Some Actuarial Aspects of a Benevolent Fund

Synopsis

The author refers to two types of insurance cover which may be obtained to meet the heavy expenses incurred in serious illness—firstly, the income maintenance cover provided by friendly societies and by the permanent sickness and accident policies of insurance companies, and secondly, the indemnity provided against certain specific expenses of illness which is provided by a number of private non-profit-making associations. A description is given of the benefits generally provided by these latter associations, and a number of restrictions which may govern the payment of benefits are enumerated.

The author proceeds to give details of the Benevolent Fund of a large company which provides sickness benefits similar to those provided by the private associations but subject to none of their limitations.

The sickness experience of the Fund is investigated for each of the last three quinquenniums covering the period 1934–48 and also for the period 1949–51, and mention is made of problems arising in the collection and setting out of the data.