Consumers are to get more information on what exactly is covered by critical illness insurance, states the Association of British Insurers (ABI).
The ABI has issued a best practice statement to ensure that critical illness insurance companies provide clearer policy details, including whether the policy pays out a lump sun if they die or are diagnosed with a critical illness as defined by the insurance policy.
Richard Walsh from the ABI says he hopes the new guidelines will lead to fewer declined insurance claims.
Other recommendations made by the ABI are that there should be a standardised description of critical illness and clear definitions of what illnesses would be covered by the insurance policy.
"The consumer research shows that the more descriptive illness headings will help people better understand what they can claim for," explained Nick Kirwan, chairman of the ABI's critical illness working party.
"Together with the work on clearer application forms, this should help reduce the number of declined claims," he concluded.




