforesaid as the Irish insurance commissioners, subject to the approval
of the Treasury, may determine, and the provisions of this part of this
act with respect to the payment of the salaries and remuneration of the
insurance commissioners and the officers, inspectors, referees, and ser­
vants appointed by them, and with respect to the payment of the ex­
penses incurred by the Treasury or the insurance commissioners in
carrying this part of this act into effect shall, with the necessary
modifications, apply to the payment of the salaries and remuneration
of the Irish insurance commissioners and the officers, inspectors, ref­
erees, and servants appointed by them and to the payment of expenses
incurred by the Treasury or the Irish insurance commissioners in
carrying this part of this act into effect in Ireland, and for the pur­
pose aforesaid the Irish insurance commissioners and the officers, in­
spectors, referees, and servants appointed by them shall respectively
have all the like powers and duties as are by the provisions of this act
conferred and imposed on the insurance commissioners and the officers,
inspectors, referees, and servants appointed by them, and references
in those provisions to the insurance commissioners shall be construed
as references to the Irish insurance commissioners:
(2) All sums received from contributions under this part of this act in
respect of insured persons resident in Ireland and all sums paid out of
moneys provided by Parliament in respect of benefits under this part
of this act to such persons and the expenses of administration of such
benefits shall be paid into a fund to be called the Irish National
Health Insurance Fund, under the control and management of the
Irish insurance commissioners, and the sums required to meet expendi­
ture properly incurred by approved societies and insurance committees
for the purposes of such benefits and the administration of such benefits1
154 and 55 Viet., c. 34.




2 56 and 57 Viet., e. 8.

8 8 Edw. VII, c. 63.

62

BULLETIN OF THE BUREAU OF LABOR.

shall be paid out of that fund and the foregoing provisions of this act
with respect to the National Health Insurance Fund shall, with the
necessary modifications, apply to the Irish National Health Insurance
Fund accordingly:
(3) The provisions of this part of this act conferring a right to exemption
shall extend to any person employed in harvesting or other agricultural
work who proves—
(a) that he is an Irish migratory laborer, that is to say, a per­
son who, having a permanent home at some place in Ireland,
has temporarily removed to some other place in Ireland or
to Great Britain for the purpose of obtaining such employ­
ment; and
(b) that he ordinarily resides at such permanent home for not
less than twenty-six weeks in the year and is not employed
within the meaning of this part of this act whilst so resident;
and any contributions paid in Great Britain by the employer of a
person holding a certificate of exemption by virtue of this provision
shall be transferred to the Irish insurance commissioners for the pur­
pose of being carried to such account and being dealt with in such
manner as may be prescribed by the regulations made in that behalf
by the Irish insurance commissioners:
(4) Employment in Ireland as an outworker, where the wages or other
remuneration derived from the employment are not the principal
means of livelihood of the person employed, shall be deemed to be in­
cluded amongst the excepted employments specified in Part II of the
First Schedule to this act:
(5) The reference to the lord chancellor shall be construed as a reference
to the lord chancellor of Ireland;
The reference to the lord chief justice shall be construed as a refer­
ence to the lord chief justice of Ireland;
The reference to the local government board, as regards the making
of regulations with respect to payments out of the local taxation
account, shall be construed as a reference to the lord lieutenant, and
other references to the local government board shall be construed as
references to the local government board for Ireland, and the refer­
ence to the local taxation account shall be construed as a reference to
the local taxation (Ireland) account:
(6) A reference to1 the Housing of the Working Classes (Ireland) Acts,
1890 to 1908, shall be substituted for the reference to the Housing of
the Working Classes Acts, 1890 to 1909, a reference to the Public
Health (Ireland) Acts, 1878 to 1907, shall be substituted for the refer­
ence to the public health acts and a reference to the rate or fund
applicable to the purposes of the Public Health (Ireland) Acts, 187S
to 1907, shall be substituted for any reference to the borough rate or
borough fund:
(7) — ( a ) If it appears to any county council that, having regard to the
number of employed contributors resident in the county who are not
members of any society approved under the foregoing provisions of
this act it is desirable that steps should be taken by the council for
the establishment of an approved society for the county under the
council (in this section referred to as a county society), the council
may, at any time before the expiration of one year from the com­
mencement of this act, submit to the Irish insurance commissioners a
scheme for the establishment of a county society;
(b) The scheme may provide for—
(i) the representation of the council on the committee of manage­
ment of the society;
(ii) the appointment of officers subject to the approval of the
council;
(iii) the delegation of powers to committees;
(iv) the giving of security by means of a charge upon the county
fund or otherwise;
(v) the restriction of membership to insured persons resident in the
county not being members of any other approved society;
(vi) the reduction of benefits below the minimum rates fixed by
this part of this act; and



BRITISH NATIONAL INSURANCE ACT, 1911.

63

(yii) such other matters as may appear necessary, and in particular
such further modifications of the provisions of this part of
this act with respect to approved societies as may be required
for the purpose of adapting those provisions to the case of a
county society;
(c) Where such a scheme has been approved by the Irish insurance com­
missioners, the provisions of the scheme shall have effect, notwith­
standing anything to the contrary in this part of this act; and, sub­
ject to those provisions, the county society shall be an approved
society for all the purposes of this act;
(d) A county council desirous of submitting a scheme under this section
may, at any time after the passing of this act, take such steps as
appear necessary with a view to ascertaining what insured persons
resident in the county are eligible and willing to become members of
the proposed county society, and generally for the formation of the
society:
(8) The provisions with respect to the appointment of insurance committees
shall have effect, subject to the following modifications, namely:
The number of members of an insurance committee shall be twentyfour, and of that number—
(а) twelve shall be appointed in such manner as may be prescribed
by regulations of the Irish insurance commissioners so as
to secure representation of the insured persons resident in
the county or county borough who are members of approved
societies, and who are deposit contributors, in proportion, as
nearly as may be, to their respective numbers, and the
regulations so made shall provide for conferring on the
approved societies which have members resident in the
county or county borough the power of appointing repre­
sentatives of such members, and, where an association of de­
posit contributors resident in the county or county borough
has been formed under such regulations as aforesaid, for
conferring on such association the power of appointing the
representatives of the deposit contributors;
(б) eight (of whom at least one shall be a member of a local
sanitary authority and at least two shall be women) shall be
appointed by the council of the county or county borough;
and
(c) four (of whom at least two shall be duly qualified medical
practitioners) shall be appointed by the Irish insurance
commissioners:
Provided that the Irish insurance commissioners may, where any part
of the cost of sanatorium benefit is defrayed by the council of the
county or county borough, increase the representation of the council
and make a corresponding diminution in the representation of the
insured persons:
(9) An insured person in Ireland shall not be entitled to medical benefit
under this part of this act, and the provisions with respect to medical
benefit shall not apply:
Provided that medical benefit for an insured person being a member
of an approved society shall be deemed to be included amongst the
additional benefits specified in Part II of the Fourth Schedule to this
act, and that such medical benefit when provided shall be administered
by the insurance committee in accordance with the provisions of this
part of this act, unless the Irish insurance commissioners otherwise
direct:
(10) As respects employed contributors in Ireland, the employed rate shall
be the rate specified in Part II of the Second Schedule to this act,
and the contributions by the contributors and contributions by the em­
ployers shall be at the rates specified in Part II instead of the rates
specified in Part I of that schedule, and there shall be credited to the
society of which any employed contributor in Ireland is a member or,
if he is a deposit contributor, to his account in the post-office fund, the
difference between the amount of contributions actually paid by or in
respect of him at the rate specified in Part II of the Second Schedule
to this act and the amount which would have been paid if those con­



BULLETIN OF THE BUEEAU OF LABOB.

64

(11)

(12)

(13)

(14)

(15)

(16)

(17)

tributions bad been at the rate specified in Part I of that schedule,
and the amount of that difference shall be treated as having been ex­
pended on benefits and the proper proportion thereof shall accordingly
be paid out of moneys provided by Parliament:
The foregoing provisions of this section as to the crediting of differences
shall apply in the case of voluntary contributors resident in Ireland,
with the modification that, where the voluntary rate is not the same as
the employed rate, the difference to be credited shall be the difference
between the amount of contributions actually paid at the voluntary
rate and the amount which would have been paid if the contributor
had been a voluntary contributor resident in Great Britain:
Provided that, in the case of a married woman resident in Ireland
becoming a voluntary contributor at reduced rates of benefit under the
special provisions with respect to married women, the rate of contri­
butions payable by her shall be one penny halfpenny [3 cents] a week
instead of three pence [6 cents] a week, and the difference to be
credited shall be one penny halfpenny [3 cents] a week accordingly:
In ascertaining the voluntary rate applicable to voluntary contributors
in Ireland in cases where that rate is not the same as the employed
rate, regard shall be had both to the provisions of this section as to
the crediting of differences and to the proportion of benefits to be paid
out of the contributions payable by or in respect of such contributors:
Rules of an approved society or insurance committee under this part
of this act may provide for the inspection of medical relief registers
by officers of the society or committee at all reasonable times, and for
the furnishing to the society or committee of such medical certificates
as may be necessary for the purposes of the administration of the
benefits administered by the society or committee, and for the pay­
ment by the society or committee to duly qualified medical practitioners
of such remuneration in respect of the furnishing of those certificates
as the Irish insurance commissioners may sanction, and all payments
so made by the society or committee shall be treated as expenses of
administering the benefits aforesaid:
If a grant is made to a county council or county borough council out
of any sum made available under any other act of the present session
for the purposes of the provision of or making grants in aid to sana­
toria and other institutions for the treatment of tuberculosis or such
other diseases as the local government board may, with the approval
of the Treasury, appoint, the council may, subject to the sanction of
the local government board, exercise for all or any of those purposes
the powers given to them by Part II of the Tuberculosis Prevention
(Ireland) Act, 1908,1 in like manner as if those purposes were pur­
poses authorized by that part of that act, and any expenses of the
council so far as not defrayed out of the grant shall be defrayed in
manner provided by that part of that act:
For the purposes of proceedings in Ireland under the provisions of this
part of this act relative to disputes, regulations of the Irish insurance
commissioners may apply all or any of the provisions of the Common
Law Procedure (Ireland) Act, 1856,2 with respect to arbitration:
The special provisions with respect to the reduction of contributions in
cases where the employer is liable to pay wages during sickness shall
have effect, subject to the modification that, where the rate of con­
tributions payable by the employed contributor is one half-penny [1
cent] a week, the weekly contributions payable by the employer shall
be reduced by one penny halfpenny [3 cents] (or, if the employed
contributor is a woman, one penny [2 cents]), and the weekly contri­
butions payable by the employed contributor shall be reduced by one
halfpenny [1 cent]:
In the special provisions as to persons becoming certificated teachers,
references to the board of education, to the Elementary School Teachers
(Superannuation) Act, 1898, and to a public elementary school shall
respectively be construed as references to the superintendent of the
teachers’ pension office, to the National School Teachers’ (Ireland)
Act, 1879,3 and to a national school, and any sums paid to the super-(
*

*8 Edw. VII, e. 56.




