COVID-19 update and FAQs

There are no general exclusions under our Group Life policies - all causes of death are covered for eligible members. However, there is a restriction on travelling on business against Foreign and Commonwealth Office advice (please see below).

The catastrophe clause could be invoked if the catastrophe provisions under the policy are met. The coronavirus pandemic would be considered as one originating cause.

However, as the catastrophe limit is usually at least £100 million per policy, it is very unlikely that the limit would be reached. Please check policy documents for the catastrophe limit applying to a particular policy.

A catastrophe means one or a series of originating causes or events which results in more than one death, irrespective of the period of time or area over which they take place.

The Foreign and Commonwealth Office (FCO) Travel Advice service uses a traffic light system of:

• Red - advise against all travel
• Amber - advise against all but essential travel
• Green - normal safety precautions

Under the terms of our current standard policy, there is a restriction on travelling on business where the FCO advises against all travel (red zone). Where the FCO has advised against all travel to an area, our Group Life policies will not cover individuals subsequently travelling to that area on business. We will, however, cover any individuals who travelled on business to an area which was not a red zone when they travelled, but has since become a red zone.

There is no catastrophe limit under our GIP policies. Our current standard GIP terms do not include a requirement to follow FCO guidance for business travel.  

For a GIP claim to be valid, it must meet the terms of the policy which includes the member meeting the definition of incapacity and having been unable to work due to illness or injury for the whole of the deferred period.

The deferred period would start from the date the member first became unable to work due to illness. We will link periods of absence during the deferred period if they are due to the same or related cause.

For people who have been identified by the Government as being clinically extremely vulnerable from COVID-19 we can link:

• Periods of absence due to COVID-19 symptoms.
• Periods of absence due to the underlying condition which has led to them being placed in one of the above groups.

For a claim to be paid the definition of incapacity under the policy must be met.

For clarity receipt of a letter from the NHS informing an individual to self-isolate or shield is not in itself supportive of a claim meeting the terms and conditions of the policy.

An employee who is self-isolating or sheilding, but otherwise fit to work would be regarded as meeting the actively at work requirement.

For clarity, an employee who is self-isolating or sheilding would not be considered actively at work if they have symptoms and have received medical advice to refrain from work.

In these circumstances, the employee would be regarded as being actively at work as long as they have not received medical advice to refrain from work.

Cover would remain in place in respect of eligible members as long as premiums continue to be paid by the policyholder.

Yes.

• Reduced hours - we are able to provide cover on the basis of the normal contractual hours rather than the reduced hours. This also applies if hours are reduced to zero at this time.
• Reduced salaries - for employees requested to take a temporary pay cut, we can continue to insure benefits based on their salary immediately prior to such a reduction. This also applies if salary was reduced to zero.
• Furloughed employees - for employees who are furloughed we can continue to insure benefits based on their salary immediately prior to being placed on furlough salary.
• Job Support Scheme - for employees under the Job Support Scheme we can continue to insure benefit based on their salary immediately prior to being placed on the scheme.

This is subject to:

• Premiums continuing to be paid for the full benefit.
• The employee remaining employed.
• Our normal terms and conditions.
• We must continue to receive member data stating employees' pre-reduction salaries and not their reduced levels. Please note that where the salary definition includes bonuses and other fluctuating elements and these have been reduced due to the employee being placed on:
  • Furlough; or
  • Reduced hours; or
  • A reduced salary

it is important that the data reflects the cover the employer wants to provide e.g. averaged over the 3 years prior to the reduction or averaged over the period stated in the policy.

• Benefits cannot be increased during this period other than for salary related increases in line with the employer’s general pay increases.

The above is:

• Our default position.
• Only applies in response to the coronavirus.
• Can apply for renewals up to 31st October 2021.

We must be notified if the employer wishes to take a different approach.

No, there would be no impact on cover as along as the employer continued to pay premiums. The policy terms and conditions would apply.

Under the terms of our current standard policy UK employees (members under a policy) can be based outside of the UK. This is subject to:

• The member must have a contract of employment with a UK resident employer and remain on the UK payroll.
• Premiums continuing to be paid.
• The terms and conditions of the policy being met for these members.
• In normal circumstances these members cannot be based in a country on the UK Governments Financial Crime Red List. This list may change from time to time.
• If a member is based in a Red Listed country on a temporary basis during the coronavirus pandemic they must return to the normal working arrangements (as per the risk accepted by us) as soon as reasonably practicable when restrictions are lifted.

Premium and claim benefit must continue to be paid from and to a UK bank account.

We would consider claims in the normal way and subject to us being able to obtain satisfactory medical evidence.

Details of employees working overseas must be provided at the quote stage and at each rate review.