LV= pays 93% of IP and CI claims

LV= paid 93% of its income protection (IP) and critical illness (CI) claims in the year to the end of June.

The trend mirrors that of the full year for 2010 which showed CI claims paid had risen to 93% with IP hitting 92%.

Non disclosure accounted for 1% of IP declined claims and 3% of CI claims, with the remainder rejected for not meeting the definition.

A total of nearly £9m was paid out in CI claims and over £12m in IP claims.

The data reveals that the average age of an IP claimant is 44 and a CI claimant is 47.

It also showed that mental disorder was the most common reason for an IP claim (30%) and cancer the most common for CI (58%), while the average annual benefit for an IP was £14,389, paying out for an average of just over seven years.

Mark Jones, head of protection at LV=, highlighted the comparison to government statistics showing just 7% of Employment and Support Allowance claimants are found completely unable to work and receive the benefit.

"While not directly comparable with IP and CI claims, data shows that under the government's new employment and support allowance (replacing incapacity benefit), 93% of applications have not been successful," he said.

"Regardless of whether a number of these claims will eventually be overturned under appeal, this sends a clear message that the government doesn't want and can't afford for people to rely on the state.

"People must make their own provisions for their financial future, and seek professional advice on the best way of doing so.

"We publish both our CI and IP claim statistics so that advisers and consumers are aware of why claims can be rejected in order to keep declined claims to a minimum," he added.