Scottish Widows' £25m payout for critical illness
Scottish Widows has announced that it has paid out over £25 million on 774 critical illness policies for the twelve months up to October 2006, but warns that 16 per cent of claims were turned down. The most common claim is for cancer, which accounts for 61 per cent of claims, followed by heart disease and strokes.However of the claims that failed, 53 per cent were refused because people had not disclosed information when they took the policy out and 43 per cent of people were denied a payout as the claim did not meet the policy definition.Richard Jones, interim protection market director at Scottish Widows, said: "Through its work with the Association of British Insurers and the Critical Illness Working Party, Scottish Widows has been working to address the issue of declined claims."To reduce non-disclosure, application forms have been improved to make them clearer for our customers. To reduce the incidence of a claim not meeting the policy definition, the industry has made real headway in improving the clarity of illness definitions - thus ensuring it is clearer to consumers about what is, and isn't, covered."Although the benefits, ie fewer declined claims, won't be seen for a couple of years, these measures all go towards making each step of the process - from application to claim - clearer for consumers."
Cash remains king, but cards gain ground
Using cash is still the most popular way to pay for goods, according to figures released today.Data from Apacs, the UK payments association, show that cash accounts for six in ten of all day-to day payments despite the ongoing migration by consumers to plastic cards.Over 96 per cent of all payments under £5 in value were made with cash in 2006. Cash payments were especially prevalent in the trave...Read More
Bank cuts rates to 3%
Interest rates have been set to three per cent by the Bank of England, a cut of 1.5 per cent and the lowest base rate since 1955.The cut itself is also the biggest since a two per cent decrease in March 1981 and comes just after a 0.5 per cent cut in October took the rate to 4.5 per cent.A "significant reduction" in the rate was necessary to meet the two per cent target for CPI inflation, the Bank...Read More
Mervyn King issues downbeat statement on UK economy
Even though today's statement from Mervyn King was effectively leaked to the press some time ago, the inflation report from the Bank of England monetary policy committee pours cold water on hopes of a short term recovery in the UK economy. In an admission that the recession has been deeper than previously estimated, Mervyn King believes that the recovery process will be more prolonged than first t...Read More
Investigators looking into collapse of AIG
The collapse of American insurance giant AIG has become the subject of a serious fraud office investigation into the company's London branch. The collapse of the American giant was one of the largest in corporate history and many believe was the one main event which led to the collapse of the worldwide economy.
While the company itself was involved in all areas of the insura...
Silverjet Is Grounded For The Last Time
The ongoing saga of business class airline Silverjet hit a new low yesterday when it was announced that yet another rescue package has failed. It seems that for the second time in less than 6 weeks the staff at the airline have been fed false hope, with 370 pilots and 50 administration staff relieved of their duties yesterday. So what is really happening?
To lose one rescue package...