Shepherds Friendly paid 97% of its income protection claims in 2016.
The three most common reasons to make a claim were back pain, depression and broken bokes from accidents.
Kim Harris, managing director of Shepherds Friendly, said: “We’re committed to providing straightforward and flexible cover to ensure that our members are protected if the worst should happen.
“Knowing that an insurer has a strong claims payment record gives members the peace of mind that their cover will support them if they need to make a claim.
“We pride ourselves on being able to help our members when they need us and as well as paying 97% of claims we also offer access to a valuable network of support services when you are unable to work due to sickness or injury.”
Regarding the claims that weren’t paid, the mutual said they were made up of people not going ahead with claims, people failing to disclose medical details at the time of application as well as fraud and failing to comply with terms and conditions.