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Norwich Union (NU) has reported a 14 per cent increase in critical illness cover payouts over the past year.

Figures show the insurer, soon to be rebranded Aviva, settled 1,625 claims during 2008, totalling almost £121 million.

Over the year, the number of claims declined for non-disclosure at the policy’s outset was also down four per cent from 2007.

NU chief underwriter Michael Whyte said it is up to the whole industry to ensure that customers understand the cover they buy.

He added: "We are pleased with our progress on non-disclosure, yet are concerned that we have to tell some people that their claim was not going to be paid because their condition, or the severity of their condition, meant they were not covered by their policy."

The cost of the average claim was £75,000, with cancer remaining the most common cause of a claim (63 per cent), followed by heart attack and multiple sclerosis (both seven per cent).

Aviva is the world’s fifth-largest insurance group and the largest insurance services provider in the UK.

The Insurance Helpline specialises in obtaining cover for people living with pre-existing medical conditions.

This entry was posted on Wednesday, April 1st, 2009 at 2:01 pm and is filed under Industry.