Zurich has revealed that less than 1% of its critical illness claims were declined for non-disclosure last year.
Overall it paid 91% of claims received in 2010 with 8% declined for not meeting the illness definition.
In total the provider paid out £60.3m in benefits to 787 claimants, a slight decrease on the 2009 figures of £62.3m from 814 cases.
Cancer remains the most common condition accounting for half of total critical illness claims paid, followed by heart attack (12%) stroke (7%) and multiple sclerosis (3%).
The small non-disclosure rate is particularly significant as the industry has been working hard over the last few years, particularly at the underwriting stage, to reduce this problem.
Phil Brown, underwriting and claims director at Zurich UK Life, was pleased with the figures and said it was important for the industry to pay valid claims as quickly as possible.
"While we have seen a small reduction in the amount of claims paid this year, the proportion of claims received where we have paid out benefits is higher with overall claim numbers and value remaining similar."
"The fact that the vast majority of claims continue to be paid should help bolster consumer confidence in the industry as well raising awareness of the benefits of having some form of mortgage or family protection in place," he added.
