Legal & General paid £110m in critical illness insurance claims
07/03/2008
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 insuranceclaims, 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
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