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Life Insurance Fears Following The London Bombings TragedyFollowing on from the tube train and bus bomb attacks in London there was a move from several UK insurance companies to reassure victims that claims would be processed "quickly and sympathetically". This need for reassurance came in light of concerns that many victims of the blasts would not be covered by their existing health and life insurance cover. This would mean that families of the bombing victims could not only lose a relative, but also suffer financial hardship as life insurance companies refuse to pay out on policies. Standard Life, Axa-PPP and Norwich Union all announced that policy holders would be covered for events on the 7th July. Standard Life said that the company was not looking to "cause more distress" to victims and their families. Reuters have been told that other firms such as Churchill, Endsleigh and Direct Line are likely to be sympathetic when dealing with people who have been injured or whose holidays have been disrupted, however these insurers have fallen short of announcing complete cover. Churchill said that it would, "provide cancellation and personal accident cover if customers are physically injured on the way to their holiday departure...in addition, if any of our customers are away on holiday and hear of injury or death to a close relative, we will facilitate their return home...missed departures due to travel delay in central London will also be treated sympathetically." This is despite Churchill including 'acts of terrorism' exclusions into their policies. This means that policies will generally not pay-out if losses are sustained due to any terrorist activities. This represents one of several general exclusion clauses which are often regularly added to many policies and which prevent payout for particular potentially costly situations for the insurers. The terrorism exclusion is still regularly included in policies despite the introduction in 1993 of the Terrorism Insurance Program which provides reinsurance cover to the majority of U.K. insurers, is expected to absorb a large proportion of the insurance claims resulting from the 7th July attacks. Under the program, the insurance industry as a whole is liable for 75 million pounds per terrorist "event", with losses above that covered by a mutual reinsurance pool. Should the costs rise above the funds available through the pool, then the UK Treasury will step in to cover the remaining costs. Another group recently highlighted who may fall foul of this exclusion is the emergency services workers. Unison representatives have warned that this exclusion clause could leave emergency workers and their families high and dry if they are injured or killed. This would prove particularly disastrous for families with personal insurance policies which cover accidents and that also offer mortgage protection, as the potential loss of income due to injury combined with the lack of mortgage cover resulting from the exclusion, could mean those workers' families affected may experience difficulties maintaining their future mortgage payments. Some fire crews in Somerset have already threatened to go on strike due to claims that they may not be insured if they are injured whilst dealing with a terrorist attack. This action has since been called off, but many emergency workers are still justifiably worried, not only for their own safety, but also their families should anything happen to them whilst responding to a terrible emergency such as has already been seen in London. Unison ( http://www.unison.org.uk/ ) pointed out that its own insurance policy which is offered to members provided full cover and called for other insurers to do the same. Sam Oestreicher of Unison said, "We are asking all insurance companies to look at their policies and if they have such exclusion clauses to drop them". The Association of British Insurers has also tried to reassure emergency workers and other customers saying, "most types of insurance are readily available without terrorism exclusions... The major personal types of insurance, such as life, household and comprehensive motor insurance provide cover for the effects of a terrorist incident as a standard feature of the policy." Today the plethora of online comparison sites such as Moneynet ( http://www.moneynet.co.uk ) or Moneyfacts can search all the insurance policies available and provide guides to help consumers make decisions, however the need for people to check with providers to ensure they are not left unprotected has never been more evident. The insurance industry itself has admitted that some policies do have exclusion clauses and are also advising policyholders to study the small print or contact their insurance company or broker to determine their cover levels. Other articles by this author »
About Richard Green
Richard Green lives in Edinburgh, occasionally writing for the personal finance blog Cashzilla ( http://cashzilla.blogspot.com/ ), and reciting Vogon poetry. Related
And here is another random article you might be interested in... The True Cost Per Minute of Long DistanceMathematics is unerring. As a child we are taught that 2 + 2 = 4. This will never change and will always yield the same results; except when it comes to calculating you phone bill. Most long distance carriers advertise their low rate per minute costs. However, before you can really make an informed decision as to which carrier offers the best value you need to consider all of the "other" costs that may be buried in the fine print. Read all of the restrictions and costs in detail then analyze these "added" costs against your specific calling habits. Only then will 2 + 2 truly equal 4. For instance, many carriers will charge a monthly fee in order for you to qualify for their low rate per minute charge; while other carriers will impose a minimum monthly usage charges. If you fail to reach this minimum usage then you are charged added costs. The key to getting the overall best value on your long distance is to review your monthly statements and analyze your calling habits. The key things to look for are the total number of minutes, call duration, for all of your long distance calls. Does this number change every month or is it more or less constant? Is there a particular state or states that you call more often than others? Once you have this information at hand you then make detailed calculations to determine the true cost per minute of various calling plans. You need to be able to take the additional charges (monthly fee, minimums and so forth) and divide it by your usage (total number of minutes) then add that to your rate per minute. Only then will you have a true cost per minute of your long distance carrier or analyze the various plans from other carriers. Let's take a look at some examples and you'll get a better feel for what I am saying. Here are three plans ("A", "B" and "C") for comparison with three different individuals: Plan "A" - $0.04/minute, plus monthly fee of $5.95; Plan "B" - $50.00 for 1200 minutes, plus $.07/minute over the 1200 minutes; and Plan "C" - $0.10/minute with no other fees. Now let's look at three different users and determine which plan provides the best value. Tania: Tania's total annual long distance usage was 14,400 minutes, averaging 1200 minutes per month. However, her usage was not consistent with some months as low as 600 minutes and other months as much as 1,800 minutes. In her case we can calculate the three plans this way: Plan "A" Plan B Plan C Clearly in Tania's case plan "A" would be the best value for her money. Chuck Chuck also uses the same 14,400 minutes of long distance but his monthly average of 1,200 minutes is very consistent month after month. In his case we can calculate the three plans as follows: Plan "A" Plan "B" Plan "C" Clearly in Chuck's case plan "b" would be the best value for his money. John John, on the other hand, used very little long distance every month. His total usage was only 1,200 minutes for the year and a consistent average of 100 minutes per month. In this case we can calculate the three plans in the following manner: Plan "A" Plan "B" Plan "C" Clearly in John's case the best value is plan "C". So, here we looked at three different people and their calling habits looking at the same three calling plans with each one selecting a different plan for the best value. In order for you to get the best value out of any calling plan is to know your own specific telephone calling habits. Take the time to analyze your calling habits and you will be able to save money and get the best value for your money. Thanks for reading... I hope it has given you something to ponder. Ray Klesc Providing the best value in telecommunications products and services from leaders in the industry *FREE eBook* â€" "Phone Bill Saving Tips for Home and
Office" 40-page report packed with dozens of tips and ideas that
will start saving you money immediately. Other articles by this author »
About Raymond A. Klesc
Ray Klesc President and CEO of Global Value Connect providing the best
value in telecommunications products and services from leaders in
the industry since 1995. For more saving tips and ideas may we
suggest our *FREE eBook* "Phone Bill Saving Tips for Home and
Office". This 40-page report ispacked with doazens of tips and
ideas that will start saving you money immediately. Related
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