Aviva has pledged to refund its PMI policyholders if claims costs for 2020 and 2021 are lower than expected, as a result of Covid-19.
This applies to both those covered on SME and individual policies. The calculations will be independently audited.
Aviva says that while the terms and conditions of its PMI policies have not changed, the coronavirus pandemic has restricted the availability of private treatment.
However it adds though that customers’ cover will apply if treatment is available privately.
Aviva says it anticipates that treatment may be delayed as a result of Covid-19, leading to a overall claims costs being lower than expected in the short-term. However, its says it expects treatment to be delayed rather than cancelled – and the company anticipates overall claims costs subsequently to be higher.
As a result this period of lower claims may be broadly offset by the period of higher claims.
Aviva says that for its large corporate PMI and Healthcare Trust clients, it is seeking to apply similar principles. It adds: “Due to the complex nature of our corporate health products, our approach will vary on a case-by-case basis. This will naturally need to differ across fully insured, corporate excess and trust schemes given the differing nature in the way each type of policy operates.”
Aviva says at its understanding of the impact of the Covid-19 crisis becomes clearer, it will provide further details on how it will deliver on this pledge to its PMI customers.
From 28 April the NHS confirmed that restoration of some services would start to take place across the UK on a localised basis.
This means that private hospitals can start to support non-urgent procedures, which had previously been deferred.
In the first instance, Aviva says it anticipates that private resources will be aligned to providing critical care such as cancer treatments, to both private and NHS patients.
This means that PMI customers may experience longer waiting times for some non-urgent treatment during this time.