3 19 and 20 Viet., c. 102.

8 42 and 43 Viet., c. 74.

BBITISH NATIONAL INSUBANCE ACT, 1911.

65

intendent of tlie teachers’ pension office in pursuance of those provi­
sions shall be carried to the pension fund established under the lastmentioned act and shall be dealt with in accordance with rules under
that act:
(18) As respects insured persons in Ireland, “ six-elevenths ” shall be sub­
stituted for “ four-sevenths” and (in the case of women) “ fourninths ” shall be substituted for “ one-half ” :
(19) For the reference to the registrar of the county court, there shall be
substituted a reference to a magistrate appointed under the Constabu­
lary (Ireland) Act, 1836:*
(20) For references to a duly certified midwife, there shall be substituted
references to a midwife having such qualifications as may be prescribed.
E s ta b lis h m e n t o f com m issioners f o r W ales.
8 2 . — (1) For the purpose of carrying this part of this act into effect in Wales,
there shall be constituted, as soon as may be after the passing of this act, com­
missioners for Wales (to be called the Welsh insurance commissioners) with a
central office in such town in Wales as the Treasury may determine, and with
such branch offices in Wales as the Treasury may think fit, and the Welsh in­
surance commissioners, of whom one at least shall be a duly qualified medical
practitioner, shall be appointed by the Treasury, and may appoint such officers,
inspectors, referees, and servants for the purposes aforesaid as the Welsh in­
surance commissioners, subject to the approval of the Treasury, may determine,
and the provisions of this part of this act with respect to the payment of the
salaries and remuneration of the insurance commissioners, and the officers,
inspectors, referees, and servants appointed by them, and with respect to the
payment of the expenses incurred by the Treasury or the insurance commis­
sioners in carrying this part of this act into effect shall, with the necessary
modifications, apply to the payment of the salaries and remuneration of the
Welsh insurance commissioners and the officers, inspectors, referees, and ser­
vants appointed by them, and to the payment of expenses incurred by the
Treasury or the Welsh insurance commissioners in carrying this part of this act
into effect in Wales, and for the purpose aforesaid the Welsh insurance com­
missioners and the officers, inspectors, referees, and servants appointed by them
shall respectively have all the like powers and duties as are by the provisions
of this act conferred and imposed on the insurance commissioners and the
officers, inspectors, referees, and servants appointed by them, and references
in those provisions to the insurance commissioners shall be construed as ref­
erences to the Welsh insurance commissioners.
(2) All sums received from contributions under this part of this act in respect
of insured persons resident in Wales, and all sums paid out of moneys provided
by Parliament in respect of benefits under this part of this act to such persons,
and the expenses of administration of such benefits shall be paid into a fund to
be called the Welsh National Health Insurance Fund, under the control and
management of the Welsh insurance commissioners, and the sums required to
meet expenditure properly incurred by approved societies and insurance committees for the purposes of such benefits and the administration of such benefits
shall be paid out of that fund, and the foregoing provisions of this act, with
respect to the National Health Insurance Fund, shall, with the necessary modi­
fications, apply to the Welsh National Health Insurance Fund accordingly.
(3) The powers of the local government board with respect to the distribu­
tion of any sum available for the purpose of the provision of or making grants
in aid to sanatoria and other institutions shall, as respects the part thereof
apportioned to Wales, be exercised by the Welsh insurance commissioners.
(4) If before or within twelve months after the commencement of this act
there is established for Wales by royal charter an association for the purpose
of providing sanatoria and other institutions for the treatment and prevention
of. tuberculosis or such other diseases as the local government board, with the
approval of the Treasury, may appoint, the Welsh insurance commissioners in
making and the Treasury in approving grants from any such sum as is in the
last preceding subsection mentioned shall have regard to the provision of such
institutions which may have been made, or may be proposed to be made, by the
association.*

* 6 and 7 Will. IV, c. 13.
49976°—12----- 5




66

B U L L E T IN

OF T H E B U B E A U

OF LABOB.

J o in t co m m itte e o f com m issioners.

83.
— (1) There shall be constituted as soon as may be after the passing of
this act, in accordance with regulations to be made by the Treasury, a joint
committee of the several bodies of commissioners appointed for the purposes of
this part of this act, consisting of such members of each such body selected in
such manner as may be provided by the regulations and of a chairman and
other members (not exceeding two in number) to be appointed by the Treasury,
and the chairman shall not by reason of his office be incapable of being elected
to or voting in the Commons House of Parliament.
(2) The joint committee may make such financial adjustments as may be
necessary between the several funds under the control and management of the
several bodies of commissioners, and shall exercise and perform such powers
and duties of the several bodies of commissioners under this part of this act
either alone or jointly with any of those bodies, as may be provided by such
regulations.
(3) Amongst the powers so exerciseable by the joint committee shall be in­
cluded a power of making regulations as to the valuation of societies and
branches which have amongst their members persons resident in England, Scot­
land, Ireland, and Wales, or any two or any three of such parts of the United
Kingdom, and the regulations so made shall require that, for the purposes of
the provisions of this part of this act relating to valuations, surpluses, defi­
ciencies and transfers, the members resident in each such part shall be treated
as if they formed a separate society.
(4) Regulations made by the Treasury under this section shall be laid before
Parliament as soon as may be after they are made, but, if an address is pre­
sented to His Majesty by either House of Parliament within the next subse­
quent twenty-one days on which that house has sat next after any such regula­
tion is laid before it, praying that the regulation may be annulled, His Majesty
in council may annul the regulation and it shall thenceforth be void, bnt with­
out prejudice to the validity of anything previously done thereunder,
PART II.— U n e m p l o y m e n t I n s u b a n c e .

R ig h t o f w o rk m e n in in s u re d tra d e s to u n e m p lo y m e n t benefit.

84. Every workman who, having been employed in a trade mentioned in the
Sixth Schedule to this act (in this act referred to as “ an insured trade” ), is
unemployed, and in whose case the conditions laid down by this part of this act
(in this act referred to as “ statutory conditions” ) are fulfilled, shall be en­
titled, subject to the provisions of this part of this act, to receive payments (in
this act referred to as “ unemployment benefit” ) at weekly or other prescribed
intervals at such rates and for such periods as are authorized by or under the
Seventh Schedule to this act, so long as those conditions continue to be fulfilled,
and so long as he is not disqualified under this act for the receipt of unemploy­
ment benefit:
Provided that unemployment benefit shall not be paid in respect of any
period of unemployment which occurs during the six months fallowing the com­
mencement of this act.
C o n trib u tio n s bp w o rk m e n , em ployers , a n d th e T re a s u ry .

85.
— (1) The sums required for the payment of unemployment benefit under
this act shall be derived partly from contributions by workmen in the insured
trades and partly from contributions by employers of such workmen and partly
in the Eighth Schedule to this act.
(2) Subject to the provisions of this part of this act, every workman em­
ployed within the United Kingdom in an insured trade, and every employer of
any such workman, shall be liable to pay contributions at the rates specified
in the Eighth Schedule to this act.
(3) Except where the regulations under this part of this act otherwise pre­
scribe, the employer shall, in the first instance, be liable to pay both the contri­
bution payable by himself, and also on behalf of and to the exclusion of the
workman, the contribution payable by such workman, and subject to such regu­
lations, shall be entitled, notwithstanding the provisions of any act or any eontract to the contrary, to recover from tlie workman by deductions from the



BRITISH NATIONAL INSURANCE ACT, 1911.

67

workman’s wages or from any other payment due from him to the workman
the amount of the contributions so paid by him on behalf of the workman.
(4) Notwithstanding any contract to the contrary, the employer shall not be
entitled to deduct from the wages of or other payment due to the workman, or
otherwise recover from the workman by any legal process the contributions
payable by the employer himself.
(5) Subject to the provisions of this part of this act, the Board of Trade
may make regulations providing for any matters incidental to the payment and
collection of contributions payable under this part of this act, and in particular
for—
(a) payment of contributions by means of adhesive or other stamps af­
fixed to or impressed upon books or cards, or otherwise, and for
regulating the manner, times and conditions in, at and under which
such stamps are to be affixed and impressed or payments are other­
wise to be made;
( b ) 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.
(6) A contribution shall be made in each year out of moneys provided by
Parliament equal to one-third of the total contributions received from employers
and workmen during that year, and the sums to be contributed in any year
shall be paid in such manner and at such times as the Treasury may determine.
S ta tu to ry conditions f o r re c e ip t o f u n em p lo ym en t benefit.

86. The statutory conditions for the receipt of unemployment benefit by any
workman are—
(1) that he proves that he has been employed as a workman in an insured
trade in each of not less than twenty-six separate calendar weeks in
the preceding five years;
(2) that he has made application for unemployment benefit in the prescribed
manner, and proves that since the date of the application he has been
continuously unemployed;
(S) that he is capable of work but unable to obtain suitable employment;
(4) that he has not exhausted his right to unemployment benefit under this
part of this act:
Provided that a workman shall not be deemed to have failed to fulfill the
statutory conditions by reason only that he has declined—
(a) an offer of employment in a situation vacant in consequence of a stop­
page of work due to a trade dispute; or
(b> an offer of employment in the district where he was last ordinarily
employed at a rate of wage lower, or on conditions less favorable,
than those which he habitually obtained in his usual employment in
that district, or would have obtained had he continued to be so
employed; or
(c) an offer of employment in any other district at a rate of wage lower
or on conditions less favorable than those generally observed in such
district by agreement between associations of employers and of work­
men, or, failing any such agreement, than those generally recognized
in such district by good employers.
D is q u a lific a tio n s f o r u n em p lo ym en t benefit .

87.
— (1) A workman who has lost employment by reason of a stoppage of
work which was due to a trade dispute at the factory, workshop, or other
premises at which he was employed, shall be disqualified for receiving un­
employment benefit so long as the stoppage of work continues, except in a ease
where he has, during the stoppage of work, become bona fide employed else­
where in an insured trade.
Where separate branches of work which are commonly carried on as separate
businesses in separate premises are in any case carried on in separate depart­
ments on the same premises, each of those departments shall, for the purposes
of this provision, be deemed to be a separate factory or workshop or separate
premises, as the case may be.
(2)
A workman who loses employment through misconduct or who volun­
tarily leaves his employment without just cause shall be disqualified for receiv­



68

B U L L E T IN

OF T H E B U K E A U OF LABOB.

ing unemployment benefit for a period of six weeks from the date when he so
lost employment.
(3) A workman shall be disqualified for receiving unemployment benefit
whilst he is an inmate of any prison or any workhouse or other institution sup­
ported wholly or partly out of public funds, and whilst he is resident tempo­
rarily or permanently outside the United Kingdom.
(4) A workman shall be disqualified for receiving unemployment benefit
while he is in receipt of any sickness or disablement benefit or disablement
allowance under Part I of this act.
D e te rm in a tio n o f claim s.

