§ Mr. Marlowasked the Secretary of State for Trade and Industry if he will introduce legislation to require interest to be payable on life insurance policies from the date on which they fall due until such time as they are paid.
§ Mr. Alexander FletcherI understand that many life insurers do pay interest in certain circumstances. I am not aware of evidence that the problems that there may be on this score are such as to warrant contemplating legislation. However, I expect life insurers to follow the statement of long term insurance practice which, amongst other things, provides that payment of claims will be made without avoidable delay once the insured event has been proved and the entitlement of the claimant to receive payment has been established.