Risk Factor

Monday 5th June 2023

Important changes to the PAX Personal Accident and PAX Life Insurance schemes – update from the MOD.

Personal Accident (PAX) and Life Insurance Contracts

We have previously advised that MOD were re-evaluating the Personal Accident Insurance Scheme and Life Insurance Scheme offer (known as PAX) for Service personnel. The MOD’s latest update is below:

We appreciate your patience as we’ve finalised arrangements. We wanted to update you on the progress we’ve made on the Personal Accident & Critical Illness and Optional Life Insurance cover. Our new brokers The Risk Factor (TRF) have now completed the insurer part of the tender, which involved a thorough market search, including approaches to UK and Global insurers and reinsurance markets. The results of the exercise are that our existing insurers AIG and MetLife remain the best options to continue cover with. They bring with them extensive experience of the scheme, and excellent financial security.

Policyholder documents are currently being updated and TRF will provide more details in the coming days, as we understand that there are key factors that current PAX scheme policyholders will want to know as soon as possible.

The most important thing to note is that your cover (PAX Personal Accident or PAX Personal Accident with Optional Life and Critical Illness) will automatically be extended to the new scheme on a like-for-like cost and cover basis via payroll deduction unless you advise your Unit HR that you do not wish to continue. This ensures that there will be no gap in your coverage from the previous PAX scheme and will be effective from 00.00 on 1 June 2023. PAX Life Scheme premiums will continue via payroll deduction until the end of the policy term or until notified otherwise.

Once the implementation is complete, on that like-for-like basis, enhancements to the service will then start to be rolled out to you. Our top priority is to ensure an easy and effective transition, minimising the risks of any unintentional breaks in cover. Given the timelines involved in transition, we have decided to continue payment of premiums by payroll deduction for now instead of moving to a direct payment solution. We will follow a more gradual transition away from payroll deduction in smaller groups to ensure that adequate support is given to each group as they move.

We would like to emphasise that there is no action for you to take at the moment unless want your cover and payroll deduction to stop. In this case, please notify your Unit HR. If you are currently paying by direct debit please continue to do so to ensure continuation of cover.

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