Are PMI's Really Worth Taking Out?

Being treated in a private hospital has been seeninvalidate any claims that the holder may wish to
in an increasingly positive light and has raised thetake out.
number of private medical insurance (PMI) policies,The Association of British Insurers (ABI) however,
that are being taken out by patients, as thenoted that treatments relating to HIV/Aids,
treatment, care and MRSA infection risks that aregender reassignment and infertility were not
apparent throughout NHS hospitals worries a largecovered by PMI policies. Also excluded from the
number of people.standard policies, were dental treatment and
A survey conducted by Saga Private Medicalorgan transplants, however some insurance
Insurance also noted that more than two thirdsproviders were found to provide cover for such
of people noted that the cleanliness - or moretreatments.
correctly, the lack there of - in NHS hospitals wasThe ABI has released clarifications on
worrying and made them choose private medicalnon-disclosure rules that will make it harder for
services. Moreover BUPA, a health insuranceinsurers to refuse claims. However policy holders
provider noted that there was a 20 per centhave been warned that it is still easy for people
increase in the sales level of PMI, in the firstto be caught out.
quarter of this year than in the same period inMedical history
2007.Michael Vine, of Michael Vine & Co, the
However these PMI are found to cover only asolicitors, says: "Insurers want to know your
certain amount of medical procedures and people,medical history, which you detail on a proposal
so the question of its necessity is in the minds ofform. Even if you complete this to the best of
key industry figures. What is and is not coveredyour knowledge, it is difficult to remember every
depends on individual PMI policies; however theyreason for obtaining medical advice or treatment
are generally designed to cover acute conditionsfor the period requested. If you fail to disclose
such as disease, illness or injury that can besomething - no matter how apparently irrelevant -
treated fully.for the period, they could refuse your claim."
The benefits of PMI are that the policy holder canMr Vine suggests that you authorise your
be treated quickly, the can also have a choice ofproposed insurer to examine your medical records
specialists and hospitals, where they are toat the time of application, adding: "This might help
receive the treatment.in the event of a claim dispute if the insurer
PMI policiessubsequently alleges non-disclosure."
The biggest exclusion clause on PMI polices is forA spokesman for Tesco, which recently started
pre-existing medical conditions, in patients. Onselling medical insurance, says: "The last thing
most occasions, medical conditions that have beenanybody wants is to be surprised with a nasty bill
suffered during the five years before a PMI policyfor an expensive procedure. If our customers are
is take out, will not be covered. Alsoworried that their insurance might not provide
non-disclosure of any previous conditions couldcover for any treatment, we advise them to call
also make the insurance policy invalid anda helpline for clarification.