Warning: Is your pet insurance at risk?

Lloyds TSB and Halifax have announced they are withdrawing from the pet insurance market.

This could be disastrous for those owners whose pets already have an on-going illness.

Re-insuring with another provider would not cover a pre-existing condition.

“When I took out the policy, the ‘adviser’ told me of the benefits of the more expensive policy, and this included the fact that if the dog developed a ‘lifetime illness’, provided I kept up the premiums, it would be covered year in year out, with a further £3000 each and every year. At NO POINT did the adviser tell me that Lloyds TSB could pull out of the market at any stage, leaving me high and dry!”

We believe that policyholders are being treated unfairly, particularly those who had bought so-called ‘Lifetime’ policies and that a claim should be issued in the County court as an alternative to taking your case to the Financial Ombudsman.

Halifax have, in some cases, already made final settlement offers to customers who have complained. It appears that Halifax has put aside a compensation pot to placate angry pet owners, but will offer the cash only to persistent customers who complain.

Source –

http://www.consumeractiongroup.co.uk/forum/showthread.php?334741-Lloyds-TSB-puling-out-of-Pet-insurance-Have-I-got-a-case&p=3696703#post3696703

Radio 4 MoneyBox Saturday 11th Feb 2012,

Unequivocally concluded that Halifax are legally in the wrong and that victims of this should take action.

The only point with which we disagree is that the programme’s advice was to go to the Ombudsman. This is not good advice. We have already heard stories of this problem being put before tee ombudsman and rejected. The ombudsman has found in favour of the insurers on this issue.

This is not surprising. The Ombudsman has in the past shown himself to be unwilling to take on the industry in any meaningful way.

Ombudsman decisions are very conservative and where the complainant wins – the awards are very half-hearted.

An Ombudsman complaint can exceed two years. There is no transparency and by the time an outcome is reached, the complainants may have moved on, in this case their pets may have died – or even worse, they may have been put down for lack of funds.

The only way forward is for county court claims -and as many of them as possible.

If you have listened to the MoneyBox programme you should now feel much more confident about making a claim. County Court claims are straightforward, quick, easy and relatively free of risk of costs if they are below the small claims limit.

If you come to the Consumer Action Group forum we will be pleased to help you with your claim – or else you can follow the progress of the claims of other people.
Pets & Vets Forum

Halifax have offered £6000 as a full and final settlement in at least one case, so don’t give up. Persistence pays.
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