Medical insurer WPA to pay out SECOND rebate to customers
Customers of not-for-profit medical insurer WPA will be paid a second rebate worth about 40% of their monthly premiums, after receiving a similar payment back in April.
With many non-urgent medical procedures being postponed during the coronavirus pandemic, and private hospitals being used by the NHS for coronavirus treatment, private medical insurers have generally paid out far less in claims over the last few months.
And several other insurers – including Axa, Bupa, The Exeter and Saga – have also committed to passing on any resulting extra profits to their customers.
But while these insurers are generally saying they're waiting to see the full financial effects of coronavirus before compensating customers, WPA is already paying out.
The second set of rebate payments will be worth around £3.7 million in total, which is a similar amount to the original rebates paid in April.
As an example of how much the 40% rebate would be worth, WPA says a 40-year-old living in Reading and paying £82.99 per month for comprehensive cover will receive a £35 rebate.
See our Coronavirus Finance & Bills guide for more info on support available for other financial products.
I'm a WPA customer – how will the rebate work?
WPA is paying the rebates automatically, so you won't need to get in touch to ask for one.
If WPA has your bank account details, the rebate will be paid into your bank account in late June. If not, you'll get the rebate as a reduction on your next premium payment.
You'll be eligible for the payment if your policy was active on 18 June 2020 (though not if you transferred to an Essential Cash Plan before then).
WPA has assured customers that this rebate won't affect future premiums.
What does WPA say?
WPA chief executive Nathan Irwin said: "The lockdown period from March to June restricted healthcare in both the NHS and private sectors. This meant that customers with clinically urgent requirements were still able to access care, but less serious procedures were postponed. To reflect the reduced usage of WPA policies, we provided a first premium rebate in April and have announced a second rebate will be paid to customers by the end of June.
"Across all of our customers, the April payment totalled £3.7 million and this latest payment will be similar. With lockdown restrictions easing and private hospitals increasing the number of routine procedures, we expect there to be a significant backlog of postponed treatments and claims will begin to rise quickly. We remain committed to not profiting from this pandemic and will observe claims levels over the coming months before determining whether any further rebates are appropriate."