• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Chapter 2 - disability definition

M

MindFull

Ton up Member
Hello again,
In chapter 2, it states that for occupations where it is easy to become disabled with minor injuries, it is best to use the second definition instead of using own occupation. How does the reclassification help the company (since those occupations would just be moved to another classification and would increase the claims cost for that definition)?

Thanks.
 
Hi,
Consider the example of a professional pianist. Breaking a finger would render the pianist unable to play professionally, and so with an own occupation definition, this would probably lead to an IP claim. However, if the claim definition was the second one (the "suited" occupations), then the pianist could find alternative suited employment, for example, as a piano teacher, and this would not lead to an IP claim.
I hope this helps!
Anna
 
Anna Walklate said:
Hi,
Consider the example of a professional pianist. Breaking a finger would render the pianist unable to play professionally, and so with an own occupation definition, this would probably lead to an IP claim. However, if the claim definition was the second one (the "suited" occupations), then the pianist could find alternative suited employment, for example, as a piano teacher, and this would not lead to an IP claim.
I hope this helps!
Anna
Click to expand...
Hi Anna,
I'm unfamiliar with these types of products but I thought that the policyholder could choose at outset which disability category they would prefer if a claim were to arise. I just figured category 1 would be more expensive.
Thank you!
 
The insurance company will choose what products it wants to offer to applicants - it might decide that insuring a pianist on an own occupation definition is too risky, so will only offer a suited occupation definition. If the insurance company offers a range of definitions, then the applicant can choose, and will pay a premium appropriate to that cover.
 
You must log in or register to reply here.
Back
Top