Life Insurance Fears Following the London Bombings Tragedy

Following on from the tube train and bus bomb attacks in London there was a move from several UK insurance companies to reassure victims that claims would be processed “quickly and sympathetically”. This need for reassurance came in light of concerns that many victims of the blasts would not be covered by their existing health and life insurance cover. This would mean that families of the bombing victims could not only lose a relative, but also suffer financial hardship as life insurance companies refuse to pay out on policies.

Standard Life, Axa-PPP and Norwich Union all announced that policy holders would be covered for events on the 7th July. Standard Life said that the company was not looking to "cause more distress" to victims and their families.

Reuters have been told that other firms such as Churchill, Endsleigh and Direct Line are likely to be sympathetic when dealing with people who have been injured or whose holidays have been disrupted, however these insurers have fallen short of announcing complete cover.

Churchill said that it would, "provide cancellation and personal accident cover if customers are physically injured on the way to their holiday departure…in addition, if any of our customers are away on holiday and hear of injury or death to a close relative, we will facilitate their return home…missed departures due to travel delay in central London will also be treated sympathetically.” This is despite Churchill including ‘acts of terrorism’ exclusions into their policies. This means that policies will generally not pay-out if losses are sustained due to any terrorist activities. This represents one of several general exclusion clauses which are often regularly added to many policies and which prevent payout for particular potentially costly situations for the insurers.

The terrorism exclusion is still regularly included in policies despite the introduction in 1993 of the Terrorism Insurance Program which provides reinsurance cover to the majority of U.K. insurers, is expected to absorb a large proportion of the insurance claims resulting from the 7th July attacks. Under the program, the insurance industry as a whole is liable for 75 million pounds per terrorist "event", with losses above that covered by a mutual reinsurance pool. Should the costs rise above the funds available through the pool, then the UK Treasury will step in to cover the remaining costs.

Another group recently highlighted who may fall foul of this exclusion is the emergency services workers. Unison representatives have warned that this exclusion clause could leave emergency workers and their families high and dry if they are injured or killed. This would prove particularly disastrous for families with personal insurance policies which cover accidents and that also offer mortgage protection, as the potential loss of income due to injury combined with the lack of mortgage cover resulting from the exclusion, could mean those workers’ families affected may experience difficulties maintaining their future mortgage payments.

Some fire crews in Somerset have already threatened to go on strike due to claims that they may not be insured if they are injured whilst dealing with a terrorist attack. This action has since been called off, but many emergency workers are still justifiably worried, not only for their own safety, but also their families should anything happen to them whilst responding to a terrible emergency such as has already been seen in London.

Unison pointed out that its own insurance policy which is offered to members provided full cover and called for other insurers to do the same.

Sam Oestreicher of Unison said, "We are asking all insurance companies to look at their policies and if they have such exclusion clauses to drop them".

The Association of British Insurers has also tried to reassure emergency workers and other customers saying, “most types of insurance are readily available without terrorism exclusions… The major personal types of insurance, such as life, household and comprehensive motor insurance provide cover for the effects of a terrorist incident as a standard feature of the policy."

Today the plethora of online comparison sites such as Moneynet or Moneyfacts can search all the insurance policies available and provide guides to help consumers make decisions, however the need for people to check with providers to ensure they are not left unprotected has never been more evident.

The insurance industry itself has admitted that some policies do have exclusion clauses and are also advising policyholders to study the small print or contact their insurance company or broker to determine their cover levels.


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Car Insurance For High-Risk Drivers

If you are classified as a high-risk driver, finding car insurance can be quite a hassle. Some insurance companies will deny insurance to high-risk drivers, while others just choose to charge extremely high premiums. No matter which insurance company you choose, you will most likely end up with a high rate. However, every insurance company is different, so it is important to shop around for the best rates available.

There are many different factors that can contribute to a high-risk driver classification. However, your driving record is the most important factor in determining your risk status. If you have been involved in several accidents over the course of a year or within two to three years, these incidents will negatively affect your record even if they were not your fault. Being involved in any accident can deem you a reckless driver with a penchant for getting into dangerous situations. Also, if you have received multiple speeding tickets, you are also increasing your risk of getting into car accidents. You may be labeled a high-risk driver just by the number of speeding tickets you have received.

There are also several personal factors that contributed to the high-risk label. Unfortunately, many of these factors are beyond your control. Men are typically deemed a higher risk than women, and those who live in the city are considered higher risk than those who live in the country. If you are a city dweller, you will probably pay higher car insurance premiums than if you live in the suburbs or in a rural area. Also, drivers with newer cars are charged higher premiums than those with older automobiles.

Unfortunately, even your credit history can affect your car insurance rating. Those with low credit ratings are usually charged higher premiums than those with better credit scores. Whether or not you have been covered by car insurance continuously is also a factor. If there are gaps in your coverage, they will assume that you have had periods of uninsured driving. Because driving without insurance is very unsafe and also very illegal, insurance companies take this into consideration when considering your rate.

Though it can take several years of clean driving to erase the high-risk driver label, it can still be done. Three years is the industry standard for reassessing a driver's safety standing. If you have a clean record for a three-year period, you can work your way back to the benefits of lower premiums. However, three years' worth of high premiums can really add up over time. If you are a high-risk driver, there are still ways to lower your insurance payments. With a little research, you can reduce your payments by a fair amount.

There are many car insurance companies that offer free quotes online. Rather than meeting with salespeople or playing phone tag with agents, Internet sites will give you a quote in minutes. This makes comparison-shopping easier than ever. There are even websites that will find a list of quotes for you. Sites like Netquote.com allow you to enter all of your information one time rather than repeating the process for every insurance company you investigate. Netquote will generate a list of rates organized in an easy to read fashion. This process may take a few days, but the results are typically worth it.

Working toward a clean driving record is the best way to ensure that you will get the best car insurance rates. Avoid congested areas whenever possible, and be sure to slow down in reduced speed zones. Be aware of your surroundings and never speed, and you will be on your way to a successful reduction in your rates.


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