Request for comment on proposed inquiry: Insurance discrimination, depression and anxiety disorders
Issued by : Dr Sev Ozdowski OAM, Disability Discrimination Commissioner
6 July 2001
Responses requested by 10 August 2001
Preferred response address: disabdis@humanrights.gov.au
I have been asked (by the Mental Health Council of Australia and the national depression initiative "beyondblue") to inquire into reports that people who have experienced a depressive illness or anxiety disorder are refused cover for insurance, in particular life insurance, disability and income protection insurance, health insurance, travel insurance, and loan protection insurance, or are offered cover only at very substantially higher premiums.
I am seeking comments (from consumers, industry and other interested parties) on proposed terms of reference, before asking the Human Rights and Equal Opportunity Commission to decide whether and in what terms to authorise me to conduct such an inquiry.
Comments on whether the proposed terms of reference are appropriate, or whether any additional issues ought to be examined, are requested by 10 August 2001. Comments may be made by email to disabdis@humanrights.gov.au or by mail to Disability Rights Unit, Human Rights and Equal Opportunity Commission, GPO Box 5218 Sydney 2001.
The proposed inquiry is not an inquiry into a formal complaint under the Disability Discrimination Act. However, material gathered in this inquiry may inform decisions by the President of the Commission in dealing with complaints which might be made in future on this subject. It may also assist consumers, industry or other interested parties to identify means of resolving issues in this area, so as to avoid a need to make or to defend complaints under the Disability Discrimination Act (or other applicable legislation).
Discrimination in relation to insurance is unlawful under the Disability Discrimination Act. This is subject to an exception where distinctions made (either in refusing insurance or in the terms and conditions on which insurance is offered or provided are reasonable, having regard to any available actuarial or statistical data and to any other relevant factors.
I propose the following issues for comment.
- Are people who have experienced a depressive illness or an anxiety disorder being refused insurance coverage or offered cover only on less favourable terms? If so, in what areas of insurance?
- What statistical or actuarial data is available to support refusal of cover or higher premiums on the basis of depression or anxiety?
- How far does this data distinguish between different types, severity or currency of depressive illness or anxiety disorder?
- How far does the practice of insurers distinguish between different types, severity or currency of these illnesses?
- Are distinctions in insurance operating as a disincentive to seek treatment? If so, how might such disincentives be avoided?
- What distinctions in insurance on the basis of depression or anxiety ought to be regarded as reasonable for the purposes of discrimination legislation?
- Should HREOC make any revisions to its guidelines on insurance and disability discrimination?
- Is coverage being refused, or offered only at substantially higher premiums, in situations which might instead be managed by use of appropriate exclusion clauses?
- Are there any models available of best practice industry policies or procedures in this area ?
I emphasise that at this stage comments are requested only on whether these terms of reference are appropriate for inquiry by the Commission or should be added to or changed. Once the Commission commenced such an inquiry, there would be further opportunities for interested parties to contribute views and information on the substance of these issues, by way of submissions and (if appropriate and to the extent resources permit) by way of face to face discussion.
Dr Sev Ozdowski OAM
Disability Discrimination Commissioner