Halifax withdrawing from Pet Insurance; I have a complicated pet!

[selbylass]

Apologies in advance for the length of this...

I’ve also received a letter from BDML Connect informing us that Halifax is withdrawing from the Pet Insurance market and the underwriters (Agria International Forsakring AB) has decided to cease offering renewal terms to Halifax customers. This means our beloved Yorkie, Billy-Bob, will no longer be covered for his Bradycardia. But it’s even more complicated for us. Billy was referred to Chestergates Veterinary Hospital by his vet in September 2008 because she thought she’d heard a heart murmur and his heart rate was too slow. At Chestergates he was examined by both a Neurologist and Cardiologist. He underwent most Biochemical and physical tests, including a MRI scan, x-rays, ECG, blood tests etc. Nothing was found to support a pathological diagnosis for his slow heart rate and we were told Billy’s heart was structurally sound. He was compared to athletes who often have slow heart rates. However, it was decided Billy, because he isn’t an athlete, would probably benefit from taking a drug called Corvental-D. (Corvental-D is usually prescribed to older dogs suffering congestive heart failure or respiratory problems.) The Cardiologist believed; although Billy’s heart was structurally sound, the chemicals in Corvental-D would raise his heart rate by approx. 20-30 beats per minute. Following an initial 6 week trial it was found Billy’s heart rate did increase and he was prescribed the medication long-term and discharged from the Hospital. I hope you can now appreciate the problems this is going to cause for us. Although Billy’s bradycardia was not found to have a pathological cause, it could be argued, should he develop any future diseases/conditions that they are directly/indirectly related, either because bradycardia is directly related to the performance of the heart and therefore systemic, or possibly due to side effects from long-term use or Corvental-D. This means Billy, although his vet assures me at present is in good health, is theoretically uninsurable for most diseases/conditions he may or may not develop in the future. How could I begin to put an estimate of future care costs together?

 

We have been offered alternative cover to be provided by Petwise (owned by BDML- Administrators for Halifax eXtra) but is both expensive and totally inadequate for our needs and we strongly believe Billy-Bob’s Halifax eXtra ‘Life-long’ policy should continue to be honoured.

 

I took out Halifax eXtra pet insurance 6 years ago after much research into the different pet insurance products on the market at that time. I chose Halifax eXtra based on the information provided on the Halifax website and because I believed the Halifax was a reputable financial Institution that offered a comprehensive, and I quote: ‘LIFE-LONG’ and ‘CONTINUOUS’ Pet Insurance policy. I purchased the policy on the 9th February 2006 via the Halifax website. I have copies of the relevant web pages on which I based my decision to buy the product. The information clearly states ‘life-long cover’ and even goes on to explain what it means by referring to “some pet policies stopping paying out after the first 12 months of treatment or only paying up to a maximum benefit per condition.” The information also states, “Halifax Pet Insurance offers continuous cover that is invaluable if your pet develops a long-term condition.” It gives the examples of eczema and arthritis as long-term conditions.

 

On the web sites ‘Pet Insurance Q & A web page’ Halifax explains what ‘Continuous/Reinstatement’ means; basically reiterating the above. Further down the web page there is a question about advantages of direct debit payments and the latter part of the answer given, is, quote, “the annual premium is divided equally over 12 months. When your policy is due for renewal you can relax in the knowledge that cover will continue unless you advise us otherwise.” This reinforces the knowledge and belief that the policy is ‘Life-long’ and renewal is just a formality. Further down the web page it states premiums can also be paid in full.

In my Halifax ‘Welcome letter’ dated 9th February 2006. They thanks me for choosing to protect Billy-Bob’s health with Halifax Pet Insurance eXtra and reassure me that I have chosen the right cover, ‘no matter what the future brings’.

