National insurance offers much for NZUSA and students

Nzspa

Proposals for a national student insurance scheme submitted by Price Forbes (New Zealand) Limited were adopted by NZUSA at Dunedin last month.

These brokers intend to begin the scheme with the cooperation of two life assurance offices (General Life and Royal Exchange) and two general insurance offices (Eagle Star and Northern). Negotiations are at present being conducted with these and other companies to secure concessions for students.

It is the aim of Price Forbes," declared in its proposal to NZUSA last year, to provide' favourable rates and conditions as well as an advisory service for students.

The second objective of the scheme is to give NZUSA a cut to further the association's activities.

The advantages of the adopted scheme over that proposed by Nobel Loundes (favoured by the Auckland delegation last year) were outlined at council by NZUSA president Ross Mountain.

The main advantage, for both students and NZUSA, seemed to be that Price Forbes are prepared to pay NZUSA a percentage on insurance bought by users of the scheme after they have graduated, and graduates may continue to receive the student concession rates.

Mr. Mountain pointed out that although the successful company had been in New Zealand only three years it was a well-established company in the United Kingdom. It felt able to offer students an efficient and personalised service.

If the scheme is as successful as Mr. Mountain and the brokers expect, the profits from it from the point of view of the national body must be substantial.

In his report, Mr. Mountain claimed they would "set NZUSA up for life."

Otago proposed the profit should come back to constituents in proportion to the sum assured in each.

The Otago delegation was supported by Canterbury President Tim Armitage. "We must justify to constituents that we are entering a scheme which will give NZUSA a profit of between $6000 and $20,000. Why should one university be penalised if it supports the scheme more than others do?" he asked.

The southern bid for decentralised profits was opposed by former Victoria President John McGrath, who later was elected president of NZUSA. He charged that Otago's stand showed it did not trust NZUSA and that Student Welfare Officer Dennis Pezaro, who spoke strongly for Otago, was "incomprehensible" in his claim that "students should get the benefit."

Auckland moved a compromise solution which was finally adopted, with Victoria dissenting. The proposal of Ausa President John Prebble provides for the division of the profits proportionately to the sums assured on each campus after the first $5000, which will go directly to NZUSA.

Victoria's President Doug White told Salient that if the response demands it, a room may be set aside in the SUB to allow efficient handling of the transactions.