Aviva Critical Illness Insurance Pays Out £118million In 2009

23 April 2010 / by Rachael Stiles

Aviva critical illness insurance paid out 90.1 per cent of all claims made in 2009, totalling almost £18million, an average £79,000 per claim.

The average amount that Aviva critical illness insurance claims paid out grew last year from £75,000 in 2008, and accounted for 1,499 successful claims.

The 2009 figures, released today, have pushed the total that Aviva has paid out in critical illness insurance claims since 2006 over the £1billion mark.

When it comes to what the claims are made for, the overwhelming majority are as a result of a cancer diagnosis, accounting for 67 per cent of all critical illness insurance claims in 2009.

Figures from the wider market unveiled by Investment Life & Pensions Moneyfacts this week, found that the number of critical illness insurance claims rejected for nondisclosure has fallen from 2.5 per cent in 2008 to 1.9 per cent; Aviva’s results reflect these findings, seeing a fall in rejected claims for this reason from four per cent in 2007 to two per cent in 2009.

Commenting on the data, Richard Verdin, director of protection at Aviva, said that “Critical illness cover remains a crucially important solution for many.”

Despite the value placed on this type of protection, nearly half of Brits do not have critical illness or life insurance, including 75 per cent of single parents, which Mr Verdin warns could have “huge implications” for their families.

“With 9 in 10 claims being paid, it is time for providers and advisers to get back on the front foot to raise customer awareness,” he said. “Collectively we owe it to customers to ensure people do realise the potential need and value of life insurance before it’s too late.”

© Fair Investment Company Ltd

Written by Editorial Team