Critical illness payouts grow

The number of critical illness claims that were rejected by a leading insurer fell dramatically between 2006 and 2007.

Legal & General has revealed that the rejection rate for critical illness claims was down 19 per cent on the previous year, something the firm says is good for consumers and the industry as a whole.

The reasons behind the falling rejection rate are varied but Legal & General believes that a number of key factors have had the largest impact.

Tele-medical interviewing, which sees a nurse or underwriter speaking to the customer about their medical history, is said to have gone a long way to reducing the number of claims which are thrown out for non-disclosure.

Figures for 2006 show that claims declined for non-disclosure fell by 15 per cent, with the insurance firm paying out £92.1 million in critical illness claims in that time.

“We didn’t go into the business of critical illness to reject claims and so our latest experience is good for customers and good for the industry as a whole,” said Russell Whitworth from Legal & General. “It shows that people can have confidence in critical illness cover.

“Our claims figures demonstrate that the time and effort that we have invested in our underwriting systems to reduce non-disclosure and improve the clarity of policy definitions is paying off.”

Critical illness insurance is designed to help people financially if they are struck down with a life-changing illness or disability.

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