Catastrophe ruled out for TPD
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The Association of British Insurers has rejected the name catastrophic disability benefit to replace total permanent disability, with four other names now in the running.
Assistant director of health and protection Nick Kirwan says the name was rejected for legal reasons and there are now four names in the running to replace TPD.
He says: “We had legal advice on this and catastrophic legally has a very specific insurance meaning, referring to a certain sequence of events that take place within 72 hours. That is entirely inappropriate for this and for that reason it is not one of the candidates we put forward for consumer research.”
Kirwan says the ABI received positive feedback from advisers on four new names and has put them into the consumer research. Results are expected this month.
CBK Colchester principal Peter Chadborn says: “I thought that a few years ago the ABI had a big drive to simplify definitions and wordings, and then they come up with something like this. Unless it rolls off the tongue and doesn’t make me laugh when I hear it, it doesn’t bode well.”
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Readers' comments (3)
Jerry Brown | 9 Apr 2010 8:20 am
So 4 months after the TPD workshop this is as far as we have got. This is obviously a priority issue (not) for the ABI...
What about progress on the other actions identified that day. Its all pretty pathetic really. Someone needs to pick this up and give it a good shake to get impetus.
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Alan Lakey | 9 Apr 2010 11:58 am
'Catastrophe' would have been a catastrophe.
We need to use simple non-ambiguous terms that the typical consumer will understand.
Sometime we can be too clever.
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Lacey Jones | 12 Apr 2010 4:12 pm
This whole issue has been dragging on for far too long.
I think that the ABI need to take a long hard look at themselves. It is this sort of inefficiency that costs the end consumer money in their insurance premiums.
Perhaps all the committees of the ABI should be disbanded and member firms second people for fixed terms?
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