Health insurance for your four-legged friends can save on unexpected costs

Direct debits take motor insurance, household insurance and private health insurance from our bank accounts but, for animal lovers, there is another premium to consider.

According to First Call Direct, the Republic's only provider of pet insurance, one in three pets will require unexpected treatment this year.

Only 0.5 per cent of an estimated 600,000 dogs and 400,000 cats in the Republic are insured, the company says, compared to 50 per cent in Sweden and 12 per cent in Britain, where other pet insurers include Royal & Sun Alliance and Tesco.

First Call Direct has offered its Petplan policy since May 2001, when it took the account over from another company in the Allianz insurance group.

"Since then we've seen it grow hugely but there is still very low penetration," says Mr David Murphy, business development manager for Petplan. "We would hope the level of penetration would reach 5 to 10 per cent within the next five years and we are working in conjunction with the veterinary community to get our message across to pet owners."

First Call Direct estimates that as many as 300,000 pet owners could be facing bills up to €11,500 to treat illnesses such as heart conditions and diabetes. Treatment for diabetes can cost up to €7,200 over the life of the animal. Hip problems in larger dog breeds such as St Bernards and Great Danes may lead to a hip replacement operation costing about €600 a hip.

The ISPCA agrees that pet insurance may be cost-effective for owners in light of advances in veterinary medicine, such as the availability of specialised implants like plates and pins to mend broken limbs and a greater range of diagnostic testing facilities such as blood analysis, radiology and ultrasounds.

The downside, according to the ISPCA, is the cost for the pet owner.

"People take out medical insurance for themselves, so we would certainly encourage that they take it out for domestic pets or any sort of animal," says Mr Ciarán O'Donovan, director of the ISPCA.

But Mr O'Donovan says it is difficult to know how many cats and dogs there are in the Republic, let alone how many are insured.

For pet owners who do want the security of knowing they can afford available treatment for the four-legged members of the family, policies at First Call Direct start from €57 a year for cats and €90 for dogs. On a monthly basis, that amounts to a minimum premium of €4.76 for cats and €7.55 for dogs. Prices vary depending on whether the animal is a pedigree or a cross-breed.

The insurance package covers up to €3,175 in veterinary fees as well as €1.27 million in third-party liability, in the event the owner is held legally liable for any damage or injury caused by their pet. Owners in Britain have experienced third-party liability claims of up to €100,000, according to First Call Direct.

Petplan is only available for cats and dogs at the moment. "There are a lot of hamsters and gerbils out there, but we're concentrating on the most common companion animals," says Mr Murphy. "No goldfish yet!"