Insurers provide update on critical illness cover
03 September 2009 16:56:54
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| Critical illness claims data has been released by two of the UK's largest insurers. |
Aviva announced that it had paid out for 89% of all claims, while Scottish Provident had paid out for 93% over the same period.
Total payments for the two firms reached £60m and £43m respectively, with typical payouts standing at £80,000 and £74,000.
Critical illness insurance is used by policyholders to cover them for extra costs that might be accrued if they contract a serious or life-threatening medical condition.
It was invented in South Africa in the 1980s by cardiac surgeon Marius Barnard, due to the professional's concern over the damage done to many of his patients' personal finances as a result of their illnesses.
Commenting on the figures, Michael Whyte, chief underwriter for Aviva, said: "Critical illness and life policies are the type of policy nobody wishes to need to claim against yet evidence shows that these are vitally important policies."
Scottish Provident also said that the firm's current policy of providing insurance intermediaries with information on how to ensure that claims are paid "promptly and efficiently" was bearing fruit.
Susan Barclay, head of marketing at the insurer, added: "We are committed to making the application and claims process on our critical illness policy as clear and simple as possible, and we believe today's report … is testament to this commitment."
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