The introduction of a third non-disclosure category for critical illness (CI) helped secure extra payouts totalling more than £1.5m in 2008, Aegon Scottish Equitable says.
According to the insurer, the 'negligent' category introduced by the Association of British Insurers (ABI) in January 2008, which allows for a 'proportionate' payment depending on the nature of the non-disclosure, allowed for extra payouts of £1.52m last year. It paid out £19m in total.
"We have changed our approach to claims handling following the new ABI guidance and worked with IFAs to educate them on the areas where non-disclosure occurs and what they can do to stop it occurring at application stage," Aegon technical claims manager Helen Morris says.
Overall, the insurer says it paid 91% of CI claims in 2008, up from 82% two years ago. Of the 9% of claims declined, just under half were due to non-disclosure with the rest rejected because the illness was not covered under the policy.
Cancer continued to be the most common reason to pay out and the average age of a CI claimant was 44.IFAonline
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