Pilot scheme to tackle non-disclosure

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An initiative has been launched by Norwich Union to help tackle the problem of life insurance and critical illness claims being rejected due to non-disclosure.

According to Norwich Union, around 12% of life and critical illness policies were rejected due to non-disclosure in 2005. In addition, the ABI states that one in five claims in the UK are declined each year due to non-disclosure by customers of their medical information and policy conditions not met. As part of the scheme, a first for the industry, Norwich Union will contact 5,000 policyholders to review their initial applications and notify the company of any medical details not disclosed on their original forms. It is hoped that the pilot will allow customers to correct any details whi...

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