‘Fewer insurance refusals’ with new rules
New rules introduced by the insurance industry’s trade body will ensure that fewer people have their claims refused, it has been claimed.
According to the Association of British Insurers (ABI), the move marks a commitment to pay out on protection policies, even where people have not disclosed medical information (unless it was withheld deliberately).
Every year, thousands of critical illness, income protection and life insurance claims are rejected as a result of people’s failure to provide relevant medical information.
The ABI claims that insurers will now pay out a "fair sum, reflecting risk and premiums paid" in instances where information has inadvertently been withheld.
Stephen Haddrill, director general of the organisation, remarked: "Customers want to know that their insurance claim will always be assessed fairly and paid without fuss.
"The industry wants customers to be able to take out insurance with confidence."
Life insurance provider Legal and General responded to the news by reminding customers that deliberately withholding relevant information will still lead to claims being declined.
The Insurance Helpline specialises in obtaining cover for people with medical conditions
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