In Marlow v East Thames Housing Group Ltd, the High Court holds that where an employee is contractually entitled to benefits paid by insurers under a permanent health insurance policy with the employer, the employer is bound to take all reasonable steps to secure those benefits from the insurers. This could, depending on the circumstances, entail pursuing litigation against the insurers.
Recent decisions show that while Permanent Health Insurance is valuable for staff, it can damage your organisation. By Anthony Korn, a barrister at 199 Strand Chambers.
A restriction in an insurance policy underwriting a contractual permanent health insurance scheme, which disentitled an employee to benefits on leaving service, was not incorporated by reference or implication into his contract of employment, holds the High Court in Villella v MFI Furniture Centres Ltd.
An employee's entitlement to benefit under his employer's permanent health insurance scheme was not terminated merely because he undertook some different work while incapacitated from working in his original job, as the scheme provided for payment of reduced benefits in such circumstances, holds the Court of Appeal in Brompton v (1) AOC International Ltd (2) Unum Ltd.
In Aspden v Webbs Poultry & Meat Group (Holdings) Ltd, the High Court implies a term into an employee's contract of employment providing that, save for summary dismissal, the employer would not terminate the contract while the employee was incapacitated for work.
HR and legal information and guidance relating to income protection insurance and permanent health insurance.