One of the items highlighted after workshops discussing Quality Product Research ratings (available on Quotemonster) is the treatment of the rating for excess payments in medical. One adviser highlighted these examples of differences:
Some excesses – the most generous type – are applicable for all expenses, and the 12 month period for the excess starts when you make your first claim. This gives you the maximum length of time in which to exceed the excess. A less generous variation is to have the 12 month periods aligned to the policy anniversary. It is even less generous when the excess applies per claim, rather than per policy year. A key variation with specialists and tests is whether the base policy excess or defaults to zero. Waiving the excess for certain Trauma conditions (Partners Life does this for four companies) is also a bonus.
Thanks to Lance Wickens and other that have picked up on the issue, Alan Rafe and the team will be consulting with insurers and setting up a new rating for excess terms in the next few weeks.