The Association of British Insurers has sought to clarify for consumers the difference between ‘additional’ and ‘partial’ payments within critical illness policies, as it publishes an updated version of its statement of best practice for the sector.
It has codified the two non-complete payout types based on the effect on the sum assured: an ‘additional’ payment is where any claim payout for a less serious or earlier stage condition does not reduce the remaining benefit, while a partial payment does.
A number of other changes have been made to medical definitions “to improve clarity and/or take account of advances in medicine”, including bringing the heart attack definition “in line with clinical practice”.
Other definition changes include to benign brain tumour, less advanced cancers, coma, kidney failure, Parkinson’s disease, stroke and terminal illness.
The ABI states the code is designed “to help protect consumers and help them understand and compare critical illness policies”. To view the latest statement of best practice click here.
Helen White, ABI’s head of protection, said: “The [updates] will mean customers have a much clearer explanation of what their policy does and does not cover when they buy it and if they need to make a claim that it meets their expectations.
“This in turn should also lead to fewer declined claims.”
ashley.wassall@ft.com