from my salary each. This Authorizes my employer to deduct $. POLICY NUMBERS DATE EMPLOYEE'S SIGNATURE MISCELLANEOUS INFORMATION OF GROUP PLANS CALDWELL-HAMMER AGENCY, MR. KEN BENDA, President Assoc. of Machinists & Aerospace Workers Sunnyvale, Calif. DEAR MR. BENDA: We have been successful in working out what we believe to be a very desirable plan of automobile insurance coverages to be made available to your union members. In our search for the proper coverage for our members, we solicited quotations from many of the leading large insurance companies including Firearm's Fund, Insurance Company of North America, Continental Insurance Company, Aetna Insurance Company, Safeco Insurance Company, Allstate Insurance Company and the Kemper Insurance Company. All of these companies declined to offer a program of coverage. They have two primary objections to your situation: The first is the lack of payroll deduction facilities. Most companies feel that the payroll deduction feature is essential to offering price reductions in a program of this type. The second objection of most companies is their doubt about the continuing success of a program offered in opposition to the Travelers' program available to salaried employees. Most company executives we talked with believe that it is only a matter of time until the union personnel elect to join the Travelers' salary deduction program. Of the smaller insurance companies offering group automobile insurance plans, one is the outstanding leader. That is the Los Angeles Insurance Company. Although this company is rather small and new, its program is entirely backed by the Employer's Reinsurance Corporation which is one of the nation's largest and best reinsurance companies. From the Machinist, Feb. 20, 1969 SASKATCHEWAN SUCCESS-HOW TO CUT THE COST OF AUTO INSURANCE Less expensive automobile insurance is possible. It's already available to the residents of the Canadian province of Saskatchewan. For nearly 23 years the people of Saskatchewan have enjoyed the lowest-cost automobile insurance on the North American continent. At the same time they have had good service and quick payment of claims. Motorists outside Saskatchewan can get an idea of just how inexpensive the insurance is by comparing what they pay with current Saskatchewan rates. Saskatchewan motorists pay annual premiums according to figures from the province government, ranging from $6 on a pre-1937 car to $85 on the latest models with wheel bases of 120 inches or longer. The premiums provide basic coverage of $35,000 for personal injury and property damage liability and 200deductible collision insurance. This is the basic coverage which every motorist in the province is required by law to carry. Additional coverage is available at reasonable rates. If a driver has been judged more than 50 per cent at fault in any accident which resulted in a payment of $50 or more from the insurance office, that driver is charged an additional $25 for his insurance the following year. THE COST The Saskatchewan Insurance Office acknowledges that the under 25 years old driver has a higher accident rate. The only additional charge, however, for the young driver is an additional $2 a year for the operator's license. Basic license fees in Saskatchewan are $3 but are higher for drivers who accumulate a certain number of demerits. The demerits are based on traffic violations. The basic insurance package plus an additional liability protection of $235,000 would have cost the owner of a 1967 Plymouth $93 in 1967 if he lived in Regina, Saskatchewan. In the same year, the same coverage in Minot, N.D., just a few hundred miles to the south would have cost $137, according to a study by the Wall Street Journal. Underlying the low-cost automobile insurance is the Automobile Accident Insurance Act passed in 1946. It is compulsory for every motorist in the province. The car owner pays for his insurance when he gets his auto license plates each year. The law also provides for an automatic accident compensation plan which pays for losses from auto accidents regardless of fault. THE SPONSOR The Cooperative Commonwealth Federation (CCF) initiated the program while it was in power in Saskatchewan. The Saskatchewan Government Insurance Office administers it. The current Premier, Ross Thatcher of the Liberal Party (a right-wing party in Canada) wanted to turn the insurance operation over to private industry when he took office five years ago, but was unable to find any private company which could provide the service at near the same rates. Last month Thatcher threw in the towel, saying his government had decided against any change in the system of universal compulsory auto insurance. THE PAYOUT Several years ago a study by Consumer's Union, a non-profit organization which evaluate products and services, revealed that automobile insurance in Saskatchewan was the most economical in North America. Consumer's Union found that 82 cents out of every dollar went to pay claims; only 18 cents went for administrative expenses. At that time, for every dollar paid into private plans in the U.S. only 48 cents was available to reimburse claimants. The latest report from the Saskatchewan Government Insurance Office shows that in 1967 the amount paid in claims has risen to 86 cents out of every premium dollar. U.S. Sen. Philip A. Hart of Michigan, reports that for every dollar paid on premiums, U.S. auto insurance carriers pay out on 46 cents on claims. SASKATCHEWAN RATES FOR AUTO INSURANCE [The 1968 auto insurance rates as pub ished by the Saskatchewan Govern ent Insurance Office] J. O. Dutton, general manager of the Saskatchewan Government Insurance Office, listed some of the factors which help keep the cost of insurance down. These factors are no commissions paid to underwriters, no advertising costs and, Dutton said, the office has simplified administrative procedures. The no-fault feature of the insurance reduces costs by providing for settlements without lengthy court cases to determine which party was at fault in an accident. Anyone not satisfied with the settlements has the right to take the case to court. As most cases are settled out of court, those that do go to litigation are generally settled in six weeks to two months. By contrast, in metropolitan areas in the United States, it takes 30 months to wind up the average liability suit that goes to a jury. THE BENEFITS With Saskatchewan's no-fault plan, almost