Health: Private Medical Insurance

Debate between Lord Walton of Detchant and Lord Sassoon

Monday 15th November 2010 Lords Chamber

[Lord Walton of Detchant]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest as a policyholder with AXA PPP.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, private medical insurers are entitled to offer policies on a variety of terms and offering different levels of benefit. The Financial Services Authority’s Insurance Conduct of Business Sourcebook does not prevent insurers restricting choice of healthcare provider. However, it does require that the insurer provides information on any such restrictions. Provided that policyholders are covered as they expect in the event of a claim, this is to the benefit of consumers as cost control serves to keep premiums at an affordable level.

[Lord Walton of Detchant]

I thank the Minister for that reply. Is he aware that the Office of Fair Trading is receiving a large number of complaints from individuals who believed that they had fully comprehensive healthcare insurance with organisations such as BUPA and PPP but are now finding in many instances that their recovery is only partial, that they are restricted in the choice of consultant to whom they may be referred, despite their GP’s advice, and also that they are not allowed to go to certain hospitals? Is this not contrary to the policy that should be carried out, and is the Minister aware that last week my noble friend Lord Crisp said that private healthcare insurance was becoming a lottery, and that the Financial Services Authority should examine the matter in the light of these complaints?

Health: Private Insurance

Debate between Lord Walton of Detchant and Lord Sassoon

Wednesday 30th June 2010 Lords Chamber

[Lord Sassoon]

My Lords, I am grateful for the question because it enables me to go further in explaining what I think is a fair balance between non-statutory codes of practice and enforcement under the FSA statutory rules. This is a complex and sensitive area in which questions of acute and chronic care and other issues require constant review and updating in the codes. The balance between a code of practice which is reviewed on a regular basis by the ABI but is enforced in the way in which I have described strikes an appropriate balance.

[Lord Walton of Detchant]

In the light of the concerns expressed by my noble friend Lord Crisp and the question raised by the noble Lord, Lord Newby, in relation to the complaints against the companies which have been upheld, what sanctions have been applied to those companies in order to prove that those complaints were valid?

[Lord Sassoon]

I thank the noble Lord for his question. On the information I have here, I am not able to go through the sanctions, but clearly those will be judged by the ombudsman in relation to the complaints received.