 

The ‘Pet Insurance Policy Schedule’ clearly states the policy inception date but for some unknown reason my reference number changed when the underwriter changed in 2009 giving a ‘false’ policy inception date. This was only brought to my attention when I called BDML last Friday in an attempt to find out how to contact the Halifax direct. The young lady I spoke with informed me my policy started in 2009 but was very helpful and after I insisted Billy-Bob’s policy started in 2006 she took another look. On closer inspection she found the first reference number and advised me to quote both references on all correspondence because the first reference wasn’t immediately evident unless someone knew to look for it. She advised me to write to Halifax head office, Agria; the underwriters, and BDML and to send copies of everything that supports my complaint. I did it today by recorded delivery. The only thing I can find that they could try to use is in the policy booklet it states “this is an annually renewable policy.” I’ve always believed the policy was ‘Life-long’ and ‘continuous’ while premiums were paid and up to date; and it was the premiums that were renewable because of rising claim costs and changes of underwriters.

 

By the way, I haven't even received a letter from the Halifax. The only correspondence came from BDML informing me of the Halifax decision and BDML's offer of a new policy with Petwise that wouldn't cover pre-existing conditions. Billy's renewal should be on 10th Feb. Halifax have taken down their Pet Insurance page and have put up BDML's contact number. They have also had the once dedicated phone number discontinued.

[BankFodder]

You are being treated unfairly and I am sure that you can deal with it but it will take some effort. These kinds of people are not used to listening to their customers or giving in to pressure.

 

I know that you are aware of the other thread on this issue http://www.consumeractiongroup.co.uk/forum/showthread.php?334741-Lloyds-TSB-puling-out-of-Pet-insurance-Have-I-got-a-case&p=3696703#post3696703

 

Please will you follow the instructions there to begin with - get a full report as to the cost of future care and start of reading about COBS and also log your written complaints.

 

When you have done all of this came back here.

 

You can either take your complaint to the FOS or to the County Court. Halifax will prefer that you go to the FOS because it takes a long time and FOS awards are normally pretty conservative - assuming that they award in your favour. They don't really much teeth and you could certainly be waiting for up to two years for some kind of decision. Also, for the most part you will have no idea what is happening.

 

Beware of Halifax trying to buy you off with a token lump sum - they have no interest in you and really will just want to get you off their backs without letting all of the other people who are being let down about it.

 

If you want to take court action, we can help you. I would say that it would be quick, very effective - a high chance of success - although it is likely to be more than £5000 so at the moment it would fall outside the small claims limit so that there would be some risk of costs if you lost.

 

However, on what you say, I rate you as having a very good chance of success

[BankFodder]

Please will you let anyone else who you know with the same problem that we are trying to help people deal with it here. I think that this is a very serious betrayal of trust from an industry which has rules about treating customers fairly and which is breaking these rules because it is not frightened of the regulatory system.

If we can all put some effort in to this, maybe they can learn to be frightened of this.

 

I've flagged your case to BBC Radio4 MoneyBox and they are looking into it. If they decide not to use it then I will let some other press contacts know about it.

[selbylass]

Hi Bankfodder,

thank you so much for your reply. You've already helped me more than you'll probably realise. In the letters I’ve just sent to Halifax, BDML & the underwriters Agria, I did quote the COBS principles 6, 7, and 8, because you explained it so well on one of your posts. I also wrote to them with everything that I’ve put in my post above including copies of letters web pages etc. I must point out, last week when I received the letter from BDML informing me of Halifaxs decision to withdraw, I was devastated and then quickly became very angry. I was totally clueless and felt overwhelmed but a search engine led me to your web site and I have to say a BIG thank you because all the insight to help me put the above info together has basically come from your posts and advice gleaned from some other threads on this site. I DON’T want a lump sum payout – I just want Billy’s insurance honouring. They promised reassurance and they’re taking it away at a time when he’s most likely to need future care (he’s 7.5 years).

Can I somehow enforce them to do that?

And how can I even start to get a quote for future health costs when Billy’s condition is not pathological, but the likely hood is, IF he does get sick in the future another insurance provider will blame his Bradycardia or the drug he’s been prescribed because it wasn’t a drug usually prescribed long-term?

I will try to find other people with the same issues from other sites I’ve looked at and definitely point them to this thread. You’re absolutely right when you say they should be made to take notice.

