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ABI says it is near to scrapping TPD

The Association of British Insurers believes it is one step closer to eliminating total permanent disability as a critical condition as it reveals seven more conditions to be integrated into the CI definitions.

Spokesman Jon French says the definitions, including musculoskeletal, neurological, respiratory and cardiovascular, psychological mental, systemic disease, accident, are nearing completion.

With the initial analysis complete, French says the ABI is working alongside medical experts to finetune each definition. He says: “We have identified that there is an issue with TPD and the number of claims under that clause which get turned down.

“What the ABI is working on at the moment is a piece of analysis that will allow the industry to get rid of TPD altogether and introduce a series of conditions into the CI definitions.

“Once we have spoken to the FSA, the Financial Ombudsman Service, member com- panies and other interested groups, we will then be able to publish a new version of the statement of best practice.”

Lifesearch head of protection strategy Kevin Carr says eliminating TPD is a move in the right direction.

He says: “TPD tries to do a good thing but fails as half of all claims are declined. Replacing it with five or six other conditions would be a welcome move as long as prices remain the same or even fall slightly.”

Royal Liver IFA marketing manager Aidan Dewhurst says clarity and consistency are important when dealing with TPD.

He says: “A standardised list of definitions would be useful, along with agreement across the industry as to how many failures are needed to justify claims.”

Master Adviser IFA Roy McLoughlin says the new definitions must be thorough.


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