§ Lord Vivianasked Her Majesty's Government:
What was the outcome of the meeting between the Ministry of Defence and the underwriters of Safeguard on 30 January. [HL1448]
§ Lord BachThe meeting to which the noble Lord refers was not between the Ministry of Defence and the underwriters of Safeguard (Scottish Widows) but a management meeting of the underwriters.
After the meeting, Scottish Widows announced that from 14 February 2003 it would introduce a war exclusion clause for all new members joining the scheme and for any existing members increasing their cover. The details, which have been promulgated to service personnel, are as follows.
Prospective members will have the choice of joining without war cover on current premium and benefit rates or with war cover with premium rates loaded by 100 per cent. and benefits reduced to 25 per cent. of the sum insured for claims for death or critical illness arising from war. For existing members, these changes will apply only to any increased cover purchased on or after 14 February.
This is not a geographical exclusion but a war exclusion based on the Association of British Insurers (A B1) definition, i.e. scheme members will be unable to enter a claim for benefit which "results directly or indirectly from war, invasion, hostilities (whether war 126WA is declared or not) civil war, rebellion, revolution or taking part in a riot or civil commotion".
The exclusion will have no effect on existing members of Forces Safeguard who do not increase their cover on or after 14 February or on anyone joining the scheme (or increasing their cover) whose application is countersigned up to and including 13 February.