Report: Disputed Insurance Claims – What Are The Real Numbers?

Posted Oct 24, 2019.


Let’s face it, not many of us are particularly keen on paying for insurance cover. This is especially true should your insurance policy not pay out in the event of you having to make a claim on the policy. But how often do insurance companies reject or dispute claims? Well, the reality is, not as many as is commonly believed.

Protection Insurance Claims

A survey carried out by insurance giants Aviva shows that when it comes to Protection Insurance (including Life Insurance, Critical Illness Insurance and Income Protection Insurance), UK adults think that less than half (47%) of claims on such policies are actually paid. This view is largely based on a combination of long-held urban myths and selective ‘sensationalist’ reporting in the mainstream media. According to the survey, based on 2016 data, Aviva paid out over £870m in claims on their protection insurance policies. They paid out on 98.9% of life insurance claims, on 92.3% of critical illness claims for conditions such as cancer and strokes, and 92.6% of income protection claims to help customers get back on their feet financially after suffering poor health.

 

So, even though Bakers are handling an increasing number of insurance claims dispute cases each year, clearly these are impressive numbers - albeit provided by an insurance company survey.  The report adds that educating the public as to why a claim may be rejected or disputed is important in reducing the likelihood of this happening, in particular making sure that policyholders are aware of the importance of ensuring that the correct lifestyle and health information is provided when taking out the policy. Being aware of and fully understanding the specific policy cover and restrictions is also vital, as there can be many different levels of cover available from the same insurance company.

Indeed, over half (53%) of UK adults admit to not bothering to read the ‘small print’ (which nowadays is not actually allowed to be too small!), with a similar number only becoming aware of what they are covered for when they come to make a claim.

 

Turning down claims

 

In Aviva’s case, one of the main reasons for a claim being rejected was because the condition being claimed for was not actually covered under the policy. Inaccurate statements when applying for cover regarding an individual’s health history was also a significant reason for rejection at the claims stage. In commenting on the survey, Aviva said:

 

“It’s a common misconception that insurers don’t pay out on protection claims, but our report shows this simply isn’t true. In the significant majority of cases, a claim will be paid, delivering crucial financial support during what will often be the most difficult period of someone’s life…However, claims rates could be even higher if all consumers were aware of the need to take extra care when making an application. Incorrect information, whether deliberate or accidental, and not checking the product details are some of the main reasons why a small proportion of protection claims cannot be paid. Advisers can also help prevent this by stressing the importance of being as thorough and clear as possible when applying for insurance.”

Are You In A Claims Dispute With Your Insurer? Contact Bakers Today

At Bakers Solicitors, disputed and rejected insurance claims and insurance dispute cases are dealt with on a no win, no fee basis. There are no upfront or unexpected costs, so if you feel you have been treated unfairly by an insurance company, please contact us today for straightforward and professional assistance. You can contact us by email, arrange a free consultation online or ring us on FREE on 0800 731 7284.