§ Mr. Michael Cocksasked the Secretary of State for Trade and Industry (1) what arrangements he has made for monitoring on behalf of the consumer the legitimacy of claims made by insurance companies which pay benefits in relation to hospitalisation;
(2) if he will investigate the claims made by insurance companies which advertise cash payments for hospitalisation, advise on an advertising code, and issue guidance for consumers which will enable them to make an actuarial assessment of the value of such payments.
§ Sir G. HoweSeveral insurers are advertising policies of insurance against the risk of hospitalisation under which, in accordance with the terms and conditions of those policies, stated sums are payable to the insured if he, or members of his family, has to go into hospital. There is no reason to believe that the benefits to which policyholders are entitled under these policies are not being paid, and I have received no evidence to suggest that any of the associated advertisements require investigation. As with other forms of insurance, however, it is for prospective policyholders, and their advisers, to consider whether the terms and conditions offered are suitable to their circumstances and whether the prospective benefits are commensurate with the premiums that would be charged. The hon. Member will however see from Clause 38 of the new Insurance Companies Bill that I am asking Parliament to give me power to control insurance advertising.