§ Mr. BattleTo ask the President of the Board of Trade what information he has on the average duration of cover received after claiming against a mortgage protection policy; and what discussions his Department has had with the insurance industry in respect of proposals to extend coverage of benefits beyond the present normal fixed period following Government plans to compel all new mortgagees to take out protection policies.
§ Mr. Jonathan EvansThe Government have no intention to compel purchase of mortgage protection insurance but wish to encourage personal responsibility wherever possible.
There have been no specific discussions with the insurance industry on extending maximum duration of mortgage protection benefit beyond what is currently available—commonly, a total of 12 months, but up to 24 months in some cases. New, more flexible products are anticipated to arise from wider take-up of the insurance.
The Government do not collect information on average claims duration. However, soundings taken by the Association of British Insurers suggest average claim payment periods, in excess of a typical 60-day waiting period, of six to eight months for unemployment, four to six months for sickness and five months for incapacity following an accident.