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New critical illness definition welcomed

Date: Thu, 20 Apr 2006

The recent introduction of a new definition for critical illness cover has been met with approval from a number of advisors and providers.

The changes, devised by the Association of British Insurers (ABI), hope to improve clarity within the industry and reduce the number of failed claims.

From April next year, all providers of critical illness cover must give detailed information on when and in what conditions critical illness cover will pay out. In particular, this means added definitions of uncovered circumstances such as Alzheimer’s, HIV and head injury as well as expanding on definitions of other conditions such as forms or cancer.

It is estimated that one in five critical illness claims are rejected because holders have failed to disclose vital information or do not meet illness criteria.

Roger Edwards, product developer at Bright Grey, said the new definitions would help customers receive a more consistent level of service.

"Critical illness cover is an important part of the protection mix and the new statement of best practice will ensure it remains relevant in the face of future medical advances," he added.


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