Halifax and Lloyds TSB's decision to pull out of the pet insurance market has left thousands of animal owners facing crippling vets' bills because their pets need long term treatment - and no other company will agree to insure them.
Halifax and Lloyds both advertised their policies as offering lifelong cover, but some of their customers now face an agonising decision - to find thousands of pounds to pay for future treatment, or have their pets put down. Springwatch presenter Kate Humble reports.
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Most people agree that pets quickly become part of the family, and their health and wellbeing is of long-term importance. For this reason, many owners want lifelong insurance for their animals, so if their animal does develop a serious or on-going condition, they can afford the treatment that can run into thousands of pounds.
Amanda Taylor took out what she believed to be lifetime cover for her dog Angus in 2009. A good decision, as he later developed Addison's Disease, a potentially fatal condition, which has so far cost her around £2000. Halifax, part of Lloyds Banking Group, have now told her they won't renew her policy when it runs out in six months' time.
Thousands of other pet owners have also been warned their annual cover won't be renewed when their current policies run out. Halifax say their Terms and Conditions entitle them to do this - as long as they give 21 days' notice. In response to customer protests, they claim said they never sold the policy as 'lifelong' cover. Watchdog has found that in marketing from 2006, the promise is quite clear: "Halifax pet insurance offers you peace of mind cover for your pet, giving lifelong cover for your cat or dog."
Elaine took out a policy for Max in 2006. He's since developed spinal problems, costing more than £6,000 to treat. Halifax have paid the vet bills so far, but Elaine is worried about what will happen now her policy has been cancelled.
Marc Gander from Consumer Action Group argues "It's an absolute disgrace that loving pet owners are being forced to consider putting down their pets simply because Halifax have taken this economic decision".
Watchdog has learnt that Halifax has paid compensation to a number of customers who've complained loudly enough, but they haven't publically apologised or admitted they're at fault. Now more owners are having their cover withdrawn because Lloyds TSB, also part of Lloyds Banking Group, announced in February 2012 that they are also pulling out of the pet insurance market.
Lynne Wornell is among many of pet owners who Lloyds are abandoning. When her policy ends, her nine year old dog, Kira, will be left uninsurable. Kira has arthritis, a heart condition, and an autoimmune deficiency, and vet bills can cost anything up to £1000 a year. "This dog is my absolute life and I don't think Lloyds realise just how much heartache they are going to be causing to so many people, I don't know what I am going to do if she has her life cut short because I can't afford treatment for her".
A spokesman or Lloyds Banking Group Statement said:
"Lloyds Banking Group withdrew from the pet insurance market last year. We acknowledge that this decision has caused concern among some customers whose pets have pre-existing medical conditions and are having difficulty finding a new insurer.
"We are urgently working on a solution for customers with pets who have pre-existing conditions and will be contacting them in the next few weeks with our proposals.
"If any customer wants to check if they are affected, they can contact us. We are committed to continuing to support our customers and are sorry for the inconvenience we may have caused."
Lloyds TSB Pet Insurance customers - 0845 6013073
Halifax Pet Insurance customers - 0845 6013122