British insurers have promised to pay out on life insurance claims where consumers have mistakenly filled out forms wrong.

The Association of British Insurers said their members would no longer reject claims where medical information had not been disclosed, except in cases where it was deliberate.

Insurers will now pay customers a ‘fair sum', based on risk and the premiums paid.

“Customers want to know that their life insurance claim will always be assessed fairly and paid without fuss,” said ABI director general Stephen Haddrill.

“The industry wants customers to be able to take out insurance with confidence. Today insurers have signed up to ensuring both of these happen. The number of protection claims that are turned down will fall.”

There had been several well-publicised cases of insurers refusing to pay out on life insurance policies, and many in the industry felt that the consumer was beginning to lose trust.