Insurance Denial on the Basis of Intellectual Disability is Discrimination
The NHRCK stipulated that an insurance company should not reject insurance application of an individual with intellectual disability grade 3, on the ground ‘of an insane person’ or ‘of a mentally incompetent’ in Article 732 of the Commercial Act. The NHRCK recommended the insurance company to review the insurance application of the person with intellectual disability in accordance with the Disability Discrimination Act and to provide a human rights training to the staff members.
In June 2010, a woman requested an investigation into the insurance denial case for her son with the intellectual disability. The company refused to insure her son, claiming that the intellectual disability grade 3 was classified as ‘an insane person’ or ‘a mentally incompetent’ in Article 732 of the Commercial Act. However, the particular clause was intended to protect the vulnerable by preventing possible moral hazard of the insurance provider.
In the similar precedent cases, the NHRCK viewed that a range of factors such as the degree of disability, causes, current status, and environment should be taken into consideration. In 2005, the NHRCK proposed to delete Article 732 of the Commercial Act as its vagueness limited insurance applications of the intellectually disabled, against the intention of the law.
