Permanent sickness insurance was last discussed by this Society in 1952 when K. Medin submitted a paper on some of the theoretical aspects relating to this class of business (J.S.S.11, 76). At that time only a handful of offices transacted this insurance in this country and of these some did not seem to actively pursue the business. Since then its value, both in conjunction with a life assurance policy and as a separate contract, has become far more widely recognized and I therefore hope that a brief look at the practical considerations involved may be of general interest.

The name ‘permanent sickness insurance’ is possibly misleading. The insurance provides an income during total incapacity, terminating at an age chosen by the insured when the insurance is effected. It cannot be cancelled by the office solely on the grounds of an adverse claims experience. Accidents, provided they are not deliberately self-inflicted or excluded specifically by the policy conditions, are covered.