Holloway Friendly has paid out 100 per cent of claims over the second quarter this year, latest figures have shown.
For the entire first half of the year, the mutual paid out 98 per cent of claims made.
Suzy Esson, head of member services, said the friendly, had seen significant growth in recent months and has continued to improve the number of claims paid out quarter to quarter.
She said: "Our claims team have continued to review the way in which income protection claims are assessed and to remove the barriers of traditional claim assessment in order to reach decisions in just hours, instead of weeks.
"This means our members receive payments without any hassle and can focus on getting better. We are incredibly proud of these figures and we continue to work hard to ensure our services continue to produce the best results for our members."
The mutual was founded in 1880 by George Holloway, who was once the MP for Stroud.
Holloway Friendly has been a strong voice in the quest to improve consumer trust in the insurance industry, claiming there needs to be better standardisation on claims reporting across the board.
Last year, Phil Hull, proposition and portals manager at Holloway Friendly, told FTAdviser the industry needed to "go further" to make the claims process "fairer, quicker, easier and more transparent for existing clients".
A couple of months later, the Association of British Insurers, together with Group Risk Development, changed how it measured the percentage of claims paid for individual income protection products, so this now reflects only new claims received during the year that were paid and declined.
Paul Reed, director at Vita, commented: "For the majority of households in the UK, the loss of regular income due to ill health would have catastrophic consequences yet so few of the population provision for this eventuality.
"One of the misconceptions of our industry is that insurers try to wriggle out of claims. However, all those that work within protection can testify this isn’t the case, backed up with the ABI publishing positive results year on year.
"The recent news from Holloway Friendly publicising 100 per cent of income protection claims being paid gives further ammunition to advisers in promoting this key product area in anyone’s protection portfolio."