Quinn Insurance has announced it will no longer give people taking out health insurance discounts for being members of group schemes.
It has also said it will charge customers 3 per cent extra for paying their insurance premium by instalments.
The announcements came yesterday in a statement in which the company outlined its plans to increase the cost of a number of its health insurance policies in 2008.
"In line with Government recommendations we are introducing a standard, transparent and uniform price through the removal of discount schemes," it said.
In relation to the fee for those paying by instalments it noted, "Quinn Healthcare feels that it is equitable to offer a lower total cost for members who elect for immediate payment in full".
In relation to price increases on its health insurance policies from January 1st next, it said individuals would face a maximum price increase of 3 per cent and families would face a maximum price increase of 5 per cent.
But the VHI, which recently increased the price of its health insurance policies by an average of 8.5 per cent, claimed that Quinn's price increases were much more significant than had been suggested.
This was because the normal discount of 10 per cent for group schemes had been abolished, it said, and it claimed some 90 per cent of people were members of group schemes.
Declan Moran, director of marketing and business development with the VHI, claimed the announcement meant the vast majority of Quinn Healthcare customers on Quinn's most popular plan, Essential Plus with no excess, would face significant price increases.
Adults, he claimed, would see their policies increase by 18 per cent and children would see theirs rise by 27 per cent.
Colin Morgan, general manager of Quinn Insurance, responded saying its customers saw no price increase in 2007 but would in 2008. He said the VHI prices had on average increased by 21 per cent over the same period. "So over the two years our price increases are still less than theirs," he said.
"And even with the price increases now announced we are still cheaper for every plan than the VHI," he added.
"Our maximum increase for next year is 18 per cent for a family of four," he said.