ABI reduces payout times for bereft families

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ABI reduces payout times for bereft families

Mon 23rd May 2011

The Association of British Insurers (ABI) has made alterations to its life insurance guidelines that could benefit families who have recently lost a loved one.

As part of the changes, insurance companies will reduce the time they take to pay out from four months to four weeks.

Working alongside the Law Commission, the ABI developed the alterations in a bid to reduce the financial stress placed on people following the death of a family member.

Life insurers will now ask the primary beneficiary to sign a declaration to pay back any money they have been given if it is found they should not have received it.

Director general of the ABI Otto Thoresen addressed the difficulty families experience when they have suffered the loss of a loved one.

He said: "We believe that this will go some way to alleviating financial hardship for a deceased person's dependents, especially families on lower incomes who have few other assets available to rely on."

The ABI recently launched a campaign to tackle high numbers of fraudulent whiplash claims following road traffic accidents in the UK.

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