It saddens me deeply and I cannot help but wonder how many Halifax pet insurance policy holders will now face the heart breaking decision of having to put their beloved pets to sleep. Pre-existing conditions will not be covered by any new policies and the Halifax customers may not have the financial resources to pay for their pets’ ongoing treatment.

[BankFodder]

Selbylass, high praise indeed. Thank you.

 

The solution is in the hands of all of you. The insurers have taken their economic decision and of course it is in their own interests and not yours.

 

Once upon a time they sat down and worked out their long term care scheme as a way of ensuring customer loyalty to their insurance product. The did their calculations and decided that this would be a good profit-making idea.

Now they have reappraised the scheme and they realise that it doesn't make them the profit they wanted - or maybe it is even running at a loss so they have decided to call a halt to it.

(The banks have just done the same kind of thing by dumping charity cards)

 

Of course what the insurers should have done is to have said - OK, we will continue to re-insure anyone who has already come on to the scheme and we will continue to honour our commitments to them but we won't allow any new clients into the club.

What they are doing here is a bit like getting everyone to earn loyalty points or trading stampts etc and then suddenly announcing that they no longer have any value

 

The insurers lack morality - as well as a sense of their legal obligations - I mean, what are we talking about here? We aren't talking about insuring tortoises with 100 year life expectations. We are mainly talking about insuring moggies and pooches which in the main aren't going to live beyond - whatever their life expectancy is

 

The insurers came up with a long term care scheme to ensure customer loyalty but when the chips are down, the customers soon realise that for the insurance industry, loyalty is a one-way street.

 

Check your policy small-print carefully. Make sure that their isn't some little get-out clause which you haven't noticed. On the basis that there is not, then you have a legal right to expect the continuing life-long cover which you have signed up for.

 

I fully expect that this right would have to be enforced in the courts so that means that you would have to be prepared to go to court.

 

On the basis that you win, courts almost always make their awards in damages. This means that a financial assessment has to be made as to the likely cost of care so that the court then awards you a lump sum which is meant to put you into the position you would have been had the insurer continued to honour their contractual obligations.

A lump sum can be very unsatisfactory because your estimate might be outstripped by events so that you have to end up funding some of the care yourself. On the other hand, your pet might suffer a fatal accident in which case you are quids in because you don't have to give any unused money back.

 

Another remedy the courts might award is called - specific performance - which means that the defendant is ordered to carry out their side of the bargain. This would mean that the insurers would be required to continue insuring you on the same basis as originally agreed.

It is rare to get specific performance. he courts don't like to order it and where money is seen a reasonable and satisfactory remedy, the courts will always order damages.

I expect that a court would decline to order specific performance in your case.

 

This means that you have to carry out a cost exercise. You will need to get as much authoritative evidence as possible. Aim for the high side (don't go mad). If you go to court, you would ask for specific performance and damages in the alternative.

 

 

I really think that you need to get as many other people over here to this thread as possible. It will make a lot of difference to have a supportive interest group here. Also, for the purposes of the media it will be better to show that it is a big problem.

MoneyBox have told me that they are looking into it - but if I don't hear from them in the next few days then I'll contact You and Yours and also tout the story around the press as well.

 

Now you need a plan of action.

 

Firstly, I can imagine that a load of you are getting into a huff and saying that right, you are going to insure with that company again. You will go off elsewhere as a sign of protest.

This is a BIG mistake. The insurers aren't bothered about your protest. They will be happy for you to go because that places distance between them and you. They will see their problem disappearing into the distance and getting smaller.

You should stay with the insurer. Make it clear that you want the existing product and when they say that it is no longer available, tell them that you will take what is on offer - but under protest. If they insist that the existing medical condition is not covered then make sure that they know that this is an onerous and unacceptable condition which they are foisting upon you and that you accept it only under protest. Make sure that this is all set out in writing. Everything in writing.

 

It will help you a lot in front of a judge to show that you have done the best you can to honour your side of the long term insurance bargain and that the insurer has placed obstacles in your way.

 

You have already sent letters so that is an important start.

