Clause 42. — (Insurance schemes.)

Part of Orders of the Day — War Damage Bill. – in the House of Commons at on 5 February 1941.

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Photo of Sir George Benson Sir George Benson , Chesterfield

The President of the Board of Trade has entirely failed to answer the very valid point raised by my hon. Friend the Member for East Stirling (Mr. Woodburn) that for a voluntary scheme 30s. is an unsound figure. A lower premium would be a better proposition financially from the Government point of view. When it was suggested that a compulsory scheme would bring in more chattels, the President of the Board of Trade shook his head. Does he really think that with the present premium he will obtain wide insurance in comparatively safe areas? People in London, Birmingham and Coventry will insure, but people in Scotland, in the Lake District and elsewhere will not insure. I am not at all certain that 5s. per cent. would not be a sounder proposition than 30s. If we retain the 30s., the Government will make a heavy loss. They might make a heavy loss if it were reduced to 5s., but by reducing the figure they would bring in good risks, whereas the 30s. premium secures only the worst risks, and that point the President of the Board of Trade entirely failed to deal with.