LAYA HEALTHCARE, formerly known as Quinn insurance, will this month stop refunding customers who cancel their policy mid-term, while Aviva health insurance is considering the introduction of charges for leaving.
A statement from the Health Insurance Authority, posted yesterday, says Laya healthcare is amending its cancellation rules from June 18th.
“From this date, for all new and renewing customers, mid-term cancellations will not receive any premium refund and the balance of the year’s premium will be due.
“For policies that commenced or renewed prior to 18 June, 2012, a proportion of the year’s premium will be refunded on mid-term cancellation, if there have been no inpatient or day-patient claims.”
Laya was unable to comment on the move last night.
Health insurer VHI said it planned no changes to its cancellation rules and would continue to refund customers switching to another insurer.
It does, however, charge a €50 administration charge to customers who have not made a claim to date that year, as well as the remainder of the year’s health insurance levy liable on the policy.
“If a customer has incurred a claim since renewing they will be liable to pay the outstanding premium due to us until their next renewal date,” said a spokeswoman.
An Aviva spokeswoman, when asked about the company’s cancellation policy, said: “Aviva health insurance does not currently apply a cancellation fee. However, this policy is under review.”
A survey from the insurance authority last month found an increased level of switching and a greater readiness of consumers to do so.
The authority said it was to be welcomed “as evidence of a better functioning market for health insurance with a greater degree of competition”.
