Mortgage Industry News

← Back

Critical illness cover gets revamp

Date: Tue, 18 Apr 2006

Critical illness insurance policies are to confirm to new guidelines to help increase consumer confidence in the product.

The new changes, supported by the Association of British Insurers (ABI), will mean that from the start of next year new policies will follow set wording on what medical conditions are covered and not covered by the insurance.

The Mail on Sunday reports that the move will aim to ensure that consumers are not mis-sold policies or mislead by critical illness cover. For example, many policies cover cancer but do not include "pre-malignant" or "non-invasive" forms of the disease. Other exclusions may include paying out against claims involving strokes, Alzheimer's and HIV.

The new guidelines should help to resolve the number of claims that are rejected by insurance providers. Recent research conducted by insurance intermediary Lifesearch discovered that more than one in five claims continues to be rejected.


© 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.