By Michael Schembri
Discrimination in insurance
"It appears that the experiment in industry self-regulation has failed as insurance companies continue to discriminate against homosexual and bisexual men, contrary to the spirit of their own Code of Practice", reports David Patterson in the March edition of the National AIDS Bulletin.
While the insurance industry claims that homosexual men are lying about their sexuality, it doesn't come clean about the whole story. The industry is ignoring the voluntary Code of Practice which it formally agreed to in 1988. According to this code, homosexual men cannot be denied life insurance and income protection insurance solely on the basis of their sexuality.
Any man applying for insurance is asked whether he has visited a prostitute and whether he has sex with other men. On giving an affirmative reply, the applicant can and usually is asked to take an HIV blood test. If the result is negative, according to the code, he should be given cover.
What actually happens is that he is denied cover anyway. This is the reason some gay men lie about their sexuality. Not that this affects the insurance companies: they can disclaim liability if a subsequent claim is made, because of the applicant's misrepresentation.
Patterson quotes Kevin Pike, an AMP official: "There is no way an HIV negative homosexual man with multiple sexual partners practising safer sex would be offered life insurance ..."
So a gay men practising safe sex is denied cover while a heterosexual man not practising safe sex receives insurance cover. Safe sex, which virtually removes the risk of HIV infection, is absolutely discounted.
This situation shows up the problems of industry self-regulation. The Insurance and Superannuation Commission was supposed to monitor adherence to the code. But it did not advertise this role; neither did it solicit complaints. It wasn't provided with the necessary additional funding to carry out monitoring.
The Australian Consumers' Association criticised the self-regulation schemes because of their lack of independence. The Australian Federation of Consumer Organisations refused to participate.
One reason the commission declined to carry out the monitoring is that the code is not enforceable. However, it failed to realise that just collecting data would be useful in order to push for an enforceable code.
Now the Commonwealth Department of Health, Housing and Community Services has commissioned Trowbridge Consulting to collect such data.
It is up to homosexual men to make sure that the inquiry results point clearly to what is going on — the blatant discrimination against them. It is essential that any gay man with reason to complain organisations with details which they can follow up on. The contacts are: Michael Alexander, AFAO legal officer, (02) 283 3222; Anne Scahill, convener, Lesbian and Gay Legal Rights Service, (02) 318 5400; Peter Carroll, Trowbridge Consultants, (02)235 0188.