Michael Smith
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BRITISH soldiers going to war are to be charged private insurance premiums of up to £1,000 to make up for inadequate government compensation for death or injury.
The effective doubling of premiums is revealed in a leaked Ministry of Defence (MoD) document. The insurance scheme, known as Pax, is run by AIG, the insurance giant, and is officially recommended to soldiers before they go to the battlefield.
In the document, the MoD blames the increase in premiums on the high casualty rate in Afghanistan and Iraq. They say that a surge in payouts has wiped out the scheme’s profits.
The MoD’s own compensation scheme is limited. A soldier who loses the sight of an eye receives only £28,750 from the MoD – but those with full private insurance get £150,000. The MoD pays £115,000 for the loss of a leg or an arm, but those on Pax receive £300,000.
Liam Fox, shadow defence secretary, said the hike in rates represented a breach of the covenant between soldiers and the country: “They are being asked to put their lives at risk, to ask them to pay to do it is an insult.” One lieutenant-colonel, who asked not to be named, said: “Young soldiers on little more than a grand a month after tax are having to buy insurance simply because the compensation that the MoD provides is so inadequate.”
Another officer said soldiers even have to insure their kit through Pax. “It is absolutely disgraceful that if a soldier loses a piece of his kit in theatre, he is charged for it and then has to claim the money back on insurance,” he said.
A total of 252 servicemen and women have died in Iraq or Afghanistan since 2001 and at least 561 have been wounded in action. Some 47 have suffered the loss or use of limbs or eyes.
Last month the armed forces compensation scheme was revamped after criticism that it was unfair. But in a letter written four days later, on October 15, the MoD effectively admitted that it remained inadequate.
Brigadier J H Gordon, the army’s director of personal services, wrote: “It is a command responsibility to ensure that our officers and soldiers are made aware of the need to provide adequately for their dependants.
“We need to remind our personnel of the various insurance products . . . and of the differences between these schemes and initiatives such as the armed forces compensation scheme.”
Nearly 58,000 members of the armed forces, a third of Britain’s troops, have taken out insurance with Pax.
Gordon warned that soldiers and officers face a double hit. Instead of taking out a policy to cover the six-month period of a typical tour of duty, they will have to pay for a minimum of 12 months. Monthly premiums will also rise by at least 30%.
A single soldier buying the maximum personal accident and life insurance would pay £279 for a six-month deal at present. The 30% increase would take it to nearly £363 for six months, but a minimum 12-month period would increase the cost to £725, a rise of 160%.
The increases would take the maximum payment for soldiers with family plans to £972 a year, Gordon said.
In the letter, he wrote that AIG had suffered “substantial losses . . . owing to the present level of combat injuries and deaths”.
Payouts to troops who had been wounded and to the families of those killed meant that “losses over the past year exceed the cumulative profits [on Pax cover] of the previous 10 years”.
Doug Young, chairman of the British Armed Forces Federation, said: “It’s too much for servicemen and women to have to pay . . . just for the privilege of going on an operational tour.”
The forces compensation scheme was revamped last month to ensure that soldiers with serious disabilities received the maximum payment of £285,000. The MoD acted in the face of public anger at the disclosure that Lance Bombardier Ben Parkinson, who lost both legs when his Land Rover ran over a mine in Afghanistan, was offered just £152,150, little more than half the maximum payout and less than a third of the £484,000 awarded by the courts to an RAF data input clerk who suffered repetitive strain injury to her thumb.
This weekend MoD officials said privately they were negotiating with AIG to drop the 12-month contract. But the 30% increase was seen as inevitable. AIG declined to comment.
Read Mick Smith's defence blog at www.timesonline.co.uk/micksmith
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It is simply usless for people to just keep talking
get out and vote BNP . I do
george deighton, London, UK
This the shoddiest example of the ridiculous extent to which "PRIVATISATION" has been implemented in Britain.
Lalit, India,
Those who join up don't expect to get killed or injured and left with out help for them and their love ones. Britain is not at war,
Its ones free choice, but why join up to get killed and no support.