 

I think that you should send them a further letter warning them that you are proposing to take legal action and that in preparation for this, you will be preparing an estimate. Tell them that you will be seeking expert opinion and that if this incurs any expense, you will be looking to the insurer to pay for this as well. Give them 7 days. Then begin the estimate.

 

The next thing to do is to get your estimate. Make sure that it is very detailed. Make sure that you have several expert opinions to support your estimate. You may need to pay for reports - I don't know but get as much evidence in support as possible.

 

You need to set out, your pet's medical condition, prognosis, likely cost of care year by year. It will really help if others are involved and the exercise is discussed between you. The forum environment is ideal for this.

 

Then you need to write to the insurer with your estimate and require payment within, say, 14 days. They will ignore you. Then you send them a 7 day LBA - and then sue.

 

I understand that the county court small claims limits are likely to increase to £10,000 in April (we'll see) and if that does happen, then April is an ideal time to begin your action. You should buy our county court guide to understand how the court procedure works. It isn't difficult.

 

We will help you all the way.

[BankFodder]

Incidentally, when you send them your first estimate, make sure that it really is on the high side. Factor in all contingencies and make sure that you are really happy that the money you are asking for is easily enough to take care of any problems ion the future.

 

Also, you should start stirring it up. Contact your local vets, your local RSPCA - everyone you can think of. Tell them to come here.

 

By the way, for an easy life you could go to the FOS but you can expect delay, lack of transparency and a limp-wristed decision up to two years later and in the meantime you will have had to look to yourselves. The FOS route, apart from anything else exhausts and demotivates - which of course, plays into the hand of the insurer.

[selbylass]

Hi Bankfodder,

 

Thank you for all your advice; it's very much appreciated and I am in the process of trying to follow it.

I'm trying to make contact with others in my situation and I've directed them here (I think). It appears some people were informed months ago that the Halifax was withdrawing from Pet Insurance and Halifax/ or BDML have only been notifying people 3-4 weeks prior to renewal due date (in my case last week). That means there's been a watered down effect, with regard to customer response, and probably why there was no 'public outcry'. I guess some people will have just quietly accepted it and gone elsewhere, and others have probably either already accepted a 'goodwill payment', or have gone down the route of the Financial Ombudsman. Guess we'll know soon enough.

 

Meantime, I'll be getting on with your suggestions. Again, many thanks.

[citizenB]

That is even more disgraceful if they are leaving it so late before renewal !

 

I am with Marks and Spencers and am a little concerned they might also withdraw from this type of continuous pet insurance.. I will be keeping an eye on your progress.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?335739-Pet-Insurance-Halifax-amp-LTSB-pulling-out-of-the-market-Will-M-amp-S-be-next

[BankFodder]

Yes, I can imagine that they will all be doing it soon.

 

I have sent some messages to a few admins of various pet forums - but as Selbylass says, it is being done by stealth and this is the way that the insurers will get away with it.

 

Of course, if a pet hasn't developed any health problem, then there sill be no problem about transferring to another scheme. However, as they are being dumped by the insurers, I would go back and require that they pay all the extra premium money paid over for the lifelong scheme because the insurer will have effectively converted the insurance into a normal - but extra expensive policy.

 

Where a pet has developed health problems then the owner should come here - even if they were informed some time ago and have now moved to a different company. We can still help them if they want to join in.

[selbylass]

Hi,

I've just had a call from a lady in BDML complaints regarding the letter I sent on Thursday about Billy's Halifax Policy (still no contact from Halifax). She won't speak to me until she has had permission from my husband (I originally put the policy in his name & he's back at 3:00pm) so she's going to call back then. I have a feeling she's either going to try to fob us off with 'excuses' or maybe offer 'a goodwill gesture'. What do I do? I don't want to appear unco-operative but I don't want to be bought off either.

 

I'd already booked Billy in to see his vet at 4:45pm today.

 

Many thanks, D.

[BankFodder]

Talk to them but do not agree anything on the phone. Say that you will require time to consider the situation and that you are consulting with your vet to see what the likely long term care bill might be. Tell them that you want whatever they say put in writing.

