National insurance. The (English) National Insur-ance Act, 1911 (1 & 2 Geo. 5, c. 55), introduced by Mr. Lloyd George, established a wide system of compulsory state insurance covering both ill-health and unemployment, which is based upon premiums contributed in part by the employer, in part by the employee, and in part by the State. The Act consisted of three parts, the first dealing with National Health Insurance, the second with Unemployment Insurance, and the third contained miscellaneous provisions. This Act remained the basis of National Health Insurance, although the subject of very extensive amendment, until the National Health Insurance Act, 1924, consolidated the law. The law has been consolidated again by the (English) National Health Insurance Act, 1936 (26 Geo. 5, and 1 Edw. 8, c. 32), amends and repeals the whole of the Acts passed in 1920, 1922, 1924 and 1928. The arrangement is as follows:-
Part I. Insured Persons and Contributions.
Part II. Benefits.
Part III. Approved Societies and Insurance Committees.
Part IV. Financial Provisions relating to Approved Societies and Insurance Committees.
Part V. Special Classes of Insured Persons.
Part VI. Central Finance.
Part VII. Central Administration.
Part VIII. Legal and Miscellaneous.
Part IX., X., and XI. apply the Act of Scotland, Northern Ireland, and Wales.
Part XII. Interpretation, Surveys and Repeal.
Similarly, Part II. of the Act of 1911 was repealed, and replaced, after detailed amendment, and recently consolidated again by the (English) Unemployment Insurance Act, 1935 (see infra). It is impossible here to do more than give a bare outline of the two branches of National Insurance, and for the determination of any particular question reference should be made to the Acts themselves and the regulations made thereunder; see also Chitty's Statutes, tit. 'Insurance,' and Comyns Carr or Watts on National Insurance; and for a general outline of National Health Insurance, see National Health Insurance Manual by Sir Kingsley Wood and T.S. Newman, and the Summary of the National Health Insurance Acts, published by H.M. Stationery Office.
1. NATIONAL HEALTH INSURANCE.
The general scheme is the provision of compulsory insurance of all persons of 16 years of age and upwards who are employed either as manual workers, or at a rate of remuneration not exceeding 250/. per annum gained otherwise than by manual labour. Two classes of persons come within the scheme: those who must be insured--Employed Contributors; and those who may take advantage of the provisions of the Act--Voluntary Contributors.
A. Employed Contributors. With the exception of persons specially 'excepted' and 'exempted,' as mentioned below, all persons of whatever nationality between 16 and 70 years of age, including married women, who are employed in the United Kingdom in any of the following employments are 'employed contributors' in respect of whom contributions must be paid. See Schedule I.
(a) Employment under a contract of service or apprenticeship.
(b) Employment under a contract of service or apprenticeship as master or a member of the crew of any ship registered in the United Kingdom.
(c) Employment as an 'outworker,' that is to say, a person to whom articles or materials are given to be made up or worked upon in his own home or on premises not under the control of the employer.
(d) (Generally) Employment as an officer or servant of a local or public authority.
(e) Employment in plying for hire with a vehicle or vessel the use of which is obtained by a contract of bailment (e.g., a taxi-cab hired by a taxi-cab driver). The owner is considered to be the employer for the purpose of the Acts.
(f) Employment by way of manual labour under a contract for the performance of such labour for the purposes of any trade or business.
(g) Employment on a British owned or registered ship when the person employed is remunerated by a share in the profits or gross earnings of the vessel.
(h) Service in H.M. Forces. The Acts contain special provisions governing these contributors.
The following are excepted from the operation of the Acts:
(a) Persons remunerated, otherwise than for manual labour, at a rate of more than 250l. per annum in respect of a particular employment. What is manual labour is a question of fact: the real and substantial character of the employment must be considered.
(b) Persons employed as apprentices, persons employed on agricultural holdings, persons employed by their parents, persons wholly maintained by their employer, if, in each case, employed without money payment.
(c) Husband or wife employed by his or her spouse.
(d) Persons casually employed, but not persons so employed for the purposes of the employer's trade or business, nor by a club for the purposes of a game or the like.
(e) Every agent paid by commission or share in profits who is either so employed by more than one employer and is not mainly dependent on his earnings from anyone of them, or is mainly dependent on his earnings from some other source.
(f) Persons whose employment has been specified in a special order as being a subsidiary employment, i.e., an employment not usually a principal means of livelihood.
(g) Persons in the employment of the Crown, local or public authorities, or in the employment of railway or statutory companies and entitled to benefits from a superannuation fund, if excepted by a certificate issued by the Minister of Health certifying that they are entitled to sickness and disablement benefits of at least equal value to those obtained under the Acts.
(h) School teachers entitled to benefits under the School Teachers Superannuation Acts, and pupil and student-teachers in public elementary schools.
(i) Outworkers not wholly or mainly dependent on earnings as such, if the wives of insured persons.
(j) Crews of fishing vessels remunerated by shares in the profits, if in accordance with the custom of a port, if a special order has been made.