88.
— (1) All claims for unemployment benefit under this part of this act, and
all questions whether the statutory conditions are fulfilled in the case of any
workman claiming such benefit, or whether those conditions continue to be ful­
filled in the case of a workman in receipt of such benefit, or whether a workman
is disqualified for receiving or continuing to receive such benefit, or otherwise
arising in connection with such claims, shall be determined by one of the officers
appointed under this part of this act for determining such claims for benefit
(in this act referred to as “ insurance officers” ) :
Provided that—
(a) in any case where unemployment benefit is refused or is stopped, or
where the amount of the benefit allowed is not in accordance with the
claim, the workman may require the insurance officer to report the
matter to a court of referees constituted in accordance with this part
of this act, and the court of referees after considering the circum­
stances may make to the insurance officer such recommendations on
the case as they may think proper, and the insurance officer shall, un­
less he disagrees, give effect to those recommendations. If the insur­
ance officer disagrees with any such recommendation, he shall, if so
requested by the court of referees, refer the recommendation, with
his reasons for disagreement, to the umpire appointed under this part
of this act, whose decision shall be final and conclusive;
(&) the insurance officer in any case in which he considers it expedient to
do so may, instead of himself determining the claim or question, refer
it to a court of referees, who shall in such case determine the ques­
tion, and the decision of the court of referees shall be final and
conclusive.
(2) Nothing in this section shall be construed as preventing an insurance
officer or. umpire, or a court of referees, on new facts being brought to his or
their knowledge, revising a decision or recommendation given in any particular
case, but, where any such revision is made, the revised decision or recommenda­
tion shall have effect as if it had been an original decision or recommendation,
and the foregoing provisions of this section shall apply accordingly, without
prejudice to the retention of any benefit which may have been received under
the decision or recommendation which has been revised.
(3) The Arbitration Act, 1889,1 shall not apply to proceedings under this sec­
tion, except so far as it may be applied by regulations under this part of this
act.
(4) For the purposes of proceedings under this section in Ireland, regula­
tions may apply all or any of the provisions of the Common Law Procedure
(Ireland) Act, 1856,2 with respect to arbitration.
A p p o in tm e n t o f u m p ire , in s u ra n c e officers, in specto rs , etc.

89.
— (1) For the purposes of this part of this act, an umpire may be ap­
pointed by His Majesty, and insurance officers shall be appointed by the Board
of Trade (subject to the consent of the Treasury as to number) and the insur­
ance officers shall be appointed to act for such areas as the board direct.
(2) The Board of Trade may appoint such other officers, inspectors, and
servants for the purposes of this part of this act as the board may, with the
sanction of the Treasury, determine, and there shall be. paid out of moneys
provided by Parliament to the umpire and insurance officers and to such other
officers, inspectors, and servants, such salaries or remuneration as the Treasury
1 52 and 53 Viet., c. 49.




2 19 and 20 Viet., c. 102.

B R IT IS H

N A T IO N A L IN S U R A N C E A C T , 1911.

69

may determine; and any expenses incurred by the Board of Trade in carrying
this part of this act into effect to such amount as may be sanctioned by the
Treasury shall be defrayed out of moneys provided by Parliament:
Provided that such sum as the Treasury may direct, not exceeding one-tenth
of the receipts, other than advances by the Treasury, paid into the unemploy­
ment fund on income account shall, in accordance with regulations made by
the Treasury, be applied as an appropriation in aid of money provided by
Parliament for the purpose of such salaries, remuneration, and expenses.
C ourts o f referees.

90.— (1) A court of referees for the purposes of this part of this act shall
consist of one or more members chosen to represent employers, with an equal
number of members chosen to represent workmen, and a chairman appointed
by the Board of Trade.
(2) Panels of persons chosen to represent employers and workmen respec­
tively shall be constituted by the Board of Trade for such districts and such
trades or groups of trades as the board may think fit, and the members of a
court of referees to be chosen to represent employers and workmen shall be
selected from those panels in the prescribed manner.
(3) Subject as aforesaid, the constitution of courts of referees shall be de­
termined by regulations made by the Board of Trade.
(4) The regulations of the Board of Trade may further provide for the ref­
erence to referees chosen from the panels constituted under this section, for
consideration and advice, of questions bearing upon the administration of this
part of this act, and for the holding of meetings of referees for the purpose.
(5) The Board of Trade may pay such remuneration to the chairman and
other members of a court of referees and such traveling and other allowances
(including compensation for loss of time) to persons required to attend before
any such court, and such other expenses in connection with any referees, as
the board, with the sanction of the Treasury determine, and any such pay­
ments shall be treated as expenses incurred by the Board of Trade in carrying
this part of this act into effect.
R e g u la tio n s .

91.— (1) The Board of Trade may make regulations for any of the purposes
for which regulations may be made under this part of this act and the schedules
therein referred to, and for prescribing anything which under this part of this
act or any such schedules is to be prescribed, and—
(a) for permitting workmen who are employed under the same employer
partly in an insured trade and partly not in an insured trade to be
treated with the consent of the employer as if they were wholly em­
ployed in an insured trade; and
(&) for giving employers, and workmen, and the Board of Trade an oppor­
tunity of obtaining a decision by the umpire appointed under this
part of this act on any question whether contributions under this
part of this act are payable in respect of any workman or class of
workmen, and for securing that a workman in whose case contri­
butions have been paid in accordance with any such decision, shall,
as respects any unemployment benefit payable in respect of those
contributions, be treated as a workman employed in an insured trade,
and for securing that employers and workmen shall be protected
from proceedings and penalties in cases where, in accordance with
any such decision, they have paid or refrained from paying con­
tributions; and
(c ) for prescribing the evidence to be required as to the fulfillment of the
conditions and qualifications for receiving or continuing to receive
unemployment benefit, and for that purpose requiring the attend­
ance of workmen at such offices or places and at such times as may
be required; and
( d ) ^ fo r prescribing the manner in which claims for unemployment bene. - fi| may be made and the procedure to be followed on the considera­
;
tion and examination of claims and questions to be considered and
determined by the insurance officers, courts of referees, and umpire,
and the mode in which, any question may be raised as to the con­
tinuance, in the case of a workman in receipt of unemployment




70

B U L L E T IN

OF T H E B U R E A U

OF LABOR.

benefit, of such benefit, and for making provision with respect to
the appointment of a deputy umpire in the case of the unavoidable
absence or incapacity of the umpire; and
( e ) with respect to the payment of contributions and benefits during any
period intervening between any application for the decision of any,
question* or any claim for benefit, and the final determination of
the question or claim; and
__
(/) for providing that, where any workmen are employed in or for the
purposes of the business of any person, but are not actually “
em­
ployed by that person, that person may be treated for the purposes
of this part of this act as their employer instead of their actual
employer, and for allowing that person to deduct from any payments
made by him to the actual employer any sums paid by him as con­
tributions on behalf of the workmen, and for allowing the actual
employer to recover the like sums from the workmen; and
generally for carrying this part of this act into effect, and any regulations so
made shall have effect as if enacted in this act.
Any regulations made under this section for giving an opportunity of ob­
taining a decision of the umpire may be brought into operation as soon as may
be after the passing of this act.
(2) The regulations may, with the concurrence of the postmaster general,'
provide for enabling claimants of unemployment benefit to make their claims
for unemployment benefit under this act through the Post Office, and for the
payment of unemployment benefit through the Post Office.
(3) All regulations made under this section shall be laid before each House
of Parliament as soon as may be after they are made, and, if an address is
presented to His Majesty by either House of Parliament within the next sub­
sequent forty days on which that house has sat next after any such regulation
is laid before it, praying that the regulation may be annulled, it shall thence­
forth be void, but without prejudice to the validity of anything previously done
thereunder, or to the making of any new regulation.
U n e m p lo y m e n t fu n d .
92.
— (1) For the purposes of this part of this act, there shall be established
under the control and management of the Board of Trade a fund called the
unemployment fund, into which shall be paid all contributions payable under this
part of this act by employers and workmen and out of moneys provided by
Parliament, and out of which shall be paid all claims for unemployment benefit
and any other payments which under this part of this act are payable out of
the fund.
(2) The accounts of the unemployment fund shall be audited by the comp­
troller and auditor general in such manner as the Treasury may direct.
(3) Any moneys forming part of the unemployment fund may from time to
time be paid over to the national debt commissioners and by them invested in
accordance with regulations made by the Treasury in any securities which
are for the time being authorized by Parliament as investments for savings
banks moneys.
(4) The national debt commissioners shall present to Parliament annually
an account of the securities in which moneys forming part of the said fund
are for the time being invested.
T re a s u ry advances.

93.
— (1) The Treasury may out of the consolidated fund or the growing
produce thereof advance on the security of the unemployment fund any sums
required for the purpose of discharging the liabilities of that fund under this
part of this act: P ro v id e d , That the total amount of advances outstanding at
any time shall not exceed three million pounds [$14,599,500].
(2) If, whilst any part of any such advance is outstanding, it appears to the
Treasury that the unemployment fund is insolvent, the Board of Trade shall,
if the Treasury so direct, by order, make such temporary modifications in any
of the rates of contribution, or the rates or periods of unemployment benefit,
and during such period, as the Board of Trade think fit, and asf will on the
whole, in the opinion of the Treasury, be sufficient to secure the solvency of
the unemployment fund:



B B IT IS H

N A T IO N A L IN S U B A N C E A C T , 1911.

71

Provided, That no order made under this subsection shall reduce the weekly
rate of unemployment benefit below the sum of five shillings [$1.22], or shall
increase the rates of contribution from employers or workmen by more than one
penny [2 cents] per workman per week, or increase those rates unequally as be­
tween employers and workmen, and no such order shall remain in force more
than three months after all the advances and interest thereon have been re­
paid, or come into force until one month after it is made.
(3) An order under this section shall not be made so as to be in force at
any time while any previous order made under this section is in force.
(4) On any such order being made, the Board of Trade shall cause the order,
together with a special report as to the reasons for making the order, to be
laid before Parliament.
< (5) The Treasury may, for the purpose of providing for the issue of sums
•
out of the consolidated fund under this section, or for the repayment to that
fund of all or any part of the sums so issued, or for paying off any security
issued under this section, so far as that payment is not otherwise provided for,
borrow money by means of the issue of exchequer bonds or Treasury bills, and
all sums so borrowed shall be paid into the exchequer.
r (6) The principal of and interest on any exchequer bonds issued under this
section shall be charged on and payable out of the consolidated fund of the
United Kingdom, or the growing produce thereof.
* (7) Notwithstanding anything in any other act, money in the hands of the
national debt commissioners for the reduction of the national debt shall not be
applied to purchasing, reducing, or paying off any exchequer bonds or Treasury
bills issued under this section.
R e fu n d o f p a r t o f co n trib u tio n s p a id by em p lo yer in th e case o f w o rk m e n
c ontin uously em ployed.

