Incapacity definition

The policy clause that sets the test of being unable to work that a claim must pass.

Every income protection claim is assessed against the incapacity definition in the policy wording — own occupation, suited occupation or any occupation — using medical evidence of what you can no longer do. Because the definition, not the diagnosis, decides the claim, insurers quote it in their decision letters and the Financial Ombudsman Service quotes it verbatim in published decisions. Some group schemes step the definition down after a set period on claim.

Guides that use this term

• What is income protection insurance, and how does it work in the UK?
• Group income protection explained
• Own occupation, suited occupation and any occupation definitions
• Do income protection policies pay out?
• How much does income protection cost in the UK?
• What is business protection, and which businesses need it?