Protection specialist LV= said it has paid £21 million in critical illness (CI) and income protection (IP) claims in the twelve months to June 2011.
Releasing statistics, the firm said it has settled 93 per cent CI and IP claims in the twelve months to June 2011.
Only three per cent critical illness and one per cent income protection claims were rejected due to non-disclosure, the firm said.
A total of about £12 million was paid out in income protection claims and about £9 million in critical illness claims.
The average age for critical illness claims was 47 years while the average age of an income protection claimant was 44 years.
Cancer was cited as the most common reason for critical illness claims (58 per cent), while mental disorder was found to be the most common reason for an income protection claim.
“Our consistently high percentage of paid claims illustrates our firm commitment to supporting people in difficult times, and through processes such as our tele-interviewing service and intelligent underwriting, we continue to see a very low number of claims declined for non-disclosure,” said Mark Jones, head of protection for LV=.
“We are also proud to be one of only a few providers publishing income protection claims data. We appreciate that when people make a claim on a protection policy they are likely to be in distress, be it financial or emotional,” he added.
Explaining the rationale behind the disclosure, he said: “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.
“While not directly comparable with IP and CI claims, data shows that under the government’s new employment and support allowance (replacing the incapacity benefit regime), 93 per cent of applications have not been successful,” he observed.
“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,” he advised.