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Armed Forces: Insurance

Volume 482: debated on Wednesday 5 November 2008

To ask the Secretary of State for Defence whether his Department negotiates insurance policy packages for service personnel. (233149)

Yes. MOD facilitates through commercial providers two commercial insurance schemes; PAX and Service Life insurance (SLI). PAX provides personal accident cover and SLI provide life cover for service personnel. However, these schemes are voluntary and are additional to the benefits which MOD already provides under the Armed Forces Pension and Compensation schemes.

Both PAX and SLI provide war risks cover, and neither increases its premiums for personnel deployed on operations. PAX premiums are the same for all personnel regardless of risks and the scheme has a membership of roughly one-third of the armed forces. The premiums of SLI vary according to gender, age and smoking history and are competitive because of a unique partnering agreement between MOD and the insurers.