Aviva is to underwrite all individual income protection policies on an own occupation basis, in a bid to simplify income protection cover and ensure as many claims as possible are paid.
The own occupation terms will remain throughout the life of the policy and all claims will be paid on this basis for the full duration of the claim.
The changes will be applied to all new individual income protection policies from today (21 October), including part-time cases where the customer works fewer than 16 hours a week.
Part-time roles of fewer than 16 hours a week are treated differently to full-time jobs by many insurers, so this move is understood to be a first for the industry.
The move builds on Aviva’s previous position of writing 95 per cent of policies on an own occupation basis.
The latest enhancements are designed to further improve the insurer’s payment record of 93.5 per cent of individual IP claims.
Around 90 job types will be newly underwritten under own occupation terms as a result of the changes.
The majority of these occupations are driving roles, but also include specific teaching professions such as PE teacher and music teacher, as well as postal delivery people.
Craig Colton, protection managing director for Aviva says: “We’re committed to paying as many claims as possible, so we have decided to make income protection simple and straightforward for all our customers.
“With just one definition for all the occupations we cover, anyone who is incapacitated and cannot do the duties of their occupation can be confident they will have a successful claim - regardless of what they do and how many hours they work.”
He added that IP is “one of the most useful” types of insurance on the market, as it can provide a regular income right up to retirement.
Mr Colton added: “Our average payment term for IP customers is more than nine years, so it is clear to see the benefits it affords.
“We have an excellent claims payment record at Aviva and by moving to 100 per cent own occupation terms we fully expect to help even more customers if they are unable to work in the future.”