Maybe the governments idea is you get paid to get injured for life and put on the scrap heap our servicemen should have the best.
Reopen the service hospitials whom provided specalised help for them and their families no matter what the cost is. We would be at a loss in a time of war or national emerancy.
The US do more for their service personel injured than the UK.
Peter, Hastings, UK
Lack of money isn't the reason. The government is preparing to spend up to £25Bn extra, subsidising our competitors in the EU.
The government hasn't been prepared to invest in decent armour to protect Our Boys, but has allowed the purchase of armour-plated speed cameras. Brown & Hoon & co ought to be charged with corporate manslaughter!
Mr Angry Taxpayer, London, UK
With a world shortage of pain relieving medicines, especially opiate based ones, eg morphine, diamorphine, codeine etc, would it not make better sense instead of trying to eradicate the poppy fields which produce the opium rather to reach an agreement with the farmers to buy all the opium they can produce and use it legitimately in prescription medicines. Then we would have the local population on our side, we could reduce the flow of illegal heroin into the west and our troops would be seen as protectors of the afghan people rather than occupiers. It's a win/win situation. We receive medical supplies that will always be useful, cut off one of the major sources of income to the taliban and defuse a situation in Afghanistan that is threatening to spiral out of control.
Marcus Shaw, Cumbria, UK
I go to Iraq for the second time in under 2 weeks. I've also served in Afhghan, Bosnia and NI several times, Sierra Leonne and god knows where else.
I've got a wife and 2 young kids and have had 15 units of PAX for years (like I have a choice). 30% up, thanks! I guess you have been reading the press, reduced cost of council tax, reduced income tax, the help for heroes campaign etc.
Any SUN or who ever Journo reading this put them on the front page money grabbing gits!
Tony
tonyk, Bielefeld,
Sir,
Prior to joining the Royal Marines I served for five years in the French Foreign Legion Parachute Regiment. My annual life insurance policy cost me £80, why, because the policy was underwritten by the French Governement. It covered me for parachuting, off-piste skiing, mountaineering and re-breather diving to name just a few activities. Every year I spent at least six months on operations but I knew if the worst was to happen I would be cared for, both financially and medically.
We may have a tradition of knocking the French but at least their governement has the courage to stand by their troops.
Mark Winfield, Plymouth, Devon
I can beleive every word that PAX are putting up insurance.In august last year i had a brain haemorage and my husband was in Iraq and had to been brought home as the doctors where not sure if i would make it.I did but have been left with brain damage and no feeling to my left side of my body and unable to work.So at the time of deployment my husband took out family insurance with Pax and so did many others that where deployed at the same time.He and fellow soildiers where not given any time to read the small print just asked to sign and they would do the rest,which my husband did as to cover us if anything happened to him.So my husband placed a claim with PAX and after alot of letter writing we was turned down due to the fact i never disclosed i had breast cancer 6 years before but have been clear since and the condition is not connected at all.Also surprise to say they have now changed the way they give out PAX now,but that does not help the likes of previous claiments.
christine jeffreys, hartlepool, cleveland
Hang your heads in shame MoD. Is it not time the whole contract between members of the armed forces and the British Government was overhauled. Far more thought needs to be addressed to compensation, after care, pensions etc.
As a long service member of the armed forces I believe we were got cheap and in retrospect I would not give 20 plus years of my life to an organisation that if was in the commercial sector would spend most of its time attending industrial tribunals.
K. Morton, Fareham,Hants, UK
2007-11-04
Two words come to mind: "incredible" and "despicable".
May I make a personal comparison: I am on 80 percent disability pension after 5 and a half years war service, and I am darn sure I -- and guys around me -- never any request to pay extra for personal insurance
Peter U D, France
Peter U D, F-78110, France
It just demonstrates the contempt in which our supreme leader regards British troops.
Doug, Glasgow,
This just defies belief.
MPs are allowed to swan about on full expenses of GBP100,000+, have second homes bought for them by the taxpayer yet they are unable to adequately compensate our Service personnel who lay their life on the line.
Disgusting.
