Health: Private Insurance

Lord Peston Excerpts

Wednesday 30th June 2010 Lords Chamber

[Lord Sassoon]

My Lords, I welcome this Question from the noble Lord, Lord Crisp, and I appreciate the concerns that lie behind it. The process by which industry codes, which are not statutory, are enforced has a number of levels. First, the Association of British Insurers makes it a requirement of membership that codes are adhered to by all its members. Secondly, the Financial Services Authority has a process of confirmation of industry codes that are put in place. To be confirmed, those codes have to meet a series of guidelines as to form and content. The FSA takes account of non-compliance in its regulatory decisions. Furthermore, the ombudsman is required by the FOS rules to take industry guidance into account. Therefore, broadly speaking, if a complaint is brought and the code has not been adhered to, there should be a finding in favour of the complainant. I very much regret the situation that the noble Lord described, but it should be picked up if the processes are properly followed.

[Lord Peston]

Is the Minister aware that his Answer and the Question reinforce the views of many of us about the great wonder of our National Health Service? This sort of thing does not happen in the National Health Service, and could not possibly happen unless the Government, under their present rather right-wing policies, change it. Is not the answer to this for people not to be fooled by thinking that they can opt out of problems by going private? The best thing they can do is to go to our NHS and support it solidly.

[Lord Sassoon]

My Lords, I think that the scope of the Question is rather specific. It is about industry codes of practice and the adherence of private health insurance companies to those codes of practice. The noble Lord raises important issues, but they are rather outside the scope of the Question.