Lloyds Banking group to look at lifetime pet insurance
30/04/2012 Withdrew the policies earlier
The first round in a fight between pet owners and their former pet insurance provider was won by the pet owners, many of whom face paying out large vet fees. Halifax and Lloyds TSB, part of the Lloyds Banking Group say they will now offer to pay compensation to thousands of pet owners following on from a landmark ruling from the Financial Ombudsmen Service. The policy owners are expected to be offered cash or a limited pet insurance policy. The problem has arisen when policy holders have been sold “Lifetime” policies only to find that their insurers had decided to cancel their cover. If the underwriters fail to continue the lifetime cover, bought on an annual basis, the pet owners would be unable to insure their pets for any pre existing conditions, a benefit the customer will have paid extra for at the start of the policy. Some pet owners feel they may have had to have their pets put down as they could not afford the cost of treatment for their ill pets.
The Halifax was criticised for the hap hazard way in which it handled their customer’s complaints and their spokesperson said that they were “urgently working on a solution for customers whose pet has pre existing conditions”, they said that they will be contacting their customers who have been affected by this in the next few weeks with their proposals. The FSA have also said to be concerned with the issue and may choose to investigate.