Figures for rejection of claims under critical illness insurance

Until recently, insurers resisted pressure from consumer groups to release figures to counter anecdotal evidence that many would be claimants were refused. Most major critical illness insurers now publish annual figures showing  the proportion of critical illness claims they reject. Some even list the reasons.

 

'Non-disclosure is a tremendous problem,' says Sue Wilkinson of Scottish Provident, 'but the industry really is improving, both in the way we seek information from applicants and also in the way the risks of non-disclosure are explained.'

 

The latest figures are for  the year 2004 on the total percentage of claims rejected:

 

Norwich Union          26%

Friends Provident     24%

Legal and General    22%

Prudential                  20%

Standard Life             15%

Scottish Provident    11%

Scottish Widows figures will be published in January

 

The main reason for rejection is non disclosure ie where a proposer does not reveal the full  personal medical or family history

 

The figures for 2004 for non rejection due to non disclosure :

Legal and General    16%

Friends Provident     15%

Norwich Union          13%

Scottish Provident    10%

Prudential                  8%

Standard Life             5%

 

The figures show how important it is that you are very thorough and conscientous in filling out critical illness insurance proposal forms. Hiding information from an insurer could mean  that you  pay out premiums for years, but not get a pay out when claiming. You should answer all questions fully.