Insurance ‘not always reliable’
Complications in insurance policies mean that they are not always as reliable as people would like them to be, according to a consumer finance company.
Difficult premium definitions and exclusions, as well as troublesome small print, could see customers having claims turned down, Which? has warned.
The organisation found that one in five critical insurance claims was rejected in 2005, usually because of people's failure to disclose health issues.
Similarly, some payment protection insurance can often leave out two big reasons for work absence - back pain and stress-related illness - with 20 per cent of claims in this area paid in 2005.
"Check the small print carefully and make sure you understand what is and isn’t included before you buy – or you might find it’s worthless," recommended Malcolm Coles, editor of which.co.uk.
A rejected health insurance claim could see consumers plunge into debt, adding to the £1.3 trillion arrears mountain Credit Action has claimed exists in the UK.
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