MAS reminds insurers about guidelines on fair practices for PWDs

MAS said efforts will be made to withdraw the reservation on Article 25(e) of the UN Convention on the Rights of Persons with Disabilities.

Whilst insurers are discouraged from indiscriminately rejecting applications based on disabilities or mental health conditions, they are not prohibited from declining applications, setting higher premiums, or applying appropriate conditions based on risk assessments.

In health insurance, risk assessments consider factors such as medical history, health condition, and risks arising from known conditions.

In response to a parliamentary question regarding guidelines for insurers to adopt fair and responsible practices towards persons with disabilities (PWDs) and those with mental health conditions, Lawrence Wong, Deputy Prime Minister and Minister for Finance, and Chairman of the Monetary Authority of Singapore (MAS) clarified the guidelines for PWD.

The government intends to withdraw the reservation placed on Article 25(e) of the UN Convention on the Rights of Persons with Disabilities.

In December 2022, MAS issued a consultation paper on guidelines for financial institutions, including insurers, on fair practices towards customers, including those with disabilities and mental health conditions.

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Proposed guidelines emphasise that insurers should not reject applications solely based on declared personal information such as a disability or mental health condition.

Objective assessment of every application is expected, relying on reliable information or data relevant to the risks being insured.

MAS is carefully reviewing feedback received on the proposed guidelines. The intention is to finalise and issue the guidelines by the middle of the next year.

Following the issuance of the guidelines, efforts will be made to withdraw the reservation on Article 25(e) of the UN Convention on the Rights of Persons with Disabilities.