The rise, which came into effect last November, will leave individuals at risk of being under-insured or not insured at all for house, pet and health insurance. It will mean people taking a chance on protecting the roof over their head and leaving themselves with huge financial outlays for damaged or stolen possessions, sick pets and most important of all their own healthcare.
According to LaingBuisson overall penetration of the UK population by PMI is 10.5%. Considering the UK population is over 63 million, the number of people without PMI is over 57 million. And this number could well rise.
In November, IPT on general insurances rose from 6% to 9.5% – a rise Medicash believes could tip too many individuals turning their back on insurances, which while not compulsory like car insurance, are still very valuable to many households.
Sue Weir, chief executive of Medicash said: “If individuals spurn these lifestyle insurances which offer valuable protection to unaffordable potential financial consequences it will impact disastrously on the public and ultimately the economy. We are facing a catalogue of social consequences.”
Last November, Sue Weir wrote to Chancellor George Osborne outlining why IPT will seriously impact on the NHS and businesses in the UK and that healthcare insurance products be exempt, the same as life insurance, permanent health insurance and all other ‘long term’ insurance products. View the letter here.