With the current uncertainty in the banking sector and in particular with Lloyds TSB and HBOS, it is simply untenable for us to offer unemployment insurance to these employees.
Filey, UK (PRWEB) September 19, 2008
UK Insurance brokerage, Top Quote Online, have today learned from industry sources that a number of major general insurance providers are now refusing to accept new applications for unemployment insurance from consumers working in the troubled banking industry.
In particular, employees of troubled groups such as HBOS (Halifax Bank of Scotland) are now facing a high chance of redundancy and as such a number of leading unemployment insurance providers have withdrawn the offer of cover to employees of these companies.
An industry insider source told Top Quote Online that "With the current uncertainty in the banking sector and in particular with Lloyds TSB and HBOS, it is simply untenable for us to offer unemployment insurance to these employees." The source also mentioned companies such AIG for whom unemployment cover will not be offered.
Unemployment cover is designed to pay out a portion of a consumer's income if they are made redundant. The refusal of major insurers such as Paymentshield and Millenium Insurance to offer unemployment insurance will leave thousands of staff, at companies such as HBOS facing redundancy, without any hope of protecting their incomes.
A Paymentshield source said "If HBOS employees already have an unemployment insurance policy, it isn't a problem and they will be eligible to claim but with new policies, the terms of the cover ask if they are aware of any circumstances where they might be made redundant."
The news comes as employees of the HBOS group are faced with uncertainty about their future after it emerged that the company was to be merged with UK banking giant Lloyds TSB.
Top Quote Online are a leading online independent insurance brokerage providing Life Insurance, Critical Illness Cover, Income Protection and Unemployment covers. They offer whole of market advice with all major providers searched and analysed individually to suit each client's needs.