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My husband and I recently upgraded our Barclays bank account to an additions account, and one of the benefits was a cheap health insurance policy for our children through Norwich Union. We pay £3.50 a month for each child which covers day inpatient treatment, any hospital stay including accommodation for one parent for a child up to the age of 9 any test needed whilst staying in hospital. The really good thing about this (apart from the price) is that cover goes up to the age of 25. There is a good choice of hospitals and they can offer a cash alternative.
When I contacted Norwich Union for information they were both very helpful and pleasant on the phone, and I had all the information within 3 days, all the information is set out clearly and you get membership cards with your personal numbers on them for when you need to make a claim, you also get guidlines set out in a clear information booklet on how to go about getting private treatment and making your claim.
We were very impressed by the service we recieved and it doesn't cost a fortune, I would recomend this to anyone looking for cheap childrens health insurance.