Out of work but still on course for play
THE MAIL ON SUNDAY - 26TH OCTOBER 2002
Being out of a job need not mean being out of the club too.
A new insurance policy has been launched that can safeguard a redundancy victim’s membership of a leisure organisation such as a golf club.
The cheap and simple cover is designed to pay specific bills if unemployment strikes when the money falls due.
Sold under the Safe brand, it can be used to pay road tax, council tax, a TV licence fee or even for a football season ticket. It can apply to any annual membership fee or regular bill.
Unlike standard unemployment insurance the Safe policy does not offer monthly benefits or long term cover. It will simply make one payment for set needs.
This restriction keeps the charges low. Insurance for a year cost £3 per £100 of cover. So protection the payment of a £300 home insurance premium would cost £9, while it would cost £15 to safeguard a £500 golf club membership.
The insurance is the brain child of Simon Burgess, managing director of Burgesses. He believes there is a need for simple insurance to help pay bills when unemployment strikes.
Burgess says: We live in uncertain times, when a job can no longer be taken for granted.
Three versions of the new cover are available; Motorsafe is designed to take care of regular car expenses. In a single policy the main items covered are a motor insurance premium and annual road tax and extra costs of up to 25% of the basic sum may be added, such a MoT tests. The maximum sum insurable is £2,500.
The Housesafe policy covers household expenses such as home insurance premiums, council tax bills and up to 25% extra, again with a maximum of £2,500.
A crucial proviso is that a payment protection policy must be applied for within 21 days of taking out a motor or home insurance policy.
A separate policy call Leisuresafe caters for clients who want to insure annual membership or season ticket payments.
Any claim on a Safe policy is settled with an on-off payment in cash. The payment is no taxable and is no bar to social security benefits.
Burgess stresses that the policies are not aimed at giving long term support to the unemployed. A customer must have been in work for six months before being allowed to buy this cover, so anyone who makes a claim will be able to renew the insurance.
Burgess says: “This is a simple policy that gives a straightforward benefit. There are no hidden nasties and no small print.”
As well as offering the cover direct to individuals. Burgesses is also marketing it to companies and clubs so that they can protect their customers or members. Buying in bulk brings down the cost of the insurance even further.
The first to sign up is a Midlands utility company that plans to attract new customers by offering to pay their gas bills if they become unemployed.
