Sunday, January 22, 2006

Critical Illness Insurance

14th November 2006 - edited

The following is my experience only. It has taken some years to place this account in the public domain, but it is something I made very clear I would do. Visit or for more information.

Several years ago I had some protracted dealings concerned with critical illness insurance (around 2 years for the same particular claim - ultimately successful, but at great personal cost and that is not financial cost) and the nasty way in which one particular company operated.

Abbey Life - now a part of Lloyds TSB and Scottish Widows.

Hopefully, attitudes will have changed.

My advice if you ever consider such insurance is the minimum of a full medical, ideally by the company offering ‘cover’. Insist upon the full examination. They will almost certainly advise against this, it being unnecessary. It is absolutely essential you have this examination.

All the areas of cover MUST be examined to demonstrate you are FREE from any illness within these areas, assuming you are, of course. If you don’t you are inviting major problems. MAJOR problems. This is not a guarantee, but if you make a legitimate claim on your insurance, it should make an unjustified rejection much more difficult for the assurer/insurer to argue.

Clearly, I have survived a critical situation, in spite of Abbey Life piling on the pressure by continued rejection: undefined pre-existing conditions. Or ‘manifestations’ or ‘associated symptoms’.

Initially this company actually claimed it had been on the advice of their Chief Medical Officer (CMO). It became clear (months later) that was not the case. Some administrator had made the decision. Medically qualified? I doubt it. But a letter indicating that on the advice of the CMO my claim was declined. They really enjoy using the word DECLINE. They mean refused. Rejected.

A rubber stamping action. The CMO did exist. I checked in the appropriate register of doctors, but interestingly, while my dealings with the General Medical Council (see below) were being blocked (over a 4-month period), this good doctor retired. Pressure in the office was the justification for the delay.

My question for the GMC was simply about a conflict of interests. How the Chief Medical Officer, employed by the assurance company (in a full-time or a lesser capacity is not known) could give an unbiased opinion in an issue involving the employer. The hippocratic oath was also compromised in that I argued that this CMO claimed to have certain knowledge that was not known to my doctors to facilitate the rejection of my claim. Remarkable in that assertions were made before a diagnosis. In fact, even before a serious problem was even considered. And the clear implication that I had known of my condition and had done nothing about it. My doctors supported totally the reality of me not being in a position to know.

It took high-tech diagnostics to determine I had a problem and to then define it. Abbey Life asserted that for a long time before the diagnosis, I had "associated symptoms" - UNDEFINED and UNQUALIFIED. Still, to this day, UNDEFINED and UNQUALIFIED by Abbey Life. The question remains symptoms of... what? If you have no diagnosis of any illness (real or imagined) then you can have no associated symptoms. Logical? Absolutely.

Manifestations. Associated symptoms. Undefined. Meaningless. Claim rejected.

On the 4.12.98 a report was published in The Times concerning the Lords' debate: No pre-existing illness until diagnosis - Cook vs Financial Insurance Co Ltd. According to Abbey Life, if a condition is later shown to have (probably) existed at an earlier time then the condition is retrospectively excluded. Even if it was not possible for a GP to have suspected a condition (critical illness diagnosis usually needs the involvement of a specialist).

This is the reason that the medical is absolutely essential. If there was no sign of any particular condition(s), and it was signed off as such by the assurer, then this cannot happen.

The view that my doctor was incompetent and/or negligent is implicit. A specialist only becomes involved when an undiagnosed problem is unexplained. Only then can a condition be suspected and later defined upon diagnosis.

Delegated authority was given to claims underwriters to make complex medical decisions, but Abbey Life refused to expand on the “associated symptoms” which prejudiced my claim, alleged to have existed at least 14 months before the diagnosis. The reason why my claim was originally refused has (still: 24.01.2008) never been declared.

This issue is presumably imagined to have gone away (died). It has not and neither have I

Access to a medical history makes it possible to select appropriate observations and assign them as symptoms of an earlier unknown condition. But so dated to place that condition outside cover. Perverse and risible.

A major loophole became clear. The Abbey Life MortgageMaster (endowment) product as it stood was not regulated by any agency. The Personal Investment Authority (regulatory) ambit only involved the investment part and the Association of British Insurers (non-regulatory) did not see any issues in the insurance part.

The Abbey Life stance was that they knew more by working backwards from the examination of medical reports written over one year later than is possible to know and used the principle of retrospective exclusion. Excluding from cover at a later date when information is known that couldn’t be known at the earlier time. A definition of pre-empting the future. Remember also that when a claim is made, after a critical illness has arisen, the complete medical history becomes available to the assurer. Selection of anything associated or not can then be made. Hence the other term: "associated symptoms". Undefined and therefore unchallengeable. Total hindsight. Knowing the results of the future but pre-dating expeditiously. Alleged prior symptoms were never and have never been declared. The true reason for the claim refusal has never been divulged. On this basis the claim was refused.

In my case, the reason? Pre-existing conditions. Manifestations. Associated symptoms. No explanation. No evidence to justify rejection. Just assertion. Nothing else. NOTHING else.

A person suffering from a critical illness is likely to die eventually. The longer a claim action continues, the higher the likelihood of the claimant expiring. Of course, it was I who made the claim time longer. It was I who challenged the ridiculous claim refusal!

If you have not had the medical before taking out the insurance, you are probably heading for trouble. Potentially, BIG trouble. The term pre-existing condition is a catch all and you possibly won’t be able to check what evidence they CLAIM to have.

