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&#39£10k medical bill as insurer cancels policy&#39

An Essex IFA is outraged at the treatment a client received from niche PMI insurer Revelation Health-care after it ended his policy halfway through its one-year term.

French & Associates financial consultant Roger Lloyd says the insurer offered PMI cover to his client but revoked the contract without a full explanation.

The client contracted a serious illness while travelling in December, has had two major operations and is due for more surgery in September.

The insurer originally offered to reimburse the client if he paid for the treatment, estimated to have cost nearly £20,000 so far. It then refused to do so, citing a violation in correct procedure as a reason.

After the client threatened litigation, the insurer paid up around £8,900 in expenses incurred to July 1 but has cancelled the policy even though it is not due to run out until November. The client is now facing a bill of more than £10,000, with the IFA no clearer as to why Revelation will not continue coverage.

Lloyd says: “It amazes me that people can insure people in this manner and not be regulated in any way and then subsequently withdraw that coverage if the price gets too high.”

Revelation Healthcare director Keith Robson says: “Whatever difficulty might have existed, the nature of the condition is one factor involved in that decision and I cannot discuss that condition.”

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