Mental and Physical Health: Insurance

Lord Blunkett Excerpts

Tuesday 12th September 2017 Lords Chamber

Asked by

[Lord Blunkett]

To ask Her Majesty’s Government what steps they are taking to ensure that mental and physical health conditions in the health insurance market are treated equally.

[Lord Blunkett (Lab)]

My Lords, in asking this Question, I draw attention to the fact that I have a personal interest.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, it is for private health insurers to decide the cover they offer for different types of conditions. However, the Government are determined that insurers treat customers fairly. Under the requirements set out by the Financial Conduct Authority, consumers should be widely protected, including in the health insurance market. Furthermore, where a condition is classed as a disability, equalities legislation places specific obligations on insurers to prevent unlawful discrimination.

[Lord Blunkett]

My Lords, I am grateful to the Minister. This is a Question not about private health provision for individuals but about cover for primary care professionals indisposed by illness or accident, where alternative staffing is required. Does he agree that it is totally unacceptable for a policy to be enunciated or, as in this case, unilaterally altered so that requirements for the practice entail, where stress or mental health is concerned, a psychiatrist and/or a consultant psychologist to be engaged within the first eight weeks in relation to cover? It is not only impractical but impossible to fulfil such a requirement, it is totally against normal clinical practice, and it clearly engages discrimination against those suffering from stress or mental ill health. Will the Minister consider asking the brokers’ association to issue a code of guidance so that insurers of this kind are not taken on in the future?

[Lord Bates]

I am very grateful to the noble Lord for his characteristic courtesy in giving me advance notice of the context of the Question he raised today. Although the situation he describes would obviously cause concern, I remind him, as I said, that the Financial Conduct Authority—the regulator of the insurance brokers and potentially of the insurance company—has certain duties under the FCA rules, but also under equalities legislation, to behave in an appropriate way in these matters. Where there are complaints, there is a route to take the matter up not only with the FCA—and I encourage the noble Lord to make these facts available to it—but with the financial ombudsman.