A person who would otherwise be an 'employed contributor' may, if he so desires, apply for a certificate of exemption if:
(a) in receipt of an income of not less than 26l. a year, which is derived otherwise than by his personal exertions: or
(b) Ordinarily or mainly dependent for his livelihood upon some other person, or on earnings derived from an employment not within the Act; or
(c) Being an insured person, he has been employed for less than the prescribed period (formerly less than 13 weeks in the preceding two years).
B. Voluntary Contributors. Voluntary contributors are persons who may, if they wish, come under the Acts. Married women cannot become voluntary contributors. Such persons are:
(a) Persons who have been employed within the meaning of the Acts and who have been insured as employed contributors for a minimum of 104 weeks, but have ceased to be employed contributors, and who have give due notice of their intention to become voluntary contributors.
(b) Persons engaged in excepted employment who have received the permission of the Minister of Health to become voluntary contributors.
(c) Persons who were voluntary contributors at the passing of the Act and who have continued to be insured since.
Contributions. The usual rate of contribution is 9d. and 8'd. per week for men and women respectively, of which 4d. is paid by the employer. These sums are collected by adhesive stamps, which must be affixed to special cards by the employer, who is responsible. The normal time for carrying out this duty is when the wages are paid. The stamps directly after being affixed must be cancelled by writing the date upon them in ink. There are special provisions relating to the amounts of the contributions in the case of low wage-earners, voluntary contributors, sailors,soldiers and airmen, outworkers, etc. An employer is liable to pay contributions in respect of exempted persons.
There is a 'free insurance period' of two years, when an insured person who is a member of an approved society ceases to be employed within the Act, or to pay contributions as a voluntary contributor. And there may in certain cases be an 'extended insurance period' of a year; and perhaps a 'further extended period.'
Benefits. The benefits are:
(1) Medical Benefit, i.e., medical treatment and attendance and medicine.
(2) Sickness Benefit, i.e., periodical payments during in capacity for work to a maximum of 26 weeks.
(3) Disablement Benefit, i.e., a continuation of periodical payments after the sickness benefit has ceased. These payments are smaller than those made as sickness benefit.
(4) Maternity Benefit, i.e., a payment of 2l. to a mother on her confinement. If both husband and wife are insured, this benefit is doubled.
(5) Additional Benefits, i.e., further benefits which an approved society can give to its members as a result of a surplus balance. These benefits must be of a specified character and approved by the Minister of Health.
All these benefits are subject to various qualifications and conditions. The administration of the scheme is carried out through self-governing societies known as 'Approved Societies,' who administer the above benefits, except (1), which are administered by statutory bodies known as Insurance Committees. Those persons who do not join an approved society are called Deposit Contributors, and are not entitled to money benefits, but can draw out their past contributions incase of sickness. The Minister of Health, the Welsh Board of Health, the Scottish Board of Health, and the Ministry of Labour for Northern Ireland have wide statutory powers, and are in control of the administration as a whole.
2. UNEMPLOYMENT INSURANCE
As stated above, Part II. of the (English) National Insurance Act, 1911, together with its amending Acts, was repealed by the (English) Unemployment Insurance Act, 1920 (10 & 11 Geo. 5, c. 30), and now the Unemployment Insurance Act, 1935 (25 Geo. 5, c. 8), consolidates the Acts 1920-1934, and repealed all the (English) Acts prior to 1934. It is arranged as follows:-
Part I. Insured Persons.
Part II. Contributions.
Part III. Benefit.
Part IV. Administration and Finance.
Part V. Arrangements and Schemes.
Part VI. Education and Powers of Education Authorities.
Part VII. Miscellaneous and General.
The (English) Unemployment Insurance (Agriculture) Act, 1936 (26 Geo. 5, and 1Edw. 8, c. 13), includes employment in agriculture (hitherto excepted), among the insurable employments.
Owing to the prevalence of unemployment, due to economic conditions brought about by the Great War, this branch of the law has been and continues to be the subject of much amending legislation. Until the law takes a more permanent and enduring form, the only guide to the law existing at any given time will be the statutes then in force. It may, however, be added that the minimum age for entry into insurance (which is the age at which under the law his parents cease to be under an obligation to send him to school) is the school-leaving age, now 15 (EducationAct,1936), for all persons who are engaged in an employment of a manual character, other than certain employments specially excepted, such as, e.g., private domestic service, female nurse, teachers, agents paid by commission, employment otherwise than by manual labour at over 250l. a year, etc., come within the operation of the Acts. (See the principal Act, Schedule I., as amended by the Act of 1936.) The Acts contain somewhat similar provisions as to exceptions and exemptions, as do those dealing with National Health Insurance (see above). The object of the above-mentioned legislation is to impose compulsory insurance against unemployment upon all such employed persons as come within the Acts, so that when out of employment they may receive an 'unemployment benefit,' i.e., payment at a rate and for a period authorized by statute, if they have fulfilled certain specified conditions. The sums required for this purpose are obtained in part from the employer, in part from the workman, and in part are provided by the State, as in the case of Health Insurance. See WORKMEN (Unemployed).
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