Standard Life: Paid critical illness claims up 2%

29 June 2006
Insurance and financial group Standard Life has announced that the number of claims paid was up two per cent on 2004, at 82 per cent.

Of the rejected claims, eight per cent were due to non-disclosure and the remaining ten per cent as a result of the claim not meeting policy definitions.

The group's findings from its full-year Critical Illness Claims Review for 2005 found that Standard Life paid out nearly £20 million on 342 claims, at an average of £57,800 per claim.

It also reported that over 50 per cent of claims made on its critical illness cover were for cancer.

"We have seen a small but positive shift in the number of claims we paid out on last year and I hope the numbers provide reassurance that we do not arbitrarily decline claims without reason," said Trevor Matthews, the chief executive of Life and Pensions UK and Europe.

"The new 'Statement of Best Practice' from the ABI will provide clarity for advisers and consumers as to exactly what is really covered in these policies," he continued.

"I hope initiatives like this will help reduce the number of declined claims across the industry."

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