Income Protection Insurance – Rising claims rates
A bit off topic but definitely on-topic with regards to current issues.
Earlier this year, Insurance companies announced that they will pay more claims for Critical Illness, Income Protection Insurance and Life Insurance where medical information has not been disclosed, unless the customer deliberately withheld it.
Where relevant information has not been provided, insurers will pay customers a fair sum, reflecting risk and premiums paid. In a small number of exceptional cases, premiums will be refunded if the insurer would not have taken on the policy if they had known the full facts.
This new commitment follows recent improvements in policy application forms and clarity of communication to customers. These are already leading to a fall in the number of declined claims for Critical Illness, Income Protection and Life Insurance policies.
Stephen Haddrill, the ABI’s Director General, said:
“Customers want to know that their insurance claim will always be assessed fairly and paid without fuss. The industry wants customers to be able to take out insurance with confidence. Insurers have signed up to ensuring both of these happen. The number of income protection claims that are turned down will fall.”
This is most certainly good news as completing insurance application forms can be difficult and something that an applicant didn’t think important may be viewed completely differently by any potential insurer.
If you are in any doubt, it will still always be advisable to fully disclose any information that may affect your policy entitlement even if you think it insignificant – let the insurer make that decision!
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