Ian Rapley, Muscat, Oman
Not too much has changed since Wellington's time.
Average equipment, poor supply, rubbish housing.
Lions led by Jellyfish
Bill Bird, Wallasey, Wirral
Unbelievable ! I find it amazing that a government relies on a private company AIG to pay compensation to troops carrying out its own war mongering. Perhaps the next step for this sick Labour bunch should be to disband the armed forces and just employ mercenaries as and when they're needed. You cant blame AIG as they're a private insurance company that assesses its business to make a profit and if rates have to go up, so be it. But, you can't expect the troops to foot the bill when they have no ability to affect their risk levels and consequently their premiums. Next we'll see different premiums for different roles in the armed forces if the free market forces are fully implemented.
Mike, Alicante, Spain
Do Gordon and his Government get an insurance introductory commission?
Why oh Why are we letting them do this to our Country and it's people?
Jim, Hythe, Kent
The following statement is WRONG WRONG WRONG.
"Brigadier J H Gordon, the armyâs director of personal services, wrote: âIt is a command responsibility to ensure that our officers and soldiers are made aware of the need to provide adequately for their dependants."
It is the responsibility of the MoD to insure the men in UK Forces.
But then, when did the MoD ever take any responsibility for anything?
The more things change, the more they stay the same.
John Feltham, Townsville, Australia
Just another example of the contempt with which this government treats our armed forces.
David Leslie, Perth, Scotland
How much do we spend each year on TV advertising trying to encourage our young into military service?
Why don't we get rid of this expense, and spend far more on ensuring that these people have 100% assurance that they will always be recognised, rewarded, and looked after for doing a job which frankly very few (including me) are prepared to do.
There are many instances where the importance of a persons job bears little relation to the remuneration and benefits they receive through doing it - people who care for our elderley, those in the emergency services, and healthcare professionals. Surely those that safeguard our way of life, and are prepared to go to foreign countries (in sometimes questionable circumstances) to maintain this are among this rare breed.
We should make these jobs so gilt-edged that people would be falling over themselves to be doing them - rather than falling over themselves to work in the media and become a z-list celebrity.
peabop, Manchester, UK
I am disgusted that our troops have to pay insurance when sent on active duty.Most of our troops are very young and if seriously injured, as one 21 year old I know of, have to live many years with their disabilities and the trauma that goes with being blown up and often seeing their comrades killed..No wonder there is a large shortfall in the number of troops we have.Less signing up and more signing out after 4 years.Our troops on active service work tedious long and dangerous hours in Iraq and Afghanistan.Our country should look after our injured troops and give them fair compensation.
Valerie, Devon, uk
What a country we've become. You wouldn't believe this stuff in a dramatisation.
Our establishment is out of touch and contemptible. If I were in the British forces I wouldn't be buying insurance - I'd be buying myself out.
Oh - I hope the typist is making a full recovery though. God knows what the RAF would do without typists.
j griffiths, manchester, england
I find it extraordinary that AIG are being used to provide cover for our soldiers being deployed to high risk areas. Surely this cover should be provided by the Government as a matter of course. I am sure that we can all think of ways in which the fund could be supported financially, cutting MP expenses is one example, perhaps bringing the MP pension fund scheme in line with those who they represent could be another.
We could also look to providing them with the equipment they need to complete their tasks which for so long as been held back.
In the 21st century it is shocking that the British Government should be adopting a first world war attitude to those who are the frontline of defending this nation.
John Hughes, Barnet, UK
Send the revised quotes en-masse to Tony Blair and Alastair Campbell with menacing demands to cough up for the results of their lies and deceipt. Monthly installments will do nicely.
Maude Heath, Chippenham,
Disgusting, and no suprise from this stupid and inept Government, who sent you based on lies and BS, British troops to a war that is today totally bogged down.
Sorry but the British Government is currently too busy spending money on keeping criminals happy in jail that should have been deported from Britain long ago.Supporting failed asylum seekers etc etc.
Dont worry boys and girls who wear the uniform of the British Forces your Government is right behind you. NOT.
peter andrew, Montreal, Canada