Very little is more worrying in life than to be diagnosed with a serious or severe illness. Concerns are made a thousand times worse when your insurer tells you that they will not pay out on your critical illness insurance or private health insurance for the Cancer or HIV you are afflicited with.

You are told to peruse sub-clause five of paragraph 328 of the small print, which states that you have been diagnosed with the  wrong sort of cancer. Only tumours below the knee are covered and only the first five days of your treatment will be paid for, and then it is up to you to find the finance.

This situation may sound absurd, although brokers and insurance companies are regulated, this type of procedure continues to carry on. It has been a slow process to freshen up the industry and to ensure consumers get a decent deal.

A short time ago Cancer Backup, a registered charity, emphasizes this problem by organising a large assortment of  shopping surveys, which brought to light some disconcerting facts about the private health insurance industry. It found that of most of the leading insurance companies only PPP gave cover for cancer patients right through the length of their illness. Only the first part of the treatment is covered by the majority of health insurance companies. Treatment or care over a longperiod, such as hormone replacement or chemotherapy is not normally included.

Although brokers and insurers want to finance long term cover for insurance holders with life treatening illnesses, they won’t always make it clear to would be clients, at the time of taking out the policy what they are covered for. It’s a matter of cheap life insurance.

Eeven though both Macmillan Cancer Support and Cancer Backup have been in talks with comparable establishments within the market to lift the standard of sales practices and make the wording of policy documents much clearer, since the report was published two years ago, progress has been slow.

Critical illness cover and private medical insurance  is normally taken out by clients who are relatively robust and healthy. The last thing that crosses their minds is getting cancer. That is why it is so vital to spell out a life insurance policy’s exclusions before they sign up.

A statement of best practice for insurance companies writing and selling medical insurance policies has been modified recently by the Association of British Insurers, which is a much needed step in the right direction.

The trade body has now proposed that insurance companies and providers selling these forms of insurance should prepare typical case studies, which clarifies the conditions when an insurance policy will or will not be paid. Sadly insurers no requirement to adhere to this code, which is voluntary.

Even though the ABI’s initiative is to be appreciated, the best way of explaining an insurance policy is by asking the salesperson to explain the small print.

Furthermore, industry terminology is in spite of everything even now being utilized by insurers to confuse the client. For instance it is wrong to categorize cancer as an acute or chronic illness, argues Cancer Backup. Nevertheless insurance companies are resolute that it should go in the acute group. clients are only told about this when their claim has been rejected.

Even though the  Association of British Insurers have their heart in the right place, the insurance companies can only be made to upgrade their standards by the regulator. Better training of tele sales staff, who sell the majority of the policies, is also long overdue.

More rigorous marketing procedures are crucial with terminology being eliminated. At the end of the day it remains the responsibility of the insurance companies to ensure that their customers are fully aware of the terms of their insurance before they commit themselves.

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