Scottish Widows Critical Illness Payouts Up

Scottish Widows Critical Illness Payouts Up

Scottish Widows paid 86 per cent of critical illness claims last year.  In the year to October 2007 more than £29m was paid out on 847 critical illness claims, the insurer announced.  The protection provider said the reduction in number of claims denied was as a result of measures taken by the industry and the work of the Association of British Insurers to reduce non-disclosure.  Richard Jones, protection market director for Scottish Widows said a lack of consumer confidence was still having a detrimental effect on take up of protection.  

The report also highlights why some claims are declined.  Five per cent have been declined because the customer failed to disclose material information when the policy was taken out.  A further 9 per cent were unsuccessful because the reason for making the claim was not actually covered by the policy definition.

Our view

These figures appear around the average for payouts bearing resemblance to other insurance companies, it would appear that the industry is reaching an understanding about the level of non-disclosure of relevant facts when people apply for cover resulting in claims that are declined and the level of claims that are not covered.

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