From Mr A. G. Paul, MRPharmS
SIR,-I recently received a copy of the Pharmacy Mutual Insurance Company's report and accounts for 1999. The report includes in the chief executive's review a paragraph extolling the benefits of insuring through PMI, which include the statement "special discounts . . . making the premiums very competitive".
As my car insurance was due for renewal, I requested a quotation. The PMI quote was 35 per cent higher than the cheapest alternative for the same cover.
The result reinforces the wisdom of obtaining several quotes in these days of ever rising motoring costs.
Alan Paul
Winchester
Mr J. F. Hart (chief executive, PMI Ltd) replies: Motor insurance is very competitive. Unfortunately, no one insurer can be cheapest in every single case, otherwise a monopoly situation could exist.
PMI's bespoke policy with Avon Insurance is obtaining hit rates on quotations of 40.9 per cent compared with the market rate of below 15 per cent. Also, we have an exceptionally high level of renewal retentions.
This demonstrates the value of our discounted motor rates for pharmacists with the number of vehicles insured increasing by over 150 per cent since the launch of the bespoke policy in June, 1997.