Vitality Health have launched a new unique approach when calculating individual renewal premiums for policyholders which they deem to be more fair, intuitive and transparent than the traditional no-claims discount method previously used.  Now there is a positive change in the way that your personal policy renewal is calculated.

What will change with the new calculation method at your personal policy renewal?

As before, Vitality Health will still take the following factors into account when determining a policyholders renewal premium:

– Age
– Medical Inflation (the change in the cost of providing healthcare); &
– Claims in the preceding plan year

However, unlike before, policyholders can now control the amount their premium increases due to claims with their Vitality Status.

How will claims affect your personal renewal premium under the new calculation method?

Vitality Health will now allocate claims made by policyholders into the following bands.

– No Claims paid
– Less than £300 paid
– £300 – £1000 paid
– More than £1,000

For policies with two or more adult members (aged 18 or over) the claim bands are as follows:

– No Claims paid
– Less than £450 paid
– £450 – £1,500 paid
– More than £1,500 paid

Does your Vitality Status affect their renewal premium?

Regardless of which claims band a policyholder falls into, increasing their Vitality status could reduce the increase in their renewal premium, before medical inflation is applied. The higher a policyholder’s Vitality status, the larger the reduction is likely to be.

If you are insured with Vitality Health and would like to know more about the above or are looking at the renewal of an existing Private Medical Insurance policy, then please do not hesitate to contact us on 01245 929 129 or email enquires@smphealthcare.com and one of our team will be happy to assist you.