Non-disclosure
Friends Provident has announced that it will pay out on a number of its critical illness (CI) claims where unrelated non-disclosure has happened.
According to the insurer, it will make an offer on a proportion of the total claim as long as the non-disclosure is not related to the cause of the claim and the application would not have been turned down at the start.
Mark Jones, protection and actuarial manager at Friends Provident, said: "This is one small step to restoring consumer confidence in the valuable benefits CI cover provides.
However, Mark Locke, spokesperson for Aegon Scottish Equitable, said this is nothing "new" or "innovative".
"Many providers are already doing this as they have been adhering to the Financial Ombudsman Service guidelines on treatment of unrelated non-disclosure, which were published in 2002.
"It is certainly a step in the right direction but most companies are doing this anyway," he added.
