Tighter rules are being imposed on health insurance providers who deny insurance pay-outs for critically ill patients as a result of insufficient information being supplied on the initial insurance application.

Under the current law, dating back to 1906, individuals who want to claim on a critical illness or life insurance policy will endure a thorough examination by their insurer into the details of their medical history. If the insurer finds that any part of the history, or elements of the policyholder’s lifestyle which may have affected their claim, was not made clear when they first bought the policy then the claim can be deemed void by the insurance company. This has led to claims being revoked due to innocent mistakes and oversights being made on the part of the policyholder upon application.

The Law Commission plans to implement a new guideline for insurers to follow, in order to provide the policyholder with the protection they believed they were paying for. Insurers will now have to ask for specific medical and lifestyle information, as soon as a person takes out a policy, if they intend to use such information as a basis for denying claims.