Cheap policies for over-60s

Press, 18 February 1986, Page 23

Cheap policies for over-60s

PA Wellington A new half-price insurance scheme for the over60s will shake up the insurance industry, says one of the brokers involved. Since the end of last year, premium discounts of 50 per cent have been given superannuitants on their home, contents and car policies by an Auck-land-based insurance company, Metropolitan Life.

The reason given for the big discount to senior citizens is because this sector of the community had a low claim ratio. The director of the Lower Hutt brokerage agency selling the cut-rate policies, Mr Ray Creevey, said, “Superannuitants have been paying too much insurance in relation to the claims made by them.” Mr Creevey said this would mean that a senior citizen with a house valued at $BO,OOO, contents of $30,000, and a $16,000 car would have his annual premium cut from $6OO to $3OO. The discount is given to all superannuitants, with

no means test. The only condition was that the policyholder had had no claim in the last 12 months. Both the Auckland and Lower Hutt brokers selling the half-price policies say they have been “overwhelmed” by the response from the over60s.