The number of claims declined for non-disclosure of medical information by Norwich Union has dropped to 1.5% in 2008, following a series of awareness raising initiatives.
ABI rules for the payment of claims effective from 1 January 2008 have also helped drive down non-disclosure, the insurer said.
It reports the number of claims declined for non-disclosure has fallen to 1.5% from 6.8% in June 2007 and 4.17% for the full year.
NU paid out 813 critical illness (CI) claims during the first half of 2008, totaling more then £58m and averaging just under £72,000. Nearly 94% of claims received were paid compared to 85% during the same period of 2007.
Cancer accounted for approximately 60% of CI claims during the first half of 2008. Almost 8% of claims were for heart attacks, while nearly 7% came from Multiple Sclerosis and Stroke victims respectively.
NU says it aims to continue to reduce the number of claims rejected for non-disclosure.
“We are actively tackling this issue, something that highlights our commitment to providing the peace of mind our customers demand,” it says.
Initiatives to reduce the number of failed claims include a regular survey where NU obtains medical evidence post-application to assess whether non-disclosure has occurred.
It encloses a flyer highlighting the risk of non-disclosure with all application forms, reminding all customers the importance of answering all questions fully, truthfully and accurately.
Norwich Union also has an underwriter-manned helpline, the 'what if' line, for advisers to call during the application process which has received over 15,000 calls since the beginning of 2008.
In 2007, it ran a campaign providing existing customers with the opportunity to review their original forms and rectify any unintentional non-disclosureIFAonline
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