ABI agreement means genetic test results cannot affect policies for five years
Genetic test results will have no bearing on the sale of insurance policies for the next five years, following an announcement from the Association of British Insurers (ABI) which has entered an agreement with the Government.
However, life insurer Virgin Direct believes the proposals may not be enough to ensure total confidence and wants a stringent set of guidelines to be introduced in conjunction with the five-year ban.
Andrew Stronach, spokesperson at Virgin Direct, said: 'We have long argued that the usefulness of genetic test results for life insurance purposes was negligible at best, and the only way to restore consumer confidence in an industry seen to be employing 'Big Brother' tactics was to have a robust, legislative moratorium.'
Under the new agreement, consumers can obtain up to £500,000 of life insurance and £300,000 of critical illness, income protection and long term care insurance without disclosing the results of any genetic tests. Currently only 3% of life policies are for over £500,000.
Insurers can ask for tests for Huntington's disease for policies exceeding these amounts, making it the only genetic test approved by the Government's Genetics and Insurance Committee (GAIC) for underwriting life insurance plans.
The moratorium will enable the Government to develop a suitable proposal. Mary Francis, director general of the ABI, said: 'This will enable us to have a rational discussion about the best way forward on genetics and insurance.'
Health minister Lord Philip Hunt welcomed the agreement, saying: 'This will ensure no one is put off having a genetic test because they fear the result may affect their ability to get insurance cover. This is essential because genetic tests can offer important health benefits for many people.'
Lord Hunt warned the insurance industry to abide by the agreement.
He said: 'I want to make it clear that if there is evidence of serious and persistent non-compliance by the insurance industry, the Government is prepared to enforce the moratorium ' through legislation if necessary.'
Main points of the agreement
• A five-year moratorium on the general use of DNA genetic test results by insurers from 1 November 2001.
• Continued use of genetic test results by insurers only when authorised by the GAIC for life policies of over £500,000 and other insurance policies of more than £300,000.
• A review of these financial limits after three years.
• An impartial and independent complaints mechanism.
• Monitoring of ABI companies' compliance with its code and moratorium, with annual publication of the ABI's compliance report.
Source: ABI
