Service personnel are not compelled to take out insurance for their military kit. Kit is normally replaced free of charge. However, individuals are required to pay for any loss or damage to kit which is due to their own negligence. As a function of welfare responsibilities, therefore, commanding officers encourage individuals to take out private insurance for their military kit (as well as for their own personal effects) to cover instances where the loss or damage to kit is due to their own negligence.
Personnel are eligible to claim compensation from the MoD for loss or damage to their personal effects resulting from the exigencies of the service, or from MoD negligence.
There are no plans to change current policy.