The Association of British Insurers (ABI) has publishes an updated Statement of Best Practice for people who need to make a critical illness (CI) claim.
The trade body says the new statement will improve the clarity and understanding of the Total Permanent Disability (TPD) cover in CI insurance policies. The ABI says that while TPD only represents 3% of all claims under CI, a high proportion of those claims in the past have been declined. The new statement is designed to reduce unsuccessful claims.
ABI members will be required to implement the new wordings as soon as is practical, but in any event by no later than the end of next year.
The new Statement of Best Practice for Critical Illness Insurance includes a change in wording to the Terminal Illness definition in the light of changing medical science, and clarity improvements to the Cancer and Parkinson’s disease definitions. It also includes the standardisation of the pre-existing conditions exclusion for Children’s Critical Illness insurance. For some insurers this condition is in the top five causes of claim, most for children diagnosed with leukaemia.
Nick Kirwan, the ABI’s assistant director of health and protection, said: “TPD accounts for around 3% of all critical illness claims
