CRITICAL ILLNESS INSURANCE IN BANKRUPTCY

Early day motion 778, tabled 31 January 2002 by Richard Younger-Ross (Liberal Democrat). Signed by 21 members.

That this House congratulates the Mail on Sunday for publicising the case of Alan Rawlins, the disabled formerly self-employed builder whose Trustee in Bankruptcy has been allowed to keep all of the proceeds of his critical illness insurance policy; recognises with concern that in bankruptcy the proceeds of such policies do not benefit from the same ring-fenced protection as that afforded to personal pensions; believes that the inconsistency is unjust and penalises those who make proper provision to support themselves and their families in the event that they suffer critical illness and results in the imposition of additional burdens on state resources; recognises the urgent need to ensure that disabled bankrupts are not disadvantaged in income terms by comparison with working bankrupts; and urges the Secretary of State to review the relevant provisions of the insolvency legislation.

Signatures by party: Liberal Democrat 12, Labour 9.