HIV/AIDS & FUNERAL BENEFITS

1. HIV/AIDS & FUNERAL BENEFITS Ms Teboho Motebele AIDS Law Project CALS - Wits University Tel: (011) 717- 8600 Email:motebelet@law.wits.ac.za Website: www.alp.org.za

2. ACCESS TO FINANCIAL SERVICES HIV/AIDS Based Discrimination • Funeral Insurance • Life Insurance • Disability Insurance • Health Insurance • Home Loans

3. ACCESS TO FINANCIAL SERVICES HIV/AIDS Based Discrimination • Positive response to criticism BUT • Proper Pre- & Post HIV Test Counselling • Historical Exclusions • Access to Housing • Abuses: Funeral Insurance

4. FUNERAL INSURANCE • Funeral Insurance necessary • To defray cost of funeral • To ensure that loved ones are buried with dignity • “universal social imperatives” (LOA Code of Good Conduct: Assistance Business) • Funeral costs unaffordable (R5 000 –R10 000) • AVBOB MUTUAL ASSURANCE SOCIETY

5. WHY FOCUS ON AVBOB • MARKET LEADER • SPECIALIST • funeral insurance • funeral service • funeral products • over 82 years of experience • 180 BRANCHES

6. AVBOB's PROMISE • “THERE WHEN YOU NEED US” • Low premium – affordability • All-in-one service including: • Collection of body • FREE Storage at AVBOB’S mortuaries • Death certificate • Announcement on local radio & Newspaper • Grave site/ cremation • Complete Funeral Service Arrangement

7. AVBOB's PROMISE cont… • No medical examination necessary • Interpretation: No HIV testing required = HIV/AIDS not an issue • Medical questions limited to the Applicant • Interpretation: cover extended to spouse & children even if HIV positive • Funeral Service conducted before claim is finalised

8. ISSUES OF CONCERN • MISLEADING ADVERTISING Target market – • Poor most in need of insurance • less informed and educated • most vulnerable to HIV infection No medical examination No HIV testing required Medical questioner only for Applicant INTERPRETED = HIV/AIDS not an issue

9. ISSUES OF CONCERNcont… • AIDS EXCLUSIONS • Limiting benefit to surrender value or refund of premiums, or • Waiting period of 3 years for HIV/AIDS related death • Applicable regardless of when infected i.e pre or post application • No longer in use since October 2001 • What about pre October 2001 policies??

10. ISSUES OF CONCERN cont… • FUNERAL SERVICE CONDUCTED BEFORE CLAIM IS FINALISED Sarah’s Story • Took out policy in July 2001 • April 2002 died after a short illness • As part of the services offered her body was taken to AVBOB’s mortuary for storage • Funeral claim rejected – AIDS Exclusion Clause • AVBOB refused to release body until family pays R5 000 for storing the body – family unable to • Intervention by the AIDS Consortium – body released 15 minutes before burial

11. ISSUES OF CONCERN cont… • AVBOB’S MEDICAL QUESTIONNAIRE • Intended to exclude HIV/AIDS • Questions re height& weight Petru’s story – “too thin for her height” • Specific questions re treatment for HIV or STD – no other medical condition • Confidentiality (essentially disclosing to broker) • Stigma & discrimination • Non disclosure = repudiation • Waiver of right to privacy • AVBOB to share information collected with other insurers

12. UNFAIR DISCRIMINATION • CONSTITUTION • Equality – not be discriminated against • Dignity & • Privacy • HOFFMAN/ SAA • Unfair discrimination based on HIV status impairs dignity

13. RECOMMENDATIONS REGULATION OF INDUSTRY NECESSARY • HIV/AIDS based discrimination • HIV/AIDS = Other life threatening diseases • LOA - cover for less than R20 000 need not discriminate • Accurate advertising • Exclusion clauses • Liability if claim repudiated • Training of brokers • HIV/AIDS limitations in policies • Confidentiality