L&G Pays Out £1 Million in Group Income Protection

Legal & General, a provider of various investment and insurance services, announced it has already paid more than £1 million in group income protection early notification.

Let us remind that this scheme has been introduced by Legal & General 5 years ago and is open for any company that is ready to insure 250 employees or more. In case the employer reports at least 80% of absences earlier than by the 6th week absence, L&G pays a bonus 5% of annual premium.

In Great Britain, 68 companies have signed up for this group income protection programme and benefitted from it.

Mrs. Vanessa Sallows, claims and medical underwriting director at Legal & General, said that this scheme helped the insurance company manage several issues:

• drive down notification period to 9 weeks (from 19.1 weeks)
• make 73% absentees return to work
• identify long-term and short-term absences early
• give employers more control over staff.

She added that this approach (involvement of an independent body) helps eliminate any persona; issues between employees and employers.