Legal & General has announced that in 2007 it paid out £110 million in critical illness insurance claims, a success rate of 88.2 per cent.
The proportion of critical illness insurance
claims that were paid out rose from 83.3 per cent the previous year; the 7.7 per cent of claims that were not paid this year were declined as a result of non-disclosure, but this number has shrunk from 12.1 per cent in 2006.
The amount paid out has grown from £92.1 million, which is "further evidence of our progress in bringing down the level of declined claims", according to Bernie Hickman, Managing Director of Protection at Legal & General.
He continued: "Customers should have every confidence that insurers will treat them fairly when they make a claim. We are in the business of paying out much needed money when customers need it most."
Mr Hickman chaired the Association of British Insurers, which has produced a guide for insurance providers on protection claims and non-disclosure, and aims to bring about consistency between insurers and therefore reduce the number of declined claims.
The average claim was for £60,000, and claims were most commonly made for cancer, terminal illness, heart attacks, strokes and multiple sclerosis. Furthermore, a total of £179 million was also paid out in life insurance
claims, which represents 96.3 per cent of the claims received.
Critical illness insurance is intended to provide people who are diagnosed with a specified illness, usually not a pre-existing one, with a cash lump sum pay out in able to help them if they have to stop working, and to make any necessary adjustments to their homes.
© Fair Investment Company Ltd