LV= coronavirus protection claims top £19m

LV= has paid more than £19m towards coronavirus protection claims since the start of the pandemic, according to data from the mutual released to coincide with the second anniversary of the UK’s first lockdown.

The insurer paid its first Covid-related claim on 16 March 2020 and up to 15 March 2022 has paid nearly 2,000 pandemic-related claims.

This figure includes 1,400 death claims totalling £18m, with the youngest claimant just 32 years old and an average age of 64 years. This figure excludes claims for 50 Plus and over 50s life cover non-underwritten policies.

Over the pandemic, LV= has supported 550 Covid-related claims for policyholders with personal sick pay and income protection policies, paying out over £427,000.

The top occupations among claimants were nurses, care assistants, carpenters, warehouse and factory workers. The insurer added it is supporting several income protection claimants through the effects of long-Covid.

More than 300 members have been supported through the insurer’s payment break which is available for up to three months to members experiencing financial distress.

Having introduced the option during the pandemic, last year LV= told Health & Protection it would be making it permanent and did so in February.

Policyholders are still able to claim during a payment break, and there is no requirement to repay missed premiums.

In April 2021, LV= began removing pandemic underwriting restrictions for protection insurance amid an improving death rate across the UK and the successful vaccination programme.

The mutual will now offer life cover up to a 400% loading regardless of vaccination status.

Anna Rogers, head of underwriting and claims at LV=, said: “As we pass the second anniversary of the initial Covid-19 lockdown on 23 March, our claims experience demonstrates the far reaching impact the pandemic has had on our policyholders and families across the UK.

“Not only have people been affected directly by the virus, millions are still dealing with the impact of lockdowns, such as coping with isolation and financial worries.

“We strongly believe that contemporary protection insurance is not only about paying claims; it’s about supporting customers from day one, when they are at their most vulnerable and providing emotional and practical support when they need it.”

 

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