Aviva to write all individual income protection policies as own occupation

Article date: 21 October 2013

  • Part-time workers (under 16 hours per week) covered as own occupation
  • Own occupation benefit provided for the full life of policy and throughout claims
  • 90 job types to be newly covered as own occupation

Aviva is to underwrite all individual income protection (IP) policies on an own occupation basis, in a bid to simplify income protection cover and ensure as many claims as possible are paid.

The own occupation terms will remain throughout the life of the policy and all claims will be paid on this basis for the full duration of the claim.

The changes will be applied to all new individual IP policies from 21 October 2013, including part-time cases where the customer works fewer than 16 hours a week. Part-time roles of fewer than 16 hours a week are treated differently to full-time jobs by many insurers, so this move is understood to be a first for the industry.

The move builds on Aviva's previous position of writing 95% of policies on an own occupation basis. The latest enhancements are designed to further improve the insurer's already strong payment record of 93.5% of individual income protection claims.

Around 90 job types will be newly underwritten under own occupation terms as a result of the changes. The majority of these occupations are driving roles, but also include specific teaching professions such as PE teacher and music teacher, as well as postal delivery people (see below).

Craig Colton, protection managing director for Aviva says: "We're committed to paying as many claims as possible, so we have decided to make income protection simple and straightforward for all our customers.

With just one definition for all the occupations we cover, anyone who is incapacitated and cannot do the duties of their occupation can be confident they will have a successful claim - regardless of what they do and how many hours they work.        

"Income protection is one of the most useful types of insurance on the market, given that it can provide a regular income right up to retirement. Our average payment term for IP customers is more than nine years, so it's clear to see the benefits it affords. We have an excellent claims payment record at Aviva and by moving to 100% own occupation terms we fully expect to help even more customers if they are unable to work in the future."

The top 10 jobs which will now be covered as own occupation are:

  • HGV Driver
  • Taxi Driver
  • Delivery Driver
  • Driving Instructor
  • Fitness Instructor
  • Bus Driver
  • PE Teacher
  • Postman
  • Paramedic (Driver)
  • Music Teacher

- Ends -

If you are a journalist and would like further information, please contact:

Sarah Poulter : Aviva Press Office : 01904 452828 : 07800 691569 : sarah.poulter@aviva.co.uk

Notes to editors:

Aviva provides insurance, savings and investment products to 34 million customers worldwide.

We are the UK’s largest insurer with over 14 million customers and one of Europe’s leading providers of life and general insurance. We combine strong life insurance, general insurance and asset management businesses under one powerful brand. We are committed to serving our customers well in order to build a stronger, sustainable business, which makes a positive contribution to society, and for which our people are proud to work.

Aviva Plc is in the top 10% of socially responsible companies globally in the Dow Jones Sustainability World Index.  In 2012 we invested £5.7m into our UK communities. One in three of our employees were involved in community investment activities which included giving nearly 30,000 hours.

Aviva is working in partnership with Railway Children through the Aviva Street to School programme to get children living or working on UK streets back into everyday life, especially education. Find out more at www.aviva.co.uk/street-to-school.

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