The Financial Ombudsman Services has apparently ruled on how the term 'any occupation' should be interpreted when dealing with claims.
For people that took out insurance policies to cover them against serious (or critical) illnesses on an 'any occupation' basis, the Ombudsman has ruled that this will be interpreted as any relevant occupation.
The insurer involved had claimed that 'any occupation' meant not being able to undertake any work, regardless of what it was. This would obviously make claiming on a policy particularly hard. The Ombudsman ruled that 'any occupation' should be interpreted as any occupation of the sort they had previously held.
Our View
Whilst this news is excellent for claimants because they will have less of a battle when it comes to making a claim, it is bad news for the industry. Generally, 'any occupation' serious illness policies are cheaper than those that cover the policyholder under an 'own occupation' basis.
These policies pay out if you suffer a serious illness and cannot do your own job. We believe that the cost differential will now narrow and perhaps close, making critical illness cover more expensive, across the board.
For more information on critical illness cover and to get a quote, visit our web site Life Cover Adviser.com.