94.
— (1) The Board of Trade shall, on the application of any employer made
within one month after the termination of any calendar year, or other pre­
scribed period of twelve months, refund to such employer out of the unemploy­
ment fund a sum equal to one-third of the contributions (exclusive of any con­
tributions refunded to him under any other provisions of this part of this act)
paid by him on his own behalf during that period in respect of any workman
who has been continuously in his service through the period, and in respect of
whom not less than forty-five contributions have been paid during the period.
(2) For the purpose of meeting any change in the period for which any re­
fund of contributions is to be made under the foregoing provisions of this sec­
tion, or for the purpose of making provision for any period which may elapse
between the date on which contributions commence to be payable under this
j)art of this act and the date on which the first period for the refund of con­
tributions under the foregoing provisions of this section commences, the Board
of Trade may, so far as necessary for the purpose, apply the provisions of this
section to any period less than twelve months, subject to such proportionate
reduction of the number of contributions required as they direct, and this sec­
tion shall take effect as regards any such period of less than twelve months
as so applied.
R e p a y m e n t o f p a r t o f c o n trib u tio n s by w o rk m e n in c e rta in cases .

95.
— (1) If it is shown to the satisfaction of the Board of Trade by any
workman or his personal representatives that the workman has paid contribu­
tions in accordance with the provisions of this part of this act in respect of
five hundred weeks or upwards, and that the workman has reached the age of
sixty, or before his death had reached the age of sixty, the workman or his
representatives shall be entitled to be repaid the amount, if any, by which the
total amount of such contributions have exceeded the total amount received
by him out of the unemployment fund under this act, together with compound
interest at the rate of two and a half per cent per annum calculated in the
prescribed manner.
(2) A repayment to a workman under this section shall not affect his lia­
bility to pay contributions under this part of this act, and, if after any such
repayment he becomes entitled to unemployment benefit, he shall be treated as
having paid in respect of the period for which the repayment has been made the
full number of contributions which is most nearly equal to five-eighths of the
number of contributions actually paid during that period.



72

B U L L E T IN

OF T H E B U R E A U OF LABOR.

R e fu n d o f c o n trib u tio n s p a id in respect o f w o rk m e n w o rk in g s h o rt tim e .

96.
— (1) If any employer satisfies the Board of Trade that during any period
of depression in his business workmen employed by him have been systemati­
cally working short time, and that during such period he has paid contributions
under this part of this act on behalf of such workmen, as well as on his own
behalf, without recovering such contributions from such workmen either by way
of deductions from wages or otherwise, there shall be refunded to him out of
the unemployment fund, in accordance with regulations made by the Board of
Trade, the contributions so paid by him in respect of those workmen (including
those paid on behalf of the workmen as well as those paid on his own behalf),
for the period or such part thereof as in the circumstances may seem just:
Provided that, except in a case where the working of short time has been
effected by stopping the work for some day in the week which has been usually
recognized as a working-day of at least four hours in the trade and district, no
such refund shall be made in respect of any workmen for any week in which the
hours of work have exceeded five-sixths of the number usually recognized as
constituting a full week’s work at that time in the trade and district.
(2) Any employer who desires to take advantage of this section may make
an application to the Board of Trade with a view to obtaining their ruling as
to the circumstances under which, and the means by which, he proposes to
effect a reduction of working hours, and the Board of Trade may, if they think
fit, on the necessary information being supplied, give their ruling as to whether
the circumstances are such, and the proposed means of reducing working hours
are such, as to satisfy the requirements of this section.
S av in g f o r occasional em ploym ent in r u r a l neighborhoods .

97. Where a workman is employed in a district which is rural in its character,
and the workman usually follows in that district some occupation other than an
insured trade, and is employed in an insured trade occasionally only, contribu­
tions under this part of this act shall not be payable in respect of the workman,
except in cases where the employer and the workman agree that contributions
shall be payable notwithstanding this provision.
P a y m e n t o f c o n trib u tio n s in case o f res e rv is ts o r te r r ito r ia ls d u rin g tr a in in g .

98. Where a man of the naval reserves, the army reserve, or the territorial
force, is being trained and is in receipt of pay out of the moneys provided by
Parliament for navy or army services, and immediately before the training was
employed in an insured trade, he shall, for the purposes of this part of this act,
be deemed, whilst so training, to be in the employment of the Crown in an
insured trade.
P ro visio n s w ith respect to w o rk m e n engaged th ro u g h la b o r exchanges .

99.
— (1) The Board of Trade may, in such cases and on such conditions as
the board may prescribe, make an arrangement with any employer liable to pay
contributions under any part of this act, whereby, in respect of workmen en­
gaged by him through a labor exchange, or in his employ at the date of such
arrangement, the performance of all or any of the duties required under any
part of this act to be performed by the employer in respect of those workmen,
whether on his own behalf or on behalf .of the workmen, shall be undertaken
on behalf of the employer by the labor exchange, and whereby in respect of such
workmen different periods of employment, whether of the same workmen or
different workmen, may, for the purposes of the employer’s contributions under
this part of this act, but not for the purposes of a refund of any part of the
employer’s contributions, be treated as a continuous employment of a single
workman.
(2) Where any such arrangement has been made, all the periods of employ­
ment during which a workman engaged through a labor'exchange is employed
by one or more employers with whom such an arrangement has been made,
may, subject to regulations made by the Board of Trade, on the application of
the workman, be treated for the purposes of his contributions under this part
of this act as a continuous period of employment under one employer, and those
regulations may provide for the refund of part of his contributions under this
part of this act accordingly.



B R IT IS H

N A T IO N A L IN S U R A N C E A C T , 1911.

73

S u b s id ia ry provisions.

100.
— (1) If the repeated failure of any insured workman to obtain or retain
employment appears to the insurance officer to be wholly or partly due to
defects in skill or knowledge, the insurance officer may, if he thinks fit, for the
purpose of testing the skill or knowledge of the workman, offer to arrange for
the attendance of the workman at a suitable place for the purpose, and may,
out of the unemployment fund, pay all or any of the expenses incidental to such
attendance.
If the workman fails or refuses either to avail himself of the offer, or to
produce satisfactory evidence of his competence, or if as a result of the test the
insurance officer considers that the skill or knowledge of the workman is de­
fective, and that there is no reasonable prospect of such defects being remedied,
such facts shall be taken into consideration in determining what is suitable
employment for the workman.
If in any case as a result of the test the insurance officer considers that the
skill or knowledge of the workman is defective, but that there is a reasonable
prospect of the defects being remedied by technical instruction, the insurance
officer may, subject to any directions given by the Board of Trade, pay out of
the unemployment fund all or any of the expenses incidental to the provision
of the instruction, if he is of opinion that the charge on the unemployment fund
in respect of the workman is likely to be decreased by the provision of the
instruction.
(2) The regulations of the Board of Trade made under this part of this act
shall provide for the return to a workman who is not a workman in an insured
trade and to his employer of any contributions paid by them respectively under
the belief that the workman was a workman in an insured trade, subject, in
the ease of the workmen’s contributions, to the deduction of any amount re­
ceived by him in respect of unemployment benefit under a similar belief.
(3) Where under regulations made by the Board of Trade any sum has been
paid out of the unemployment fund by way of reward for the return of a book
or card w'hich has been lost, the person responsible for the custody of the book
dr card at the time of its loss shall be liable to repay the sum so paid, not
exceeding one shilling [24 cents] in respect of any one occasion.
Offenses an d proceedings f o r reco very o f c o n trib u tio n s , etc.

101.
—'(1) If for the purpose of obtaining any benefit or payment under this
part of this act, either for himself or for any other person, or for the purpose
of avoiding any payment to be made by himself under this part of this act, or
enabling any other person to avoid any such payment, any person knowingly
makes any false statement or false representation, he shall be liable on sum­
mary conviction to imprisonment for a term not exceeding three months, with
or without hard labor.
(2) If any employer or workman has failed to pay any contributions which
he is liable under this part of this act to pay, or if any employer or workman
or any other person refuses or neglects to comply with any of the requirements
of this part of this act, or the regulations made thereunder, he shall, for each
offense, be liable on summary conviction to a fine not exceeding ten pounds
[$48.67], and also, where the offense is failure or neglect to make any contribu­
tion under this part of this act, to pay to the unemployment fund a sum equal
to three times the amount which he has refused or neglected to pay (not ex­
ceeding five pounds [$24.33]), which sum, when paid, shall be treated as a pay­
ment in satisfaction of the contributions which he has so refused or neglected
to pay.
(3) Proceedings under the foregoing provisions of this section shall not be
instituted except by, or with the consent of, the Board of Trade, and may be
commenced at any time within three months of the date at which the offense
comes to the knowledge of the Board of Trade.
(4) Nothing in this section shall be construed as preventing the Board of
Trade from recovering any sums due to the unemployment fund by means of
civil proceedings, and all such sums shall be recoverable in such proceedings as
debtsdfte to the Crown.
t
(5) I t if4 found at any time that a person has been in receipt of unem­
is
ployment benefit under this part of this act whilst the statutory conditions were
not fulfilled in his case, or whilst he was disqualified for receiving unemploy­
ment benefit, he shall be liable to repay to the unemployment fund any sums




74

B U L L E T IN

OF T H E B U R E A U

OF LABOR.

paid to him in respect of unemployment benefit whilst the statutory condition
were not fulfilled, or whilst he was disqualified for receiving the "benefit, anj
the amount of such sums may be recovered as a debt due to the Crown.
|
(6)
In any proceedings under this section, or in any proceedings involving any
question as to the payment of contributions under this part of this act, or for
the recovery of any sums due to the unemployment fund, the decision of the
umpire appointed under this part of this act on any question arising, whether
the trade in which the workman is or has been employed is an insured trade or
not shall be conclusive for the purpose of those proceedings, and, if no such de- ]
cision has been obtained and the decision of the question is necessary for the
determination of the proceedings, the question shall be referred, in accordance
with the regulations made under this part of this act, to the umpire for the
purpose of obtaining such a decision.
P e rio d ic a l re v is io n o f ra te s o f c o n trib u tio n .

