INSURANCE & HIV/AIDS Ms Teboho Motebele AIDS Law Project Wits

INSURANCE & HIV/AIDS Ms Teboho Motebele AIDS Law Project Wits university Tel: 27 11 717 8636 Email: [email protected]

TYPES OF COVER LIFE COVER – benefit paid for life event – eg death ASSISTANCE COVER – eg funeral cover DISABILITY – physical & mental impairment HEALTH – Hospital, Major medical, Emergency transport, Dread disease

LOA PROTOCOL 1988 - HIV testing –pre/ post test counselling – No cover for HIV – AIDS exlusions Present Practice Available cover – Inception HIV testing – no exclusion – No testing, HIV excluded – No testing – very low cover – Testing at renewal intervals – HIV/AIDS specific cover – R50 000

PROBLEMS FOR PWA’s Informed Consent/ Pre test Counselling Blanket refusal of life cover No insurance no access to home loans Wildey worded AIDS exclusion clauses e.g Denial of liability where insured was HIV positive regardless of cause of death Interval HIV testing – suddenly with no life cover home loan at risk possibility of eviction

PROBLEMS FOR PWA’s Funeral policies -AVBOB – Target market - poor, less informed and educated, most vulnerable to HIV infection – extensive misleading advertising – no medical examination - not alerting potential clients to AIDS exclusion – Interpretation: No HIV testing required HIV/AIDS not being an issue – Body snatching refusal to release body of deceased debt for the family

INDUSTRY INITIATIVES Public outcry/ criticism 1. Pre test counselling – possibly 1st quarter of 2003 2. Mortgage Insurance cover – discussion stage R150 00 Legislation

RECOMMENDATIONS National testing policy – pre test counselling, confidentiality – legal requirement Envisaged mortgage cover for HIV supported Hoffman/SAA - PWA NOT the same/risk not the same Funeral Policies – Use of exclusion clauses Accurate advertising & Consumer education Brokers – – Training – Penalty for misconduct – Insurer liability