Friendly societies that offer Holloway-style income protection (IP) products paid 95% of the claims they received in 2007, the Association of Friendly Societies (AFS) has said.
The Holloway product is a traditional IP plan which can include an investment element attracting regular bonuses.
Of the 4,846 claims received by the Holloway friendly societies in 2007, 216 were in the pipeline, 4,393 were judged valid and paid, 232 were considered not valid and two were rejected as fraudulent.
Of the 232 invalid claims, 40.7% involved an excluded condition, 23.3% had non-disclosure, 18% had no loss of earnings, 3.2% involved no medical evidence, 2.6% had no time off work and 12.2% were not valid for "other" reasons.
Martin Shaw, general secretary of the AFS, says: "The results reflect both the transparency of friendly societies as well as their commitment to supporting their members at a time of need."
The friendly societies that contributed to the claims statistics data were:
- Childrens' Mutual
- Dentists' & General
- Pharmaceutical & General