Standard Life paid out a total of £19.8m on 342 critical illness (CI) claims in 2005, according its latest statistics.
The firm’s full year review of CI claims for 2005 reveals the average claim value last year was £57,800.
Further findings reveal 82% of CI claims were paid in 2005 compared to 80% at the last full year review, while 18% of claims were rejected.
Of the declined claims, 10% were declined because the claim did not meet policy definitions and 8% were declined because of non-disclosure.
During 2005 26 declined claims were referred to the Financial Ombudsman Service (Fos) where 21 were upheld in favour of Standard Life, none were upheld in favour of the customer, four are awaiting adjudication and one is awaiting a senior ombudsman review.
The statistics also reveal most claimants were aged 40-59 (63%), while those aged 0-39 accounted for 32% of claims and 5% of claims were made by those aged over 60.
Cancer accounted for 52% of claims, followed by heart attack at 13%.
Around 66% of claims were made on policies after more than 48 months in force.
Trevor Matthews, chief executive of Standard Life’s life and pensions UK and Europe division, says: “We have seen a small but positive shift in the number of claims we paid out on last year and I hope the numbers provide reassurance that we do not arbitrarily decline claims without reason.”
Standard Life has published a guide to the claims statistics for advisers, highlighting the importance of completing insurance forms accurately and fully to avoid 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 7968 4554 or email [email protected].IFAonline
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