# VHI Company Scheme query.



## IsleOfMan (9 Jul 2009)

My wife took a voluntary redundancy package from the company where she worked. She was quarter way through her company paid for VHI scheme at the time of her departure. Is it normal for the company to cancel her membership to the scheme from the date of her departure or do some companies let the scheme run for the employee until it's end date?

I rang the VHI about this and was given the answer that some do and some don't.

The problem my wife has is that she got a letter from the VHI six months after she resigned from her company saying that she was six months in arrears of her payment and that if she didn'y pay up they were going to cancel her membership.

Her company never advised her either way.


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## NovaFlare77 (9 Jul 2009)

From my time working in BUPA, it would be standard practice for a company to cancel an employee's company paid membership once the person left and I imagine it would be similar for VHI company group schemes as well. Ultimately, it's a decision for the company to make, subject to the contract of employment, with perhaps some input from the employee if they were in a high enough position (e.g. making it a term of the redundancy package).

Regarding the letter from VHI, from reading other threads, it seems that it's VHI practice to continue the policy on an individual basis, but I'm not sure how or if they inform the member of this.

What your wife should do is contact VHI, inform them she wishes to keep her membership, but that because VHI never informed her of her options, she feels it's unfair to pay 6 months of membership. Bargain them down to the last three. This is important as three months (or 13 weeks to be exact) is the longest length of time she can have no cover before having to serve waiting periods again. So if her policy was cancelled on say 1st January 2009, if she agrees to rejoin from 2nd April and pay from that date then VHI legally have to recognise the previous membership.

Alternatively, if the pre-existing waiting and/or maternity waiting periods aren't an issue, then she should just rejoin form now and ask them to waive the initial waiting period. VHI used to do that quite frequently, but I'm not sure if that's still the case.


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## IsleOfMan (10 Jul 2009)

Thanks NovaFlare77. We tried the above with the VHI. We said that if they had advised us sooner instead of waiting 6 months to tell us we could have moved to one of the other health insurers without penalty but because they kept us waiting six months before telling us we had only one option and that was to stay with VHI.

They came back and said that her employer had only informed them a couple of weeks previously (apparently it took nearly 6 months for her employer to update their records with the VHI, according to the VHI)  so they weren't to know that she was no longer in the group scheme.

We asked the VHI to restart the policy from a new date without penalty and cancel the previous six months and they refused.

We now have no option but to back pay a years premium and in six months time face in to another years premium. A lot of money!  My view is that the VHI could have done something for her. 

At this stage, on renewal, we will be leaving the VHI after nearly 50 years of membership and with only one small claim during that period of about €900. I can't believe, or maybe I can, how unhelpful the VHI are and how they don't seem to mind another customer leaving them!


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## harvey (11 Jul 2009)

I think that she should inform her previous employer and ask them to pay the six months. If that doesn't work, pay premiums from when it was due upto 12 weeks ago and then take out a new policy with either Hibernian Aviva Health or Quinn Healthcare. You would continue on with the cover without having to reserve your waiting periods because of the 13 week rule. Technically you are entitled to do this. I know this has happened before but VHI are not as helpful as they once used to be I guess.

From VHI website;
"You must pay your subscription within 15 days after it becomes due. Otherwise, we will not pay any benefits and will cancel your contract. The​subscriber/policy holder is responsible for ensuring payments are made." - so the onus was on them to cancel the policy, they didn't and they didn't inform you either.


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## scuby (11 Jul 2009)

it was up to your wife's company to inform the vhi about her leaving, how else were they supposed to know. she should have asked her company about this when she was sorting out her voluntary redundancy when she was leaving etc
usuallly any insurance comp will allow the person to pay for the diffence from when the policy lapsed to current date. ring and double check with them


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## Shannon81 (12 Jul 2009)

check the rule book it is up to the member to ensure that the policy is paid for/being paid for.

She would have to pay the amount due from that date as the company was paying for her policy they instruct VHI when to cancel the policy.

If she has an issue with this then go back to the company as Vhi was instructed by the company.


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## IsleOfMan (12 Jul 2009)

harvey said:


> I think that she should inform her previous employer and ask them to pay the six months.


 
They said that all policies are cancelled when an employee leaves a company. It would have been nice to receive some sort of summary letter from her employer. The redundancy form that they are required to complete wasn't completed fully either.

Also she received absolutely nothing from them either about her pension, but that's another thread.


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## NovaFlare77 (12 Jul 2009)

IsleOfMan said:


> They said that all policies are cancelled when an employee leaves a company. It would have been nice to receive some sort of summary letter from her employer. The redundancy form that they are required to complete wasn't completed fully either.


 
Does her contract say anything about health insurance benefits (or any other benefits) after ceasing employment?


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## Grizzly (18 Jul 2009)

Was she on sick leave when she left the company as it would seem harsh to the point of being negligent if she was?


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