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