Temporary permanent disability stays

The Association of British Insurers has agreed to keep the term total permanent disability in its updated statement of best practice for critical illness, due early next year, with a hopefully better definition.

The clause within critical illness policies accounts for 3 per cent of claims, but of those over half are declined due to confusion among consumers about when they can make a claim.

The ABI wanted to replace the term TPD with irreversible life-changing disability. Insurers and intermediaries did not like the idea.

Critical illness insurance: News update: 26 November 2010