The Association of British Insurers (ABI) has called for greater clarity on insurance application forms in order to safeguard consumers. The association would like to increase awareness among consumers, especially about policy terms and the disclosure of pre-existing medical conditions. They consider that the guidelines they published recently on the design of protection insurance application forms for insurers, would help maximise the number of claims paid and ensure consumers received the right products. The Association of British Insurers believe that the insurance industry wants to improve knowledge and understanding of these products, and in particular, they want to make consumers understand the terms and conditions of the product and the need to disclose any relevant pre-existing medical conditions, as when claims are turned down, it is often due to one of these factors.
Our view:
Anything that makes thing clearer has got to be good. The problem is that insurance is a legally binding contract and therefore, there will always be complex parts.