Holloway Friendly says it paid 96.2 per cent of all income protection claims in 2011, an increase on the 95.5 per cent paid out in the previous 12 months.
Of the 3.8 per cent of claims which were not paid, 67 per cent were due to customers failing to provide the correct medical or financial evidence.
Other reasons included customers failing to notify the firm that their circumstances had changed since they took out the policy.
No claims were denied because of non-disclosure, which Holloway says is down to its move to telephone interviewing and recent underwriting improvements.
Holloway Friendly sales and marketing director Mat Manser says: “Mat Manser, Sales & Marketing Director for Holloway Friendly says, “Holloway Friendly has an exceptionally high pay out rate on claims which improves every year, showing that we continue to support our members when they need us the most, be it in paid claims or by meeting their changing needs with continually evolving products and services.”