The Association of British Insurers' (ABI) Protection Committee will review total permanent disabili...
The Association of British Insurers' (ABI) Protection Committee will review total permanent disability (TPD) later this year.
Richard Walsh, assistant director for health and protection insurance at the ABI, said: "We need to do something about TPD." He said that people often thought that TPD was a substitute for income protection (IP), "which it is not". He also added that the decline rate for TPD is far too high.
Jonathan French, spokesperson at the ABI, said the review procedure would follow the same stance as the wider initiative on life, critical illness (CI) and IP and that it would focus on reducing declined TPD claims.
The ABI is set to look at ways of making the TPD clause easier for customers to understand, so they will be aware of what it is at the point of purchase. It will also look at "how to improve consistency of TPD coverage, which is often a point of contention for claims," French added.
The ABI will produce either "a stand-alone document or one that would be incorporated into the existing Statement of Best Practice for CI", French added.
