Warnings over critical illness cover

Thursday, 22 February 2007 12:00

Britons buying critical illness insurance cover are being warned to fully disclose any medical conditions no matter how small it may be or risk having their claim denied.

Insurance specialist BestDealInsurance.co.uk says people taking out critical illness cover need to check the small print thoroughly as around 25 per cent of all critical illness claims are rejected on grounds of a lack of disclosure about prior medical conditions.

The website also points to evidence that complaints against critical illness cover providers are rising. Figures from the Financial Ombudsman Service show from April 2005 to March 2006 there were 799 complaints relating to critical illness insurance claims being denied.

This is 11 per cent higher than the same period the previous year.

"Anyone taking out critical illness cover should not only fully disclose any previous or current medical conditions - how ever irrelevant they may seem - but they also need to ensure that they read the small print carefully and fully understand what the cover offers," advised David Thomson, chief executive of BestDealInsurance.

"They should at all costs avoid buying their critical illness cover from their mortgage lender or bank.

"By using an independent broker they will get unbiased advice and help through the maze of products available so that they can find the right cover for their circumstances".

Mr Thomson's warnings follow a Financial Services Authority (FSA) investigation in 2006, which found that some firms selling critical illness cover did not draw customers' attention to the importance of disclosing a full medical history.

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