Volume 1

Report / Royal Commission on Civil Liability and Compensation for Personal Injury.

  • Great Britain. Royal Commission on Civil Liability and Compensation for Personal Injury.
Date:
1978
Catalogue details

Licence: Open Government Licence

Credit: Report / Royal Commission on Civil Liability and Compensation for Personal Injury. Source: Wellcome Collection.

    59/568 (page 41)
    150 The three main types of policy are life assurance, permanent health insurance and personal accident insurance. Of these, life assurance is by far the most common. 151 Precise information about the number of people covered by life assurance is not available. Most policies provide an agreed sum on the death of the person insured, sometimes limited to death occurring within a certain period (‘term’ policies). Some provide periodic payments rather than a lump sum. It has not been possible to estimate the value of payments under life policies generally. 152 The number of people covered by personal accident insurance is not known. Personal accident policies provide cover for short periods only, normally a year. They cover death, loss or disablement resulting from accidental injury, and may be extended to cover sickness or hospital treatment (including private treatment). Benefits usually consist of periodic payments for a fixed period (normally limited to two thirds or three quarters of previous earnings for 104 weeks), together with lump sums which vary according to the type of injury. We estimate at £50 million a year the amount of benefits from such policies paid out in respect of personal injuries. 153 The number of people covered by permanent health insurance has been growing, and is probably now approaching a million. Permanent health policies are intended to replace income. They provide periodic payments if the insured person becomes unable to follow his normal occupation because of sickness or accident. The cover available is often limited to two thirds or three quarters of previous earnings, less state insurance benefits. Many policies also provide for part payment if the insured person has to change his job and suffers a partial loss of income. Benefit is normally payable after six months’ incapacity, although policies offering earlier payment in return for higher premiums are also available. Contracts normally run for at least five years, or until retiring age. Permanent health insurance cover can be of particular value to the self employed. We estimate at £1 million a year the amount of permanent health insurance benefits paid out in respect of personal injuries. 154 Our personal injury survey found that about 10 per cent of those injured in 1973 had relevant private insurance cover — presumably either permanent health or personal accident insurance -— and 7 per cent had made successful claims. The average amount received was only £70 at January 1977 prices. Trade unions, friendly societies and charities 155 Our personal injury survey suggests that about 10 per cent of employees receive some payment from trade unions or friendly societies during absence from work due to sickness or accident. The practice of individual trade unions varies. Most unions provide benefits for both sickness and injury, but some for injury only. Payments for injury are usually restricted to work injuries, sometimes including accidents while travelling to and from work (which are