102. If at any time after the expiration of seven years from the commence­
ment of this act it appears to the Board of Trade that the unemployment fund
is insufficient or more than sufficient to discharge the liabilities imposed upon
the fund under this part of this act, or that the rates of contribution are exces­
sive or deficient as respects any particular insured trade, or any particular
branch of any such trade, the board may, with the sanction of the Treasury, by
special order made in manner hereinafter provided revise the rates of contribu­
tion of employers and workmen under this part of this act, and any such order
may, if the board think fit, prescribe different rates of contribution for different
insured trades or branches thereof, and, where any such order is made, the rates
prescribed by the order shall, as from such date as may be specified in the
order, be substituted as respects trades or branches thereof to which it relates
for the rates prescribed by this act :
Provided that, where such & revision has been made, no further revision under
this section shall be made before the expiration of seven years from the last
revision, and that no order under this section shall increase the rates of con­
tribution from employers or workmen by more than one penny [2 cents] per.
workman per week above the rates specified in the Eighth Schedule to this act,
or shall vary such rates unequally as between employers and workmen.
P o w e r to exten d to o th e r tra d e s .

103. If it appears to the board that it is desirable to extend the provisions
of this part of this act to workmen in any trade other than an insured trade,
or to vary the definition of “ workman ” with respect to the age of the persons
included therein, either generally or for any particular insured trade, or any
particular branch of any such trade, the board may, with the consent of the
Treasury, make, in manner hereinafter provided, a special order extending this
part of this act to such workmen or so varying the definition of “ workman,”
as the case may be, either without modification or subject to such modifications
of rates of contribution or rates or periods of benefit as may be contained in
the order, and, on any such order being made, this part of this act shall, subject
to the modifications (if any) contained in the order, apply as if the trade men­
tioned in the order were an insured trade, or as if the definition of “workman ”
were varied in accordance with the order, as the case may be, and as if the
rates of contribution and the rates and periods of benefit mentioned in the
order were the rates of contribution and the rates and periods of benefit
provided by this part of this act in respect of such trade:
Provided that no such order shall be made if the person holding the inquiry
in relation to the order reports that the order should not be made, or if the
order would, in the opinion of the Treasury, increase the contribution to the un­
employment fund out of moneys provided by Parliament to a sum exceeding one
million pounds [$4,866,500] a year before the expiration of three years from the
making of the order, and that the rates of contribution mentioned in the order
shall not exceed the rates specified in the Eighth Schedule to this act, and shall
be imposed equally as between employers and workmen.
E x c lu s io n o f s u b s id ia ry occupations .

104. The Board of Trade may, if in any case they consider that it is desirable,
by special order exclude from the occupations which are to be deemed employ­
ment in an insured trade for the purpose of this part of the act—



BKITISH NATIONAL INSUKANCE ACT, 1911."

75

(a) Any occupation which appears to them to be common to insured and
uninsured trades alike, and ancillary only to the purposes of an
insured trade; and
(b) Any occupation which appears to them to be an occupation in a
business which, though concerned with the making of parts or the
preparation of materials for use in connection with an insured trade,
is mainly carried on as a separate business or in connection with
trade other than insured trades;
and, on any such order being made, the occupation to which the order relates
shall not be treated as employment in an insured trade for the purposes of
this part of this act.
k Any special order made under this section may be made so as to cover one
or more occupations. The provisions of this part of this act as to the laying
of regulations before Parliament and the presentation of an address thereon
shall apply to special orders made under this section.
A rra n g e m e n ts w ith associations o f w o rk m e n in in s u re d tra d e w ho m a k e p a y ­
m ents to m em bers w h ils t unem ployed.

105.
— (1) The Board of Trade may, on the application of any association of
workmen the rules of which provide for payments to its members, being work­
men in an insured trade, or any class thereof, whilst unemployed, make an
arrangement with such association that, in lieu of paying unemployment benefit
under this part of this act to workmen who prove that they are members of
the association, there shall be repaid periodically to the association out of the
unemployment fund such sum as appears to be, as nearly as may be, equivalent
to the aggregate amount which such workmen would have received during that
period by way of unemployment benefit under this part of this act if no such
arrangement had been made, but in no case exceeding three-fourths of the
amount of the payments made during that period by the association to such
workmen as aforesaid whilst unemployed.
(2) The council or other governing body of any association of workmen which
has made such an arrangement as aforesaid shall be entitled to treat the con­
tributions due from any of its members to the unemployment fund under this
part of this act, or any part thereof, as if such contributions formed part of the
subscriptions payable by those members to the association, and, notwithstanding
anything in the rules of the association to the contrary, may reduce the rates of
subscription of those members accordingly.
(3) For the purpose of determining whether a workman has exhausted his
right to unemployment benefit under this part of this act, the amount of any
sum which, but for this section, would have been paid to him by way of unem­
ployment benefit shall be deemed to have been so paid.
(4) The Board of Trade may make regulations for giving effect to this section,
and for referring to the umpire appointed under this part of this act any question
which may arise under this section.
(5) The fact that persons other than workmen can be members of an asso­
ciation shall not prevent the association being .treated as an association of work­
men for the purposes of this section, if the association is substantially an
association of workmen.
R e p a y m e n ts to associations w ho m a k e p aym en ts to persons w h e th e r tv o rk m e n in
in s u re d tra d e o r n o t , w h ils t unem ployed .

106. — (1) The Board of Trade may, with the consent of the Treasury, and
on such conditions and either annually or at such other intervals as the board
may prescribe, repay out of moneys provided by Parliament to any association
of persons not trading for profit the rules of which provide for payments to
persons whilst unemployed, whether workmen in an insured trade or not, such
part (in no case exceeding one-sixth) as they think fit, of the aggregate amount
which the association has expended on such payments during the preceding
year or other prescribed period, exclusive of the sum (if any) repaid to the
association in respect of such period in pursuance of an arrangement under the
last foregoing section, and exclusive, in the case of payments which exceed
twelve shillings [$2.92] a week, of so much of those payments as exceeds
that sum.
f
(2) No repayment shall be made under this section in respect of any period
before the expiration of six months from the commencement of this act.



76

B U L L E T IN

OF T H E B U R E A U OF LABOR.

(3)
The Board of Trade may make regulations for giving effect to this sec­
tion, and for determining the mode in which questions arising under this section
shall be settled.
In te r p r e ta tio n a n d a p p lic a tio n .
107. — (1) For the purposes of this part of this act—
The expression “ workman” means any person of the age of sixteen or
upwards employed wholly or mainly by way of manual labor, who
has entered into or works under a contract of service with an employer,1
whether the contract is expressed or implied, is oral or in writing, and
in relation to a person whilst unemployed means a person who, when
employed, fulfilled the conditions aforesaid, but does not include an
indentured apprentice;
Contributions made by an employer on behalf of a workman shall be
deemed to be contributions by the workman; *
Two periods of unemployment of not less than two days each,^separated
by a period of not more than two days, during which the workman has
not been employed for more than twenty-four hours or two periods
of unemployment of not less than one week each, separated by an inter­
val of not more than six weeks, shall be treated as a continuous period
of unemployment, and the expression “ continuously unemployed ” shall
have a corresponding meaning;
Temporary work provided by a central body or distress committee under
the Unemployed Workmen Act, 1905,1 or toward the provision of which
any such central body or distress committee has contributed under this
act, shall not be deemed to be employment in an insured trade;
A workman shall not be deemed to be unemployed whilst he is following
any remunerative occupation in an insured trade, or whilst he is fol­
lowing any other occupation from which he derives any remuneration or
profit greater than that which he would derive from the receipt of
unemployment benefit under this part of this act.
A workman shall not, for the purposes of contributions,' be deemed to be
employed in any period in respect of which he receives no remuneration
from his employer, notwithstanding that he ^continues , during such
period in his employment.
The expression “ trade dispute ” means any dispute between employers and
workmen, or between workmen and workmen, which is connected with
the employment or nonemployment, or the terms of employment, or with
the conditions of labor, of any persons, whether workmen in the em­
ployment of the employer with whom the dispute arises or not.
(2) In determining any question as to whether any trade in which a work­
man is or has been employed is an insured trade or not, regard shall be had to
the nature of the work in which the workman is engaged rather, than to the
business of the employer by whom he is employed.;
(3) This part of this act shall apply to workmen employed by"or under the
Crown to whom this act would apply if the* employer were* a private person,’
except to such of those workmen -as are serving in an’ established capacity in
the permanent service of the Crown, subject, however, to such modifications as
may be made therein by order in council for the purpose of adapting the provi-‘
sions of this part of this act to the case of such workmen. ^
(4>) If the Board of Trade are satisfied that any class of workmen are, hav-!
ing regard to their claim to pension or to the other terms of their service, in
as permanent a position as that of persons serving in'an established capacity
in the permanent service of the Crown,' the Board of Trade may exempt that
class of persons from the provisions of this part ofjfchis act, and any persons
so exempt shall not be deemed to be workmen. '
P A R T I I I . — G en eral .

P ro v is io n s as to stam ps.

108. Stamps required for the purposes of this act shall be prepared and
issued in such manner as the commissioners of inland revenue, with Jhe consent




1 5 Edw. VII, c. 18.

77

BRITISH NATIONAL INSURANCE ACT, 1911.

of the Treasury, may direct, and the said commissioners may, by regulations in
accordance with the provisions of Part I of this act relating to regulations by
the insurance commissioners, provide for applying, with the necessary adapta­
tions, as respects such stamps, all or any of the provisions (including penal
provisions) of the Stamp Duties Management Act, 1891,1 as amended by any
subsequent act, and section sixty-five of the Post-Office Act, 1908,2 and may with
3
the consent of the postmaster general provide for the sale of such stamps
through the Post Office.
O u td o o r r e lie f .
109.
In granting outdoor relief to a person in receipt of or entitled to receive
any benefit under this act, a board of guardians shall not take into consideration
any such benefit, except so far as such benefit exceeds five shillings [$1.22] a
week.
P r io r ity o f claim s f o r co n trib u tio n s due by b a n k ru p t em ployers .
110.
— (1) There shall be included among the debts which, under section one
of the Preferential Payments in Bankruptcy Act, 1888,8 and section two hundred
and nine of the Companies (Consolidation) Act, 1908,4 are, in the distribution
of the property of a bankrupt and in the distribution of the assets of a company
being wound up, to be paid in priority to all other debts, all contributions pay­
able under this act by the bankrupt or the company in respect of employed con­
tributors or workmen in an insured trade during the four months before the
date of the receiving order, or, as the case may be, the commencement of the
winding up or the winding-up order, and those acts shall have effect accordingly,
and formal proof of the debts to which priority is given under this section shall
not be required except in cases where it may otherwise be provided by rules
made under the Bankruptcy Act, 1883,5 or the Companies (Consolidation) Act,
1908.
(2) In the case of the winding up of a company within the meaning of the
Stannaries Act, 1887,* such contributions as aforesaid shall, if payable in respect
of a miner, have the like priority as is conferred on wages of miners by section
nine of that act, and that section shall have effect accordingly.
(8) This section shall not apply where a company is wound up voluntarily
merely for the purposes of reconstruction or of amalgamation with another
company.
(4) In the application of this section to Scotland, a reference to section three
of the Bankruptcy (Scotland) Act, 1875,7 and the respective dates therein men­
tioned shall be substituted for the reference to section one of the Preferential
Payments in Bankruptcy Act, 1888, and the date of the receiving order; and
an Act of Sederunt under the Bankruptcy Amendment (Scotland) Act, 1856,*
shall be substituted for rules under the Bankruptcy Act, 1883.
(5) In the application of this section to Ireland a reference to section four
of the Preferential Payments in Bankruptcy (Ireland) Act, 1889,* shall be
substituted for the reference to section one of the Preferential Payments in
Bankruptcy Act, 1888; and a reference to general orders made under the firstmentioned act shall be substituted for the reference to rules made under the
Bankruptcy Act, 1883; and any reference to a bankrupt shall include a refer­
ence to an arranging debtor; and the reference to the receiving order shall be
construed as a reference to the order of adjudication in the case of a bankrupt,
or to the filing of the petition for arrangement in the case of an arranging debtor.
B enefits to be in a lie n a b le .

