INSURANCE & HIV/AIDS

Ms Teboho MotebeleAIDS Law ProjectWits university

Tel: 27 11 717 8636Email:

motebelet@law.wits.ac.zaWebsite: www.alp.org.za

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 PracticeAvailable 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/ criticism1. 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