Forces Financial welcomes the announcement made in the Service Personnel Command Paper yesterday; that the lump sum compensation payments for the most serious injuries suffered by soldiers, sailors and airmen in the course of their duties will be doubled.

However this delight is tempered with the realisation that similar injuries in the civilian world would still receive substantially more compensation than the amounts provided, even taking into account the additional guaranteed income payment for life. There is a danger that the publicity surrounding this announcement could lead many in the Forces to forget that they also need to protect themselves against the normal accidents and traumas faced by service personnel and civilians alike - such as road traffic accidents and life threatening illnesses - and the need for Life insurance (with war risks cover) if they have dependants.

However, a benefit of the increased award is that it enables those in the Forces to consider whether insurance products that exclude war risks now provide sufficient levels of cover, and could therefore reduce the cost of their premiums.