Chartis has denied it is pulling out of offering personal accident cover for Australian Defence Force members.

CEO Noel Condon told insuranceNEWS.com.au Chartis is merely rewriting some of the conditions of its accidental death and permanent disability policies.

“We have not cancelled any policies but we are changing the terms and conditions of the products,” he said.

“In September last year, we wrote to policyholders saying the conditions were about to change.

“We have now just written to about 4500 policyholders saying we are going to change the conditions in August or September of this year.”

Mr Condon says the main change will be a reduction in the maximum payout figure from $750,000 to $250,000 if the member is on active service overseas. Soldiers serving in Australia will be covered for $500,000.

“Premiums are paid monthly so a policyholder can tell us when they are going on active service and we will adjust the cover for the period they are away from Australia,” he said.

“The cost of the policy will be five times more expensive than the normal premium for when they are on active service.”

Mr Condon says Chartis wants soldiers to continue their coverage.

“I do not want to cancel policies and Chartis wants to insure more Diggers,” he said.

“We have been writing this business for more than 10 years in Australia and we don’t plan to stop now.”