INSURANCE

1
INSURANCE HIV/AIDS

• Ms Teboho Motebele
• AIDS Law Project
• Wits university
• Tel [phone]
• Email motebelet_at_law.wits.ac.za
• Website www.alp.org.za

2
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

3
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

4
PROBLEMS FOR PWAs

• 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

5
PROBLEMS FOR PWAs

• 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
  deceaseddebt for the family

6
INDUSTRY INITIATIVES

• Public outcry/ criticism
• Pre test counselling possibly 1st quarter of
  2003
• Mortgage Insurance cover discussion stage
• R150 00
• Legislation

7
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