HSBC Life UK has signed up to the Protection Distributors Group (PDG) claims charter and funeral payment pledge.
The PDG’s claims charter is based on six core elements which include:
- A dedicated claims team should be available, with a phone-based claims process for claimants to submit and manage their claim throughout, supported by digital documentation to assess claim efficiently. Paperwork should only be used when no digital alternatives are possible or where a claimant requests.
- No potential claimant can be sent away by anyone outside the claims team.
- Claimants should have a named point of contact and receive regular updates at least every two weeks – unless otherwise agreed – to keep them informed of progress. During the claims process, claimants’ queries should be responded to by end of next working day.
- Intermediaries should be notified of all claims when made, – including the product being claimed on – without the customer being asked to Opt-in. Opt-out options should be avoided whenever possible, unless the customer explicitly asks for their intermediary not to be kept informed, in which case their wish must be adhered to. This is designed to ensure records are updated and no potential distress caused to clients and families, due to intermediaries not knowing about a claim.
- Proactively offer the PDG funeral payment pledge and/or advances payments to speed-up life cover claims where there is no trust in place, or where other factors could delay payment being made.
- Once a claim is approved, money should be paid to the claimant within 72 hours (except when external factors, out of insurer’s control affect the process, such as probate). This excludes income protection claims which should be paid at the earliest available payment date.
The PDG’s funeral payment pledge requests three commitments from insurers which include:
- To pledge an advance of a minimum of £5,000 to a funeral director when customers cannot otherwise pay the claim. For example, due to probate delays
- To proactively offer this in every case where there is a delay
- To pay the funeral director after insurers have fully assessed and accepted the claim to eradicate instances of non-disclosure.
Mike Furniss, head of protection sales at HSBC Life (UK), said: “It’s vital for us to provide our customers and their families with the very best care during the most difficult times in their lives.
“HSBC Life is very committed to abide by the PDG’s claims charter and funeral payment pledge, to do as much as possible to make a positive difference for customers and improve quality of service across the protection sector.”
Neil McCarthy, chairman of the Protection Distributors Group (PDG), added: “I’m delighted that HSBC Life have committed to meeting the claims charter and funeral payment pledge standards when dealing with claimants at the time they really need support and prompt action from their insurer.
“We have been working with insurers to identify those able to meet the charter requirements, following the impact of Covid on claims and service, and will be confirming which insurers agree they meet the suggested minimum standards in mid-July.”