111. Every assignment of, or charge on, and every agreement to assign or
charge, any of the benefits conferred by this act shall be void, and, on the
bankruptcy of any person entitled to any such benefit, the benefit shall not pass
to any trustee or other person acting on behalf of his creditors.
1 54 and
2 8 Edw.
3 51 and
4 8 Edw.

55 Viet., c. 38.
VII, c. 48.
52 Viet., c. 62.
VII, c. 69.

646 and 47 Viet., c. 52.




6 50
7 38
8 19
®52

and
and
and
and

51
39
20
53

Viet.,
Viet.,
Viet.,
Viet.,

c.
c.
c.
c.

43.
26.
79.
60.

78

B U L L E T IN OF T H E B U B E A U OF LABOB.

P o w e rs o f inspectors.

112.
— (1) An inspector appointed under this act shall, for the purposes of the
execution of this act, have power to do all or any of the following things,
namely:
( a ) to enter at all reasonable times any premises or place, other than a
private dwelling house not being a workshop, where he has reason­
able grounds for supposing that any employed contributors or work­
men in an insured trade are employed;
(&) to make such examination and inquiry as may be necessary for as­
certaining whether the provisions of this act are complied with in
any such premises or place;
(e) to examine, either alone or in the presence of any other person, as he
#•
thinks fit, with respect to any matters under this act, every person
whom he finds in any such premises or place, or whom he has reason­
able cause to believe to be or to have been an employed contributor
or workman in an insured trade, and to require every such person
to be so examined, and to sign a declaration of the truth of the mat­
ters in respect of which he is so examined;
(d) to exercise such other powers as may be necessary for carrying this
act into effect.
(2) The occupier of any such premises or place and any other person em­
ploying any employed contributor or workman in an insured trade, and the
servants and agents of any sueh occupier or other person, and any employed
contributor or workman in an insured trade shall furnish to any inspector all
sueh information and shall produce for inspection all such registers, books,
cards, and other documents as the inspector may reasonably require.
(3) If any person willfully delays or obstructs an inspector in the exercise
of any power under this section or fails to give such information or to produce
such documents as aforesaid, or conceals or prevents or attempts to conceal
or prevent any person from appearing before or being examined by an inspector,
he shall be liable on summary conviction to a fine not exceeding five pounds
[$ 24.33]:

Provided that no one shall be required under this section to answer any
question or give any evidence tending to incriminate himself.
(4) Where any such premises or place are liable to be inspected by in­
spectors or other officers, or are under the control, of some other Government
department, the insurance commissioners or Board of Trade may make arrange­
ments with that other Government department for any of the powers and duties
of inspectors under this section being carried out by inspectors or other officers
of such other Government department, and, where such an arrangement is made,
such inspectors and officers shall have all the powers of an inspector under this
section.
(5) Every inspector shall be furnished with the prescribed certificate of his
appointment, and on applying for admission to any premises for the purposes
of this act shall, if so required, produce the said certificate to the occupier.
Procedure f o r m a k in g special o rd ers .
113.
— (1) Sections eighty and eight-one of the Factory and Workshop Act,
lfiOl,1 relating to the making of regulations under that act, as set out and
adapted in the Ninth Schedule to this act, shall apply to special orders made
under this act.
(2) Before a special order (other than a special order excluding any occu­
pation from the occupations which are to be deemed employment in an insured
trade) comes into force, it shall be laid before each House of Parliament for a
period of not less than thirty days during which the house is sitting, and, if
either of those houses before the expiration of those thirty days presents an
address to His Majesty against the order or any part thereof, no further pro­
ceedings shall be taken thereon without prejudice to the making of any new
order.
P ro v is io n s as to b ir th c e rtific a te s .
114.
Where, for the purposes of this act, the age of any person is required
to be proved by the production of a certificate of birth, any person shall, on



11 Edw. VII, c. 22.

B R IT IS H

N A T IO N A L IN S U R A N C E A C T , 1911,

79

presenting a written requisition in such form and containing such particulars
as may be from time to time prescribed by the local government board for
England, Scotland, or Ireland, as the case may be, and, on payment of a fee of
sixpence [12 cents], be entitled to obtain a certified copy of the entry of the
birth of that person in the birth register, under the hand of the registrar or
superintendent registrar having the custody thereof, and forms for such
requisition shall on request be supplied without any charge by every registrar
of births and deaths and by every superintendent registrar.
S h o rt t it le a nd com m encem ent .

115.
This act may be cited as the National Insurance Act, 1911, and shall,
save as otherwise expressly provided by this act, come into operation on the
fifteenth day of July nineteen hundred and twelve:
Provided that His Majesty in council may, should necessity arise, substitute
some subsequent date or dates not being later than the first day of January
nineteen hundred and thirteen as respects the provisions of this act relating to
health insurance, and not being later than the first day of October nineteen
hundred and twelve as respects the provisions of this act relating to unemploy­
ment insurance.




A P P E N D IX .

FIRST SCHEDULE.
(Sections 1 and 81.)
PART I.— EMPLOYMENTS WITHIN THE MEANING OF PART I OF THIS ACT RELATING
TO HEALTH INSURANCE.

(a)
' Employment in the United Kingdom under any contract of service or
apprenticeship, written or oral, whether expressed or implied, and whether the
employed person is paid by the employer or some other person, and whether
under one or more employers, and whether paid by time or by the piece or
partly by time and partly by the piece, or otherwise, or, except in the case of
a contract of apprenticeship, without any money payment.
(b) Employment under such a contract as aforesaid as master or a member
of the crew of any ship registered in the United Kingdom or of any other
British ship or vessel of which the owner, or, if there is more than one owner,
the managing owner or manager, resides or has his principal place of business
in the United Kingdom.
(c) Employment as an outworker (that is to say, a person to whom articles
or materials are given out to be made up, cleaned, washed, altered, ornamented,
finished, or repaired, or adapted for sale in his own home or on other premises
not under the control or management of the person who gave out the articles
or materials for the purposes of the trade or business of the last-mentioned
person), unless excluded by a special order made by the insurance commis­
sioners, and any such order may exclude outworkers engaged in work of any
class, or outworkers of any class or description specified in the order, or may
defer the commencement of this act as respects all outworkers, and the person
who gave out the articles or materials shall, in relation to the person to whom
he gave them out, be deemed to be the employer.
( d ) Employment in the United Kingdom in plying for hire with any vehicle
or vessel the use of which is obtained from the owner thereof under any con­
tract of bailment (or in Scotland any contract of letting to hire) in considera­
tion of the payment of a fixed sum or a share in the earnings or otherwise, in
which case the owner shall, for the purposes of Part I of this act, be deemed to
be the employer.
PART II.— EXCEPTIONS.

( a ) Employment in the naval or military service of the Crown, including
service in officers’ training corps, except as otherwise provided in Part I of
this act.
(b) Employment under the Crown or any local or other public authority
where the insurance commissioners certify that the terms of the employment
are such as to secure provision in respect of sickness and disablement on the
whole not less favorable than the corresponding benefits conferred by Part I
of this act.
(c) Employment as a clerk or other salaried official in the service of a rail­
way or other statutory company, or of a joint committee of two or more such
companies, where the insurance commissioners certify that the terms of employ­
ment, including his rights in such superannuation fund as is hereinafter men­
tioned, are such as to secure provision in respect of sickness and disablement,
on the whole, not less favorable than the corresponding benefits conferred by
Part I of this act, and the person so employed is entitled to rights in a superan­
nuation fund established by act of Parliament for the benefit of persons in such
employment, or in Ireland is entitled to rights in any such superannuation fund
or in any railway superannuation fund which may be approved by the insurance
commissioners.

80


BRITISH NATIONAL INSURANCE ACT, 1911.

81

( d ) Employment as a teacher to whom the Elementary School Teachers
Superannuation Act, 1898, or a scheme under section fourteen of the Education
(Scotland) Act, 1908, or the National School Teachers (Ireland) Act, 1879,
applies, or, in the event of any similar enactment being hereafter passed as
respects teachers or any class of teachers (other than teachers in public elemen­
tary schools), as a teacher to whom such enactment applies.
( e ) Employment as an agent paid by commission or fees or a share in the
profits, or partly in one and partly in another such ways, where the person so
employed is mainly dependent for his livelihood on his earnings from some other
occupation, or where he is ordinarily employed as such agent by more than
one employer, and his employment under no one of such employers is that on
which he is mainly dependent for his livelihood.
(/) Employment in respect of which no wages or other money payment is
made where the employer is the occupier of an agricultural holding and the
employed person is employed thereon, or where the person employed is the child
of, or is maintained by, the employer.
{g ) Employment otherwise than by way of manual labor and at a rate of
remuneration exceeding in value one hundred and sixty pounds [$778.64] a
year, or in cases where such employment involves part-time service only, at a
rate of remuneration which, in the opinion of the insurance commissioners, is
equivalent to a rate of remuneration exceeding one hundred and sixty pounds
[$774.68] a year for whole-time service.
(h )
Employment of a casual nature otherwise than for the purposes of the
employer’s trade or business, and otherwise than for the purposes of any game
or recreation where the persons employed are engaged or paid through a club,
and in such case the club shall be deemed to be the employer.
(£) Employment of any class which may be specified in a special order as
being of such a nature that it is ordinarily adopted as subsidiary employment
only and not as the principal means of livelihood.
( j ) Employment as an outworker where the person so employed is the wife
of an insured person and is not wholly or mainly dependent for her livelihood
on her earnings in such employment.
( k ) Employment as a member of the crew of a fishing vessel where the mem­
bers of such crew are remunerated by shares in the profits or the gross earnings
of the working of such vessel in accordance with any custom or practice pre­
vailing at any port if a special order is made for the purpose by the insurance
commissioners, and the particular custom or practice prevailing at the port is
one to which the order applies.
( l ) Employment in the service of the husband or wife of the employed person.
SECOND SCHEDULE.— RATES OF CONTRIBUTION UNDER PART I OF THIS
ACT RELATING TO HEALTH INSURANCE.

