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Servicemen's Insurance

Volume 404: debated on Wednesday 7 May 2003

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To ask the Secretary of State for Defence what steps he is taking to ensure that the procurement process for the replacement schemes for PAX and RPAX do not penalise regulars and reservists deployed within the 30 day 'exclusion period' applied by many insurers at times of conflict. [111651]

Exclusion periods enable underwriters to protect themselves from excessive risks by closing schemes to new applicants. Most insurance contracts contain arrangements for exclusion periods, which may often be applied retrospectively by up to 30 days, as is the case with the current PAX and RPAX policies.These arrangements protect the scheme against those seeking short-term cover at the last minute and helps keep premiums affordable for prudent long-term members. Consequently it is planned that the replacement PAX and RPAX contract, which will come into effect on 1 July 2003, will continue to contain such arrangements.We encourage service personnel to recognise the long-term nature of life insurance throughout their service and not just at times of more active duty—when they may seek cover too late, just as schemes are withdrawn.