Changes to PAX, RPAX and XPAX Schemes effective fr

Discussion in 'Finance, Property, Law' started by Murielson_2, May 29, 2003.

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  1. Key Points

    •      From 01 Jul 03 the PAX Scheme will incorporate several changes that reflect the current insurance market. The PAX Scheme includes Personal Accident and Life Insurance arrangements for Regulars (PAX), for Reservists (RPAX) and for ex-Regulars (XPAX).
    •      The basic structure of the Scheme is unchanged. Existing Scheme members on 30 Jun 03 will automatically continue on the PAX scheme, but with the revised terms and conditions. Monthly unit premiums for personal accident have risen for the first time since 1992; some additional exclusions will apply; death and injury claims arising from the use of biological or chemical weapons used against British Forces will be payable at 50% of the unit value purchased, and on new cover there will be an enduring moratorium of 6 months for war risks (which are defined below)

    •      Aon Affinity Insurance Services (the Brokers) have now completed a scheduled comprehensive review of the market and have announced that the current provider, AIG Europe provided the most competitive terms and will continue to operate the Scheme - initially for a further two-year term - from 01 Jul 03.
    •      The following changes to the PAX Scheme, that will take effect from 01 Jul 03, reflect the current insurance market:
    •      Monthly unit premiums for personal accident insurance (including fatalities and permanent disabilities from accidents) have risen for the first time since 1992. Only the premium for the Individual has increased. The spouse/partner and children element of the Family premium remains unaltered:
    •      PAX Individual £2.10 Family £3.00
    •      RPAX Individual £1.75 Family £2.65
    •      XPAX Individual £1.30 Family £2.00
    •      Monthly unit premiums for life insurance (for death by natural causes and critical illness) remain unchanged for PAX and RPAX. Premiums for XPAX Life Insurance have reduced; this good news recognises improved longevity amongst retirees.
    PAX Individual £1.00 Family £1.50
    RPAX Individual £1.00 Family £1.50
    XPAX Individual £ 2.00 Family £3.00

    •      Nuclear weapons of mass destruction exclusion (applied to all new business since last year) will apply to all existing Scheme members
    •      There will be an exclusion for radiation from ‘dirty bombs’ - although not for bodily injury resulting from the explosive effect of such devices
    •      Death and injury claims arising from the use of biological or chemical weapons used against British Forces will be payable at 50% of the unit value purchased
    •      New Scheme members (other than those who start their cover during Phase One Training) will not qualify for war risks (e.g tactical accidents on operational deployments) for 6 months from unit signature. War risks are as defined by the Association of British Insurers: i.e. accidents that occur as a result of war, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion. The exclusion will also apply to additional units of cover (but not current units) purchased by existing Scheme members after 01 Jul 03
    •      The basic structure of the Scheme is unchanged; individuals are able to choose the level of cover (up to 15 units) that they feel is appropriate to their needs and those of their dependants. PAX payment for Regulars continues through payroll giving. Direct debits are required for RPAX and XPAX.
    •      Existing policyholders on 30 Jun 03 will automatically continue on the PAX Scheme with the number of units currently held, but with the revised terms and conditions outlined above.

    •      PAX and RPAX continue to be available to both Regular and Reserve members of the Armed Forces. These Schemes, as well as XPAX remain commercially competitive and are convenient, flexible and capable of closely meeting individual needs.
    •      The changes above reflect world events since the PAX Scheme was last reviewed in 2000 when premiums were in some cases reduced and benefits increased. The general insurance market has in many cases put up long-term rates and excluded some risks for Weapons of Mass Destruction (WMD). Whilst some companies (where Service personnel form a minority of policyholders) can currently offer these risks, PAX is a large scheme comprising only Service personnel and PAX premiums and benefits now reflect those changes.
    •      Recent deployments have shown a trend to buy cover at the last minute. This causes Insurers to accept increased exposure to risk, but without the long-term accrued premium income from which claims can be paid. To avoid repeatedly imposing exclusion periods and to protect existing Scheme members against those seeking short-term cover, from 1 Jul 03 the Insurers will provide war risks benefits only from 6 months after the date when new or additional cover starts, other than for those who start their cover during Phase One Training.
    •      In close conjunction with MOD, the Insurers and Brokers have ensured that PAX continues to be a competitive Scheme that is closely tailored to the needs of the Armed Forces. <>.
    Contact details can be found on the PAX website at: <>
  2. Hmm...much like the MOD steadily eroding our original Terms of Service, PAX Insurance goes the same way...... :mad: