COVID-19 – advice for employers. Read now.

COVID-19 – AIG Life

Please see AIG Life’s website

for their latest information on the impact of COVID-19 where you will also find useful information on:

  • Their business continuity plans.
  • The additional services available with your policy, usually free of charge, that may help at this time, for example, a virtual GP service.
  • Premium options, such as monthly payment or premium deferral.

For answers to some of your FAQs, see below.

Will cover still be in place for employees while working from home, in isolation or in quarantine?

Cover will continue for members while they are working from home, in isolation or in quarantine.

Will cover be based on earnings prior to any reduced pay, reduced hours, no pay, unpaid leave or employees on ‘furlough’?

 For employees who are furloughed:

  • Cover will continue to be provided under the temporary absence provisions of the policy.  For Group Life and Group Critical Illness cover can be provided for up to 3 years providing they are still considered an employee. Cover will continue based on their pre-furloughed salary.
  • For Group Income Protection cover can be provided for up to 1 year providing they are still considered an employee. More information will follow in respect of members who become incapacitated during this period, and the potential benefit payment, once the full position on tax is understood and legislation is available.

For employees who have had a salary reduction:

  • For Group Life and Group Critical Illness benefits cover can continue based on the pre-reduction salary for a maximum period of 6 months, providing they are still considered an employee.  Data will need to be provided on their pre-reduction salary.
  • For Group Income Protection it is difficult to provide a generic answer to this question. Cover can continue.  In respect of the potential benefit for a member who becomes incapacitated during this period we are still formalising our position as there are several complex issues to consider.
  • All requests to do this (for any product/scheme) must be in writing from the employer confirming the reduction in salary is due to the financial impact of the COVID-19 pandemic on their company and premiums must be paid on the correct benefit.

Some employers are mentioning redundancy cover – is this something you would consider introducing as an alteration to terms at the moment? If so, on what basis?

Yes, subject to our usual requirements.

Group Life – does a catastrophe risk apply?

An event limit is applied to each location and to the policy as a whole. This will define the maximum paid out in the event of one or more deaths occurring as a result of a single event. A single event is defined as one originating cause, event or occurrence or a series of related originating causes, events or occurrences, resulting in the death of more than one member, irrespective of the period of time or area over which such originating causes, events or occurrences take place and irrespective of the period of time over which such deaths occur. Originating causes, events and occurrences include, but will not be limited to:

  • War (whether declared or not);
  • Terrorist activities;
  • Earthquakes;
  • Windstorm;
  • Flood;
  • Sudden release of atomic energy or nuclear radiation;
  • Radioactive contamination (whether controlled or uncontrolled);
  • Biological or chemical substances;
  • Pandemic illnesses.

In respect of terrorist activities, a series of events will be considered to be related where, on the balance of probability, they result from persons acting in concert or in accordance with a plan or design. We shall be the sole judge as to what constitutes an event. If event limits apply to specific locations, these will be detailed in the quotation, application form and policy schedule, along with the limit applying to the scheme as a whole. For locations that are not listed, or if none are listed, a maximum location event limit of £5 million will apply to that location.

Disclaimer
Each applicable policy of insurance must be reviewed to determine the extent, if any, of coverage for COVID-19.  Coverage may vary depending on the jurisdiction and circumstances.  For global client programs it is critical to consider all local operations and how policies may or may not include COVID-19 coverage.
The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal and/or other professional advisors.  Some of the information in this publication may be compiled by third party sources we consider to be reliable, however we do not guarantee and are not responsible for the accuracy of such information.  We assume no duty in contract, tort, or otherwise in connection with this publication and expressly disclaim, to the fullest extent permitted by law, any liability in connection with this publication.  Willis Towers Watson offers insurance-related services through its appropriately licensed entities in each jurisdiction in which it operates.
For further support and advice from Willis Towers Watson Health & Benefits contact your Account Manager or the Client Services team:
Email: HBGB.ClientServices@WillisTowersWatson.com

Get in touch

General enquiries

0800 4880 989

Email us

COVID-19 enquiries

Email us

Healthcare Concierge member enquiries

01606 352500

Email us