Mental Health and Insurance Project
In contemporary Australian society, holding a suite of private insurance policies is the norm; compulsory third party insurance is incorporated into car registration fees, superannuation funds often come with accompanying life insurance schemes, private health cover is available for the individual, and for Australian’s wanting additional security for their finances or possessions, a whole raft of policies are available. Advertising and marketing campaigns frequently tell us that all these insurance options are available at limited cost, with minimal effort or disclosure of personal details, and often without requiring a medical examination.
Unfortunately many Australians who have at some stage experienced a mental illness are not afforded the same access to insurance products as those who have not experienced mental illness. Australians with experience of mental illness often endure increased premiums, excessive restrictions on their policies and outright rejection of their applications and claims when a history of mental illness is disclosed.
To ensure fairness and equity for people experiencing mental illness seeking insurance products, the MHCA and beyondblue began working in collaboration with a number of insurance and mental health sector representatives in 2001 with the aim of improving insurance outcomes for Australians living with mental illness.
From 2003 until 2011, the MHCA was a member of the first Memorandum of Understanding (MoU) between the Investment and Financial Services Association (IFSA) (now the Financial Services Council) and mental health sector stakeholders. This MoU group was established in recognition of the issues faced by Australians living with mental illness in obtaining life insurance products, and served to improve communication cross-sectorally. It also led to a series of publications aimed at both improving underwriting practices and claims treatment in respect to mental illness, and educating the broader community about their rights and responsibilities when applying for insurance, or making claims against their policies.
More recently in September 2011, the MHCA attended the Insurance Reform Advisory Group (IRAG) meeting chaired by the Assistant Treasurer and Minister for Financial Services, the Hon Bill Shorten MP and committed to participating in a time-limited Working Party of government, insurance and mental health sector representatives to investigate:
- Improving and increasing education and awareness about mental health and insurance processes across all insurance types for: consumers and carers; insurance, superannuation and financial planning sector staff; mental health professionals; and the general community;
- Standardising mental health conditions and how they are categorised for the insurance industry;
- The development and adoption of voluntary guidelines; and
- The development of a more effective complaints process.
In addition to this work, the MHCA and beyondblue will be launching a website in late 2011 that is designed to connect mental health consumers and carers to information about mental illness and insurance, their rights and responsibilities, options for complaints and appeals and any other developments in this area.
For more information about the Mental Health and Insurance Project contact Project and Policy Officer, Kate Judd.