everyone injured in an automobile accident receives compensation. Whether he is at fault or not, the injured person can usually collect as much as $4,000 in damages for a physical disability, $2,000 for medical expenses not covered by medical insurance and $2.520 for loss of wages. Death benefits up to $10,000 are also payable, plus $300 in funeral expenses. When an accident victim feels he has not received adequate compensation under the schedule of automatic payments, he is free to sue for additional damages. THE REPAIRS When a car is damaged in an accident the owner takes the car to one of four drive-in appraisal centers in the province. If the car cannot be moved, the appraiser goes to it. After getting an appraisal the owner can have the car repaired in a government repair shop or take it to any private repair shop he wishes. There are no multiple appraisals required. The government also runs salvage centers which save usable parts from wrecked cars. These are used in government repair shops or sold. While the government handles the insurance, no tax money is involved. So while the debate over the high price of auto insurance continues in other provinces in Canada and in the United States, the residents of Saskatchewan enjoy the benefits of the Automobile Accident Insurance Act. From the Machinist, Mar. 6, 1969 LOCAL STARTS GROUP AUTO INSURANCE IAM Local 1781, the big airline local at San Francisco International Airport, is starting a reduced-rate group auto insurance program for members. Lou Schroeder, Local 1781 president, reports that the Holland American Insurance Co. will provide insurance at a 20 to 25 per cent lower premium than most members of the local now pay. Here are other features reported by Schroeder: The company cannot cancel during the policy period unless the auto owner has his license suspended or revoked or fails to pay the premium. Premium rates cannot be increased during the term of the policy. In any dispute between the company and a union member over the company's liability for coverage of damages, a three-step grievance and arbitration procedure will come into play. Local 1781 will have the right to represent the member. Through this mechanism inexpensive and speedy claims adjustment is expected, Schroeder said. From Business Insurance, Dec. 11, 1967 80 PER CENT OF SYNTEX STAFF SAVED MONEY WITH GROUP INSURANCE: DEAN CHICAGO "Group insurance began on an individual basis so why shouldn't automobile insurance be mass merchandised in the same way?" delegates to the American Management Assn. fall conference on employe and pension benefits were asked by Keith D. McCarthy, who runs his own brokerage firm in Palo Alto, Calif. Mr. McCarthy described how an auto plan had been set up at Syntex Laboratories, Palo Alto, on a payroll deduction basis. The plan, which was underwritten by Continental National American Insurance Group, Los Angeles, resulted in 80% of Syntex employes reducing their auto insurance rates, Mr. McCarthy said. James S. Dean, director of personnel at Syntex, said that before the company went ahead with the plan "we asked ourselves very carefully if this qualified as an employe benefit." It was decided that the program would "encourage employe well being" and also provide "financial health" when an employe is in automobile trouble, Mr. Dean said. A look at its parking lot tells how Syntex employes use their cars, Mr. Dean said. "Everyone has to drive." In any case, a final evaluation showed that 80% of Syntex employes would save money on their premiums "by as much as 15% in some cases," Mr. Dean stated. The technicalities of setting up the plan were described by John E. Crossman, western division manager of Continental's personal security plan, and James E. Jordan, systems and operations manager of the devision in Chicago. Mr. Jordan explained that a potential problem when introducing this type of plan is that many businesses are "allergic" to initiating more payroll deductions. "However," he pointed out, "if by using his employer's facilities an employe can save money on such an important expense as automobile insurance, then his net pay is of more value." To deal with any additional work load, Mr. Jordan said, Continental National assigns a counselor to the company concerned. He explains the plan to employes and also obtains payroll authorization for the amount of premium, and the starting date for the auto plan. This information is sent to the insurance company and also to the payroll department. In this case, Mr. Jordan continued, Continental sent a two part listing to Syntex, showing the number of employes in the plan and the deductibles and schedules. This list checking procedure can be handled by "one girl, one hour a month," Mr. Jordan maintained. From Motorland, October 1968 NEW CALIFORNIA LAWS INSURANCE AB 297, supported by your Association, prevents automobile insurance companies from cancelling any policy of automobile insurance coverage during the policy period, except for nonpayment of premium or suspension or revocation of the insured's operator's license or that of any member of his family residing in his household. AB 727, also passed this year, requires insurance companies to disclose, upon request by the policy holder, the reason for failing to renew an automobile insurance policy. This enacts into law a longtime practice carried out by the CSAA. From Labor Temple News, Fremont, Calif., August 1968 (By Henry P. Andres) The growing dissatisfaction with automobile insurance industry resulting in ever increasing premiums and arbitrary treatment has motivated your local union officers to action. Negotiations with insurance brokers and the credit union have resulted in a plan that promises generally a reduction in premium costs. easier claims settlements, a grievance board to adjust complaints, a monthly payment plan and-a new innovation for auto insurance-a waiver of premium for as long as six (6) months for disability. The Andres Insurance Agency of Newark, California, representing the Los Angeles Insurance Co., has been appointed as broker of record by UAW-Local 1364 and 560, respectively. The insurance firm, along with Floyd Bueno, Financial Secretary of Local 1364, and Bob Jones, president of the Oakland Auto Workers Federal Credit Union in Fremont, have prepared a plan that will be launched on or about September 1, 1968, for members of Local 1364. Shortly thereafter Local 560 will be included. |