Can Claims Be Turned Down?

Around one in ten Mortgage Payment Protection claims are turned down each year. The most common reason being non-disclosure of information, such as a medical condition or change in employment. If such information has been deliberately withheld it is unlikely a claim will ever be paid.

Steps have been taken to reduce the number of claims that are refused for non-disclosure of information where no malice is intended, through guidance issued by the Association of British Insurers and the Financial Ombudsman. Called ABI Code of Practice on Misrepresentation and Treating Customers Fairly this makes a greater distinction between deliberately withholding information and not realising information was relevant. Where relevant information has not been provided, Insurers are now expected to pay customers a "fair sum", reflecting risk and premiums paid.

What Happens If Death Cannot Be Proved?

In rare cases when a body cannot be found, a death certificate cannot be signed until seven years have passed. This means that beneficiaries may have to wait until then before the Insurer will pay out.

Steps have been taken in recent years to speed up the process and make payments in such circumstances without a death certificate.

This will usually mean the Insurer carrying out its own investigation and using a reasonable evidence test that death has occurred.

This happened in 1995 when Insurer Norwich Union said it would use this test in the case of the victims of the Asian Tsunami disaster, where many bodies were not recovered.

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