Full resolution (JPEG) - On this page / på denna sida - XI. Banking, Credit, and Insurance - 4. Savings-Banks and Similar Institutions. By [I. Flodström] Alfhild Lamm - 5. Insurance. By S. Palme
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the insurance act.
685
institutions for deposits of a more or less temporary nature, the Savings-Banks
Act interposes the restriction that savings-banks shall not engage to repay
money deposited, except after due notice received (it being open however to the
directors to concede repayment before the termination of the term of notice,
where this can be done without inconvenience). The same provision, with the
supplementary regulation that the term of notice shall be at least a week (with
similar authorization for the directors to allow exceptions) also applies since
1900 to the savings-bank accounts of the ordinary banks. However, it appears
to be still the general practice of the banks to repay on demand money
deposited on savings-bank account. As to the Post-Office Savings-Bank, its
pass-books can be used for deposits and withdrawals in any post office in
Sweden. The obvious corrolary is that money deposited in the Post-Office
Savings-Bank cannot be withdrawn without notice and without an order from
the head office to make the payment.
As to the aberrations above touched upon in the savings’ bank system, it
may be said that, with the exception of actual drawing account business, they
are intrinsically quite legitimate forms of savings-bank business. What is wrong
is the absence of special conditions and regulations for each of the different
branches of business. But this defect is capable of being remedied. Though it
must perhaps be admitted that the deposit account is better fitted than the
savings-bank account for the investment of real capital, it should not be
forgotten that it is the large balances, which cost less to manage, that make it
possible for the savings-bank business to subsist with the comparatively high
interest they at present give. On the other hand, it can hardly be contested
that an account separate from the current account, for withdrawals at call, and
intended for household purposes, would prove a great boon especially to salaried
persons, small tradesmen, and the industrial classes.
5. INSURANCE.
Insurance Legislation in Sweden (except as regards maritime insurance,
which is provided for in Chapter 12 of the Maritime Law of 1891 common
to Sweden, Norway and Denmark) is substantially contained in the
Insurance Act (Lag om försäkringsrörelse) and in the Act relating to the
Right of Alien Insurance Companies to transact Insurance Business in
Sweden, both of which Acts were issued on the 24th July 1903.
The Insurance Act.
Insurance business, except as regards insurance institutions established by the
State, shall be transacted only by insurance companies, or by a company or
society the constitution of which provides for the mutual liability of the
shareholders (mutual insurance company).
The general provisions of the Companies Acts do not apply to insurance
companies: The Insurance Act contains corresponding regulations regarding the
formation and registration of insurance companies, the formulation of the articles
of association and modifications therein, shareholders’ meetings, and the general
administration of the company and auditing, as well as regards bankruptcy and
winding up. As the regulations in question are different for joint-stock com-
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