PMI
Private medical insurance (PMI) providers have been slammed for failing to cover vital cancer treatment and misleading customers. The criticism has been levied by cancer information charity, CancerBACUP.
According to a report released by the charity, most PMI policies do not cover cancer patients throughout the course of their illness. It claimed vital funding for cancer treatment is being suddenly withdrawn when patients are at their most critical and vulnerable stage.
CancerBACUP surveyed 14 PMI insurers in its study, out of which eight responded. However it stressed, the companies questioned accounted for more than two-thirds of the market. The results found that only BUPA covers cancer patients throughout the course of their illness.
The survey results also criticised unclear practices among PMI providers. It said many use the phrase 'active treatment' to explain the extent of their cancer coverage, but said the phrase is neither defined by insurers nor understood by customers, which leads to inconsistencies in cover.
"At present most insurers are able to be vague about the level of cover they provide and can decide whether or not to fund cancer treatments on a case-by-case basis," said Joanne Rule, chief executive of CancerBACUP.
In light of the findings, the charity is calling on the Financial Services Authority to review the selling of PMI. It is also urging providers to communicate more effectively with customers.
Responding to the report, Chris Kenny, head of life and pensions at the Association of British Insurers, said: "We welcome the suggestion that there should be fuller descriptions for customers of what their policy covers. This might be set out via a code of practice."
Second market leader AXA PPP healthcare has hit back at the findings. Its distribution development manager, Nye Jones, said: "We do not accept this criticism. We do make clear the scope of our cover in the documentation we provide to customers."
