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Insurance body concerned by 'star ratings' for private medical cover
February 20, 2012
The AMII has advised people to do thorough research when choosing a private medical insurance policy, rather than relying on new 'star' rankings.
People looking for private medical insurance (PMI) should avoid basing their decision solely on a new ratings system, experts have said.
The 'Star Ratings' system was recently launched by independent financial research firm Defaqto, which claims it can help people to identify the best health insurance products.
But the Association of Medical Insurance Intermediaries (AMII) believes consumers should beware of relying on the new scheme.
In fact, chairman Andrew Tripp said the association's members were "bemused" by the rankings given to private medical insurance products, with some budget plans given the same number of stars as other full out-patient products.
Mr Tripp emphasised the importance of choosing a policy that is "suitable and appropriate to an individual's personal circumstances and wishes".
He explained: "Type of cover, fully comprehensive v policies with exclusions, cover for cancer treatment, levels of excess, pre-existing conditions, hospital choice are just a few of the factors that need consideration.
"Introducing simple star ratings to PMI products is highly dangerous and not in the best interests of consumers," he added.
The AMII has also advised people to shop around for private medical insurance when switching employer or retiring, as the 'group leaver option' enabling them to continue having insurance cover in their own right may not necessarily be the best deal.
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