Are you protected or will your claim be rejected?
- 3RD MAY 2007
Consumer watchdog Which? has warned people who are buying insurance that while it is designed to provide protection, it isn’t always as reliable as people may think. This is due to the sometimes complicated policy definitions as well as exclusions that are contained within the small print.
The most common reason why people’s are claims are rejected – whether it be for critical illness, life or payment protection insurance (PPI) - is down to non-disclosure of previous or ongoing health issues.
Editor of Which?, Malcolm Coles said: “It’s easy to assume that if you take out insurance you’re protected if things go wrong, but check the small print carefully and make sure you understand what is and isn’t”
According to Easier Finance publication, even something as minute as a visit to a doctor a few years ago for a headache could cause your claim to be rejected.
In 2005, 20% of critical illness insurance (CII) claims were rejected, the reasons cited as failure to disclose health issues or because the illness was listed as an exclusion within the policy document.
For travellers, check out your travel insurance small print very carefully as many policy impose time limits as to when you can claim for lost, stolen or damaged items.
Speaking about payment protection insurance, industry expert and MD of standalone provider British Insurance, Simon Burgess said: “The two most common reasons that people take time off work is down to back pain and stress. However, many payment protection insurance policies often exclude these afflictions. Therefore, check and trouble check as to what cover you actually have before signing on the dotted line”.
Simon also advises people buying income payment protection insurance to check that they really are eligible to claim. For example, part time workers and retired people would not be covered by this type of insurance, yet many people are often still sold it.
