Wednesday, February 13, 2013

Conversion Option & Smoking

In a previous post I reported that : With  Aviva/Hibernian Life - If you were a smoker when you took the original policy out but qualify as a non-smoker now, full underwriting (new proposal) is required to change the policy, during or at the end of the policy term. 

I am currently dealing with a case where the person converting is now a non-smoker, for a good number of years, and wants to 'covert' the policy with Aviva.

I've questioned the logic of charging a non-smoker smoker-rates on conversion as it just doesn't make sense, to me, that a healthier person should be penalised i.e. Complete a full new proposal to avail of non-smoker rates or pay the rates of a smoker.

So, I asked for the original policy terms and conditions to establish that it was clear from outset.

This is the relevant page: (click to enlarge)

Frankly, I just don't see how they can make this interpretation. Is it one for the Ombudsman to adjudicate on? 

Curiously, Aviva's current policy conditions state:

The new policy conditions will be issued in accordance with Aviva standard premium rates and policy conditions applicable at the time and the premium will reflect the smoking habits of the Life or Lives Insured advised by the application for the new policy