Press Release
The Chinese Whispers that could stop your insurance policy paying out
With around 20-25% of critical illness claims rejected* every year, a huge percentage of which are down to non-disclosure when applying of existing or previous medical conditions, an industry expert is urging customers purchasing cover over the telephone to check that their conversation is being recorded.
This, says David Thomson who is Chief Executive of specialist insurance website www.bestdealinsurance.co.uk, is only way that you are guaranteeing that the answers you have given on the application are correct as sometimes telephone applications can be subject to 'Chinese Whispers'.
David explains: "The broker is there to get a commission on a sale, so he has a vested interest in ensuring that your application goes through 'clean' with no chance of the cover being declined.
"So, if you advise him of a previous health issue or similar that could jeopardise your chances of getting accepted for cover, the broker may simply employ the 'Chinese Whispers' tactic and, in effect, tell the insurer something different to what you have told them in order to get the sale.
"It's frightening," he adds, "as the client believes that they are fully protected because they are paying their premiums every month. As for the broker, he has still got a sale and is banking on the customer not falling ill. And even if the client does succumb to a critical illness and their claim is rejected by the insurer, unless the 'phone call was recorded, it will be the broker's word against the client's."
David says that by ensuring that the 'phone call is recorded, should it all go wrong – for example, your claim is declined because of non-disclosure issues - then you will have recourse against your broker had he chosen not to include certain information on your application".
He explains: "You will then be able to sue him for negligence, that way making sure that even if your critical illness policy doesn't pay out, someone will!
"I am not implying that all brokers are dishonest," David continues, "but it is a sad and true fact that not everyone will have their clients' best interests at heart. That is why recording a 'phone conversation can provide a safety net should something go wrong with the policy in future"
He warns anyone who applies for a policy to steer clear of brokers who do not record their calls. He asks: "With today's technology, why wouldn’t they record 'phone calls anyway?"
* Source: Health Insurance magazine
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