The number of critical illness claims (CICs) declined at Friends Provident due to the illness not meeting the definition rose in 2008, results show.
According to figures published today, 8.7% of claims went unpaid as a result of an ineligible illness last year, up from 7% in 2007. In total, 12.7% of the 691 claims received were unsuccessful, but this was down - from 13.5% - from the previous year.
Friends Provident says among those declined were claims for a broken leg and a benign breast tumour.
In May of 2007, trade body the Association of British Insurers (ABI) published new definitions of critical illness in a bid to provide more clarity about what policyholders are covered against.
Elsewhere, the number of claims declined due to non-disclosure fell from 6.5% in 2007 to 4% last year and Friends Provident says it paid out £36m in total in 2008.
"I am pleased to see a steady increase in the number of claims that we paid in 2008 either in full or proportionately," says Mark Jones, head of protection at Friends Provident. "The industry is working hard to restore consumer confidence in insurance and belief in whether claims are paid."
Over half of claims paid out were for cancer, although this was also down on the previous year, while the average payout more than £59,000 and the largest single claim £500,000.IFAonline
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