ABI attempts to standardise critical illness definitions
Personal insurance
7th December 2009
The Association of British Insurers (ABI) has announced that it is exploring the possibility of rebranding and standardising definitions in critical illness insurance policies.
The proposed changes refer to the total permanent disability (TPD), which tends to form part of such cover and come in the wake of an "extensive consultation" exercise.
If the organisation is successful, the move could provide a series of clear standard definitions for TPD and educational materials for insurers and their advisors to use with consumers.
The ABI has been working with stakeholders to produce recommendations and any proposed new wording will be tested with customers in order to reduce the level of claims that are declined.
Nick Kirwan, assistant director of health and protection at the body, remarked: "The approach we are adopting builds on our previous work to create more descriptive headings and clearer definitions."
Those seeking a UK insurance policy are advised that critical illness cover pays benefits when certain specified illnesses are diagnosed - such as cancer or heart attacks - with contracts currently varying between companies.
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