airlines. I do not mean to hold up that United is the only one in the field that has held out these benefits. I think Mr. Patterson, because of his love for his people, has had a deeper interest in the plan. The CHAIRMAN. How long has the plan been in operation? Mr. WILSON. The accident-sickness coverage was made available in 1934. The company life insurance for every employee was first offered in 1932. The CHAIRMAN. The fact it was instituted some 19 years ago is an indication to me of the forward and progressive viewpoint that your company has taken, not only in this but in other matters, but in this very important matter of relationship between management and men. I think that your company is to be highly commended, as it has been a pioneer in this particular phase of relationship. May I ask if it was instituted by the company as a result of bargaining between the company and a labor union? Mr. WILSON. No, sir; it was not. There has never been any approach made to us by any labor union. My office is open; they come in and we are glad to discuss the problems. If I have something new in the plan, I like to tell them about it. It is a very friendly relationship, but we have never been approached by a labor union regarding our plan. The CHAIRMAN. That in itself is highly commendable from the standpoint of your company, in that it visualized the importance of this to your employees without what might be called compulsion as a result of agreement arrived at. It seems to me it speaks very highly of your company and its management to have made this available to your employees without that urge. I cannot tell you how much we appreciate your presence and the help you have given to this committee by revealing to it this plan which you have in operation and which seems to be working so satisfactorily. Health is one of the things this committee has to do with. We are all aware of the tremendous burden placed on families where there are long continued illnesses. We are aware of the fact that the poor are taken care of because they are poor; the wealthy, on the other hand, are taken care of because they have the necessary funds to get the medical attention needed; but the vast number of people between those two look with a great deal of concern and fear to the possibility of a long illness, especially. We are looking forward, as a result of these studies, to the hope that we can stimulate interest such as your company has shown to make certain that those people have these benefits. We are greatly indebted to you and appreciate your having come and given us the benefit of your experience, and I want you to know that these different statements and booklets that you have left with us that go into detail in the matter will be made a part of our record in connection with your testimony. Mr. WILSON. Thank you, sir. (The following booklet was submitted for the record:) YOUR INSURANCE AS AN EMPLOYEE OF UNITED AIR LINES, INC. (Underwritten by Connecticut General Life Insurance Co., Hartford, Conn., January 1, 1953, edition) UNITED AIR LINES, To United Air Lines Employees: Chicago, Ill. Over the years, your company has developed a comprehensive program of insurance for you and your family. Each of you should be acquainted with the benefits offered. Group life insurance is provided for each employee without cost. Cooperative group life and group accident-sickness insurance are made available at costs far below those charged for individual policies. Each type of insurance is described in detail on the following pages of this booklet. It is to be hoped that you and members of your family will acquaint yourselves with this program and will make the best use of it for your protection and peace of mind. W. A. PATTERSON, President. COMPANY GROUP LIFE INSURANCE PLAN On the day you start to work your life is insured under the company group life insurance plan. United furnishes this insurance during the time you are actively employed and pays the entire cost. There are no aviation or other restrictions in the policy. The dependent named by you as beneficiary will be paid the death benefit shown in the schedule on the back cover. Twenty percent of the total will be paid immediately and the balance, plus interest, in 11 equal monthly installments.. The plan also provides that in the event you become totally and permanently disabled, the insurance will be paid to you in monthly installments. disability must start prior to age 60 and continue for at least 6 months. Total Also, you now are enrolled for additional life insurance and accident-sickness insurance for which you are eligible on the first day of your active employment. No deductions for these plans will be made until after the first full calendar month of your employment. However, if you have a claim (other than maternity) during this free insurance period, you will be paid the benefits provided. We have arranged your enrollment in this manner, because we sincerely feel that when, in the quiet of your home, you consider the liberal benefits, the reasonable cost, and the com orting protection provided you and your family, you will continue as another enthusiastic member of your company's voluntary insurance plans. If, however, you decide not to continue either or both the cooperative group life insurance or group accident-sickness plans, you must so notify United's Insurance Division, Chicago, Ill., in writing. Your request will be respected. and United will continue, at its