CBC has updated an earlier report from Peter Mansbridge on Suicide attempts and insurance: Why you might not be covered. The new report is “Insurance companies reconsider ‘dated’ policies for suicide attempts“. The report starts out by saying; “Canadian insurance companies are changing the wording in their policies and reviewing whether to remove controversial clauses in group and individual benefit plans that exclude coverage for people who try to kill or injure themselves.”
In a previous Blog we talked about the Insurance Industry’s governing body, Canadian Life and Health Insurance Association‘s (CLHIA) purpose of Insurance. As an overall premise, it is important to note the the general purpose of life and health insurance is to provide people with financial and other types of security in the event of unanticipated death, accident or illness.
With people changing the way they see Mental Health are Insurance Companies reconsidering their policies for suicide attempts? If they are considering it, how are the actuaries going to price for such a risk? The companies I spoke with were not considering changing their policies based on the CLHIA guidelines for the general purpose of Insurance.
Canada was a leader in removing the 2 year Mental Health exclusion that was previously in the Employee Benefit Contracts. This exclusion would cover a person suffering from a diagnosed Mental Illness for a maximum of 2 years. Almost 20 years ago that exclusion was removed and Mental Illness is covered as any other illness to age 65 or recovery; based on the definitions of disability in the contract.
It will be interesting to see how the industry responds to the pressure of the media and the people. This is how change is created.
If you wish to review this or other clauses in your contract, please contact me.