The new ABI guidance on non-disclosure and treating life insurance customers fairly

PRLog (Press Release) - Feb 18, 2008 -
ABI’s new guidelines strongly welcomed by protection specialists LifeSearch. Matt Morris says:

“We strongly welcome the new ABI guidelines. It’s a big step forward for the industry and should lead to more claims being paid and less cases being referred to the Ombudsman.

“There are now three levels of non-disclosure - ‘Deliberate or without any care’, ‘negligent’ and ‘innocent’. The ABI make clear that an innocent claim should be paid in full and a negligent one should result in a proportionate payout. Deliberate will lead to the claim being declined. Previously, proportionate claims were much more of a grey area without sufficient rules or guidance. This has now been clarified.”

“This new guidance should stop insurance companies ‘fishing’ for reasons to decline claims. Insurers must now have a specific reason for requesting a claimant’s medical records and must confine a request to information relevant to the claim. This new guidance applies to new and existing policies.”

“In short, the guidelines will be fairer to those who act honestly, and clearer for those who don’t.”

LifeSearch can source case studies where required and can provide tables of typical premiums.

The latest LifeSearch Protection Report (PR9) contains all the latest industry news and statistics, including new Critical Illness paid / declined claims figures and the latest stats on how much further Life Cover premiums have fallen this year. If you need a copy, please contact us.


Consumers can contact LifeSearch on 0800 316 4242 for future information on life insurance.

Kevin Carr, Head of Protection Strategy
Tel: 0207 065 1033 / 07887 838811
kevincarr@lifesearch.co.uk

Matt Morris, Policy Adviser
Tel: 0207 065 1020
mattmorris@lifesearch.co.uk



http://www.lifesearch.co.uk