(Sections 4 and 81.)
PART I.

E m p lo y e d ra te .

In the case of men_________________________________ Id . [14 cents] a week.
In the case of women_______________________________ 6 d. [12 cents] a week.
C o n trib u tio n s by em ployers and em ployed c o n trib u to rs .

To be paid by the employer___________________________ 3d. [6 cents] a week.
To be paid by the contributor------------------------- {women, td. [6 cents] a week!
In the case of employed contributors of either sex of the age of 21 or upwards
whose remuneration does not include the provision of board and lodging by
their employer, and the rate of whose remuneration does not exceed 2 s. 6 d. [61
cents] a working-day, the following shall be the rates of contribution:
Where the rate of remuneration does not exceed Is. 6 d. [37 cents] a
working-day—
™
/For men,
6d. [12 cents] a week.
To be paid by the employer--------\For W men, 5d. [10 cents] a week.
O
To be paid out of moneys provided by Parliament. Id. [2 cents] a week.
49976°— 12----- 6




82

B U L L E T IN

OF T H E B U E E A U

OF LABOR,

Where the rate of remuneration exceeds Is. 6d. [37 cents] but does not
exceed 2s. [49 cents] a working-day—
To be A
paid by the employer_____ **• women, 4a. [8 cents] a weeK.
[For
To be paid by the contributor-------------------------Id. [2 cents] a week.
To bepaid out of moneys provided by Parliament- Id. [2 cents] a week.
Where the rate of remuneration exceeds 2s. [49 cents] but does not exceed
2 s. 6 d. [61 cents] a working-day—
T n ho
h v t h o o r n n in v o v
/ For m e n > 4< [8 cents] a week,
?xo oe paia D tne empioyei--------- \For women, 3d. [6 cents] a week.
y
To be paid by the contributor________________ 3d. [6 cents] a week.
PAST II.

E m p lo y e d r a te in Ir e la n d .

In the case of men--------------------------------------------------5Id . [1 1 cents] a week.
In the case of women_____________________________ 4id. [9 cents] a week.
C o n trib u tio n s by em ployers and em ployed c o n trib u to rs .

To be paid by the employer---------------------------------------2Id . [5 cents] a week.
.
. , . ..
/Men,
3d. [6 cents] a week.
To be paid by the contributoi----------------------- (Women, 2d. [4 cents] a week.
In the case of employed contributors of either sex of the age of 21 or upwards
whose remuneration does not include the provision of board and lodging by
their employer, and the rate of whose remuneration does not exceed 2 s. 6 d. [61
cents] a working-day, the following shall be the rates of contribution:
Where the rate of remuneration does not exceed Is. 6 d. [37 cents] a
working-day—
— . - , ..
|
/For men>
4$<J [9 cents] a week.
.
To be paid by the
employer[Forwomen, 3$d. [7 cents] a week.
To be paid out of moneys provided by Parliament- Id. [2 cents] a week.
Where the rate of remuneration exceeds Is. 6 d. [37 cents] but does not
exceed 2s. [49 cents] a working-day—
Kr4 w A n T n
-r -v - m iA tA
k
/For men,
4d. [8 cents] a week.
To be paid by the employer------------ [For women> 3 ^ j-g cents] a week.
To be paid by the contributor------------------------- £d. [1 cent] a week.
To be paid out of moneys provided by Parliament- Id. [2 cents] a week.
Where the rate of remuneration exceeds 2s. [49 cents] but does not exceed
2 s. 6 d. [61 cents] a working-day—
rpn U* paid by
10 be nnirl hrr

pmnlnvAremployer-F ° r m en >women>2 %d. [
J -\For
[7 5
CentS] cents]
a Week* aweek.
tne
To be paid by the contributor----------------------- 2d.
[4 cents] a week.
THIRD SCHEDULE.— RULES AS TO PAYMENT AND RECOVERY OF CONTRI­
BUTIONS PAID BY EMPLOYERS ON BEHALF OF EMPLOYED CONTRIBUTORS
UNDER PART I OF THIS ACT RELATING TO HEALTH INSURANCE.
(Section 4.)

(1) A weekly contribution shall be payable for each calendar week during
the whole or any part of which an employed contributor has been employed by
an employer: P ro v id e d , That, where one weekly contribution has been paid in
respect of an employed contributor in any such week, no further contribution
shall be payable in respect of him in the same week, and that, where no re­
muneration has been received and no services rendered by an employed con­
tributor during any such week, or where no services have been rendered by an
employed contributor during any such week and the employed contributor has
been in receipt of sickness or disablement benefit during the whole or any part
of that week, the employer shall not be liable to pay any contribution either on
his own behalf or on behalf of the contributor in respect of that week.
(2) The employer shall, except as hereinafter provided, be entitled to recover
from the employed contributor the amount of any contributions paid by him on
behalf of the employed contributor.



B B IT IS H N A T IO N A L IN S U R A N C E
5

ACT, 1911.

83

(3) Except where the employed contributor does not receive any wages or
other pecuniary remuneration from the employer, the amounts so recoverable
shall, notwithstanding the provisions of any act or any contract to the contrary,
be recoverable by means of deductions from the wages or other remuneration,
and not otherwise; but no such deductions may be made from any wages or
remuneration other than such as are paid in respect of the period or part of the
period in respect of which the contribution is payable, or in excess of the sum
which represents the amount of the contributions for the period (if such period
is longer than a week) in respect of which the wages or other remuneration
are paid.
(4) Where a contribution paid by the employer on behalf of an employed
contributor is recoverable from the contributor but is not recoverable by means
of deductions as aforesaid, it shall (without prejudice to any other means of
recovery) be recoverable summarily as a civil debt, but no such contribution
shall be recoverable unless proceedings for the purpose are instituted within
three months from the date when the contribution was payable.
(5) Where the contributor is employed by more than one employer in any
calendar week, the first person employing him in that week or such other em­
ployer or employers as may be prescribed shall be deemed to be the employer
for the purposes of the provisions of Part I of this act relating to the payment
of contributions and of this schedule.
(6) Regulations of the insurance commissioners may provide that in any
cases or any classes of cases where employed contributors work under the
general control and management of some person other than their immediate
employer, such as the owner, agent, or manager of a mine or quarry, or the
occupier of a factory or workshop, such person shall, for the purposes of the
provisions of Part I of this act relating to the payment of contributions and
of this schedule, be treated as the employer, and may provide for allowing him
to deduct the amount of any contributions (other than employer’s contributions)
which he may become liable to pay from any sums payable by him to the
immediate employer, and for enabling the immediate employer to recover from
the employed contributors the like sums and in the like manner as if he were
liable to pay the contributions.
(7) Where the contributor is not paid wages or other money payments by
his employer or any other person, the employer shall be liable to pay the con­
tributions payable both by himself and the contributor, and shall not be
entitled to recover any part thereof from the contributor.
(8) Notwithstanding any contract to the contrary, the employer shall not be
entitled to deduct from the wages of or otherwise to recover from the contribu­
tor the employer’s contribution.
(9) Any sum deducted by any employer from wages or other remuneration
under this schedule shall be deemed to have been intrusted to him for the
purpose of paying the contribution in respect of which it was deducted.
(10) The insurance commissioners may, by regulations, provide that in the
case of outworkers the contributions to be paid may be determined by reference
to the work actually done, instead of by reference to the weeks in which work
is done, and any such regulations may apply to all trades or to any specified
classes or branches of trades, and may determine the conditions to be complied
with by employers who adopt such a system of payment of contributions.
(11) For the purposes of this schedule the expression “ calendar week”
means the period from midnight on one Sunday to midnight on the following
Sunday.
FOURTH SCHEDULE.— BENEFITS UNDER PART I OF THIS ACT RELATING
TO HEALTH INSURANCE.
(Sections 8, 9, 37, 44 and 81.)
P A R T I . — R A T E S OF B E N E F IT S .

T a b le A .— O rd in a ry ra te s .

Sickness benefit.—For men, the sum of 10s. [$2.43] a week throughout the
whole period of twenty-six weeks; for women, the sum of 7s. 6d. [$1.83] a week
throughout the whole period of twenty-six weeks.
Disablement benefit.—The sum of 5s. [$1.22] a week for men and women
alike.




84

B U L L E T IN

OF T H E B U R E A U OF LABOR.

T a b le B .— R educed rates in the case o f u n m a rrie d m in o rs .

Sickness benefit—For males, tbe sum of 65. [$1.46] a week during the first
thirteen weeks and the sum of 5s, [$1.22] a week during the second
thirteen weeks.
1
For females, the sum of 5s. [$1.22] a week for the first thirteen weeks and
the sum of 4s. [97 cents] a week for the second thirteen weeks.
Disablement benefit.—For females, the sum of 4s. [97 cents] a week.
T a b le C.— R educed ra te s f o r persons ov e r f if t y , in c e rta in cases .

Where the insured person is over 50 and under 60 at the time of becoming an
employed contributor—
For men, the sum of 7s. [$1.70] a week throughout the whole period of
twenty-six weeks.
For women, the sum of 6s. [$1.46] a week throughout the whole period of
twenty-six weeks.
Where the insured person is over 60 at the time of becoming an employed
contributor—
For both men and women, the sum of 6s. [$1.46] a week for the first thir­
teen weeks, and 5s. [$1.22] a week during the second thirteen weeks.
T a b le D .— R a te s a n d conditions f a r m a rrie d w om en.

Sickness benefit.—During the first thirteen weeks, the sum of 5s. [$1.22] a
week; during the second thirteen weeks, 3s. [73 cents] a week.
Disablement benefit.—The sum of 3s. [73 cents] a week.
Sickness benefit and disablement benefit shall not be payable during the two
weeks before and four weeks after confinement, except in respect of a disease or
disablement neither directly nor indirectly connected with childbirth.
P A R T I I . — A D D IT IO N A L B E N E F IT S .