 

I am quite sure that you are right that they are going to fob you off. I expect that they have had quite a few people call them and complain and that this is how they like to try and deal with it.

 

Very importantly - don't forget that you have the legal right on your side and also that they are not interested in what is est for you or for your pet.

 

I suggest that you be quite firm with them. Set the tone for the conversation and make sure that they understand all the way through that your position is that you will want them either to continue cover or else they will agree in writing to provide a lump sum which will more than cover the most pessimistic estimate.

 

Of course, your best position would be to tell them that you have written to them and that you require a response in writing and that you are not prepared to do anything on the phone. You would be best off telling them on the phone that you will be suing then in the county court very shortly if they don't take you seriously.

Play it the way you want - but the harder the better for you.

 

make noted of the conversation, get a note of the name of the person you are talking to and their email address.

 

I am quite sure that you will find that if you put them under pressure that they will wriggle and it will become clear that they have very little to say to you.

 

Let us know.

 

I am very disappointed that we have not had anyone from any other forums come to us about this. I am sure that it is a problem for many people

[selbylass]

Hi Bankfodder & thank you for your very quick response.

 

Yes, I'm also very disappointed because I know there are others on a least one other forum. But from the searches I've done, and the information I've found on the web, I think this has been going on for a while (and I must live in a bubble because I was totally oblivious). Our pet policy must be one of the last to renew, and given they only gave 28 days notice to renewal date, it doesn't give people chance to fight it before their pets cover runs out. Plus the way they've done it, will have watered down the response effect, leaving people feeling isolated - like me.

 

I'll let you know how the conversation goes with the woman who calls from BDML and also the vet consult, later today. Thank you, D.

[BankFodder]

Well if you want to fight it, we can help you - with a very good chance of success. If you do succeed then maybe others will be encouraged to go back and complain

[selbylass]

Yes, definately. Thank you.

[citizenB]

Hi SL, have alerted BF to your post.

 

Ignore me.. He had already responded.. sigh..

[selbylass]

Okay...,

Just had the conversation with the woman from BDML. Basically it was a courtesy call thanking us for the letter of complaint and to inform us that she has replied with the appropriate complaints procedure and addresses for Halifax and Agria as well as information on the Financial Ombudsman. I told her I'd already written to them and she asked f they'd replied. I told her 'No' but I only posted the letters Thursday.

Taking into account that I know these calls are recorded; I believe she was as helpful as she could have been. I told her I didn't understand why I was instructed to write to BDML (who are the Administrators) and Agria (the underwriters) because when we chose the policy it was marketed as a Halifax policy and therefore surely they are responsible. Her reply was hesitant and I got the impression she was trying to be as honest as she could on a recorded line. Basically, she told me; ‘That’s the problem Halifax has left us (BDML) with. We have people with policies that have certain specific benefits unique to the policies that were marketed and sold by Halifax. By withdrawing, from pet insurance, Halifax has made it so we cannot renew the policies and underwriters will not agree to cover pre-existing conditions under what would have to be new policies because the Halifax have withdrawn their product’. I told her we were going to take court action against the Halifax and she replied, “I understand.”

Now to take Billy-Bob to the Vet!

[BankFodder]

Ta. Yes, start accumulating the info you need and we'll help you start your action

[selbylass]

Sorry to be a pain - but I didn't think it could get any worse!

 

Took Billy to see his Vet & she is going to do me a prediction of Billy's future medication costs in association with his Bradycardia. She also put my mind at rest regarding any possible future diseases/illnesses being discarded by an alternative Insurance provider because they might argue they're indirectly related; but that's not really relevant.

 

She noticed Billy's hair on his back is thining and feels this, a long with a couple of other minor symptoms, could indicate a serious underlying cause. Now, Billy is a very highly strung little dog (ever since his experience at Chestergates when they did all the tests and he came home looking like something out of a vivisection lab) and unfortunately she had to muzzle him while a nurse held him down to take blood from his carotid vein in his neck. He seemed OK until we were on our way home and he had two massive grand mal seizures; one after the other. We rushed him straight back and she gave him diazepam. This was at 5:30pm. He's been okay since and appears settled now but I was left with a hefty vet bill of £165.00 and now I'll have two more 'pre-existing' conditions that showed signs before I could take out another policy. The excess on is current policy is £75.00 plus 20% of the costs of any new condition (Halifax only brought the 20% in last renewal but I let that one go).

