Health: Private Insurance

Lord Eatwell Excerpts

Wednesday 30th June 2010 Lords Chamber

[Lord Sassoon]

My Lords, I am grateful to my noble friend Lord Newby. On the basis of the published information from the Financial Ombudsman Service for the latest available year, 2009-10, there were 2,026 complaints relating to health and medical insurance companies, which was an 8 per cent increase on the previous year. About one-third of those cases were found in favour of the complainant, overturning the original decision of the company concerned.

[Lord Eatwell]

My Lords, I believe that the noble Lord, Lord Crisp, has raised a very important issue. It is a very disturbing aspect of private health insurance that the providers of long-term cover often have the ability to vary the premium late in coverage, subject to what they euphemistically call contingencies. Is the noble Lord aware that such variations are supposedly subject to the FSA’s statement on fairness of terms in consumer contracts? I say supposedly because the statement offers only principles of fairness and no clear rules. Will the noble Lord adopt the position of the Prime Minister in his G20 Statement on Monday and encourage the introduction of clear rules in the regulation of this sensitive issue?