Legal & General has followed in Friends Provident’s footsteps and made an official statement confirming it pays a proportion of unrelated non-disclosure claims.
L&G says its approach, as per the Financial Ombudsman Service guidelines, has always been to pay a proportion of a claim where there has been inadvertent non-disclosure, whether related or unrelated to the condition claimed for, if the undisclosed information would have resulted in higher premiums.
The insurer will pay the claim in full where there has been inadvertent non-disclosure, if the undisclosed information would have led to an exclusion not related to the claim condition.
Friends Provident recently announced that in a situation where non-disclosure is a genuine oversight, it would pay a proportion of the claim. L&G welcomes any move by an insurer to improve customer confidence in critical illness cover.
Claims and underwriting director Russell Whitworth says: “Legal & General has always paid a proportion of the sum assured under claims where there has been inadvertent non-disclosure.
“This should not be seen as an excuse to be less than accurate on an application form. It is essential that all customers answer the questions we ask them carefully and completely – if they do then they should be confident a claim meeting the specified definition will be paid.”