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Life insurance firm Norwich Union has reported that its payouts to critical illness cover policyholders rose to record levels last year.

In 2006, payouts on critical illness cover policies totalled some £95 million, representing 80% of all claims made. Both these figures went up in 2007, with total payouts reaching £106 million, representing 84% of all claims made.

Darren Dicks, Norwich Union’s head or protection products, commented on the need for policyholders to be honest and thorough when it comes to disclosure. “Critical illness claims can only be paid if the customer has a valid policy and their claim meets the policy criteria,” he said.

He also added, “Many insurers face harsh criticism for not paying claims but the system is a two-way street where customers and their advisers need to play their part. Critical illness cover is not a catch-all insurance but offers financial assistance against a range of specified serious conditions.

“In order to ensure a claim will be met, people need to ensure they have a valid policy and checking their illness meets the criteria of the policy provided. If this was done in 100 per cent of cases, 100 per cent of claims would be paid.”