82% Of Critical Illness Claims Paid

New figures from Standard Life show over 80 per cent of critical illness claims were paid out last year totalling nearly £20 million.

Critical illness cover is an insurance that pays out a guaranteed cash sum if you're diagnosed as suffering from a specified critical illness, within the term of the plan.

Some 82 per cent of critical illness claims were paid out in 2005 compared to 80 per cent for the previous year.

Just 18 per cent of claims from Standard Life customers were rejected and ten per cent were declined because they did not meet policy definitions.

Two-thirds of claims were made on policies after more than four years of holding the policy.

"We have seen a small but positive shift in the number of claims we paid out on last year and I hope the numbers provide reassurance that we do not arbitrarily decline claims without reason," said Trevor Matthews from Standard Life.

"The new Statement of Best Practice from the ABI will provide clarity for advisers and consumers as to exactly what is really covered in these policies. I hope initiatives like this will help reduce the number of declined claims across the industry."