More than £3m in sick pay benefit was paid out by Cirencester Friendly over the course of 2015, its latest claims statistics have shown.
According to the pay-out data from the friendly society, it paid 94 per cent of all claims in 2015.
During the year, 787 applications were made, of which 97.6 per cent were eligible for consideration.
This left 768 claims to be considered. Of these, 725 were paid out to the tune of £3.2m in sick pay benefit.
The main reasons why claims were rejected included: proof of earnings not being supplied, no loss of earnings occurring and non-disclosure. Table 1 shows all claims paid in 2015 by Cirencester Friendly.
The statistics also revealed the highest reason for making a new claim in 2015 was for accident or injury, at 29 per cent.
According to Paul Hudson, chief executive of the friendly society, this highlighted the importance of putting adequate financial safeguards in place to protect against the unexpected.
Mr Hudson said: “Unfortunately the unfounded fear of claims being declined continues to impact the sale of income protection across the entire insurance industry, which is why we feel a transparent approach to the payment of claims is so important, both for consumer confidence and the negative perception that many intermediaries have of protection products.
“Many providers now publish claims statistics and I would urge advisers to use these figures to dispel customer concerns and emphasise the need for good income protection cover.”
Average Annual Payment
Highest Annual Payment
Average Length of Claim
Average Age of Male Claimant
Average Age of Female Claimant
Depression Type Illness
Common Infectious Disease
Earlier this month, fellow mutual Holloway Friendly paid 96.9 per cent of all income protection claims in 2015, an increase of almost 1 per cent above the 96 per cent it paid out in 2014.
Mat Manser, sales and marketing director for Holloway Friendly, said: “While our level of pay-outs for genuine claimants is almost second to none, the rise in the number of non-disclosure cases brings home the important role that brokers pay in explaining to their clients how the claims process works and the importance of telling the whole truth at the point of application.”
Last July, research for Cirencester Friendly found a significant number of Britons had not placed adequate financial safeguards for the event of illness. Some 53 per cent believed they would be able depend on the state.
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