A MAJOR problem is that the cover you have imagined you had cannot be tested until a claim is made. It is only then - most likely many years after the insurance cover was taken out - that you will be able to determine if the cover was/is worthwhile. Like all insurance, hopefully a claim will never be necessary. I had alluded to a parachute: it is a bit late to need the 'chute and then pull the cord only to discover that the 'chute is full of holes.

Even with consultants, doctors and other specialists involved you will probably get nowhere. Pre-existing conditions. Associated symptoms... and on it goes. Nowhere.

If you can afford it, get a solicitor. I couldn’t and the length of the challenge would have made it very expensive. I prosecuted my own case. I had no alternative. Another reason why settling would possibly never happen. The claimant will die or the process will get too expensive to proceed. If you need the help of other people because you are in no position to prosecute your own case - you are after all critically ill by definition by this time - it is less likely these other people would have the energy or determination and would probably give up. They couldn’t be blamed as it’s a very difficult road to tread. Remember, if you are critically ill then you are a very vulnerable person and it is likely you cannot defend yourself. It would make you an easy target to just write-off and ignore. That’s how I came to understand the ‘game’ they play: attrition. There is no rulebook. Wear the claimant down.

It’s so clear in hindsight, but at the time I was too busy fighting, it seems, with just about everyone in my attempts to stay alive. This is critical illness.

I was still working full-time. Trying to keep my family together. Myself together. Pay for the mortgage. In one sense, all the pressures ironically seemed to take my mind off my predicament. That’s really bizarre. I know what depression is, but interestingly it was only afterwards did I realise I had been depressed! It’s awful. Operating on two different levels simultaneously: the detached professional and the mixed emotions of a damaged soul. That, I think, can be a real danger of depression. Being unaware of it. Your mental state. A downside of being positive is that the illusion is that you are dealing with your problem and it is not a problem. Working at under full potential and apparently no good reason for it. Penalties there! Outwardly everything is fine when actually it is quite the opposite. But to stay positive. To not crack asunder. Hold it all together. Consider the ‘duck syndrome’: on the surface movement is fluid and smooth. But under the surface, absolute chaos prevails.

I must state that all the medical personnel involved in helping me were very supportive. In fact, by overturning and totally ignoring consultants, Abbey Life was very offensive by definition. That’s the attitude: hard-nosed. The hard-nosed Abbey Life just sat back and did nothing except to continue taking premiums from me. By the way this was linked to an endowment on my house. My family’s future was at stake here, maybe without me.

The General Medical Council (GMC)? Forget it, too busy protecting the very doctor that is possibly culpable. I never got past one particular individual. Blocking my path. And this after many letters.

The Financial Services Authority (FSA)?
Unhelpful. No help whatsoever.

Personal Investment Authority (PIA)? Even though this issue raises concerns about a company that deals with this area of business, this organisation implied no issues by not getting involved.

The Office of Fair Trading (OFT)? At the time the OFT was showing an interest in the whole area of critical illness insurance. The OFT did demonstrate an interest, but nothing came of it.

The Association of British Insurers (ABI)? Forget it. They have the interests of the insurance industry at heart. Not yours or mine. This organisation turned out to be a shop window for advertising the industry. A dog without teeth.

The Financial Mail on Sunday started by indicating concern, but suddenly changed their tune. It smelled of pressure from somewhere. Started running scared. FAST. So, from very interested to ‘don’t touch’.

Insurance Ombudsman Bureau (IOB)? Difficult and don’t expect much support here. The Ombudsman route is not as helpful as you might expect. In fact, the woman I dealt with actually torpedoed my case, or at least did her very best to do just that, by the incredibly biased questions she claimed to have asked. She should have been a prosecutor... If you do get here quote: (IOB 98/50285)

When the IOB route possibly fails, try to get your MP to help. Support from this quarter cannot be overestimated, in my opinion. In my case this broke through the absolute intransigence. It made the difference of case failed to success. After it had failed and was filed as such by the Ombusdman. Nothing had changed. No new evidence, but it was reviewed. And subsequently reversed.

Another very sinister set of events? Letters sent to Abbey Life by recorded delivery went missing. No trace. Just as though they had been intercepted and destroyed. Easily achieved using optical character recognition (OCR) software. At one stage a string of SEVEN letters went missing. SEVEN recorded letters.

This implies collusion. Some connection between Abbey Life and the Royal Mail? I make no claims here, but I did get an odd phone call at my place of work from an individual at The Royal Mail. How was my place of work known to the Royal Mail? Abbey Life would know. Anyway, police action was deferred although I was close to reporting it all.

I recommend Special Delivery: less easy to lose. At every stage of a journey, the letter is signed for by each handler. To it’s delivery address. Note that using recorded delivery is no guarantee of delivery to an addressee. Only to the address. The building or house. NOT an individual. Without SOPs (Standard Operating Procedures) that define how such mail is handled internally once it has been delivered, it is all too easy to just ‘go missing’.

An additional problem even after the claim eventually succeeded (15 months) was that I had been forced to continue my mortgage with my provider. The interest amounted to around £4,500. My claim had succeeded and I had premiums returned to me backdated to the claim date (without any covering letter of explanation). Abbey Life was responsible for my forced mortgage payments and the associated interest from the date the claim should have succeeded. This took another 9 months to resolve and clearly wasn’t ex gratia.

Get the written report of the medical examination before you start spending money on ‘cover’. It could otherwise result in accusations of theft of premiums by misrepresentation and ultimately a lot worse as they refuse to payout a valid claim.

Reviewed: 25.08.2019
Rage (still) continues like a typhoon

Still here: 25th August 2019

For more information, especially about critical illnesses, visit:


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