Troops may face rise in insurance

04 November 2007

British soldiers could face 160% rise in private insurance payments

British soldiers who use private insurance to top up the state injury compensation scheme could face a 160% rise in payments, it has emerged.

Premiums for the Pax Scheme, which is run by AIG, could reach nearly £1,000, the Sunday Times reported.

This is because of higher-than-expected payouts resulting from action in Iraq and Afghanistan, it said.

A leaked Ministry of Defence letter shows the cost to some soldiers could rise 160%, and the maximum premium for those with family plans would reach £972 a year.

Nearly 58,000 members of the armed forces, a third of Britain's troops, have taken out the insurance following controversy over MoD compensation.

Following criticism of a number of cases, Defence Secretary Des Browne recently announced that forces' personnel will be awarded cash for all injuries they sustain in a single incident - rather than just the three most serious.

An MoD source confirmed that it is in discussions over the premium levels, but pointed out that any rise will be the first since 2003.