Complicated policy definitions and exclusions in insurance policies mean they are not always as reliable as people think, warns which.co.uk...
Increasingly complicated policy definitions and exclusions in insurance policies mean they are not always as reliable as people think, warns which.co.uk today.
People who fail to tell their insurer about a past health problem – even something as minor as a visit to the doctor about a headache a couple of years earlier – could have their insurance claim turned down.
One in five critical illness insurance claims was rejected in 2005 for failure to disclose health issues or because the illness claimed for wasn't covered by the policy – but with complex medical definitions it can be almost impossible to know what is covered.
Payment protection insurance should pay out when people are unable to work, but often excludes two main causes of absence from work - back pain and stress-related illnesses. It has a particularly poor record for successful claims – in 2005, the amount paid in claims was only 20% of premiums paid.
Malcolm Coles, editor, which.co.uk, said: “It's easy to assume that if you take out insurance you're protected if things go wrong, but check the small print carefully and make sure you understand what is and isn't included before you buy – or you might find it's worthless.”
