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ABI agrees standard definitions of TPD to improve consumer understanding

After extensive consultation and consumer research the ABI is set to publish an updated Statement of Best Practice for Critical Illness Insurance.  The updated Statement sets out to improve clarity and understanding of the Total Permanent Disability (TPD) cover in Critical Illness insurance policies. 

The insurance industry has developed a set of standard definitions and more descriptive headings which together will support an education plan to improve understanding and reduce the number of claims declined.


Nick Kirwan, the ABI's Assistant Director, Health and Protection, said:


"We have explored a number of ways to help make claiming TPD easier for customers, which did include changing the name of the benefit. However, customer research did not strongly support this idea. After careful consideration we have now agreed standard definitions, training packs for advisers, an online hub of information and much clearer steps for customers which we believe will make the process easier and increase successful valid claims.


"Throughout we have taken a very inclusive approach to addressing this complex issue and we have had feedback from advisers, consumers, and a wide range of other stakeholders including regulators and the Financial Ombudsman Service."


-       The new Statement will be issued in early 2011.

-       The heading Total Permanent Disability will remain but will be extended to make the scope of the cover much clearer. This means that the education programme can apply to both new and existing policies to make the most difference in helping to reduce the proportion of declined claims.

-       ABI members will be required to implement the policy when making updates to their CI policies.


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Last updated 01/07/2016