 

Should I put in a claim to Halifax? His policy would have been up for renewal on 10th Feb.

[BankFodder]

I think that you should get a second opinion as well.

 

The recent imposition of an additional 20% is new information which you hadn't disclosed before. I think that this is an unacceptable change in their insurance as well and if you sue then your claim should be based upon the terms of the policy as you accepted them when you first took out cover with this company - as long as this is within the 6 year rule.

 

Have you already incurred any costs under this 20% rule? By imposing this 20%, Halifax are already in breach of their contractual obligations.

 

Get your first estimate as soon as possible. then we will help you write a letter to Halifax, putting them on notice that you reject their proposed termination of the insurance cover and that furthermore you reject the new 20% additional excess rule. You shoujld tell them that you wil be taking action to recover all money paid out in excess of your contractual obligations under the original contract. You should also enclose the estimate for the lifelong care of your pet, tell them that you will be obtaining a second estimate and you should invite them to carry out their own independent estimate if they wish.

You should inform them that in any event that you require a response within 7 days.

You won't get a satisfactory response, of course. You may get a flurry of phone calls - and you know how to deal with them.

You may get a half-hearted offer given as a gesture of goodwill and under conditions of confidence. Do not worry about their conditions of confidence. Reject any confidentiality requirement. You owe at least that much to other pet owners. Also, there is not single court in the country which would penalise you or say that you were unreasonable to reject a settlement because you did not want to be gagged.

 

If/when you do not get the response you want within the 7 days then send them a 7 day lba and then sue.

 

Make sure that you are happy to go down this route and that you are prepared to represent yourself in court. Your chances of success are extremely high - and in all likelihood, the bank will cave in before the hearing - but you can be sure that they and their advisors will get into dirty tricks.

 

Be aware that if the claim is for more than £5000 on today's limits then you face a costs bill if you lose.

 

Let us know what the estimate is. We may be able to come up with a strategy to allow you to remain within the small claims limits.

 

You need to get moving on this quickly

[BankFodder]

I have just been contacted by someone who has a similar insurance provided by HSBC. They have a 20% excess as well but that only comes in after the pet is 9 years old and it was part of the original contract.

 

Can you check at what point your 20% excess was introduced into the contract

[BankFodder]

Can anyone who has this problem with their pet insurers please contact me urgently. BBC Radio4 MoneyBox would like to talk to them

 

Email me on our admin email address and put "Pet insurance" in the subject line

Ta

[selbylass]

Hi,

the 20% was only introduced last year it was listed as a significant change on my policy and they sent a enclosure with my documents telling me why they had introduced 'co-insurance'; basically because Billy had reached 6 years or older. All Feb 2010 - present claims have had the 20% applied.

[BankFodder]

Thanks for this. I've emailed you and passed your details on to MoneyBox.

 

The 20% rule is open to challenge then as it is not part of the deal which you originally agreed. They might want to say that it is a reasonable variation - assuming they reserve the right to vary the contract from time to time (Do they? Can you check this please?), however, I woujld say that this changes the character of the contract and does not come within the category of permitted variation. In fact, the fact that they admit that it is a significant change proves that it is not a permissible variation.

 

Can you let us have an idea of how the premiums have increased over the years please.

 

Also please can you spread the word that we are now looking urgently for participants in the MoneyBox programme - which is likely to be broadcast this Saturday.

 

I have received one email from someone called John but he hasn't responded to my reply

[selbylass]

The premium also went up from £231.00 (with a excess of £100) in Feb 2010-11

to £363.23 (with excess £75 + 20% costs) even though the claims in 2010-11 year only came to: £288.47 less the £100 excess.

[BankFodder]

Does this mean that you have only had the policy for two years?

 

have you seen the rate of interest in the Marks & Spencers pet insurance thread in this sub-forum?