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Critical illness disclosure loophole to be closed

Date: Thu, 23 Feb 2006

A crucial loophole on critical insurance policies is to be closed following abuse of the non-disclosure rules.

Many insurance providers have been able to refuse to pay a claim because of non-disclosure about something which may not even be directly relevant to the critical illness claim. However, the new tightening up of the system could stop this happening, claims the Financial Mail.

It is expected that the Law Commission will support the case for reviewing several areas of critical illness and life insurance law.

Many providers automatically request a claimant's doctor to provide a complete history even when the information is not necessarily related to the condition behind the claim. For instance, an insurance company rejected a claim from a breast cancer suffer because she failed to disclose a consultation with her GP about depression.

The Association of British Insurers has already issued new guidelines to ensure that claimants are aware that they must provide up-to-date and full information when applying for critical illness cover. However, a number of consumer groups have raised concerns that a change in the law is needed to ensure that insurance companies pay out all valid claims.


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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.