Group IP: Disability Discrimination Act urges insurers to extend cover to HIV
UnumProvident has removed the HIV/AIDS exclusion clause on its group income protection (IP) policies. Previously, incapacity arising from HIV/AIDS was excluded, although customers could opt to remove the exclusion by paying an additional premium.
Now, exclusion-free group IP contracts will become standard issue from the insurer. The changes came into effect on 8 April 2004 and all quotations will now have HIV/AIDS cover automatically included. Similarly, all existing group IP policies will have HIV/AIDS included at the next review date.
Despite UnumProvident's claims that it is progressive and forward thinking in being the first insurer to remove the HIV/AIDS exclusion from its group IP policies, Chris Morgan, managing director of Compass IFA, questioned the reasons behind the move.
"While the decision to withdraw the exclusion of HIV/AIDS on group income protection policies is a good thing, it would appear that the decision has been made because of employment regulation, such as the Disability Discrimination Act (DDA), being put into force," he said.
Morgan added that other insurers are likely to follow UnumProvident's lead, but stressed that forthcoming legislation meant there was no other alternative. "Other insurers are more than likely to follow suit because they have to, as the new legislation coming into force means they cannot afford not to," he said.
From October 2004, HIV/AIDS will be deemed as a disability and therefore full protection from the DDA will be extended to individuals with the illness. For employers, this means that should an individual with HIV or AIDS be dismissed or discriminated against for a reason relating to their disability, the individual may be able to claim discrimination under the DDA.
Similarly, the Data Protection Act means that individuals have the right to decline consent for their employer to be told they have HIV or AIDS. By removing the exclusion, the employer cannot be told that the claim was declined on the basis of exclusion, therefore, the individual's rights remain protected.
Cheryl Stewart, customer services director at UnumProvident, said the decision marked a significant move towards greater social changes regarding discrimination in the workplace. "The move reflects wider social and policy changes designed to stop discrimination against disabled people in the workplace, such as upcoming adjustments to the Disability Discrimination Act and the Data Protection Act," she said.
