Cirencester Friendly has reported paying 94.7 percent of claims in 2016, an increase on last year’s figure of 94 percent.
During the year, a total of 863 applications for claims were made, of which 98.8 percent were eligible for consideration.
This left 853 claims to be considered; of these, 808 (94.7 percent) were paid – a total of almost £4m in sick pay benefit.
The principal reasons for not admitting claims were claims where no evidence of pre-disability earnings could be supplied, claims where there was no actual loss of earnings and claims in respect of pre-existing disabilities that had not been disclosed.
The greatest number of claims in 2016 were for accident or injury (34.3 percent), followed by back/neck/shoulder/ muscular/ arthritis (14.5 percent) and hip and knee 6.4 percent.
Paul Hudson, chief executive of Cirencester Friendly, said: “The fact that the results are an improvement on the 2015 figures is testament to our continued efforts to educate our members and supporting advisers.
"There is a misconception by many that insurers look for ways to decline claims. The figures help to dispel this myth and demonstrate the real value of having income protection insurance.”
Graeme Mitchell, managing director at Lowland Financial, viewed the figures favourably, though noting that they should be compared with other providers.
"You see enough negative press about income protection claims not being paid out, so it is nice to see a provider saying they are paying out the vast majority of claims."
