Holloway Friendly paid 96.2% of all income protection claims in 2011, an increase on the 95.5% paid out during 2010.

Of the 3.8% of unpaid cases 67% were due to the increasing number of claimants who failed to provide the correct medical or financial evidence.

Although incorrect evidence formed the highest percentage of unpaid claims, a number were unpaid because clients had not informed Holloway Friendly that their circumstances had changed since they took out their policy and had suffered no financial loss.

No claims were denied due to non-disclosure, which Holloway Friendly puts down to its move to using Big T telephone-interviewing in 2010 and the society’s continued underwriting developments.

Mat Manser, sales and marketing manager for Holloway Friendly, said: “Holloway Friendly has an exceptionally high pay out rate on claims which improves every year