Pet owners who have had vital insurance cover withdrawn after Lloyds and Halifax pulled out of the market are being urged to complain.
At the end of last year, Lloyds – which owns Halifax – announced its decision to pull out of the pet insurance market.
But customers who signed up for policies which were supposed to offer cover for the pet’s lifetime stand to lose out.
This is because any conditions their pets have already received treatment for are likely to be excluded on any new policy.
Pre-existing conditions
If the Lloyds and Halifax cover had continued, pets would have still been insured for these pre-existing conditions at no extra cost in subsequent years.
This is because the group’s pet insurance policies were more generous than some deals which, for example, limit payouts for specific conditions to 12 months, after which the condition is excluded.
Now those Halifax and Lloyds customers whose pets have ongoing illnesses face having to foot vets’ bills themselves.
But rules laid down by industry regulators the Financial Services Authority state that insurers should “treat customers fairly” in all dealings.
And on online pet owner discussion boards, members think that by withdrawing this cover, Lloyds may be breaching this requirement.
How to make a complaint
Pet owners are being encouraged to complain to the Financial Ombudsman Service if they think their insurer has treated them unfairly.
If you have been affected, the first thing to do is to write to your pet insurance provider with details of your complaint.
If you have any sales literature relating to when you first signed up for the policy that suggests the policy will offer lifetime cover, it is a good idea to refer to it and enclose copies.
Make copies of any correspondence with your insurer, send any letters by recorded post, and note details of any phone conversations you have with your insurer.
Those customers who now find it impossible to get cover for ill pets are more likely to have stronger cases.
If the insurer's response is not to your satisfaction or you don’t hear anything within eight weeks, you can take your complaint to the Financial Ombudsman Service.
Insurance options
If you're affected by Lloyds’ withdrawal from the pet insurance market, you will need to look around for alternative cover when your current policy comes to an end.
Mike Powell, of financial analysis firm Defaqto, says: "We're not aware of any other providers pulling out of the pet insurance market.
"But the choice available to consumers in terms of the volume of products and the types of cover available means that consumers really need to take the time to understand the cover offered and compare it with the level of benefits that they require for their pet."
Here at Confused.com we’ve put together the best deals on lifetime pet insurance for cat and dog owners.
However, bear in mind that you will have to declare any pre-existing medical conditions that your pet has when applying for cover, and these could have an effect on the size of the premiums you have to pay.
