Protection  

Provider reveals 96% payout rate on 2013 IP claims

Mark Myers, chief executive of British Friendly, said: “The moment of truth with any policy is whether it will pay out when you need it. 

“Our strong track record of paying claims continued in 2013, paying 96 per cent of all claims received. Our claims record underpins our ethos of looking to pay a claim wherever possible, even in situations where the claim could arguably have been declined.”

He said that reasons for non payment of a total of 19 claims eligible for consideration included non-disclosure, evidence not received, late notification of claim and insufficient loss of earnings. 

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Of the 15 claims not eligible for consideration, these either had an excluded condition, did not pass the deferred period or were invalid.  

Advisers said it was important to see more claims data showing that payouts were increasing. Mark Dennison, adviser for Essex-based Lightblue UK, said: “It is great news to see so many claims being paid across the market for this essential product.”

Scott Gallacher, chartered financial planner for Leicestershire-based Rowley Turton, said: “On the face of it, these figures are very good.

“The public perception is that insurance companies do not want to pay out but in my experience they tend to go the extra mile to pay out.”

Claims not paid in 2013

 

 

 

 

Eligible for consideration

 

 

Non-Disclosure

8

 

Evidence not received – medical or financial

5

 

Late notification of claim

4

 

Insufficient loss of earnings

2

 

 

19

2.08%

Not eligible for consideration

 

 

Excluded condition

12

 

Did not pass deferred period

2

 

Policy invalid as client was unemployed

1

 

 

15

1.65%

 

 

 

Eligible

2.09%

 

Ineligible

1.65%

3.73%