Norwich Union has revealed an increase in critical illness insurance claims over the past year.
The number of Critical Illness (CI) claims made in 2008 was up by 14 percent on the previous year, new figures from one insurance provider show.
According to the latest statistics released by Norwich Union, the insurer paid out around £121 million over the course of the year for such claims, with a further £216 million paid out to the families of customers who either died or who were diagnosed with a terminal illness.
At the same time, the number of CI claims rejected by the company saw a two percent year-on-year decrease, with Norwich Union paying out an average of £75,000 on 90 percent of all the claims it received.
The provider also noted a decline in the number of claims denied for non-disclosure, with Norwich Union rejecting two percent of claims after medical information was withheld at the time of application.
Announcing the figures, Michael Whyte, chief underwriter at Norwich Union, stated: "We are pleased with our progress on non-disclosure, yet are concerned that we have to tell some people that their claim was not going to be paid because their condition, or the severity of their condition, meant they were not covered by their policy."
He added that it is up to the insurance industry as a whole to raise the public's awareness of what illnesses are not covered by CI insurance.
The figures also revealed that cancer remains the leading cause of critical illness claims, accounting for 63 per cent of all cases in 2008.
