The plug has been pulled on life insurance cover provided to members of the Isle of Man Police Federation.

Several hundred current and serving members of the police force are affected by the decision which the federation says was instigated by insurance provider Aviva.

They were informed that the group scheme was no longer fit for purpose and costs would increase dramatically, with subs increasing from £31,000 a year to £54,000.

It could mean that some elderly members with underlying health conditions could find it difficult getting alternative cover in future.

Retired police sergeant Martin Birchenough said he was informed by email at the end of January that the group policy provided by Aviva had been cancelled.

Members were told that continuing the insurance was untenable and it was imperative that it was cancelled before any additional costs to them were incurred.

Mr Birchenough said this policy was promoted by the local federation as an excellent low-cost life insurance scheme that provided life cover up until the policy holder was 70. It had no surrender value but only a value at death so was used by many members for estate planning.

Policy

Mr Birchenough, who contributed something in the region of £2,520 up until the time the policy was cancelled, said: ’This obviously has the implication that obtaining new life insurance of comparable value is nigh on impossible taking into account age and medical issues.’

Eric Sloane, of the Isle of Man Police Federation, explained it was Aviva that had decided the scheme was not an insurable risk.

He said: ’Historically you were insured if your name was on the list and you paid your premiums.

’That’s no longer financially prudent and Aviva demanded a list with updated information.

’We got it all updated with know your customer information but they decided it was not an insurable risk - they could not insure on those terms.

’It’s an entirely regrettable situation but one that was out of our hands.’

Agents Edgewater Associates were asked if an alternative scheme could be found but not suitable policy could be offered.

Mr Sloane said there was no option for refunds to members who had paid into the scheme as they been covered up until the time that the policy was cancelled.