expense, the company group life ins rance described in the preceding paragraphs. The following pages tell of the generous benefits of the accident-sickness and cooperative group life insurance plan, COOPERATIVE GROUP LIFE INSURANCE PLAN Because of popular demand, United makes available additional group life insurance, including total and permanent disability benefits identical to the insurance furnished by the company. In addition, if you are married, your wife's life also is insured for $1,000 at no extra cost to you. All male employees may participate. There are no aviation or other restrictions in the policy. Monthly premiums are 60 cents per $1,000 for ground and 80 cents per $1,000 for flight employees. These costs are unusually low for full coverage life insurance. The premiums are deducted from your paycheck once each month. To determine the amount of insurance for which you are eligible prior to tetirement refer to the schedule on the back cover. Including continuance of life insurance, cost-free, following retirement. In addition, a portion of your life insurance will qualify for continuance after you retire. These continuance benefits will begin for flying personnel at the age of 60 and for all others at the age of 65. 39087-53-pt. 5-8 Amount of insurance continued during retirement. After your cooperative group life policy has been in force 5 years, each $1,000 will entitle you to the following insurance without cost during your retirement. Following salary increases which place you in a higher insurance class, you will become eligible for additional amounts of insurance (see back cover). After being in force for 5 years, these additional units of insurance provide additional amounts of insurance in accordance with the table above. For example, a ground employee who becomes insured for $3,000 upon entering the plan at age 20 will become eligible at age 25 for $1,350 of continued insurance at retirement (3 times $450 equals $1,350). Assume that at ages 35 and 40 his insurance is increased to $4,000 and $5,000, respectively, because of salary increases. At age 40 he will be entitled to an additional $204 and at age 45 to an additional $150 of insurance after retirement as a result of the two $1,000 life-insurance increases. This makes a total of $1,704 of life insurance which will be continued at retirement for the employee in this example. Premiums which you pay after the first 5 years will be returned to you if the plan is discontinued for any reason. The amounts to be returned will be $0.20 a month for flying personnel-$0.15 for all others—for each $1,000 of insurance. This group continuance plan first became effective for those currently subscribing on January 1, 1951. When you retire, your contributions for life insurance will cease. Group accident-sickness plan provides 1. Benefits for loss of your time from work. 2. Hospital benefits for you and your family. 3. Surgical benefits for you and your family. 4. Benefits in case of your accidental death or dismemberment. 5. Catastrophe coverage for you. 6. Polio benefits for you and your family. Realizing the need for an adequate program to meet the unexpected costs of your illness and nonoccupational accidents, United makes available this comprehensive group accident-sickness plan. More than 9 out of 10 United employees participate because of the plan's outstanding advantages. This great enrollment gives you more generous benefits at a cost far lower than available to you individually. You automatically are enrolled for all of these benefits (please see p. 3), but the deductions shown in the schedule on the back cover will not be made until after the first full calendar month of your employment. However, if you have a claim (other than maternity) during this free insurance period, you will be paid the benefits provided. Each of your six major benefits are outlined in the following pages. DAILY HOSPITAL BENEFITS FOR YOU AND YOUR FAMILY For each day of hospital confinement up to 70 days, you will be reimbursed up to $12 for bed and board; also, reimbursement for each family member is $12 per day. Benefits will be payable from the first day of hospital confinement. In addition, you and each family member will be reimbursed up to $6 for each day of confinement beyond the period covered by the basic plan. You may receive this benefit for an additional 120 days. AND HOSPITAL FEES, TOO You and each family member also will be reimbursed up to $120 for (a) Hosptal charges for necessary services and supplies, including anesthetic, X-ray, medicines, transfusions, ambulance and laboratory fees, when hospital confinement exists for at least 18 hours, and/or (b) Hospital charges for necessary services and supplies, including anesthetic, X-ray, medicines, transfusions, ambulance and laboratory fees when these charges are incurred in connection with surgical schedule operations or accident treatment, even though confinement exists for less than 18 hours, and/or (c) X-ray, ambulance, and anesthetic charges, incurred in a visit to a doctor's office in connection with surgical schedule operations or accident treatment. SURGICAL BENEFITS FOR YOU AND YOUR FAMILY Your group accident-sickness insurance also covers reimbursement for the costs of surgery for you and members of your family. In the back pages of this booklet you will find a list of operations and the maximum reimbursement for each surgeon's fee. Surgical benefits will be paid regardless of where the operation