(1) Medical treatment and attendance for any persons dependent upon the
labor of a member.
(2) The payment of the whole or any part of the cost of dental treatment.
(3) An increase of sickness benefit or disablement benefit in the case either
of all members of the society or of such of them as have any children or any
specified number of children wholly or in part dependent upon them.
(4) Payment of sickness benefit from the first, second, or third day after the
commencement of the disease or disablement.
(5)
. The payment of a disablement allowance to members though not totally
incapable of work.
(6) An increase of maternity benefit.
(7) Allowances to a member during convalescence from some disease or dis­
ablement in respect of which sickness benefit or disablement benefit has been
payable.
(8) The building or leasing of premises suitable for convalescent homes and
the maintenance of such homes.
(9) The payment of pensions or superannuation allowances whether by way
of addition to old age pensions under the Old Age Pensions Act, 1908, or other­
wise.
(10) The payment, subject to the prescribed conditions, of contributions to
superannuation funds in which the members are interested.
(11) Payments to members who are in want or distress including the remis­
sion of arrears whenever such arrears may have become due.
(12) Payments for the personal use of a member who, by reason of being an
inmate of a hospital or other institution, is not in receipt of sickness benefit or
disablement benefit.
(13) Payments to members not allowed to attend work on account of in­
fection.
' (14) Repayment of the whole or any part of contributions thereafter payable
under Part I of this act by members of the society or any class thereof.




B R IT IS H
PART

I I I . — B E N E F IT S

FOR

N A T IO N A L IN S U R A N C E A C T ,
M A R R IE D

WOMEN

WHO

DO

NOT

85

1911.

BECOM E

VOLUNTARY

CON­

TR IB U TO R S A T REDUCED R A T E S .

Payment of the sum of 5s. [$1.22] a week on confinement during a period not
exceeding four weeks on any one occasion.
Payments during any period of sickness or distress, subject to regulations
made by the insurance commissioners and to the discretion of the society or
committee administering the benefit.
FIFTH SCHEDULE.—REDUCTION OR POSTPONEMENT OF SICKNESS
BENEFIT AND WHERE CONTRIBUTIONS ARE IN ARREARS.
(Section 10.)
TABLE.

(2)

(1)

Rates of sickness benefit.
Where the arrears amount to—
Men.

4 contributions a year on average...
5 contributions a year on average...
6 contributions a year on average...
7 contributions a year on average...
8 contributions a year on average...
9 contributions a year on average...
10 contributions a year on average..
11 contributions a year on average..
12 contributions a year on average..
13 contributions a year on average..
5s.
5s.
5s.
5s.
5s.
5s.
5s.
5s.
5s.
5s.

Y,romen.

5. d .
s. d .
9 6 [$2.31]
7 3 [11.76]
7 0 $1.70'
9 0 $2.19'
6 9 $1.64'
8 6 $2.07'
8 0 $1.95'
6 6 '$1.58'
6 3 $1.52
7 6 $1.83’
6 0 $1.46'
7 0 $1.70’
5 9 $1.40’
6 6 [$1.58]
5 6 $1.34’
6 0 [$1.46]
5 3 $1.28'
5 6 [$1.34]
5 0 $1.22'
5 0 $1.22’
[$1.22] commencing 5th day after commencement of illness,
$1.22’ commencing 6th day after commencement of illness,
$1.22' commencing 7th day after commencement of illness,
$1.22' commencing 8th day after commencement of illness,
$1.22' commencing 9th day after commencement of illness,
$1.22’ commencing 10th day after commencement of illness,
$1.22' commencing 11th day after commencement of illness,
$1.22’ commencing 12th day after commencement of illness,
$1.22’ commencing 13th day after commencement of illness,
$1.22’ commencing 14th day after commencement of illness.

NO TES.

Where the insured person is, by virtue of any of the provisions of Part I of
this act, other than those relating to arrears, entitled to sickness benefit at a
rate lower than the full rate, this table shall have effect as if the entries in the
first column were so shifted down that the first entry therein was set opposite
the entry in the second column next below the entry specifying the rate of sick­
ness benefit to which the insured person is entitled.
When the rate of sickness benefit during the first thirteen weeks to which
the insured person is entitled is, by virtue of any of the provisions of this act,
other than those relating to arrears, less than 5s. [$1.22] a week, this table
shall have effect as if such lower rate were therein substituted for the rate of
5s. [$1.22] a week.
SIXTH SCHEDULE.—LIST OF INSURED TRADES FOR THE PURPOSES OF
PART II OF THIS ACT RELATING TO UNEMPLOYMENT INSURANCE.
(Section 84.)

(1) Building; that is to say, the construction, alteration, repair, decoration,
or demolition of buildings, including the manufacture of any fittings of wood of
a kind commonly made in builders’ workshops or yards.
(2) Construction of works; that.is to say, the construction, reconstruction,*
or alteration of railroads, docks, harbors, canals, embankments, bridges, piers
or other works of construction.
(3) Shipbuilding; that is to say, the construction, alteration, repair or deco­
ration of ships, boats or other craft by persons not being usually members of a



B U L L E T IN

86

OF T H E B U R E A U OF LABOR,

ship’s crew, including the manufacture of any fittings of wood of a kind com­
monly made in a shipbuilding yard.
(4) Mechanical engineering, including the manufacture of ordnance and fire­
arms.
(5) Iron founding, whether included under the foregoing headings or not.
(6) Construction of vehicles; that is to say, the construction, repair, or deco­
ration of vehicles.
(7) Sawmilling (including machine woodwork) carried on in connection with
any other insured trade or of a kind commonly so carried on.
SEVENTH

SCHEDULE.— RATES AND PERIODS
BENEFIT.

OF UNEMPLOYMENT

(Section 84.)

In respect of each week following the first week of any period of unemploy­
ment, seven shillings, or such other rates as may be prescribed either generally
or for any particular trade or any branch thereof:
\
Provided that, in the case of a workman under the age of eighteen, no unem­
ployment benefit shall be paid while the workman is below the age of seventeen,
and while the workman is of the age of seventeen or upwards but below the
age of eighteen, unemployment benefit shall only be paid at half the rate at
which it would be payable if the workman was above the age of eighteen.
i
No workman shall receive unemployment benefit for more than fifteen or such
other number of weeks as may be prescribed either generally or for any par­
ticular trade or branch thereof within any period of twelve months, or in
respect of any period less than one day.
y
No workman shall receive more unemployment benefit than in the proportion
of one week’s benefit for every five contributions paid by him under this act:
Provided that for the purpose of the foregoing paragraph—
(a) in the case of a workman who satisfies the Board of Trade that he is
over the age of twenty-one and has habitually worked at an insured
trade before the commencement of this act, there shall be deemed
to be added to the number of contributions which he has actually
paid five contributions for each period of three months or part of
such period during which he has so worked before the commence­
ment of this act, up to a maximum of twenty-five contributions; and
( b ) where, owing to the fact that the wages or other remuneration of a
workman are paid at intervals greater than a week, or for any other
like reason contributions are paid under Part II of this act in respect
of any workman at intervals greater than a week, that workman
shall be entitled to treat each of such contributions as so many con­
tributions as there are weeks in the period for which the contribu­
tion has been paid.
Any time during which a workman is, under Part II of this act, disqualified
for receiving unemployment benefit shall be excluded in the computation of
periods of unemployment under this schedule.
A period of unemployment shall not be deemed to commence till the workman
has made application for unemployment benefit in such manner as may be
prescribed.
The power conferred by this schedule on the Board of Trade to prescribe
rates and periods of unemployment benefit shall not be exercised so as to in­
crease the rate of benefit above eight shillings [$1.95] per week or reduce it
below six shillings [$1.46] per week, or to increase the period of unemployment
benefit above fifteen weeks, or to alter the proportion which the period of benefit
bears to the number of contributions paid, except by rules confirmed by an order
made in accordance with the provisions of this act relating to special orders.
EIGHTH SCHEDULE.— CONTRIBUTIONS FOR THE PURPOSES OF PART I I OF
THIS ACT RELATING TO UNEMPLOYMENT INSURANCE.
(Sections 85, 102 and 103.)
BATES

OF C O N T R IB U T IO N

FROM

W ORKM EN

AND

EM PLOYERS.

From every workman employed in an insured trade for every
week he is so employed------------------------------------------------------ 2Zd. [5 cents,]
From every employer by whom one or more workmen are em­
ployed in an insured trade, in respect of each workman, for
every week he is so employed-----------------------------------------------2M. [5 cents.]



BRITISH NATIONAL INSURANCE ACT, 1911.

87

Provided that, in the case of a workman below the age of eighteen, Id. [2
cents] shall be substituted for
[5 cents] as the contribution from the work­
man and from the employer, but for the purpose of reckoning the number of
contributions in respect of such a workman except as regards the payment of
unemployment benefit before he reaches the age of eighteen, the .Id. [2 cents]
shall be treated as two-fifths of a contribution.
'
Every such period of employment of less than a week shall, for the purposes
of this schdule, be treated as if it were employment for a whole week, except
that, where the period of employment is two days or less, the contributions both
of the employer and of the workman shall be reduced to one penny [2 cents] if
the period does not exceed one day and twopence [4 cents] if it exceeds one
day; and, in such case, in reckoning the number of contributions under Part II
of this act and the schedules therein referred to, contributions at such reduced
rates shall be treated as two-fifths or four-fifths of a contribution as the case
may require.
NINTH SCHEDULE.— PROVISIONS OF THE FACTORY AND WORKSHOP ACT,
1901, APPLIED TO SPECIAL ORDERS MADE UNDER THIS ACT.
(Section 114.)

80.
— (1) Before the authority empowered to make special orders make any
special order under this act, they shall publish, in such manner as they may
think best adapted for informing persons affected, notice of the proposal to
make the order, and of the place where copies of the draft order may be ob­
tained, and of the time (which shall be not less than twenty-one days) within
which any objection made with respect to the draft order by or on behalf of
persons affected must be sent to the authority.
(2) Every objection must be in writing and state—
(a) the draft order or portions of draft order objected to;
(b) the specific grounds of objection; and
(c) the omissions, additions, or modifications asked for.
(3) The authority shall consider any objection made by or on behalf of any
persons appearing to them to be affected which is sent to them within the re­
quired time, and they may, if they think fit, amend the draft order, and shall
then cause the amended draft to be dealt with in like manner as an original
draft.
(4) Where the authority do not amend or withdraw any draft order to which
any objection has been made, then (unless the objection either is withdrawn or
appears to them to be frivolous) they shall, before making the order, direct
an inquiry to be held in the manner hereinafter provided.
81.
— (1) The authority may appoint a competent and impartial person to hold
an inquiry with regard to any draft order, and to report to them thereon.
(2) The inquiry shall be held in public, and any objector and any other per­
son who, in the opinion of the person holding the inquiry, is affected by the
draft order, may appear at the inquiry either in person or by counsel, solicitor,
or agent.
(3) The witnesses on the inquiry may, if the person holding it thinks fit, be
examined on oath.
(4) Subject as aforesaid, the inquiry and all proceedings preliminary and
incidental thereto shall be conducted in accordance with rules made by the
authority.
(5) The fee to be paid to the person holding the inquiry shall be such as the
authority may direct and shall be deemed to be part of the expenses of the
authority in carrying this act into effect.
(6) For the purposes of this schedule, the expression “ authority ” means the
insurance commissioners or the Board of Trade, as the case may be.




o


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102