Association of British Insurers Promises Members Will ‘Pay More Claims’

January 10, 2008

The Association of British Insurers has announced that its members – who constitute most of the UK’s insurance industry – “will pay more claims for Critical Illness, Income Protection and life insurance where medical information has not been disclosed, unless the customer deliberately withheld it.”

The ABI described the decision as an “important new commitment” that “will lead to a further fall in the number of declined claims.”

The bulletin explained: “Where relevant information has not been provided, insurers will pay customers a fair sum, reflecting risk and premiums paid. In a small number of exceptional cases, premiums will be refunded if the insurer would not have taken on the policy if they had known the full facts.”

The ABI indicated that it had adopted the new policy based on “recent improvements in policy application forms and clarity of communication to customers,” which it said “are already leading to a fall in the number of declined claims for protection policies.”

ABI Director General Stephen Haddrill commented: “Customers want to know that their insurance claim will always be assessed fairly and paid without fuss. The industry wants customers to be able to take out insurance with confidence. Today insurers have signed up to ensuring both of these happen. The number of protection claims that are turned down will fall.”

Source: Association of British Insurers –

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