§ Mr. HancockTo ask the Secretary of State for Defence when his Department will reopen its life and personal accident insurance scheme to soldiers in the UK armed forces; which private insurance companies his Department has selected to cover service men and women liable to be involved in the war in Afghanistan who are not covered by PAX+ (Personal Accident and Combined Services); whether this scheme will be similar to the existing PAX+ coverage; if his Department will ensure that every soldier's coverage will be full and continuous; and if he will make a statement. [8418]
§ Mr. IngramThe Ministry of Defence has in place a comprehensive package of compensation schemes for injury or death resulting from service in the armed forces. The MOD's Armed Forces Pension Scheme and the War Pensions Scheme are absolutely unaffected by any commercial considerations. These schemes provide full and continuous cover for all personnel. For those who want additional cover Ministry of Defence facilitates the services of commercial insurers.
As a responsible employer, MOD encourages its personnel to take out the level of cover that individuals deem necessary. However, policies are commercial undertakings between individuals and insurers. The MOD neither carries any of the risk, nor gains from any of the premium. All such schemes differ, and it is for each individual to decide what benefits, restrictions and costs are deemed appropriate.
Since 1989 the MOD has facilitated a commercial personal accident policy (known as 'PAX') deemed most appropriate to armed forces personnel. On 31 August 2001, 60,035 armed forces personnel (over 25 per cent.) had a PAX policy, and just under half of these took optional life cover. On 9 October the scheme's underwriters—AIG Europe (UK)—implemented an exclusion period for new applicants from 21 September. Existing holders are unaffected; they can carry out their duties knowing that their policy remains in force wherever they are in the world, on or off duty.
A PAX exclusion period was last imposed during the Gulf War and a special scheme was introduced for personnel who had not bought PAX but wished to buy insurance. AIG Europe are working now to introduce a replacement for PAX, but I am unable to say how long it will take them to achieve this. This is a commercial matter for them.
1306WSince 11 September, some insurance companies have put geographical exclusions on new policies for armed forces personnel (mainly for those deploying to Oman and associated area); others have increased rates. As a result, some service personnel have found themselves without the cover they desired.
However, at present there are insurers still offering worldwide personal accident and life assurance schemes, although obviously they are keeping rates and terms under close review, and the situation could change. Currently such schemes are available, for example, from NAAFI Financial—through their website and 20 centres located in service garrison areas—and from Scottish Widows through the "Forces Safeguard" Policy. While MOD does not select, endorse or recommend individual companies or products without a full 'benchmarking' process, the MOD is both currently advising members of the armed forces of known personal accident and life assurance options and also facilitating the completion of application forms, especially for those deployed.
§ Mr. KeetchTo ask the Secretary of State for Defence (1) how many members of the armed forces in(a) the Army, (b) the Royal Navy and (c) the Royal Air Force have joined the armed forces life insurance scheme; what percentage of each service this represents; and if he will make a statement; [8206]
(2) how many members of (a) the Army, (b) the Royal Navy and (c) the Royal Air Force have applied to join the armed forces life insurance scheme since 11 September; and how many have been successful. [8207]
§ Mr. IngramThe Ministry of Defence facilitates an insurance scheme (PAX), which provides both personal accident and life cover for armed forces personnel. Optional life assurance cover is only available to those who first take out PAX personal accident cover.
The table gives details, as at 31 August 2001, of the number of Service personnel who were scheme members and also those policy holders who had elected to take out additional life cover.
Navy Army RAF Number of personnel covered by PAX (personal accident cover) 4,952 50,106 4,977 Percentage of total trained strength 13 50 10 Number of personnel who have additional life insurance cover 2,723 17,567 3,419 Percentage of total trained strength 7 18 7 Of course, many armed forces personnel have cover with other commercial providers more suited to individual circumstances, but we have no means of knowing details of these personal financial arrangements.
Figures on the number of personnel joining PAX since 11 September are not yet available centrally and could be provided only at disproportionate cost.