More of Lloyds and Halifax pet insurance ripoff tactics revealed

[BankFodder]

This is an extract from Lloyds insurance policy booklet. This passage is contained in at least the booklets for 2006-2009.

If anyone has any others to show me, then please let us know- especially before 2006.

I think that they abandoned this wording from 2010

.

What isn’t covered

This policy never insures you for:

• a dog or cat which is under 8 weeks, or a dog which is 9 years or

over, or a cat which is 11 years or over when you take out the policy.

We will extend cover for pets up to 20 years old if you continue to

renew this policy, at terms to be agreed

As you can see the contractual promise to renew is unequivocal.

But there is another feature which strikes me and whucih has passed unnoticed.

Most pet policies provide cover for a fixed maximum sum – say, £3000. However, that means that the value of the cover is becoming less with inflation etc. I have spoken with a lady who took out Lloyds cover as above from 2003 and has had it for 9 years. The cover has been fixed at £3000.

However, the annual premiums have been rising at an extraordinary rate. Her last renewal was £720 for the year!!! Go figure.

Yet Lloyds’ exposure remains at £3000.

Not only that, Lloyds have tacked on their new excess – 20% of the annual expenses. This is a new idea which they only added on about 3 years ago.

Despite this, the cover has been fixed at £3000

So,

• Lloyds offers a cover which it promises to keep on renewing for 20 years
  
• The cover/risk remains the same at £3000 – diminishing value because of inflation etc
  
• Lloyds start increasing the premiums dramatically despite the fact that the value of their risk is going down.
  
• Lloyds introduces draconian excess scheme – despite that the value of their risk is going down
  
• Then one day Lloyds pulls the plug and all of the people who have put up with this oppressive pricing for the sake of their animals are dumped.
  

Lloyds were able to do this because as soon as your pet develops a condition, you become locked-in to their insurance product. You have no choice.

 

By the way “terms to be agreed” is subject to the test if fairness under the Unfair Terms in Consumer Contracts regs 1999.

Where Halifax has offered life-long cover for a fixed level of expenses - £1000 or £6000 in most of their policies, then Halifax are on the same gravy-train.

Whoever came up with this scheme for ripping off their customers probably got a good bonus.

 

Lloyds – and Halifax are in breach of contract and they are also in breach of their FSA statutory duty to treat customers fairly