The Association of British Insurers (ABI) has outlined proposals to replace the total permanent disability (TPD) clause that is found in most critical illness insurance policies.
According to the ABI, TPD claims often turn out to be problematic for policyholders, with more than half declined by insurers because of a failure to meet the stipulated conditions. The organisation suggests that
removing the TPD clause and replacing it with "carefully worded definitions" will help customers understand more clearly what is and is not covered by the policy.
Nick Kirwan, ABI assistant director for health and protection, said: "We've been in long and detailed discussions with medical experts about the causes of most total permanent disability claims. As a result, we are confident that the new set of definitions provide clarity and a better understanding about what makes a valid claim."
Bernie Hickman, managing director of protection at Legal and General and chairman of the ABI's Protection Development Committee, agreed that changes were needed.




