Mortgage Industry News

← Back

Check the small print on your critical illness cover

Date: Mon, 05 Dec 2005

Critical illness holders are being advised to double-check the small print on their policies in order to insure they are fully covered.

Over half a million people in the UK currently hold critical illness policies; however, they could find that some providers are unwilling to pay-out in the event of a claim.

Kevin Mullane was diagnosed with skin cancer in 2003 and was forced to undergo extensive surgery to have six cancerous lymph nodes removed, reports the Daily Mail.

Mr Mullane had taken out a critical illness product with Standard Life in 2001 and was expecting a payout of around £180,000 following his cancer diagnosis. However, Standard Life rejected his claim for compensation because of Mr Mullane's failure to notify them of a visit to his GP two months before signing up for the policy.

It is estimated that one in five critical illness claims is turned down by insurers, largely because of issues over "non-disclosure" as many applicants fail to give complete medical histories simply because they have forgotten certain facts or don't think it is relevant.

"'Did they want ingrown toenails? Did they want appointments about verrucas? I was told Standard was looking for appointments that related to serious conditions that could indicate heart disease or cancer risk" said Mr Mullane who didn't mention his visit about a patch of flaky skin he had discovered.

The case has now been referred to the Financial Ombudsman.


© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.