Non-disclosure Guidelines Now Compulsory

Last year The Association of British Insurers (ABI) and the Financial Ombudsman Service (FOS) produced a paper which tackled the question of non-disclosure in an attempt to be fairer to people with health insurance cover. Last week this paper was re-launched as a code of conduct can only be good news for people with medical insurance policies.

Non-disclosure refers to the keeping of relevant information from a private medical insurance company. This can be non-intentional or intentional. Both forms of non-disclosure, if discovered, can render your health insurance policy non and void.

The 400 medical health insurance companies of the ABI are now bound by the non-disclosure code. Kelly Ostler-Coyle, an ABI spokeswoman said that, “One year on, and the referral figures to the FOS have dramatically dropped since the guidance has been in place. Before it was seen as optional, which it isn’t, it never has been and all our members are using what is now the code.”

The health insurance industry suffered many complaints from unhappy policy holders who felt they had been dealt with unfairly. This also created very bad press in the media and an unease among the general public as the ethics held by health insurance companies. Complaints have been going down since the paper came into effect last year, from 85 complaints in the first quarter to 32 in the last. It remains to be seen whether they go down further now that the its rules are compulsory.

Another piece of good news for consumers is that insurance companies with the most complaints will be exposed. An independent report recommended that the Financial Ombudsman Service 'name and shame' companies with the most complaints.

The Association of British Insurers represents the interests health insurance companies and brokers and the Financial Ombudsman Service is an independent body which protects the rights of consumers. It is their role to monitor the financial service industry to make sure they are treating customers fairly. The FOS provide a helpline (0845 080 1800) and advice on complaints procedures should you feel you have been treated unfairly.