is performed. Maternity allowance for family members After you have carried family coverage for 9 months, you will be paid $100 for childbirth not involving: (a) Caesarean section, (b) extra-uterine pregnancy or (c) miscarriage. Under (a), (b), and (c) the regular hospital and scheduled surgical benefits will apply. BENEFITS FOR LOSS OF YOUR TIME FROM WORK If you are disabled by a nonoccupational accident, you will be paid for every day you are disabled. If you are disabled by sickness, you will be paid for every day of disability after the seventh day. These payments will continue during total disability for a maximum of 26 consecutive weeks. You can determine how much you will receive by referring to the schedule on the back cover, in the column headed “Weekly Loss of Time Benefits." BENEFITS FOR YOUR ACCIDENTAL DEATH OR DISMEMBERMENT In case you should be involved in an accident, while not working, you or the dependent you name as beneficiary will be paid death and dismemberment benefits up to the maximum amount listed in the schedule on the back cover. You will receive the entire amount if the accident causes the loss of both hands, both feet, the sight of both eyes, or any combination of two of these members. The accidental loss of 1 hand, 1 foot, or the sight of 1 eye will pay you one-half the maximum amount. Maximum accidental death benefits, of course, are payable to your beneficiary in addition to the full limit provided by both your company and cooperative group life insurance. Nonoccupational aviation accidents also are covered. $5,000 CATASTROPHE COVERAGE When your illness or accident causes extra heavy expenses (for employees only) A prolonged period of disability resulting from an exceptionally serious illness or injury can be so costly that, even with substantial insurance benefits, an individual is called upon to make heavy out-of-pocket expenditures for hospital, surgical, and medical expenses. To help relieve you of such a financial hardship the following plan applies. (This benefit does not apply to your family members.) When you are disabled and have incurred hospital, surgical, and medical expenses exceeding 5 percent of your basic annual salary,' plus the hospital and surgical benefits paid under your regular group accident-sickness insurance benefits, the plan will pay 75 percent of all further expenses up to a maximum of * If, in calculating 5 percent of your basic annual salary the result does not amount to at least $200, the figure $200 will be used. If the result amounts to more than $600, the figure $600 will be used. $5,000 for any one illness or accident. In addition, weekly indemnity benefits also will be paid. Polio coverage-for you and your family Reimbursement up to $2,000 will be allowed, in addition to regular accidentsickness benefits for the cost of medical treatment including physiotherapy, special nursing fees and appliances obtained on recommendation of a physician. If you (but not your family member) incur further expenses for polio, you will be reimbursed in accordance with the catastrophe coverage described above. GENERAL PROVISIONS Because space in this nontechnical booklet does not permit a full description of your policies we urge you to read them carefully upon issuance. No statement of health will be required from you or your family unless you reapply after canceling your insurance, or apply for dependency benefits more than 31 days after marriage. Benefits or reimbursements will not be paid in connection with disability or hospital confinement existing at the time the insurance becomes effective, or for confinement, disability or operations resulting from occupational accident or sickness covered by workmen's compensation. Doctor's fees and special nurses' fees (other than those covered by the surgical schedule, polio and catastrophe benefits) and dentists' fees are not covered. Women employees may not make claim for any benefits due to pregnancy, childbirth, or miscarriage. This is not to be confused with family benefits. Your wife is covered for childbirth, pregnancy, and miscarriage provided you have carried family coverage for 9 months. The maximum reimbursement for all operations during one disability is $245. Any employee who has reached his 65th birthday shall not be entitled to more than 26 weeks' indemnity for sickness during any period of 12 consecutive months, nor for catastrophe benefits. The group accident-sickness plan on any employee shall in no event continue beyond the month of his 70th birthday. The amount of an employee's life insurance will not be reduced due to a reduction in salary or change in position. Your dependency insurance plan includes hospital and surgical expense benefits for your family. Family members are your wife and any unmarried children over 14 days and under 22 years of age. Accident-sickness surgical schedule Description of operation Abdomen: Maximum payment Cutting into abdomen cavity for diagnosis or treatment of organs therein (unless otherwise specified in this schedule) Appendectomy Arm, forearm, or leg Entire hand or foot- Fingers or toes, each_ Appendix removal (see appendectomy, under abdomen). Blood transfusion: Recipient, each tranfusion (not more than 7). Breast: Thoracoplasty, or removal of portion of lung 245 Other cutting into chest cavity for diagnostic or treatment (tapping excepted) 70 Artificial pneumothorax, induction of....... 42 Artificial pneumothorax, each refill (not more than 12). 14 |