The ABI is looking to replace the term total permanent disability with the name irreversible life-changing disability’ in a bid to reduce the number of TPD-related disputes.
The trade body has launched a consultation paper which proposes the new name for TPD and a range of standard definitions for the industry to adopt.
The paper also reveals the final revised definitions for cancer, Parkinson’s disease, terminal illness and the exclusion of pre-existing conditions in children’s critical-illness cover.
Irreversible life-changing disability has emerged as the proposed new name for TPD following a review last November when it was agreed that the cover should be renamed.
Spokesman Malcolm Tarling says: “In terms of the actual number of claims involving the definition of total permanent disability, there was a relatively high number of disputes where total permanent disability was an issue. And it was because of that that we decided to consult on revising the wording to ensure that the new wording was clear in the minds of consumers.”
But Master Adviser IFA Roy McLoughlin says the jury is out on whether the change will reduce the number of rejected TPD cases. He says: “The industry needs convincing that whatever is replacing TPD is going to pay out. It is as simple as that.”