Insurers can and will reject claims

Tue, 03 Oct 2006

A recent article in the Mail on Sunday indicates how insurers can and will ignore the implication of rejecting claims, even if the non-disclosure invalidating the claim is unrelated.

Whatever type of health insurance or life insurance you are looking for, the insurer may look through medical records with an eagle eye, looking for undisclosed symptoms that could be used to refuse a payout. Despite condemnation in the media and medical profession, when it comes to insurance policies like critical illness cover, a payout represents serious money to an insurer.

The Mail article highlighted several cases, one involving the refusal of a well-known insurance company to pay out on critical illness insurance following a multiple sclerosis diagnosis. The reason for refusal? Following post-diagnosis scanning of medical records, carpal tunnel syndrome was identified. On a technicality, the insurer refused to pay out. Other cases where similar situations have occurred were also illustrated.

The moral of the story is complete and utter disclosure of everything when seeking insurance, particularly critical illness cover. This includes completely unrelated conditions, any unrelated symptoms and anything that you may consider treated but an insurer may not. Even if your insurer doesn’t ask for them, disclose everything, and be aware that post-diagnosis scouring of medical records, though frowned upon, goes on.
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