Sesame product manager Dale Tranter says Norwich Union could be shooting itself in the foot by encouraging critical-illness policyholders to admit any non-disclosure on their applications.
He says the action is well meant but it would only take an increase in one policyholder’s premium to taint the reputation of NU and the whole industry.
Tranter says: “NU could be shooting itself in the foot. It only takes one person to have their premiums put up and it will be splashed all over the papers.”
But NU says it is simply being honest and encouraging policyholders to be the same. Spokesman David Ross says: “If a policyholder comes back and tells us the truth, we will do whatever we would have done at the start of the policy.
“Their premiums could go up or their policy could be cancelled but in our view it is better finding that out now than down the line when their claim is not settled.
“This is not just some PR exercise, it is about honesty and transparency.”