Higher premiums for consumers 'justified'

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Higher premiums for consumers 'justified'

Fri 25th May 2007

Charging those people with a history of medical problems higher premiums on their travel insurance is a justified action, travel insurance group Milson Howard has commented.

A spokesperson for the group said that such measures were not carried out arbitrarily for profit, but that they were necessary to help keep general insurance costs down.

Older people or those with a medical history needed to pay more to take into account the high expenses involved should they need to claim cover.

"Any long term illness may affect premium, but is not necessarily bound to. It depends on the type of condition and its history, [and] what insurers deem the potential increased risk to be," he said.

The spokesperson for the group also acknowledged that the process of screening customers for medical risks could be improved.

He said that the industry in general was changing to meet demand for affordable insurance for those people with a history of illness.

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