In most cases the premium credit was calculated on a percentage of annual premium for each policy as it was at 1 April 2020, and it equates to 14.4% of three months’ premium.
In some cases, due to the status of the policy, we’ve had to calculate the premium credit as a percentage of annual premium as at an earlier date, for example where the policy was on hold at 1 April 2020.
The premium credit directly relates to the amount you contribute towards your employees’ health insurance, and it’s been applied for every eligible policy.
All eligible policies are receiving the premium pledge as a policy credit (there are no cash refunds being made). For work schemes where employees contribute to their premiums through wage or salary deductions, we are unable to apply the premium credit directly to employees’ policies.
We have been progressively working with business customers to help them transition from wage and salary deductions as a premium payment method. Please talk to your Relationship Manager regarding this. Meantime, thank you for assisting with passing on the premium credits to your eligible employees.
We can’t say for sure, but if we continue to remain at a lower Alert Level, it’s unlikely. At Alert Level 2, claims are returning to normal levels.
The Premium Pledge was given in response to the lower number of claims that were made during Alert Level 3 and 4, due to the limited access to private healthcare services during the lockdown.
We have doubled our usual support for members who have lost all of their taxable income and are no longer in paid work so they can now apply to put their health insurance policy on hold for up to six months. Members who have not lost all of their income but are suffering financial hardship can also apply to put their health insurance policy on hold for up to 3 months. While their policy is on hold they won’t be able to claim but they will retain cover for all currently covered pre-existing medical conditions and won’t have to pay premiums. If members want to keep their policy active but decrease their premium, we also have other options to help. For more details please read here. We’ve let all members know about these, and they’re detailed online.