The rejection rate for overall critical illness claims in 2006 was 19% lower than the previous year, according to statistics from Legal & General.
Legal & General (L&G) declined 17% of overall claims in 2006, compared with 21% in 2005.
Claims declined as a result of non-disclosure reduced from 14% in 2005 to 12% in 2006, while claims declined for not meeting the policy definitions fell from 6% in 2005 to 5% in 2006.
L&G paid £92.1m in CI claims in 2006 – 11% more than the £83m paid in 2005.
The statistics also reveal 55% of claims were accepted immediately at the point of sale in 2006, almost 70% were accepted within two working days and 85% of life plus CI cover cases were completed on original quoted standard rates.
The most common illnesses claimed for in 2006 were cancer, terminal illness, heart attack, multiple sclerosis and stroke.
L&G believes the rise in payments is down to innovations in tele-interviewing and new product literature.
Russell Whitworth, claims and underwriting director at L&G, says: “We pay all valid claims but the primary reason for declining a claim is non-disclosure. We are combating this by producing customer and adviser leaflets outlining the potential impact of non-disclosure.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7034 2680 or email [email protected].IFAonline
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